| Issues and Answers | ||
| Tips for rebuilding trust during a merger or acquisition | |||
|
| Test Your Human Resources Knowledge | ||
|
| Labor Law Journal Submissions | ||
|
| Human Resources Links | ||
|
| Labor Arbitrators' Awards and Biographies | ||
Pension and Employee Benefits: Code, ERISA, & Regulations
This series provides an authoritative and comprehensive reference to the full text of benefits-related provisions of the Internal Revenue Code, the full text of ERISA, and related proposed and final regulations, as well as the official IRS and DOL preambles, and Committee Reports.
from Spencer’s Benefits Reports: Requests for calculations of estimated defined benefit pension benefits have increased 40% in 2009 versus requests in 2008, as seen by Mercer in its outsourcing business. “The market turmoil over the past year has likely caused many employees to be concerned about their retirement accounts overall and pension plan balances specifically, triggering a spike in estimate requests,” said Andrew Yerre, defined benefit business leader for Mercer’s U.S. outsourcing business. “As the market has started to recover, we have seen a levelling off, but this activity is still outpacing anything we have seen in the last few years.”
While the market may have triggered defined benefit plan participants to be concerned about their retirement readiness, Mercer points out that there are other sources of retirement income to consider as well. Mr. Yerre feels that “it is incumbent upon providers and employers to encourage employees to consider all their streams of retirement income and benefits, including retiree medical coverage and the health care costs they may incur in retirement.”
Both employers and employees should be concerned “about a ‘total retirement’ perspective,” Mr. Yerre said, “which encompasses defined contribution plans like 401(k) plans, defined benefit programs, and outside assets like IRAs, as well as retiree medical benefits—a looming issue for many near retirees and one we do not feel has been adequately addressed by the retirement industry.”
Employers that offer retiree medical coverage to both current employees and new hires are quite rare. According to Mercer’s 2009 National Survey of Employer-Sponsored Health Plans, the number of employers providing retiree medical coverage as a benefit to their pre-Medicare employees fell from 46% in 1993 to only 28% in 2009.
For more information on this and related topics, consult the CCH Pension Plan Guide, CCH Employee Benefits Management, and Spencer's Benefits Reports.
Visit our News Library to read more news stories.
©2005-2012 CCH Incorporated or its affiliates
