| | Benefits & Administration | | Health Care Reform Is Transforming Employer Benefits | | As provisions of the Patient Protection and
Affordable Care Act (ACA) have rolled out over the past couple of years, many
companies are making substantial changes to their health benefit offerings,
according to Paul Goldbeck, senior consultant at Towers Watson. Goldbeck told
attendees of the 44th Annual Retirement & Benefits Management Seminar,
hosted by the Darla Moore School of Business at the University of South
Carolina, and co-sponsored by PLANSPONSOR, that the individual mandate and
provision for adult children has resulted in additional employees signing up
for employer plans, and new taxes and fees have also increased costs for
employers. In addition, the ACA added administrative complexity with new
eligibility and reporting requirements as well as rules to coordinate out of
pocket maximums among pharmacy benefit and health plans. “All of this leads
employers to consider whether they want to take a different approach to health
benefits,” Goldbeck said.Read more > | | Many Plan Sponsors Unaware of Fiduciary Responsibilities | | In the past three years, there has been a
decline in retirement plan sponsors’ awareness of their fiduciary
responsibilities, according to research from Alliance Bernstein. More than
one-third (37%) of sponsors aren’t aware that they are fiduciaries, up from 30%
in 2011.Read more > | | Providers Can Help Improve Retirement Plans | | Speakers at the 44th Annual Retirement &
Benefits Management Seminar, hosted by the Darla Moore School of Business at
the University of South Carolina, and co-sponsored by PLANSPONSOR discussed
capabilities retirement plan providers offer for plan design and participant
outcome issues. W. Robert Phillips, senior vice president, Consultant
Relations, BNY Mellon Investment Management, said providers are helping plan
sponsors with trends such as indexation, moving to custom target-date funds (TDFs),
and white-labeling investments. He noted that a lot of fee compression activity
is concentrated on how to get a cheaper investment menu. One way is through
using indexed funds; another way is to use different share classes. But,
Phillips warned, plan sponsors should be careful of what the consequences are;
choosing investments just to lower fees may not be in the best interest of
participants.Read more > |
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