News Reports

Heath savings accounts are the hot ticket item in private sector benefits these days. On Monday, Bank of America announced a record 34% growth in health savings accounts in 2011, adding more than 50,000 accounts last year. The growth is attributed to increases in account use among employees of existing corporate clients, and new relationships with individuals and employers.

People in the market for health insurance will soon have clear, understandable and straightforward information on what health plans will cover, what limitations or conditions will apply, and what they will pay for services, thanks to the Patient Protection and Affordable Care Act according to final regulations published last week.

Despite some improvements in the fourth quarter of 2011, pension funding levels in major global markets dropped over the year due to declining discount rates and disappointing asset returns, according to Towers Watson’s latest Pension Index.

While many employees and retirees hope to stretch their 401(k) plans well beyond their original purpose, 84% of polled executives responsible for such plans say only some or very few employees will be financially prepared for retirement, a new Deloitte survey says.

The federal government estimates that the health care system may need upwards of 50,000 additional employees to develop, implement and maintain health information technology in the near future. In light of this projection, results from the survey of 196 health information exchange initiatives show a growing need for workers proficient in health IT.

A growing number of recently hired participants in 401(k) retirement plans, particularly those in their 20s, are investing in target-date funds, according to an analysis by the nonpartisan Employee Benefit Research Institute.

A new report outlines the coming retirement savings shortfall and calls on the retirement industry, employers, working Americans and financial intermediaries, to come together to develop solutions that improve the savings rate.

Benefits decision-making continues to gain importance in corporate America, with 40% of plan sponsors saying that the employee benefits decision-making process in their company has changed to some extent over the past five years, according to a recent study from Prudential.

The ongoing shift from defined benefit (DB) to defined contribution (DC) plans has prompted the financial services industry to rapidly develop products that deliver a steady stream of retirement income, one of the biggest shortcomings with DC plans. While numerous retirement income products are hitting the marketplace, employers and regulators are grappling with how they fit within qualified retirement plans.

According to the Global Pension Assets Study released today by Towers Watson, defined benefit fund assets grew by 54% in 2011, while pension fund balance sheets weakened, showing a need for different default options.

U.S. employees’ confidence in their ability to retire comfortably continued to rebound last year. However, despite growing satisfaction with their financial situation and fewer employees reporting significant declines in retirement savings, many employees remain concerned and are taking steps to get their financial houses in order, according to a new survey by Towers Watson.