Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
March 18th, 2015
Benefits & Administration
CRR Weighs Conflicting Retirement Readiness Evidence
Simple and assumption-free calculations of wealth-to-income ratios, broken down by age, “clearly indicate that households retiring in the future will be less prepared than those in the past,” according to a new report from the Center for Retirement Research at Boston College (CRR). This unequivocal finding conflicts with other industry research revealing more favorable retirement readiness trends. According to CRR researchers Alicia Munnell, Matthew Rutledge and Anthony Webb, such research usually factors in questionable behavioral assumptions about how household consumption patterns will change when children leave home and when households retire.Read more >
No Big Health Benefit Enrollment Boost from ACA
The new eligibility requirements mandated by the Patient Protection and Affordable Care Act (ACA) had very little impact on enrollment in employer-sponsored plans in 2015, according to a survey from Mercer. “Employers that had to offer coverage to more employees were braced for a bump in enrollment this year, but they didn’t know how big it would be,” says Tracy Watts, a senior partner and leader for health reform at Mercer. “While some did see increases, for the most part it seems the newly eligible either had coverage through a parent’s or spouse’s plan or through Medicaid—or are continuing to go bare.”Read more >
Products, Deals & People
Prudential Group Insurance, a business of Prudential Financial, introduced a tool that allows employers to measure the financial wellness of their workers. The Prutection Score gauges how financially prepared employees are, should a risk event occur, by looking at the resources available to them—personal funds and insurance coverage—relative to the resources needed. This holistic approach helps employers determine if their employees are in a position to cover their families’ financial needs should they experience a loss of income or financial challenges linked to a critical illness or accident.Read more >