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| Benefits & Administration |
| Tangible Retirement Messaging Drives Better Outcomes |
| When it comes to workplace retirement planning
and inspiring plan participants to improve their outlook, simpler messaging is
often the most effective, says Stuart Robertson of ShareBuilder 401k. According
to Robertson, just a $500 increase in annual savings can result in an extra
$110,000 over a 40-year time horizon. Discussing the savings math with
PLANSPONSOR, Robertson noted that a $500 increase matches the Internal Revenue
Service (IRS) deferral limit increase scheduled for plan year 2015.Read more > |
| Empower Finds Four Drivers to Lifetime Income Success |
| Americans are on track to replace 58% of current
income in retirement, and four factors can help increase that number
dramatically, according to Empower’s 2015 Lifetime Income Score research. The
58% replacement rate (including Social Security), found in the fifth edition of
this research, is a slight dip from last year’s reading of 61%. Although the
research covering 4,000 Americans found that lifetime income scores—the
trajectory to replace current income in retirement—are driven much more
powerfully by savings behavior than by income level, Empower’s research found
there were four factors that had the most influence on retirement preparedness.Read more > |
| CDHP Cost-Saving Not Just a One-Time Event |
| Health care cost growth among firms offering a
consumer-directed health plan (CDHP) is significantly lower in each of the
first three years after offer, according to a research paper published by the
National Bureau of Economic Research. Using data from 13 million individuals in
54 large U.S. firms, the research results suggest that—at least at large
employers—the impact of CDHPs persists and is not just a one-time reduction in
spending. However, researchers did find the decrease in spending may be smaller
in year three compared to year one post-offer.Read more > |
| Multiemployer Plans Need Consistent Returns to Fully Rebound |
| Multiemployer plans have not fully rebounded
from the 2008 financial crisis because returns have not kept pace with growth
in liabilities, according to Milliman. The overall funding shortfall for all
U.S. multiemployer plans increased by $5 billion for the year ending December
31, 2014, while the aggregate funded percentage decreased slightly, from 81% to
80%.Read more > |
