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| Benefits & Administration |
| Company Stock Considerations Depend on Employer Goal |
| A settlement with the Department of Labor (DOL)
regarding an employee stock ownership plan (ESOP) transaction and a Supreme
Court decision that sponsors of retirement plans that offer company stock as an
investment option are not entitled to a presumption of prudence gave ESOP plan
sponsors a few things to contemplate. However, the specific implications depend
on the type of ESOP a plan sponsor has.Read more > |
| Retirement Savings Sacrificed for College Costs |
| Forty-nine percent of parents polled for T. Rowe
Price’s Family Financial Tradeoffs Survey agree with the statement “I’d be
willing to delay my retirement to pay for my kids’ college education.” In
addition, 51% agree with the statement “I’d be willing to get a second or
part-time job to pay for my kids’ college education,” and 53% of parents agree
with the statement “I would rather dip into my retirement savings to pay for my
kids’ college education than have them take on student loans.”Read more > |
| Group pension buy-out sales saw a 120% increase,
reaching $8.5 billion in 2014, compared to the $3.8 billion total in 2013.
Sales in the pension risk transfer buy-out market have exceeded $3.5 billion
for three consecutive years, according to survey results from LIMRA Secure
Retirement Institute. Buy-out contracts increased to 277 last year, up from 217
in 2013.Read more > |
| Employers Exploring New Health Care Delivery Options |
| Employer confidence in private exchanges is
increasing: 17% view private exchanges as a viable alternative for active
full-time workers in 2016. Towers Watson’s 2015 Emerging Trends in Health Care
Survey finds one-quarter of employers (26%) have extensively analyzed private
exchanges, and 20% say they are more interested in adopting a private exchange
today than they were a year ago. Companies that have completed extensive
analysis of private exchanges (versus companies that have not) are twice as
likely to find private exchanges a viable alternative in 2016.Read more > |
