Towers Perrin Monitor Magazine

Companies Turn to Outsourcing to Improve HR Service Delivery

14 Dec 2009

Cost savings and reducing administrative burdens are still important drivers of outsourcing decisions, but improved HR service quality has emerged a close third, reflecting renewed focus on the employee experience.

Global News Brief: India

14 Dec 2009

A major provision of Indiaâ€™s Finance Act 2009, enacted in August, is the abolition of the Fringe Benefits Tax (FBT) on employers. The provision lifts the tax liability from the employer and places it on employees, who will now be taxed on these perquisites as a benefit-in-kind.

Global News Brief: Japan

14 Dec 2009

The growth in defined contribution (DC) pension plans in Japan continues, with recent figures showing that, as of July 2009, over 3.3 million employees were covered under employer-provided DC plans.

Spotlight on Retiree Medical Affordability and Access Concerns

13 Dec 2009

While health care reform initiatives cloud the retiree medical picture, one thing is clear: Pre-65 retirees face the most severe financial burden as total annual family coverage costs approach $20,000.

Global News Brief: United Kingdom

21 Oct 2009

Following finalization of the Code of Practice, the U.K. Pensions Regulator now has extended powers (under the Pensions Act of 2008) to ensure that companies do not avoid their pension plan obligations.

As Cost Tops Health Care Concerns, Employers Reject Higher Expenditure for Reform

19 Oct 2009

Employers carefully watching Congress say they will not absorb additional costs resulting from health care reform.

Compensation for Corporate Directors Rose Modestly in 2008

19 Oct 2009

Annual Towers Perrin research shows that director pay continues to rise, but at a slower pace than in previous years.

Employees Perceive "Lean and Mean" Corporate Model as Less Efficient

19 Oct 2009

Employee engagement and morale remain high despite cost-cutting and head-count reduction measures, yet employees perceive their organizations as less efficient.

Global News Brief: Canada

8 Sep 2009

Employers sponsoring hybrid pension plans won a major victory in a long-awaited decision by the Supreme Court of Canada allowing the use of surplus assets to fund the defi ned contribution (DC) portion of their plans.

Global News Brief: Germany

8 Sep 2009

Germany's pension insurer, known as the PSV, has announced that its 2009 premium rates will increase dramatically, and a similar increase is widely anticipated in 2010.

Global News Brief: United Kingdom

8 Sep 2009

In a recent landmark ruling, the U.K. Court of Appeal overturned a High Court decision that would have had serious cost implications for some U.K. pension plans.

Getting Ready for Higher Individual Tax Rates: Strategies for Executives to Consider Now

3 Sep 2009

Although the legislative tea leaves in Congress are notoriously hard to read with any kind of accuracy, many Washington observers are convinced that corporate executives and other high-income taxpayers will be paying higher taxes in coming years -- one way or another.

Global News Brief: Australia

3 Aug 2009

The Australian government has decided to reduce tax breaks on superannuation (pension) and other employee benefits.

Global News Brief: France

3 Aug 2009

After being amended and postponed numerous times, a major new benefit agreement between French unions and employer organizations is now in force to assist workers who lose their jobs.

Global News Brief: Taiwan

3 Aug 2009

The Taiwanese government has amended the Labor Standards Law (LSL) to allow employees participating in defined benefit pension plans to retire at age 60, provided they have 10 years of service with their employer.

Global News Brief: International

4 Jun 2009

Companies have stepped up oversight of global benefit programs, and tightened their cost and risk controls in response to the global recession, according to a Towers Perrin survey.

Global News Brief: United Arab Emirates

4 Jun 2009

Employers operating in Dubai must have in place a government-approved health insurance plan for all employees by the end of the year.

2009 Health Care Cost Survey Reveals High-Performing Companies Gain Health Dividend

13 May 2009

Results from the Towers Perrin 2009 Health Care Cost Survey show that high-performing companies will pay, on average, 12% less in annual health care premiums in 2009 compared to low-performing companies.

Global News Brief: India

6 May 2009

India has amended the country's pension and social security laws to cover a category of workers that has often been excluded in the past.

Global News Brief: United Kingdom

6 May 2009

The U.K. government's budget for 2009 includes a set of provisions raising taxes on high earnersâ€™ income and on amounts that they contribute to retirement plans.

Clawback Policies Now the Norm

2 Apr 2009

The percentage of major companies with some kind of clawback (or recoupment) policy in place beyond whatâ€™s required by law has jumped by more than half in just over a year, according to a recent Towers Perrin analysis.

Global News Brief: European Union

2 Apr 2009

French tax authorities have decided that they should not withhold taxes on dividend payments to European pension funds outside France.

Global News Brief: Netherlands

2 Apr 2009

The Dutch government has temporarily extended the period for pension plans to make up their funding shortfalls from three to five years. The decision made on February 20 reverses the stance that had been previously taken by the Ministry of Social Affairs and the Dutch pensions regulator, De Nederlandsche Bank (DNB).

Global News Brief: United Kingdom

2 Apr 2009

A recent U.K. High Court ruling opens up the possibility of new claims for early retirement benefits under some U.K. pension plans.

Global News Brief: European Union

13 Mar 2009

Pension funds in European Union (EU) member states appear to be making progress in their drive to harmonize the tax treatment of investments in Europe and prevent uneven withholding practices by individual EU governments.

Global News Brief: New Zealand

6 Mar 2009

Major changes to the government-subsidized KiwiSaver program take effect April 1, 2009. The changes were made by New Zealandâ€™s newly elected government in a tax law passed last December.

Unlocking Employee Potential in Turbulent Times

6 Mar 2009

The bleak economy has virtually all businesses under mounting pressure to reduce costs and improve financial results. So how do company leaders keep employees focused in these uncertain times -- and continuing to give the discretionary effort and energy that will help turn things around?

New Law Makes Companies More Vulnerable to Complaints of Pay Discrimination

5 Mar 2009

Companies subject to federal employment discrimination laws face the prospect of a rise in pay discrimination lawsuits as a result of the Lilly Ledbetter Fair Pay Act of 2009 signed into law by President Obama.

Stimulus Legislation Widens Executive Pay Restrictions

5 Mar 2009

The economic stimulus bill signed into law by President Obama contains a far-reaching set of new restrictions on executive pay at banks and other financial institutions.

Companies Step Up Employee Pay Cuts

12 Feb 2009

The deepening economic crisis is prompting most companies to take a number of steps to curb their workforce costs, according to a new Towers Perrin survey of midsize and large U.S. employers.

Global News Brief: Japan

6 Feb 2009

Japan's Tax Research Commission, which has decision-making power in the Japanese tax system, has approved several tax-related regulations aimed at encouraging the use of defined contribution (DC) plans in Japan.

Global News Brief: United Kingdom

6 Feb 2009

The rate of annual indexation on benefits for former members of U.K. plans who leave their benefits in their defined benefit pension plan has been reduced to 2.5%.

Employee Anxiety Levels on the Rise

23 Jan 2009

A Towers Perrin opinion survey shows how the recession is stirring widespread anxiety among U.S. employees about their job security and financial future as companies reduce or freeze headcount and take other measures to manage costs.

Employers Consider Bold Changes to Retiree Medical

22 Jan 2009

Providing medical benefits for pre-65 and post-65 retirees continues to present complex and costly challenges for most employers, a new survey from Towers Perrin and the ISCEBS shows.

Study Provides Update on Global Equity Practices

21 Jan 2009

A Towers Perrin study identifies the main global developments and trends in the use of equity incentive plans in 21 countries.

Global News Brief: United States

9 Jan 2009

IRS Issues Transition Relief for 403(b) Plans, Offshore Deferred Compensation Targeted for Tax, IRS Issues Guidance on 409A Compliance, PBGC Readies E-Filing for Qualified Plans

Plunge in Interest Rates Brings New Stresses to Pension Plans

9 Jan 2009

A Towers Perrin analysis discusses how the steep decline in market interest rates is bringing additional stress to company-sponsored pension plans -- along with new challenges for CFOs and other financial managers -- and offers suggestions for plan sponsors.

Global News Brief: European Union

7 Jan 2009

A directive from the European Parliament and Council will give temporary workers hired through employment agencies in the EU equal treatment with workers hired directly by companies.

Global News Brief: Russia

7 Jan 2009

The Russian government has introduced subsidies for voluntary pension savings. Individuals who join the program and begin saving before October 1, 2013 will receive matching state contributions.

Market Meltdown Spurs Changes to M&A Process

7 Jan 2009

According to Towers Perrin research, the average duration of M&A deals in 2007 was 142 days; in 2008, it plunged to 80 days. These accelerated deals are occurring in both the financial and non-financial sectors.

Global News Brief: Argentina

10 Dec 2008

The global financial crisis may claim a surprising victim â€” Argentina's privatized social security system â€” under legislation proposed by Argentinaâ€™s President Cristina Kirchner.

Global News Brief: France

10 Dec 2008

Legislation adopted by lawmakers in France could lead to an increase in the minimum indemnities payable upon voluntary retirement, although the original intent was apparently to target only severance payments.

Global News Brief: Japan

10 Dec 2008

The Japanese government is growing more and more concerned with the large backlog of tax-qualified pension plans (QPPs) that have yet to be converted into other types of retirement plans. Japanese legislation requires conversion of all QPPs before March 31, 2012.

Global News Brief: United States

10 Dec 2008

Massachusetts Releases Guidance on MCC Standards, California Voters Approve Ban on Same-Sex Marriages, New Rules for 403(b) Plans Begin January 1, Final FMLA Regulations Issued, IRS Releases Proposed Rules on Notice of Right to Defer Distribution

Balancing Cost and Talent Needs Discussed in Towers Perrin Webcast

9 Dec 2008

Employers considering ways to lower workforce costs heard some practical advice in a Towers Perrin Webcast that explored the competing priorities of trying to balance the need to reduce cost and risk with the need to retain and engage key talent.

Obama Health Care Reform Plan Raises Host of Questions for Employers

4 Dec 2008

Companies looking beyond Inauguration Day on January 20 for clues about what role employers will have if health care reform is enacted under an Obama administration have plenty of unanswered questions.

HR Outsourcing: Striking the Right Balance

20 Nov 2008

In a Webcast, two Towers Perrin consultants discuss the current state of HR outsourcing effectiveness and present results from Towers Perrinâ€™s 2008 research on HRO effectiveness to a group of large market HRO buyers.

Sour Economy Prompting Reviews of Compensation and Incentive Programs

11 Nov 2008

For employees at many companies, reductions in bonuses and merit pay increases lie ahead over the coming months, according to a Towers Perrin survey, but, unlike past economic downturns, this time employers are placing more emphasis on targeted, strategic cutbacks in the number of people on their payrolls.

Financial Crisis Intensifies Interest in Risk Management Among CFOs

6 Nov 2008

Improved risk management is the top priority of CFOs in reaction to the current financial crisis, ahead of short- and long-term access to capital, according to a Towers Perrin survey of finance executives at major U.S. corporations.

Global News Brief: United States

5 Nov 2008

Government Announces Key 2009 Benefit Numbers; IRS Releases 2009 Limits for Transportation, Other Benefits in 2009; Connecticut Supreme Court Ruling Recognizes Same-Sex Marriage; IRS Releases 2009 Limits for Transportation, Other Benefits in 2009; Final Regulations Issued on Newbornsâ€™ and Mothersâ€™ Health Protection Act; Massachusetts Approves Revisions to Minimum Creditable Coverage Guidance

Managing in Tough Times: Advice for Business and HR Leaders

22 Oct 2008

A Towers Perrin white paper offers practical, effective advice that can help your organization navigate through the financial crisis and keep top performers connected to the long-term agenda.

Financial Rescue Bill Raises Thorny Issues in Setting New Restrictions on Executive Pay

21 Oct 2008

Two Towers Perrin authors discuss the new restraints on executive pay for financial institutions under the Emergency Economic Stabilization Act of 2008 and warn that more sweeping restrictions could be on the way.

Panelists in New York Agree Green Initiatives Remain Critical

13 Oct 2008

The business case for green initiatives remains a compelling one for companies despite the additional challenges arising from the global financial crisis, a panel of experts tell Towers Perrin guests at a dinner in New York City.

Podcast Series: Towers Perrin Leaders Offer Dos and Don'ts to Help Navigate Global Financial Crisis

7 Oct 2008

Companies are worried, and theyâ€™re looking for answers to tough questions that go to the heart of how they manage their people when cost and risk issues are taking center stage. Listen to a series of seven podcasts on a wide range of topics to help you and your organization now.

Global News Brief: Canada

6 Oct 2008

Canada's Federal Court of Appeal overturns a lower federal court judgment and rules that federally registered pension plans are not required to distribute a proportionate share of surplus on a partial termination of the plan.

Global News Brief: Philippines

6 Oct 2008

Legislation approved by the Philippines government provides workers with the opportunity to establish supplementary savings with a Personal Equity and Retirement Account (PERA).

Global News Brief: United States

6 Oct 2008

The Centers for Medicare & Medicaid Services (CMS) announces an increase in the Medicare Part A deductible in 2009. The standard Medicare Part B monthly premium and the deductible for 2009 will remain unchanged.

Director Pay Up 9% in 2007 at Large Companies, Survey Finds

23 Sep 2008

Pay for company directors increased 9% last year, according to Towers Perrinâ€™s annual review of director compensation trends at Fortune 500 companies. Payments in both cash and stock were up.

SEC Proposes U.S. Companies Shift to Global Financial Reporting Rules

12 Sep 2008

A Towers Perrin report examines the proposal by the Securities and Exchange Commission to phase in a requirement for U.S. companies to move from U.S. Generally Accepted Accounting Principles (GAAP) to International Financial Reporting Standards (IFRS).

Companies Keep Spending on HR Technology

8 Sep 2008

Despite the global slowdown, large companies continue to invest in human resource (HR) technology systems. Although HR executives have mixed views on the effectiveness of certain technologies, particularly for talent management, technology investment overall remains a clear focus for organizations in 2008.

Finance Executives Shift Attention to Containing Pension Plan Risks

8 Sep 2008

North American companies with defined benefit pension plans are more significantly more focused on risk reduction than returns on plan assets, according to a report by CFO Research Services in collaboration with Towers Perrin.

Global News Brief: Netherlands

8 Sep 2008

Employers in the Netherlands recognize the need to make improvements in their reward programs and are looking for ways to do so, according to a recent Towers Perrin survey of 60 Dutch companies.

Global News Brief: United States

8 Sep 2008

The IRS released Revenue Procedure 2008-50, updating the Employee Plans Compliance Resolution System (EPCRS).

Global News Briefs: Netherlands

5 Aug 2008

Employers with operations in the Netherlands may need to make changes in their executive pension arrangements if Dutch lawmakers approve additional tax restrictions backed by the government.

Global News Briefs: Portugal

5 Aug 2008

Employees who are registered with the Portuguese social security system are eligible to participate in a new, voluntary defined contribution plan backed by the government.

Global News Briefs: United States

5 Aug 2008

A recent ruling by the U.S. Supreme Court will make it more difficult, and costlier, for employers to successfully defend lawsuits alleging age discrimination.

Recorded Webcast and Podcast: Health Care Consumerism â€” Duke Realty's Success Story

31 Jul 2008

This Webcast presentation by Towers Perrin and related materials show how one company succeeded in both managing costs and engaging employees in taking responsibility for managing their health.

Corporate Social Responsibility: It's No Longer an Option

30 Jul 2008

What used to be considered good PR is in fact linked to how well your employees perform corporate social responsibility now extends to the bottom line. Your employees expect it, and your company needs it

Wanted: Leadership to Spur Innovation

30 Jul 2008

Presenting the results from the Leadership and Innovation pulse survey conducted in May 2008. The study focuses on the three stages of innovation: create, select, implement.

Account-Based Health Plans: Avoiding the Pitfalls

3 Jul 2008

In a Webcast sponsored by the International Foundation of Employee Benefit Plans (IFEBP), Towers Perrin consultants Sean Connelly and Eric Parmenter offer practical advice on setting up and managing account-based health plans.

Global News Brief: European Union

2 Jul 2008

Two recent developments have opened up the possibility of using a single pension plan to cover employees in multiple countries.

Global News Briefs: United States

2 Jul 2008

The IRS issued proposed regulations on backloading for defined benefit pension plans that offer a benefit that is the greater of two or more different formulas. The U.S. Supreme Court has ruled that a Kentucky state pension plan that imputes years of service to workers who become disabled before reaching the planâ€™s normal retirement age does not violate the Age Discrimination in Employment Act.

Monitor: U.S. Companies May Face Major Accounting Shift to Global Standards

2 Jul 2008

U.S. public companies may be saying farewell to long-established U.S. accounting rules under GAAP and going global with the adoption of international financial reporting standards.

Effective Approaches to Managing Prescription Drug Costs

26 Jun 2008

A Towers Perrin report explains how employers can take steps aimed at higher-risk employee groups to increase medication adherence rates and lower costs.

Managing Cost and Growth in Uncertain Times

26 Jun 2008

Towers Perrin explains how companies can use human capital optimization to transform their workforce into a strategic resource and core contributor to business strategy and financial performance.

Global News Brief: Singapore

6 Jun 2008

The Singapore government is supporting a number of initiatives, including some important tax law changes, aimed at encouraging voluntary contributions by employers and employees to retirement savings programs.

Global News Brief: Spain

6 Jun 2008

Companies in Spain will soon have a new option for financing their pension commitments. New legislation also allows more investment flexibility in defined contribution plans and strengthens the funding of defined benefit plans.

Global News Brief: United Kingdom

6 Jun 2008

Trustee boards of U.K. multiemployer defined benefit (DB) pension plans have been given more power over financial arrangements when an employer leaves the plan.

Monitor: Get Ready for Your ERM Discussions

6 Jun 2008

In a Webcast, two Towers Perrin consultants explain to companies how they should begin preparing for their enterprise risk management (ERM) discussions with Standard & Poorâ€™s.

Monitor: Pharmacy Management Strategies to Reduce Costs and Risks

6 Jun 2008

In a Webcast on May 1, Towers Perrin consultants discussed a multi-faceted strategy to tackle rising prescription drug costs head-on by addressing pricing and contract terms, plan designs and utilization.

Monitor: M&A Deals -- Nowâ€™s the Time

5 Jun 2008

Research from Towers Perrin and the London-based Cass Business School indicates 2008 may be the best time for merger and acquisition deals.

Global News Brief: France

5 May 2008

Employers in France are coping with the countryâ€™s complex and changing retirement laws, including new measures adopted by the government aimed at encouraging companies to keep employees in the workforce.

Global News Brief: Germany

5 May 2008

The German government has taken two important steps aimed at encouraging the use of employer-provided retirement plans. One change extends favorable tax treatment for deferred compensation plans. The other strengthens the vesting rules for corporate pension plans.

Global News Brief: United States

5 May 2008

House Approves Bill to Impose Expense Rule on HSAs FASB Proposes Additional Disclosures About Plan Assets and Risk Levels IRS Issues Proposed Regulations on Quarterly Contributions

Monitor: Improving Returns on 401(k) Plans

5 May 2008

Many companies still don't have useful features like auto-enrollment that can enhance the appeal of their 401(k) plans and make them even more effective. Here are some useful suggestions from Towers Perrin.

Monitor: Proxy Season Puts Executive Pay Under the Microscope

5 May 2008

In a recent Webcast, Towers Perrin consultants talked about the latest trends in executive pay and provided results from a preliminary analysis of 2008 company proxies.

Taking the Pulse of Business and Workforce Challenges

10 Apr 2008

A Towers Perrin pulse survey of HR executives provides insights into how companies are responding to economic pressures to reduce costs without abandoning long-term strategies to reward talent, meet ongoing workforce needs, and plan for growth in a global marketplace.

Global News Brief: United States

2 Apr 2008

IRS Proposes Amendments to 204(h) Rules and IRS Issues Qualified Optional Survivor Annuity Guidance

Monitor: Talent Management Ongoing Focus of HR Technology

2 Apr 2008

Towers Perrin research finds a broad shift underway among companies from the "blocking and tackling" activities that focused on management of basic benefit systems and HR services to greater emphasis on streamlining HR processes and talent management

Global News Brief: Canada

7 Mar 2008

Companies in Canada are watching two key court cases that center on whether employers sponsoring hybrid pension plans should be allowed to use surplus pension assets to pay the employerâ€™s cost to fund the defined contribution portion of their plans.

Global News Brief: China

7 Mar 2008

Employers in China are making headway implementing enterprise annuity plans (EAPs) designed to encourage the countryâ€™s workers to save for retirement, but obstacles remain that are discouraging more rapid acceptance of the plans.

Global News Brief: United Kingdom

7 Mar 2008

The U.K. government is supporting new legislation to create a national pensions savings plan designed for employees who do not have access to an adequate employer-sponsored plan.

Global News Brief: United States

7 Mar 2008

DOL Issues Proposed FMLA Regulations, Supreme Court Rules 401(k) Participants Can Sue Plan Sponsors, IRS Clarifies 162(m) Limit for Proxy-Named Executives

Monitor: Achieving a Safer Workplace: Employee Attitudes Count

6 Mar 2008

Research from Towers Perrin indicates that an employeeâ€™s perception of workplace safety can also have a strong direct effect on actual safety outcomes. With the help of data on employeesâ€™ attitudes from workplace surveys, companies can find opportunities to make measurable improvements in safety.

Monitor: Staying Engaged in Turbulent Times

6 Mar 2008

In an economic downturn, your company can face hard questions about managing reward programs in order to retain and engage top talent. Participants in a February 21 Webcast by Towers Perrin heard some answers.

Growing Use of Specialty Drugs Poses Cost Management Challenges

3 Mar 2008

Employers face a growing problem with the increasing use of costly specialty drugs instead of traditional medications to treat health conditions. But itâ€™s possible to build data-driven solutions that address the underlying issues that drive costs.

Benefit Program Claim Audits Can Help Employers Save Money and Enhance Performance

22 Feb 2008

This might be a good time for a detailed audit of your benefit claim experience. Besides assessing vendor performance, an audit can also reveal errors and problems that needlessly ratchet up costs

Global News Brief: Europe

5 Feb 2008

A recent ruling by the European Court of Justice (ECJ) has cast new doubts over the legality of sex-based actuarial calculations to determine the value of pension plan benefits.

Global News Brief: Japan

5 Feb 2008

Companies doing business in Japan are keeping an eye on Japanâ€™s lawmakers in the hope of seeing additional reforms aimed at encouraging the use of defined contribution (DC) plans, which have steadily gained in popularity since their introduction in 2001.

Global News Brief: United States

5 Feb 2008

New Medicare Secondary-Payer Reporting Requirement, Court Allows San Francisco to Enforce Pay-or-Play Mandate, California Health Care Reform Plan Dies in State Senate

Account-Based Health Plans: What Works â€” and Why

24 Jan 2008

Findings from a two-phase research project by Towers Perrin to identify ways large employers can strengthen their consumer-driven health care strategies. It suggests specific steps plan sponsors can take to enhance the appeal of account-based health plans and make them more effective.

HR Service Delivery: Stepping It Up

22 Jan 2008

The latest Towers Perrin research report on whatâ€™s happening in HR service delivery and technology. The report summarizes research from a 2007 survey of HR business leaders in 275 organizations, most of them U.S.-based companies.