Current Events in June 2016

If you hate your job, no doubt you're looking forward to retirement. But plenty of people like what they do.

That fact, a longer life expectancy, and a need to earn income longer is leading roughly one out of four of U.S. employees to say they don't expect to retire until they are 70 years old. The difference is, some are happy about it – others aren't.

The Global Benefits Attitudes Survey of nearly 5,100 U.S. employees, conducted by the firm Willis Towers Watson, found another 5% of employees don't ever expect to retire. Even a large number of those who expect to retire at 65 say there's a 50-50 chance they'll still be working by age 70.

“Although their financial situation has improved over the past few years, many workers remain worried about their long-term financial stability,” said Steven Nyce, a senior economist at Willis Towers Watson.

Not doing it because they want to

Nyce says he thinks most of those who plan to work longer aren't doing so voluntarily. He chalks it up to inadequate savings or higher-than-expected expenses later in life. He also says a surprising number of employees are counting on their employers helping by providing some early retirement incentives.

People generally are living longer and are in better health, so it might not be unusual that more people expect to work until 70. But the survey shows those who plan to keep working past 65 are less healthy, more stressed, and more likely to not like their jobs.

Incentives to work longer

It may be true that a growing number of employees feel they must keep working beyond 65, but there are also plenty who are doing it voluntarily. Social Security provides an incentive to do so, paying the largest benefit to those who wait until age 70 to begin drawing it.

In recent years, financial planners have made a point of advising people to wait as long as possible before tapping into benefits, pointing out that waiting until age 70 would increase benefits 32% than at age 66.

And they appear to be doing it. The survey found that, over the last two decades, the percentage of men in the U.S. who are working past age 65 has grown from 15% to 22%.

California Attorney General Kamala Harris thinks the largest national accrediting agency for degree-granting institutions should lose its accreditation.

Harris has written the U.S. Department of Education, urging it to revoke federal recognition of the Accrediting Council for Independent Colleges and Schools (ACICS), which among its other accomplishments accedited the now-defunct Corinthian Colleges, Inc., which left tens of thousands of students with useless degrees and millions of dollars in debts.

“The predatory scheme devised by executives at Corinthian Colleges, Inc. was unconscionable. And despite enforcement actions by the California Department of Justice and the federal government against Corinthian, ACICS continued to accredit Corinthian, hurting thousands of students in the process,” Harris said. “Students relied on Corinthian’s accreditation status, believing they were obtaining a high quality-education with real job prospects."

ACICS boasts of accrediting more colleges than any other agency but a quick perusal of its roster finds that most of them are small vocational training institutions, offering certificates and associate degrees in such fields as dental assistance and office management. 

Harris joins 13 other state AGs who are opposing the renewal of ACICS as an accreditation agency. Harris and 10 other AGs are also calling for tougher standards for college recruiters on military bases.

Parents magazine recently teamed up with Edmunds.com to come up with their 10 “Best Family Cars of 2016” list. Together, the parenting and automotive experts evaluated hundreds of cars looking for the most versatile, economical, and family-friendly cars out there.

The family vehicle isn’t simply a means of getting from point A to point B, asserts Parents Editor-in-Chief Dana Points. Rather, it’s an extension of home for families — “the place where we rehash our days, eat on-the-go meals, and spend quality time together.”

For this reason, Points believes it’s important that parents feel confident in their car’s safety functions. This year’s picks, she adds, also highlight features that keep the ride fun and relaxing for everyone.

Without further ado, here is Parents and Edmunds’ list of the 10 “Best Family Cars of 2016."

Best family vehicles

The list appears in the July issue of Parents magazine and includes the starting prices of each vehicle.

• Best budget vehicle — Kia Soul ($15,800)
• Best green car — Chevrolet Volt ($25,720; after $7,500 federal tax credit)
• Best hatchback — Mazda 3 ($18,545)
• Best small sedan — Honda Civic ($18,640)
• Best sedan — Kia Optima ($21,990)
• Best wagon — Subaru Outback ($24,995)
• Best crossovers — Hyundai Tucson ($22,700) and Nissan Murano ($29,660)
• Best minivan — Toyota Sienna ($28,850)
• Best SUV — Honda Pilot ($30,145)

The price of oil has approached $50 a barrel in recent days, a recent high but only half of what it was nearly two years ago.

In that time, consumers and businesses have enjoyed low fuel prices, reducing the cost of a fill-up, as well as drastically reducing businesses' transportation costs.

Oddly, the expected benefit from that to the economy hasn't shown up. Consumer spending has ticked up slightly, but much of that is attributed to a belated rise in wages.

Now, an economic team at Citigroup has issued a report saying it is hard-pressed to find evidence of lower oil prices benefiting businesses. In a note quoted by Bloomberg News, Citigroup Chief Global Equity Strategist Robert Buckland and Strategist Mert Genc said that even though companies are spending less on energy, it isn't helping the bottom line.

"Investors were hoping that lower oil prices would boost earnings expectations in other consumer-oriented sectors, even if with a lag," the team wrote. "But these upgrades never really came through."

Airline profits have been among the strongest, helped no doubt by lower fuel costs. But industry analysts have attributed the strength to heavier passenger loads, as well as fees that continue to supplement fares.

Consumers not spending that much

With more money in consumers' pockets, there was some expectation that retail and consumer discretionary businesses would thrive. But retail profits have struggled and consumer spending hasn't lived up to expectations.

What are consumers doing with the money they save at the gas pump? The Citigroup analysts point out that the savings rate has increased in recent months, suggesting consumers are using the break to build up their rainy day funds.

One sector of the economy does appear to be attracting some of the dollars consumers are saving on fuel: the auto industry. At the end of last year Kelley Blue Book's Karl Brauer noted that car and truck sales had surpassed recovery mode and moved into record territory.

While some predicted car sales would level off in January, they continued to rise each month until May, when they dipped slightly.  

Osprey Child Safety Products of Cortez, Colo., is recalling about 31,000 child backpack carriers.

A cut in the plastic buckle on the shoulder strap can cause the shoulder strap to release, posing a fall hazard to a child in the carrier.

No incidents or injuries are reported.

This recall involves the Poco AG, Poco AG Plus and Poco AG Premium model child backpack carriers. These nylon carriers come in seaside blue, ivy green and black, with a metal frame and a gray padded child’s seat inside. The back of the carrier also has an upper zippered pocket and a lower zipped compartment, along with a stretch pocket in the middle.

The production date code identifying when the carrier was manufactured is stamped on a black label sewn in the interior of the large lower zippered compartment in the back of the carrier. Recalled carriers have a production date code of S16SB03, S16SB04, S16SB05, S16SB06 or S16SB07. “Osprey” is printed on the back at the top of the carrier. The model name is printed on the back at the bottom.

The carriers, manufactured in Vietnam, were sold at REI and specialty outdoor retailers nationwide and online at amazon.com and rei.com from January 2016, through May 2016, for between $250 and $330.

What to do

Consumers should immediately inspect the buckles on both straps of the carrier harness to determine if there is a cut in the plastic buckle on one or both straps. If the buckle is cut, consumers should immediately stop using the carrier and contact Osprey for a free replacement or full refund.

Consumers also may contact Osprey and return the carrier for inspection. If the buckle is cut, consumers will receive a replacement or full refund.  

Consumers may contact Osprey at 800-303-1350 from 8 a.m. to 5 p.m. (MT) Monday through Friday, by email at pocosupport@ospreypacks.com or online at www.ospreypacks.com and click on “Poco AG Safety Notice” for more information.

Volkswagen Group of America is recalling 217,000 model year 2004-2008 Audi A4, and 2005-2011 Audi A6 vehicles originally sold, or ever registered, in Alabama, California, Florida, Georgia, Hawaii, Louisiana, Mississippi, South Carolina, Texas, Puerto Rico, American Samoa, Guam, the Northern Mariana Islands (Saipan), and the U.S. Virgin Islands, or "Zone A."

Additionally, unless included in "Zone A" above, Volkswagen is recalling certain model year 2004-2008 Audi A4, and 2005-2008 Audi A6 vehicles originally sold, or ever registered, in Arizona, Arkansas, Delaware, District of Columbia, Illinois, Indiana, Kansas, Kentucky, Maryland, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Virginia, and West Virginia, or "Zone B."

Lastly, unless included in "Zone A" or "Zone B" above, Volkswagen is recalling model year 2004 Audi A4 vehicles originally sold, or registered, in Alaska, Colorado, Connecticut, Idaho, Iowa, Maine, Massachusetts, Michigan, Minnesota, Montana, New Hampshire, New York, North Dakota, Oregon, Rhode Island, South Dakota, Utah, Vermont, Washington, Wisconsin, and Wyoming.

These vehicles are equipped with certain air bag inflators assembled as part of the passenger frontal airbag modules, and used as original equipment or replacement equipment. In the event of a crash necessitating deployment of the front air bags, these inflators may rupture due to propellant degradation occurring after long-term exposure to absolute humidity and temperature cycling.

An inflator rupture may result in metal fragments striking the vehicle occupants resulting in serious injury or death.

What to do

Audi will notify owners, and dealers will replace the passenger frontal air bag inflator, free of charge. The manufacturer has not yet provided a notification schedule.

Owners may contact Audi customer service at 1-800-822-2834.

Burger’s Ozark Country Cured of  California, Mo., is recalling approximately 150 pounds of pulled pork products.

The product package has the correct label on the front, but an incorrect label for a beef brisket product on the back.

There have been no confirmed reports of adverse reactions.

The following product, produced and packaged on January 26, 2016, is being recalled:

• 1-lb. microwaveable tray packages containing “Burger’s Smokehouse Signature Sauce Seasoned Pulled Pork with Barbeque Sauce.”

The recalled product bears establishment number “EST. 1161” inside the USDA mark of inspection and contains case code P816W with a use by/freeze by date of August 13, 2016, and was shipped to retail locations in Missouri.

What to do

Consumers with questions about the recall may contact Austin Mouse at (573)-796-3134 ext. 344.

General Motors is recalling 500,000 model year 2007-2008 Cadillac Escalades; Escalade ESVs;, Escalade EXTs; Chevrolet Avalanches; Silverado 1500s; Suburbans; Tahoes; GMC Sierra 1500s; Yukons; and Yukon XLs originally sold, or ever registered, in Arizona, Arkansas, Delaware, District of Columbia, Illinois, Indiana, Kansas, Kentucky, Maryland, Missouri, Nebraska, Nevada, New Jersey, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, Virginia, and West Virginia.

Vehicles not originally sold or ever registered in these states are not subject to this safety recall.

These vehicles are equipped with certain air bag inflators assembled as part of the passenger frontal airbag modules, and used as original equipment or replacement equipment. In the event of a crash necessitating deployment of the front air bags, these inflators may rupture due to propellant degradation occurring after long-term exposure to absolute humidity and temperature cycling.

An inflator rupture may result in metal fragments striking the vehicle occupants resulting in serious injury or death.

What to do

GM has not yet determined a remedy plan nor provided a notification schedule.

Owners may contact Cadillac customer service at 1-800-458-8006, Chevrolet customer service at 1-800-222-1020, or GMC customer service at 1-800-462-8782. GM's number for this recall is 49152.

Troyer Cheese is recalling a limited number of products that may be contaminated with Listeria monocytogenes.

No illnesses have been reported to date.

The following products, sold in packaged bags and marked with Best By dates located on the front or back of the packages, are being recalled:

The products were packaged at Amish Wedding Foods distributed by Troyer Cheese between May 6 and May 24, 2016 in Alabama, Arkansas Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Wisconsin and West Virginia.

What to do

Customers who purchased these products should not consume them, but take them back to the store where they were purchased for a refund or simply discard them.

Consumers with questions may call 1-877-343-1614 Monday through Friday, 8:00 AM to 4:30 PM (EST).

A new report by RealtyTrac, a site specializing in marketing foreclosures, shows that buying and selling properties for profit – a practice known as “flipping” – is increasing.

The company reports that 6.6% of single-family and condo sales in the first quarter of the year qualified as “flips,” meaning they were bought and sold within a 12 month span. That's a 20% increase from the fourth quarter of last year and is up 3% from the first quarter of last year.

Daren Blomquist, senior vice president at RealtyTrac, says flipping dipped a bit in 2014 but has been increasing since then.

“While responsible home flipping is helpful for a housing market, excessive and irresponsible flipping activity can contribute to a home price pressure cooker that overheats a housing market, and we are starting to see evidence of that pressure cooker environment in a handful of markets,” he said.

Those markets include Baltimore, Buffalo, New Orleans, Seattle, and San Diego, among others.

It looks easy on TV

Flipping has been made popular by a number of cable TV reality series, some making it look like an easy way to make money. But if you don't know what you're doing, you can easily lose money.

One of the biggest risks is buying a property that needs more expensive renovation that you planned on. This often happens when someone buys a foreclosure that they have not been able to fully inspect. Once they take possession, they often find structural issues that weren't immediately apparent but must be addressed before the property is resold.

Another risk is financing the flip with borrowed money, with the house taking much longer to sell than anticipated. That was a bigger risk a couple of years ago, but less so now, because of declining inventories.

While flipping is on the increase, it has a long way to go before reaching the record level hit in 2006, just before the housing market crashed. In 2006, 9% of home sales were flips.

Moms-to-be take all sorts of measures to protect the health of their unborn baby, from cutting out alcohol and sushi to popping prenatal vitamins. But could eating more fruit during pregnancy actually create a smarter child?

A new study suggests so. Researchers at the University of Alberta found that mothers who consumed more fruit during pregnancy gave birth to children who performed better on developmental testing at one year of age.

Six or seven servings

Interested to see what factors affect a child’s cognitive development, lead author Piush Mandhane used data from the Canadian Healthy Infant Longitudinal Development (CHILD) Study. Mandhane and his team found that a mom’s fruit intake during pregnancy had a big influence on a child’s IQ.

"The more fruit moms had, the higher their child's cognitive development,” said Mundhane of the study, which examined data from 688 Edmonton children.

Pregnant women who ate six or seven servings of fruit or fruit juice a day gave birth to babies who placed six or seven points higher on the IQ scale at age one.

"It's quite a substantial difference -- that's half of a standard deviation," Mandhane said in a statement. "We know that the longer a child is in the womb, the further they develop--and having one more serving of fruit per day in a mother's diet provides her baby with the same benefit as being born a whole week later."

Same effect in fruit flies

Subsequent experiments attempted to build upon these findings by looking at the way prenatal fruit intake affects fruit flies.

Mundhane teamed up with Francois Bolduc, a researcher of the genetic basis of cognition in humans and fruit flies, to further examine the effects. Similar to the effect in human babies, Buldoc discovered that fruit flies born after being fed increased prenatal fruit juice had significantly better memory ability.

But even in light of these findings, Mundhane cautions against overdoing it in the fruit department. Researchers say too much fruit could create complications such as gestational diabetes and high birthweight, so consult your doctor before filling up on sugary fruit.

The study is published in the journal EbioMedicine.

Alaska Airlines has made a couple of benefit changes to its Visa Signature Card. The credit card no longer carries foreign transaction fees, and bonus miles for new customers have been increased to 30,000, as long as the new cardholders meet the qualifying spending level.

"As we continue to expand our global partnerships and add to our growing list of more than 800 partner destinations worldwide, eliminating foreign transaction fees is the right thing to do for our world-traveling cardholders,” said Sangita Woerner, Alaska's vice president of marketing.

The expanded perks are in addition to the other benefits the card carries, including a free checked bag for the cardholder and six others included in his or her party; three times the miles on Alaska Air purchases; and an annual companion fare for $121.

Alaska Air's mileage plan currently features 17 international and domestic airline partners, flying to more than 800 global destinations. Alaska Air says its mileage plan was rated number one among airline rewards programs by U.S. News.

It should be noted that an airline credit card is probably not the best choice for people who rarely travel by air. While there are other rewards associated with the cards, the most lucrative are associated with air travel.

Other options

For example, the Frontier Airlines Credit Card is another attractive choice. Right off the bat, new cardholders earn 40,000 bonus miles after spending $500 the first 90 days the account is open. Those 40,000 bonus miles are good for two round-trip domestic tickets, subject to availability.

Customers earn double miles per $1 spent on Frontier Airlines purchases and one mile per $1 spent on all other purchases.

Customers earn a $100 Frontier Airlines flight discount voucher after spending $2,500 or more in purchases during the card membership year.

For consumers who do not travel by air that much, a rewards card with a generous cash back feature is the better choice. Here are some options to consider.

U.S.-based employers pulled back sharply in trimming their workforces in May.

Outplacement consultancy Challenger, Gray & Christmas reports announced job cuts totaled 30,157 last month -- down 53% from April and the lowest number of terminations since last December.

So far this year, employers have announced 275,218 job cuts -- up 13% compared to the first five months of 2015.

“May could be the start of a summer slowdown in the pace of job cutting as companies take a pause following the period of heavy downsizing that started the year,” said John A. Challenger, chief executive officer of Challenger, Gray & Christmas. “In general, oil prices have improved somewhat since the beginning of the year, though they are still less than half of what they were at oil’s recent peak. However, the recent gains may be enough to at least temporarily slow job cuts in the sector.”

Energy absorbs the reductions

Monthly job cuts were led by the energy sector, though the May total was down significantly from previous months. Firms in the sector announced another 7,572 terminations in May -- 60% fewer than in April.

They have now announced 75,232 job cuts this year -- up 25% from January through April a year ago.

Most industries saw job cuts decline in May. Among the most significant was the computer industry, where they plunged 83% from April. Reductions also occurred in the financial sector (-68%), and retailing (-75%).

“Of course, not every summer brings a slowdown in job cuts,” said Challenger. “Last July saw announced layoffs soar to a four-year high of 105,696. However, last year’s spike was due primarily to massive troop and civilian cuts in the military. Being an election year, it is unlikely that we will see any major workforce changes at the federal level of the government.”  

The TJX Companies of Framingham, Mass., is recalling about 5,200 foldable lounge chairs

The chairs can collapse unexpectedly, posing a fall and injury hazard.

The company has received 15 reports of injuries from collapsing chairs. Injuries included back and tailbone injuries, one report of a fractured finger, three reports of stitches to fingers and reports of cut, bruised or swollen fingers.

This recall involves T.J. Maxx and Marshalls foldable weatherproof lounge chairs. The chairs are made of an acacia wood frame and striped fabric in two styles: a natural oiled wood frame with red and white stripe fabric or a white gloss frame with blue and white stripe fabric.

The chairs measure about 30 inches high by 42 inches long when unfolded. The style number is printed on the hang tag attached to the chair. “MADE IN VIETNAM” is printed on a label on the bottom of the chair frames.

The following chairs are being recalled:

The chairs, manufactured in Vietnam, were sold at T.J. Maxx and Marshalls stores nationwide during March 2016 for about $40.

What to do

Consumers should immediately stop using the recalled foldable chairs and return them to any T.J. Maxx or Marshalls store for a full refund.

Consumers may contact T.J. Maxx at 800-926-6299 from 9 a.m. to 6 p.m. (ET) Monday through Friday or online at www.tjmaxx.com then click on Product Recalls at the bottom of the page or Marshalls toll-free at 888-627-7425 or online at www.marshallsonline.com and click on Customer Service at the bottom of the page.

Hed Cycling of Roseville, Minn., is recalling about 380 bicycle rims.

The rims can cause the brake pads to wear out unexpectedly, posing a crash hazard to the rider.

The firm has received six reports of accelerated brake pad wear. No injuries have been reported.

This recall involves Ardennes Black and Jet Black rims manufactured between January 1, 2016, and March 15, 2016. Serial numbers beginning with 0116, 0216 or 0316 are printed near the valve hole on the rim.

The rims, manufactured in the U.S., were sold at authorized Hed dealers nationwide and online from January 2016, to March 2016, for between $700 for an individual wheel and $2,400 for a set of wheels.

What to do

Consumers should immediately stop using the recalled rims and contact HED Cycling for replacement instructions.

Consumers may contact HED Cycling toll-free at 888-246-3639 from 9 a.m. to 5 p.m. (CT) Monday through Friday or online at www.HedCycling.com and click on the “Recall Notice” button for more information.

Nissan North America is recalling 79,853 model year 2013-2014 Pathfinders manufactured June 20, 2012, to June. 13, 2013.

The brake light switch may have been installed incorrectly causing the relay to remain in the "ON" position and the brake lights to remain illuminated even when the brakes are not applied. Additionally, the brake light switch may interfere with the brake-shift interlock, allowing the driver to exit the vehicle without the transmission in the "PARK" position.

If the brake lights remain illuminated, other drivers may fail to stop when the vehicle actually brakes, increasing the risk of a crash. If the driver exits the vehicle without the transmission in the "PARK" position, the vehicle may roll away, increasing the risk of injury.

What to do

Nissan will notify owners, and dealers will inspect the brake light switch and, as necessary, replace the relay, free of charge. The recall is expected to begin on July 25, 2016.

Owners may contact Nissan customer service at 1-800-647-7261.

As our loved ones grow older, sometimes hard decisions need to be made about what is the best living situation for their quality of life. While some families have the ability to take care of elderly relatives, limited space and amenities can often force consumers to consider nursing homes as an option.

But are these nursing homes providing the type of care that we should expect? While reviews on these facilities are mixed, a recent study has found that quality of care can decline drastically if your loved one is obese.

Not all nursing homes are equal

What many consumers may not realize is that not all nursing homes are equipped to handle residents who are obese. These individuals often require much more staff attention than non-obese members, usually because they may need help completing daily tasks that they can’t do on their own.

The nursing homes may also need certain equipment to cater to obese members’ needs, such as specialized beds or lifting equipment. These specifications can really limit the number of nursing home choices that obese, older consumers have to work with.

With this in mind, the researchers set out to see if there was any disparity in the quality of care between nursing homes that accepted obese individuals versus those who did not. Over the course of two years, they examined over 164,000 records of obese individuals over the age of 65 who were admitted to a nursing home. Quality of care was measured by the number of deficiency citations that each nursing home received.

Lower quality of care

After examining the data, the researchers concluded that nursing homes that admitted obese members had a lower overall quality of care. These facilities were most likely to have a higher number of deficiencies.

The statistics also revealed the degree of obesity had an impact on care. The researchers found that nursing homes that admitted members who were morbidly obese (having a BMI of 40 or more) were the most likely to have severe deficiencies in care.

The research team hopes that their work will raise awareness for the quality of care in nursing homes, as well as start the conversation on giving equal opportunity to obese, elderly consumers who are looking to gain access to a nursing home.

The full study has been published in the Journal of the American Geriatrics Society.

A class action lawsuit charges that the BMW i3 electric city car turns range anxiety into sheer panic when its optional range extender kicks in, causing the car to go into "limp mode," slowing suddenly to 15 miles per hour.

The range extender -- called "REx" -- is a small two-cylinder engine that acts as a generator, helping to keep the battery charged when it falls below 6.5 percent. 

But lead plaintiff Dean Rollolazo says that instead of extending the little car's range, REx turns it into something more like a golf cart than a car capable of running safely in freeway traffic, Courthouse News Service reported.

BMW sells the optional range extender to relieve drivers' fear that their battery will give up the ghost when they're miles from home. But Rollolazo's suit says the range extender instear produces a "sudden, severe and dangerous loss in power because the range extender does not produce enough power for the vehicle to maintain normal performance."

Madame X

The suit cites an article -- "Why I'm returning my BMW i3 after three months" -- in autoconnectedcar.com written by a woman identified only as Madame X who said her i3 took too long to charge and did not have sufficient range for her to motor around the sprawling Los Angeles area. 

"I’m paying $600 a month on the lease and $125 a month for charging at various stations around town, plus the charging situation is always producing range anxiety," she said. "The last straw came when I was driving back from the Inland Empire, I was in a fast lane on the freeway. I ran out of battery power and the gasoline extension engine started.

"I couldn’t keep up with traffic I had to pull over and drive in the slow lane which produced even more anxiety," Madame X said. 

In its documentation, BMW states that the REx is designed only as an emergency back-up: "The range extender is not intended for daily use. It’s for situations when the driver needs to extend the range of the vehicle to reach the next charging station.” 

The suit was filed by Hagens Berman, a consumer law firm in Seattle.