Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 6th, 2015
Benefits & Administration
Employers Relieved by High Court ACA Decision
A Mercer survey of nearly 600 employers finds most are feeling either positive or unconcerned about the Supreme Court’s ruling about health exchange subsidies under the Patient Protection and Affordable Care Act (ACA). Nearly half of employers offering health coverage to their retired workforce (45%) feel “relieved that they will be able to continue steering pre-Medicare retirees to public exchanges now that subsidies are guaranteed.”Read more >
A study from the AARP Public Policy Institute provides insights into employment barriers for people of retirement age. The survey focused on individuals ages 55 to 70 who sought new jobs after a period of unemployment. More than one-quarter (26%) said employers thinking they were too old was a major barrier in finding employment.Read more >
Retirees Might Be Under-Annuitized
Contrary to a widespread fear caused by the shift from defined benefit (DB) to defined contribution (DC) retirement plans, there is little evidence that the annuity-like share of retirees’ total income over the past three decades has, in fact, fallen for aged families, especially for low-income older families, according to a paper from the Center for Retirement Research at Boston College. However, “Do Retired Americans Annuitize Too Little? Trends in the Share of Annuitized Income” contends that many middle- and high-income aged families would experience a jump in monthly income if they annuitized their wealth.Read more >
Products, Deals & People
Tool Helps with Medicare, Social Security Planning
Cowden Associates created ComprehensiveCast, a service to assist employers with guiding current retirees and future retirees (current employees who will retire in the near term) through the complicated world of retiree medical and Social Security optimization strategies. The Retirement ComprehensiveCast portrays customized estimated “all-in” retiree medical costs, an overview of benefit plan options available and Social Security optimization strategies, in a holistic approach to assist in achieving financial stability in retirement.Read more >
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