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Benefits & Administration |
Research Finds Little Cost Difference from Auto-Enrollment |
By increasing defined contribution (DC)
retirement plan participation, automatic enrollment likely increases employer
compensation costs as previously unenrolled workers receive matching retirement
plan contributions, but researchers have found this not to be true. A report
suggests employers that use automatic enrollment in their defined contribution
retirement plans may be using deferral and match rates that offset the costs of
higher participation.Read more > |
Employers Want to Help with Retirement Health Costs |
Employers are taking a number of steps relating
to health care costs to improve the retirement readiness of their current
employees, a survey from Towers Watson finds. Employers are offering account-based
health plans (ABHPs) (65%); educating employees and retirees about the cost
they will incur beyond the employer subsidy (53%); promoting health, wellness
and disease management programs to help retirees improve health and reduce
out-of-pocket costs (49%); and offering financial planning resources and
decision support tools to help employees understand and plan for the cost of
medical coverage during retirement (41%). While employers want to maintain the
promise of retiree health benefits to employees, a number of forces are
influencing them to change their approach.Read more > |
Paper Highlights ROI for Financial Education |
An analysis from Purchasing Power, a voluntary
benefits provider, suggests employers that invest in workplace financial
education programs can eliminate employee stress and boost productivity—but
strong outcomes require in-depth education programs that promote lifelong
financial planning skills. “Employers may introduce a new benefit or two that
put a Band-Aid on their employees’ financial stress or help with a short-term
financial issue, but only a financial wellness education program is going to
address the real problems and begin to change behavior,” says Elizabeth Halkos,
chief revenue officer at Purchasing Power.Read more > |
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Economic Events |
The U.S. Census Bureau of the Department of
Commerce announced that construction spending during January was estimated at a
seasonally adjusted annual rate of $971.4 billion, 1.1% below the revised December
estimate of $982.0 billion. The January figure is 1.8% above the January 2014 estimate
of $954.6 billion. |