Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 8th, 2015
Benefits & Administration
Self-Funding, Stop-Loss Insurance Gaining Attraction
One could certainly see the attractiveness of fully insured health benefits—employers know their set costs each month and can budget for them, and responsibility for administration and paying claims is handed over to insurance carriers. However, increasing health care costs and requirements of the Patient Protection and Affordable Care Act (ACA) are leading more employers to consider self-funding their health benefits. “In many, if not most, cases, a properly organized self-insurance program with appropriate stop-loss coverage will be cheaper than a fully insured program,” says Joseph Berardo, CEO of MagnaCare, a New York and New Jersey heath care network, based in Red Bank, New Jersey. There are administrative and other fees built into premium costs, he notes.Read more >
Products, Deals & People
International law firm Dorsey & Whitney LLP has named Elizabeth Deckman partner in the benefits and compensation group of its Seattle office. Deckman’s practice focuses on advising companies regarding employee benefits and the Employee Retirement Income Security Act (ERISA).Read more >
Podcast Series Explores Real Estate in DC Plans
The Defined Contribution Real Estate Council (DCREC) launched a podcast series aimed at educating plan sponsors and advisers about the potential benefits and risks of using commercial real estate investments. The first two podcasts in the series are available now and feature David Skinner, portfolio manager and head of the defined contribution practice at Prudential Real Estate Investors, who is also a former co-president of DCREC. According to Skinner, adding commercial real estate to a portfolio can bring improved diversification, stronger risk-adjusted returns and lower overall correlation to stocks and bonds. Skinner suggests commercial real estate also has the ability to generate income and act as a potential inflation hedge in the defined contribution plan context.Read more >
Transamerica Retirement Solutions has adopted RiskFirst’s real-time analytics and reporting platform, PFaroe, for use in coordination with plan sponsor clients and its advisory partners. RiskFirst’s PFaroe solution allows Transamerica clients to monitor and review defined benefit (DB) plan funding positions on a daily basis. It also allows advisers and sponsors to work together to do deep dives into DB plan risk—including value-at-risk (VaR) interrogation, what-if analysis, and stress-testing against historic market events.Read more >