Towers Watson - Research

Colombia: Tax Reform Reduces Employer’s Social Charges

Wed, 20 Feb 2013 00:00:00 GMT

Colombia approved in December reforms to it's Tax-code lowering taxable income rates of legal entities to 25% effective Jan. 1, 2013, and decreased the employer social tax by 13.5%, from 29.5% to 16%.

China: Stricter Control Over Labor Agencies

Wed, 13 Feb 2013 00:00:00 GMT

On Dec. 28, 2012, an amendment of Labor Contract Law was passed by the Standing Committee of the National People’s Congress

Real estate strategies - Why they are not as expensive as they seem

Wed, 13 Feb 2013 00:00:00 GMT

Towers Watson takes a look at real estate investment costs how they compare with fees in other asset classes.

10 Questions for Mark Gasta, Executive Vice President, Chief People Officer, Vail Resorts

Thu, 7 Feb 2013 00:00:00 GMT

10 Questions for Mark Gasta, Executive Vice President, Chief People Officer, Vail Resorts. Gasta talks to Towers Watson about corporate social responsibility and sustainability.

Despite Strong Market Returns, Funded Status of Fortune 1000 DB Plans Declines in 2012

Thu, 7 Feb 2013 00:00:00 GMT

While assets in the pension plans sponsored by Fortune 1000 companies realized significant gains in 2012, plan liabilities grew by even more. We estimate aggregate funded status for 2012 at 76%.

Interconnecting the Globe

Wed, 6 Feb 2013 00:00:00 GMT

Towers Watson case study: Molex Focuses on Employee Engagement in Asia Pacific South. A global manufacturer learns what motivates workers and boosts engagement during rapid organizational expansion.

Court Applies Four-Factor Test for Top-Hat Plan Status

Tue, 5 Feb 2013 00:00:00 GMT

In Cramer v. Appalachian Regional Healthcare, Inc., a district court in Kentucky applied a four-factor test to determine that a SERP qualified as a top-hat plan under ERISA.

Global Markets Overview — January 2013

Tue, 5 Feb 2013 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

Insights: Global insurance regulation

Tue, 5 Feb 2013 00:00:00 GMT

Are you prepared for the changes that will impact the global insurance regulatory environment? This paper looks at what needs to happen now and in the future.

Towers Watson Life Insurance CFO Survey #31

Thu, 31 Jan 2013 00:00:00 GMT

How are companies using financial models? Towers Watson's latest research probes the state of model governance and the level of priority given to investments in financial modeling tools.

Global Pensions Asset Study - 2013

Thu, 31 Jan 2013 00:00:00 GMT

This is a study of the 13 largest pension markets in the world and accounts for more than 85% of global pension assets.

Uses and Limitations of Actuarial Value in Selecting a Health Plan

Thu, 31 Jan 2013 00:00:00 GMT

The PPACA uses actuarial value (AV) to help consumers compare health plan values, and employers may also use AV to educate their employees and help them make better plan choices.

Hacienda Extends Deadlines to Amend/File Puerto Rico Plans

Wed, 30 Jan 2013 00:00:00 GMT

The Puerto Rico Treasury Department (Hacienda) has extended the deadlines for amending and seeking approval for defined benefit plans under Puerto Rico law.

2012 Human Capital Risk in Mergers and Acquisitions Study Report

Tue, 29 Jan 2013 00:00:00 GMT

This study, sponsored by Towers Watson, attempts to pinpoint and highlight what these highly successful companies did differently in their M&As from a human capital standpoint.

Asia opens up widest margin over Europe for M&A deals

Tue, 29 Jan 2013 00:00:00 GMT

Our latest quarterly research from Cass Busines School on mergers and acquisitions for Q4 2012, and predictions for 2013.

Uganda: New Pension Plan Licensing Requirements Launch

Mon, 28 Jan 2013 00:00:00 GMT

The Ugandan pension system will be transformed by the Uganda Retirement Benefits Regulatory Authority Act 2011 and the Retirement Benefits Sector Liberalization Bill.

Final Regulation on Research Fee Levied on Self-Insured and Insured Health Plans

Fri, 25 Jan 2013 00:00:00 GMT

The IRS recently published a final regulation on the Patient-Centered Outcomes Research Institute fee, which must be paid by most health insurance policies and self-insured plans.

DC Plan Payout Practices and Policies in Canada, Switzerland, U.K., Australia and Singapore

Fri, 25 Jan 2013 00:00:00 GMT

This analysis looks at the ways Canada, Switzerland, the U.K., Australia and Singapore manage payouts from defined contribution plans, offering valuable insights to U.S. plan sponsors and policymakers.

HHS Proposes Regulation on Transitional Reinsurance Contributions

Thu, 24 Jan 2013 00:00:00 GMT

HHS recently released “HHS Notice of Benefit and Payment Parameters for 2014,” which expands on earlier guidance and provides information on employer contributions to the transitional reinsurance program.

Insights: Financial Modelling

Wed, 23 Jan 2013 00:00:00 GMT

Insights: Financial Modelling gives an overview of developments in financial modelling software. In this issue, we look at ways of getting the most out of MoSes models using a combination of hardware and techniques.

2013 Expanded Reporting and Disclosure Requirements Calendar

Wed, 23 Jan 2013 00:00:00 GMT

2013 Expanded Reporting and Disclosure Requirements Calendar for Single-Employer Pension and Welfare Plans Under ERISA.

Defined Contribution Plans of Fortune 100 Companies for the 2011 Plan Year

Tue, 22 Jan 2013 00:00:00 GMT

This study analyzes Fortune 100 companies' DC plans in terms of eligibility and vesting rules, employee and employer contributions, investments and six-year trends.

Employee Reward Strategies for the 21st Century

Tue, 22 Jan 2013 00:00:00 GMT

Employee reward programs aren’t keeping up with cost pressures, globalization and technology in the workplace. A fresh approach to employee reward strategy and design can minimize risks to retention and engagement, while helping unite both employers and employees around new and more relevant reward practices in a changing business environment.

Insights - Economic capital for life insurers

Mon, 21 Jan 2013 00:00:00 GMT

Economic capital for life insurers examines the various facets of economic capital - with a focus on its role and importance in the life insurance industry.

Insights: 2012 Predictive Modeling Benchmarking Survey

Mon, 21 Jan 2013 00:00:00 GMT

Are you leveraging predictive modeling to establish a competitive advantage? Our latest survey examines the progress P&C insurers are making in applying predictive modeling to their underwriting/risk selection and rating/pricing efforts.

Mexico: Sweeping Amendments to Federal Labor Law Enacted

Thu, 17 Jan 2013 00:00:00 GMT

Mexico recently enacted a series of sweeping amendments to the Federal Labor Law (FLL), which was last substantially amended in 1970, on Dec. 1, 2012.

P&C CFO Survey #4: Own Risk and Solvency Assessment

Tue, 15 Jan 2013 00:00:00 GMT

How ready is your company to implement the ORSA? P&C CFOs share their thoughts in Towers Watson's latest survey.

Slovakia: Labor Code Reforms, Back to the Start

Mon, 7 Jan 2013 00:00:00 GMT

Slovakian Labor Code was recently revised, restoring certain employee protections, eliminating some of the 2011 changes, and introducing a series of measures more favorable to employees and labor unions.

The Predictable Surprise: The Unraveling of the U.S. Retirement System Wins Samuelson Award

Fri, 4 Jan 2013 00:00:00 GMT

Sylvester Schieber's The Predictable Surprise: The Unraveling of the U.S. Retirement System has won the 2012 TIAA-CREF Paul A. Samuelson Award.

China: Towers Watson Survey Examines Social Security Participation Rules and Maternity Benefits

Thu, 3 Jan 2013 00:00:00 GMT

China: Towers Watson Survey Examines Social Security Participation Rules and Maternity Benefits

IRS Final Regs Allow Plan Sponsors in Bankruptcy to Eliminate Lump Sums

Thu, 3 Jan 2013 00:00:00 GMT

The IRS published final guidance on distributions under the anti-cutback rules allowing bankrupt plan sponsors to eliminate some optional forms of payment suspended due to the bankruptcy.

Invitation to Participate: Towers Watson’s 16th Annual HR Service Delivery and Technology Survey

Thu, 3 Jan 2013 00:00:00 GMT

Invitation to participate in Towers Watson's 2013 HR Service Delivery and Technology annual survey.

Fiscal Cliff Deal Affects Wide Range of Benefit and Compensation Programs

Wed, 2 Jan 2013 00:00:00 GMT

Summary of how the fiscal cliff deal affects benefits and compensation programs including Roth retirement plans, health care and qualified transportation benefits.

Global Markets Overview — December 2012

Mon, 31 Dec 2012 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

2013 Benefit Basics and Reporting & Disclosure Requirements

Mon, 31 Dec 2012 00:00:00 GMT

Convenient listing of updated statutory limits, disclosure requirements and deadlines, and related 2012 information for retirement and health and welfare plans.

Supreme Court Takes on Same-Sex Marriage

Fri, 28 Dec 2012 00:00:00 GMT

The Supreme Court plans to review two cases dealing with same-sex marriage, and the outcomes could significantly affect employers. At issue is whether DOMA is unconstitutional.

Malaysia: New Voluntary Private DC Plan Begins Operations

Wed, 26 Dec 2012 00:00:00 GMT

Implementation of a new voluntary retirement plan started this month. In July 2012, Malaysia introduced the Private Retirement Scheme (PRS), a new defined contribution (DC) retirement savings program open to all Malaysians and foreigners working in Malaysia.

Canadian Capital Accumulation Plan Investment Beliefs

Thu, 20 Dec 2012 00:00:00 GMT

This paper outlines Towers Watson’s key investment beliefs for Canadian Capital Accumulation Plan (CAP) investments.

GAO’s Recommendations for PBGC Premiums: A Comprehensive Review

Thu, 20 Dec 2012 00:00:00 GMT

The Government Accountability Office (GAO) recently sent to Congress the "Redesigned Premium Structure Could Better Align Rates with Risk from Plan Sponsors" report.

GAO Report Advocates Higher Premiums and Other Changes for PBGC

Tue, 18 Dec 2012 00:00:00 GMT

In its recent report to the Senate HELP committee, the GAO recommends higher PBGC premiums that are linked to the DB plan sponsor’s financial health and possibly other factors, such as the plan’s investment mix.

Emphasis 2012/4

Fri, 14 Dec 2012 00:00:00 GMT

Towers Watson's quarterly magazine on insurance industry issues.

TOAMS 3: The Third Towers Watson Older Age Mortality Study

Fri, 14 Dec 2012 00:00:00 GMT

Towers Watson’s third study of U.S. life insurance industry mortality, The Older Age Mortality Study 3 (TOAMS 3) is the most comprehensive, longest-running study of older age mortality experience in the market.

Argentina: Exchange Control Restrictions Complicate Employee Benefit Programs

Wed, 12 Dec 2012 00:00:00 GMT

With Communication “A 5318,” which suspends all purchases of foreign currency for saving abroad or acquiring assets, Argentina's Central Bank continues to create benfit and compensation difficulties for companies operating in Argentina.

Greece: New Austerity Measures and Transformation of Labor Regulations

Wed, 12 Dec 2012 00:00:00 GMT

Since 2010, Greece has experienced a series of austerity measures, reforms and bailout packages intended to "fix" the Greek economy and government, the latest of which hopes to further deregulate the labor market, and improve its competitiveness and flexibility.

Employee voice - Releasing voice for sustainable business success

Tue, 11 Dec 2012 00:00:00 GMT

In this paper we explain the importance of employee voice and the best ways to measure it.

Transforming HR - Delivering Strategic Business Advantage

Mon, 10 Dec 2012 00:00:00 GMT

Across the globe the role of the HR function is transforming into being a strategic partner for the business. This has come with the growing appreciation of the value of a company's human capital, and a need to ensure that talent is attracted, retained and sustainably engaged. In today’s business environment, forward thinking HR professionals need to apply evidence, logical frameworks and data, to gain success in the most pivotal strategic change efforts. So how can HR address these challenges and help Thai companies in their local market and across borders? Towers Watson Thailand discussed the findings from their 2012 Asian Trailblazers Study and introduced the concept of Transformative HR.

Employee Value Proposition: Key to Getting and Keeping the Best

Fri, 7 Dec 2012 00:00:00 GMT

All companies have an EVP, even if it has not been formalized. Increasingly, our research indicates that taking an unmanaged EVP to one that is deliberate — and aligns with what you stand for in the market — is more critical than ever.

Commercial Lines Insurance Pricing Survey

Thu, 6 Dec 2012 00:00:00 GMT

Latest result from Towers Watson's Commercial Lines Insurance Pricing Survey (CLIPS).

States Submit Declaration Letters for State-Based and Partnership Exchanges

Thu, 6 Dec 2012 00:00:00 GMT

HHS has received letters and blueprint applications from 23 states and the District of Columbia declaring their intentions to establish health insurance exchanges in compliance with the health care reform law. Eighteen states and Washington, D.C., have submitted proposals to establish state-based exchanges.

Journey Well, Arrive Better — Segmentation

Wed, 5 Dec 2012 00:00:00 GMT

To develop an effective investment strategy and construct an appropriate offering, we believe it is important for fiduciaries of defined contribution (DC) plans to understand the needs and objectives of their plan’s membership and how these may differ across the membership.

Pharmacy Basics and Beyond: Preferred Pharmacy Network Offerings

Wed, 5 Dec 2012 00:00:00 GMT

The last few years has seen the introduction of a number of high profile Canadian preferred pharmacy network (PPN) arrangements. This article provides a framework for reviewing network offerings through mail order, retail or specialty pharmacies.

Trends in Captives and Risk Management

Tue, 4 Dec 2012 00:00:00 GMT

Now, more than ever before, companies are looking to reduce the costs and risks associated with employee benefits. To do so, they are developing and implementing new financing and risk transfer strategies. In our sixth edition of the Captive Compendium, we turn our attention to these innovative techniques, review developments in multinational pooling and present a fresh perspective on pension investment strategies.

United Kingdom: Potential Changes to RPI Inflation Measure Could Impact Pension Funding and Accounting

Fri, 30 Nov 2012 00:00:00 GMT

The National Statistician launched a consultation on October 8 to gather opinion on the formulas used to construct the Retail Prices Index (RPI), a U.K.-specific inflation index used to calculate guaranteed levels of pension increases and payouts on U.K. inflation-linked government bonds.

International Pension Plan survey 2012

Fri, 30 Nov 2012 00:00:00 GMT

This report summarises Towers Watson's annual survey on International Pension Plan covering design, membership criteria, investment and other key areas of interest.

Accounting for Pensions and Other Postretirement Benefits, 2012

Thu, 29 Nov 2012 00:00:00 GMT

In this report, Towers Watson analyzes disclosures for FY 2011 under the Financial Accounting Standards Board’s Accounting Standards Codification (ASC) Topic 715, Compensation-Retirement Benefits.

Active Bond Management — The challenges of portfolio construction and identifying manager skill

Thu, 29 Nov 2012 00:00:00 GMT

Investors are increasingly seeking, and requiring, higher returns and protection against downside risks from their bond portfolios. Active management is a potential solution.

States Face Time Crunch on Major Health Care Reform Decisions

Wed, 28 Nov 2012 00:00:00 GMT

States planning to pursue a state-based exchange must submit a letter of declaration and application to HHS by December 14. States planning to partner with the federal government have until February 15, 2013, to submit their letter of intent and blueprint.

California Enacts Private Pension Mandate

Wed, 28 Nov 2012 00:00:00 GMT

Concerned about a “looming retirement security crisis,” California has established the California Secure Choice Retirement Savings Program, which would create automatic payroll deduction IRAs for workers without employer retirement plans.

Brazil: Extended Social Tax Relief Offers Business Sectors an Economic Lift

Tue, 27 Nov 2012 00:00:00 GMT

The Brazilian government has extended social tax relief measures through the end of 2014 in hopes of spurring growth in certain business sectors.

Workforce Planning - Translating the business plan into the people plan

Tue, 27 Nov 2012 00:00:00 GMT

Faced with the prospect of widening talent gaps, driven by changing employee demographics across the globe, leading organisations are addressing critical questions about their future workforce. Towers Watson can help you deal with these business issues, anticipate future needs and make smart workforce investments.

Locating Missing Participants: IRS Ends Letter-Forwarding Program

Mon, 26 Nov 2012 00:00:00 GMT

Retirement plan administrators occasionally must try to track down missing participants with vested benefits or determine whether terminated participants with a benefit entitlement have died. As the IRS ended its letter-forwarding program as of August 31, 2012, plan sponsors that relied on the program will need to consider other alternatives.

Global Markets Overview — November 2012

Mon, 26 Nov 2012 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

Ghana: Looming Pension Plan Deadline Gives Employers Little Time to Act

Thu, 22 Nov 2012 00:00:00 GMT

Employers have until Dec. 31, 2012, to establish a second-pillar pension plan for their employees that complies with the 2008 National Pensions Act (NPA)

Managing Total Rewards across the EMEA region - can one size fit all?

Wed, 21 Nov 2012 00:00:00 GMT

Towers Watson’s 2012 – 2013 Talent Management and Rewards Survey reveals key insights on rewards and talent management strategies of more than 350 participating organisations across the EMEA region.

Netherlands: Significant Limits Imposed on Tax Advantages for Pension Plans

Mon, 19 Nov 2012 00:00:00 GMT

The new coalition government has announced measures to further limit tax advantages for pension plans in the Netherlands starting in 2015 or possibly even 2014.

Puerto Rico's Hacienda Expands Deduction Limits for DB Plans

Mon, 19 Nov 2012 00:00:00 GMT

Sponsors of DB plans qualified in Puerto Rico (whether or not also qualified in the U.S.) may now make and deduct contributions to avoid benefit restrictions, at-risk status or Section 4010 notices to the PBGC. In addition, contributions required to maintain a plan at a 100% funded status are now also deductible.

Globalizing Asia Pacific — Maximizing the Value of Human Capital in Outbound M&A

Thu, 15 Nov 2012 00:00:00 GMT

This in-depth report, produced jointly with mergermarket, discusses the key people-related challenges that Asian companies need to consider as they step up their deal-making activity.

Stock Markets Propose Rules on Compensation Committee and Advisor Independence

Thu, 15 Nov 2012 00:00:00 GMT

The NYSE and NASDAQ have proposed rules implementing the Dodd-Frank Act provisions pertaining to the independence of compensation committee members and advisors, which adhere closely to the standards established by the SEC.

Court Rules Severance Payments Are Exempt From FICA Tax

Thu, 15 Nov 2012 00:00:00 GMT

In United States v. Quality Stores, Inc., the U.S. Court of Appeals for the 6th Circuit affirmed a lower court’s decision that payments from an employer to employees upon involuntary termination due to a reduction in force or business closing are not wages for payroll tax purposes.

2012 – 2013 Talent Management and Rewards Survey — U.S. Report

Thu, 15 Nov 2012 00:00:00 GMT

Towers Watson's 2012 – 2013 Talent Management and Rewards Survey — U.S. Report, reveals key insights on rewards and talent management strategies of nearly 300 participating U.S. organizations.

No Holds Barred

Tue, 13 Nov 2012 00:00:00 GMT

Rapid growth leads the spirits company to revamp its reward philosophy.

Accelerated Contributions: Focus on Borrowing to Fund

Mon, 12 Nov 2012 00:00:00 GMT

Plan sponsors have a number of levers available to manage pension risk exposure, but determining which levers can be most valuable in a given situation can be difficult. Borrowing to fund is one option sponsors have to accelerate cash contributions, improving funded status and potentially facilitating de-risking actions.

Malawi: Government Requires Employers to Contribute to New National Pension System

Thu, 8 Nov 2012 00:00:00 GMT

A new mandatory national pension system (NPS) was established in Malawi in 2011, requiring both employee and employer contributions.

Deconstructing Long-Term Care

Wed, 7 Nov 2012 00:00:00 GMT

Current long-term care insurance product offerings are not working well for either consumers or insurers. This article examines some of the shortcomings of current products and suggests a different approach.

Towers Watson Professional Development Institute (PDI)

Tue, 6 Nov 2012 00:00:00 GMT

Towers Watson PDI provides training in U.S. employee benefits — from seminars offered nationally to customized training sessions presented onsite at your organization.

IRS and PBGC Release MAP-21 Pension Guidance

Fri, 2 Nov 2012 00:00:00 GMT

The IRS and PBGC have released guidance on implementing the pension provisions in the Moving Ahead for Progress in the 21st Century Act. The guidance confirms that there are no changes to the annuity substitution rule and offers flexibility in most interpretive and implementation issues.

Key 2013 Benefit Limits

Fri, 2 Nov 2012 00:00:00 GMT

The IRS recently announced the inflation-adjusted qualified retirement plan limits. These limits restrict the contributions that can be made to, and benefits that can be paid from, qualified retirement plans as well as the compensation that can be taken into account.

Benefits for Internationally Mobile Employees

Thu, 1 Nov 2012 00:00:00 GMT

This survey focuses on the plan design, costs and implementation strategies used by multinationals — including medical and wellness benefits, pensions and various perquisites.

Netherlands: Government’s September Measures Help Pension Funds With Shortfalls

Thu, 1 Nov 2012 00:00:00 GMT

On September 22, the Dutch government presented a package of measures to Parliament that is intended to give some relief to pension funds with funding shortfalls by preventing further increases in 2013 contributions, reducing the need for cuts in benefits and allowing unavoidable cuts to be spread over several years.

What Do PPACA Standards Mean for Employers’ Health Plans?

Wed, 31 Oct 2012 00:00:00 GMT

Beginning in 2014, the PPACA will foster greater competition in the individual and small group markets through state-level health insurance exchanges. These exchange standards could influence employer plan design and funding decisions.

The World’s 500 largest asset managers - Year end 2011

Tue, 30 Oct 2012 00:00:00 GMT

The P&I/Towers Watson global 500 ranking is prepared using joint research by Pensions & Investments and Towers Watson.

Electronic Submission of Fee Disclosure Failure Notice

Mon, 29 Oct 2012 00:00:00 GMT

Retirement plan service providers are required to disclose direct and indirect fees as well as any potential conflicts of interest to plan fiduciaries. If a service provider fails to provide the required information, the plan fiduciary can insulate itself from the consequences by filing a Fee Disclosure Failure Notice with the DOL upon discovering the failure.

The irreversibility of time – Or why you should not listen to financial economists

Thu, 25 Oct 2012 00:00:00 GMT

In this paper, we continue to explore the subject of risk management as a follow-up to our recent publication, “The Wrong Type of Snow: Risk Revisited,” while delving deeper into the subject of having better tools for improved risk management.

Global Markets Overview — October 2012

Wed, 24 Oct 2012 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

Integrated Talent Management: A Roadmap for Success

Wed, 24 Oct 2012 00:00:00 GMT

This Bersin & Associates report presents a proven roadmap for integrated talent management.

Nonqualified Retirement Plan Services

Wed, 24 Oct 2012 00:00:00 GMT

Nonqualified plans can serve as a way to attract and retain key employees and Towers Watson's financing expertise often helps clients identify hard-dollar savings through new approaches or by avoiding mistakes.

Asset Allocations in Fortune 1000 Pension Plans as of Year-End 2011

Tue, 23 Oct 2012 00:00:00 GMT

This third Towers Watson analysis of the asset allocations of Fortune 1000 pension plan sponsors looks at allocations by asset class and valuation level. The analysis is performed on both an aggregate and average-sponsor basis as well as by plan size, funded status and the relative size of pension assets to corporate assets.

Explaining Your Financial Results — Attribution Analysis and Forecasting Using Replicated Stratified Sampling

Fri, 19 Oct 2012 00:00:00 GMT

Read this Insights article to understand how RSS can help present a complete and timely picture of your company’s financials.

Retaining Talent After a Transaction: Lessons From Organizations That Do It Well

Thu, 18 Oct 2012 00:00:00 GMT

This survey report sheds light on what companies more successful at retaining employees in acquisitions do differently.

Active Listening — Monitor the pulse of your organization with Active Listening

Thu, 18 Oct 2012 00:00:00 GMT

Active Listening allows you to deploy a short, open-ended survey on a global scale and identify emerging themes from written employee responses.

Japan: Government Intends to Abolish Employee Pension Funds

Wed, 17 Oct 2012 00:00:00 GMT

The Ministry of Health, Labour and Welfare (MHLW), the authority in charge of the social security system and private pension schemes in Japan, recently announced that it plans to submit a bill to abolish employee pension funds (EPFs) in the next Diet session in January 2013.

All together now? Strategic segmentation in talent and reward

Tue, 16 Oct 2012 00:00:00 GMT

In the same way as consumer marketing thinks about segments, this paper explores the idea of organisations taking a more commercial orientation to the alignment of reward and talent strategies with the role and business needs of different employee groups.

Inside Information

Mon, 15 Oct 2012 00:00:00 GMT

Employees of the rapidly expanding information company see the full scope of the organization's investment in them.

Safe Harbors for Full-Time Status and 90-Day Waiting Period Under PPACA

Mon, 15 Oct 2012 00:00:00 GMT

Recent guidance from the IRS and DOL addresses the determination of full-time status under the PPACA's play-or-pay mandate and confirms that the employer affordability safe harbor is based on employees’ W-2 income.

Slovakia: Government Weakens Second Pension Pillar

Mon, 15 Oct 2012 00:00:00 GMT

The Slovak parliament approved pension reform that reduces contributions to the second pillar of the state pension system and creates a window for workers to elect to return to the first pillar.

Current U.S. Monetary Policy and Interest Rates

Fri, 12 Oct 2012 00:00:00 GMT

Current and recent interest rates affect many aspects of pension plan design and operations, such as financial accounting, interest credits in hybrid plans, lump sum determinations, terms on group annuity contracts and, until the passage of MAP-21, required contributions from plan sponsors.

Prescribed U.S. Statutory and Tax Interest Rates for the Valuation of Life Insurance and Annuity Products

Fri, 12 Oct 2012 00:00:00 GMT

The full Prescribed U.S. Statutory and Tax Interest Rate Report prepared by Towers Watson is now available.

Community at Work

Thu, 11 Oct 2012 00:00:00 GMT

Culture-changing campaign brings dramatic improvements in customer satisfaction and employee engagement

United Kingdom: Compulsory Pension Enrollment Begins

Mon, 8 Oct 2012 00:00:00 GMT

Final details of a new U.K. requirement to automatically enroll employees in a pension plan have been published.

Health Care Changes Ahead Survey Report

Mon, 8 Oct 2012 00:00:00 GMT

The 2012 Towers Watson Health Care Changes Ahead survey focuses on health care benefit decisions employers plan to make in reaction to the Supreme Court decision announcing the constitutionality of PPACA on June 28, 2012. Additionally, it provides a snapshot on how employers are anticipating managing 2013-2014 health care costs.

Past returns are not even a reliable guide to the past

Thu, 4 Oct 2012 00:00:00 GMT

We make the case that performance statistics are anything but a reliable guide to the past, let alone the future, and they should be considered only when heavily supplemented by qualitative insight.

Today’s Plan for Tomorrow’s Retirees: Are We Building DC Plans That Measure Up?

Wed, 3 Oct 2012 00:00:00 GMT

The 2012 Towers Watson survey of DC plan sponsors examines the main components of 401(k) plans and how they’re successfully combined to support retirement readiness and orderly workforce exits.

Retirement Plan Types of Fortune 100 Companies in 2012

Tue, 2 Oct 2012 00:00:00 GMT

In 2012, the number of Fortune 100 companies offering new salaried employees only a defined contribution plan rose, as it has for many years. Today, less than a third of these companies offer any defined benefit plan to newly hired salaried workers, and only 11 still offer a traditional DB plan to new hires.

Japan: Controversy Surrounding Employee Pension Funds

Mon, 1 Oct 2012 00:00:00 GMT

Earlier this year, the Japanese government organized a special committee to discuss broad issues surrounding employee pension funds (EPFs) and is expected to issue a new policy, following an incident of pension asset investment fraud.

A Fresh Look at Total Rewards

Mon, 1 Oct 2012 00:00:00 GMT

With more attention than ever being paid to the cost of employee reward programs, the need to demonstrate value for cost has never been more critical. Doing that effectively means viewing your programs as employees do — as a set of related plans that offer support and security in ways that matter, and shape decisions about the organization and the discretionary effort that employees bring to their work.

Portugal: Study Finds Employees Most Value Health Insurance

Wed, 26 Sep 2012 00:00:00 GMT

Health insurance is the most valued employee benefit across all age groups, a joint survey by Towers Watson and MDS, a Portuguese insurance broker, finds.

Germany: Old-Age, Part-Time Pension Accounting to Reflect IAS 19 Changes

Wed, 26 Sep 2012 00:00:00 GMT

Old-age, part-time pension (OAPT) accounting in Germany is likely to change because of the recent revision of International Accounting Standard 19 (IAS 19).

Global: Corporate Bond Yields Move Downward

Tue, 25 Sep 2012 00:00:00 GMT

Turbulence in financial markets is a fact of modern life, especially over the past few years. The yield on corporate bonds continues to fall with decreases most pronounced in the Eurozone.

End of Service Benefits survey in the Middle East

Tue, 25 Sep 2012 00:00:00 GMT

In our third such survey, Towers Watson surveyed a broad crosssection of organisations based in the Middle East to look at the level of provision, the structure and delivery of mandatory and enhanced employee End of Service Benefits. Responses were received from over 100 organisations, with such a large number again being indicative of the importance of this as an issue, across the Middle East.

Emphasis 2012/3

Fri, 21 Sep 2012 00:00:00 GMT

Towers Watson's quarterly magazine on insurance industry issues.

The Implications of Funding Relief — What Does it Mean for Asset Allocation and Liability-Driven Investing?

Fri, 21 Sep 2012 00:00:00 GMT

Recent legislation designed to lessen the burden of corporate pension plans and increase tax revenue may provide the unforeseen effect of a departure from liability driven investing.

Global Markets Overview — September 2012

Fri, 21 Sep 2012 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

Health Care Cost Trends: Trouble Ahead?

Thu, 20 Sep 2012 00:00:00 GMT

As health benefits continue taking a bigger bite out of total rewards budgets, health care cost trends will be a common pressure point as employers consider their role in the new health care marketplace. The following analysis explores the recent slower growth in health costs and developments that might change the direction of that trend.

Property & Casualty Claim Officer Survey #7: Claim Best Practice Innovations and Measuring Impact

Wed, 19 Sep 2012 00:00:00 GMT

The seventh installment of Towers Watson’s Property & Casualty Claim Officer Survey examines how, in a more data-rich environment, insurers are modernizing claim best practice fundamentals and rebuilding performance metrics. Improved technology and operational adjustments are helping respondents implement these changes.

Pension Plan Funding Obligations Under MAP-21

Wed, 19 Sep 2012 00:00:00 GMT

Pension stabilization in MAP-21 will reduce required contributions for single-employer pension plans substantially, especially for plan years 2012 and 2013. Unless interest rates rise, however, required contributions will return to pre-MAP-21 levels in a few years.

Portugal: Labor Code Amended to Reduce Costs and Improve Competitiveness

Mon, 17 Sep 2012 00:00:00 GMT

Recent amendments to the Labor Code, effective August 1, 2012, introduce significant changes to the business environment by lowering labor costs and increasing workforce flexibility.

Hong Kong: New MPF Rules Allow Employees to Select Providers for Their Own Retirement Contributions Annually

Mon, 17 Sep 2012 00:00:00 GMT

Starting November 1, 2012, employees in Hong Kong will have the option once a year to transfer the accrued benefit from their own contributions in their employer’s Mandatory Provident Fund (MPF) plan to a service provider of their own choice, known as an employee choice arrangement (ECA).

High-Income Individuals to Pay Higher Medicare Taxes Starting in 2013

Mon, 17 Sep 2012 00:00:00 GMT

Under the Patient Protection and Affordable Care Act, workers earning more than $200,000 a year ($250,000 for joint filers) must pay higher Medicare taxes beginning in 2013.

Time Is Irreversible - Or Why You Should Not Listen to Financial Economics

Thu, 13 Sep 2012 00:00:00 GMT

Property & Casualty Insurance CFO Survey #3: Investment Strategies

Thu, 13 Sep 2012 00:00:00 GMT

The third installment of Towers Watson’s Property & Casualty Insurance CFO Survey examines CFO perspectives on investment strategies, looks at how companies approach investment management and the rationale for their current investment policy and asks how current investment strategy is likely to change in the near future, how portfolio performance is evaluated and how interest rates affect investment strategies.

Clock Ticking on Expiring Tax Credits, Exclusions and Cuts

Thu, 13 Sep 2012 00:00:00 GMT

Lawmakers are working on extending the 2001 and 2003 tax laws. At issue is whether to extend the EGTRRA and JGTRRA provisions for all taxpayers or only for those whose annual incomes are less than $250,000.

Usage-Based Auto Insurance Delivers Profound Change

Thu, 13 Sep 2012 00:00:00 GMT

The auto insurance industry is on the brink of profound change that will make it easier to better control claim costs, enhance pricing sophistication, improve profitability and differentiate policyholder products and services.

Sustainable investing – we need a bigger boat

Wed, 12 Sep 2012 00:00:00 GMT

Asset owners and asset managers around the world are struggling with what it means to be a sustainable investor. Here we consider sustainable investing in its broadest sense, incorporating ESG but also looking at the large inter-generational issues that institutional funds need to take into account.

Creating competitive advantage through risk management

Mon, 10 Sep 2012 00:00:00 GMT

In this paper we consider the elements of our Thinking Ahead Group’s work on risk that, we believe, come together to create the potential for funds with strong risk governance to generate competitive advantage.

Transformation in the Hospital Industry

Mon, 10 Sep 2012 00:00:00 GMT

No industry today is immune from change. However, U.S. hospitals face a confluence of circumstances that are transforming the industry and the delivery of patient care in dramatic and unpredictable ways.

India: Health and Productivity Strategies Receive Greater Employer Emphasis

Mon, 10 Sep 2012 00:00:00 GMT

A recent Towers Watson survey reveals employers need to attract talent in India’s fast-paced economy, and are placing greater emphasis and urgency on employee health and productivity (H&P) strategies.

Time to modernise risk management practices

Mon, 10 Sep 2012 00:00:00 GMT

In this paper we make the case for funds to modernise risk management practices, introducing the link between risk and a fund's mission and sketch out what a new risk framework might look like.

IRS Proposes to Allow Elimination of Lump Sums for Pension Plan Sponsors in Bankruptcy

Fri, 7 Sep 2012 00:00:00 GMT

The IRS is proposing a new, limited exception to the anti-cutback rules. The exception would allow a pension plan sponsor entering bankruptcy to eliminate a lump-sum distribution option or other optional forms of benefit that provide for accelerated payments.

The Impossibility of Pensions — Can society support a retired population in the style to which it aspires?

Fri, 7 Sep 2012 00:00:00 GMT

In this paper, our Thinking Ahead Group looks at the "pension problem" from a macro-economic perspective.

To Drive Strategic Alignment and Workforce Agility, Successful Organizations Embrace Change

Fri, 7 Sep 2012 00:00:00 GMT

In this white paper, jointly authored with Workday, Towers Watson addresses transformation of the HR function to achieve strategic alignment with business goals and create the agile workforce that will be needed to compete in a global economy.

Annuities and Retirement Happiness

Fri, 7 Sep 2012 00:00:00 GMT

Prolonged economic uncertainty and high unemployment have been wreaking havoc on the American retirement dream. This Towers Watson’s analysis examines retirement satisfaction over the last decade, including the cushioning effects of annuities.

France: Retirement Age Lowered for Some Workers

Thu, 6 Sep 2012 00:00:00 GMT

The government of President Francois Hollande will lower the retirement age under Social Security for some workers as promised during his campaign.

IRS Releases Guidance on ERISA Benefit Restriction Notices for DB Plans

Thu, 6 Sep 2012 00:00:00 GMT

In Notice 2012-46, the IRS provides guidance and sample language for the notices that single-employer defined benefit plans must give participants and beneficiaries about certain benefit restrictions.

Belgium: Major Pension Reform Tightens Benefits and More Closely Regulates Employers' Actions

Thu, 6 Sep 2012 00:00:00 GMT

The new Belgian government under Prime Minister Elio Di Rupo is making major pension reform changes prompted by the projected retirement costs of an aging population.

The world’s 300 largest pension funds - year end 2011

Wed, 5 Sep 2012 00:00:00 GMT

The 2011 P&I/Towers Watson global 300 pension funds ranking is prepared using joint research by Pensions & Investments and Towers Watson and includes a ranking of sovereign funds.

Global Markets Overview — August 2012

Wed, 5 Sep 2012 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

Past Returns Are Not a Reliable Guide to the Past

Thu, 30 Aug 2012 00:00:00 GMT

A paper from Towers Watson's Thinking Ahead Group, looking at why investors need to stop looking at past returns and instead spend time doing some hard thinking about possible future outcomes.

VERA-Surveying Your Employees: Extract Key Insights Buried in Open-Ended Questions

Wed, 29 Aug 2012 00:00:00 GMT

When surveying your employees, you know the special value of open-ended questions. Unlike fixed, multiple-choice options, open-ended questions allow employees to describe issues — and solutions — in their own words, with all the context and richness needed to take action.

2012 Global Survey of Accounting Assumptions for Defined Benefit Plans: Executive Summary

Wed, 29 Aug 2012 00:00:00 GMT

The 2012 Global Survey of Accounting Assumptions for Defined Benefit Plans is the 23rd annual survey by Towers Watson of assumptions selected by major corporations for their defined benefit plans around the world.

IRS Rulings on Retiree Lump Sums Open Up New Opportunities

Wed, 29 Aug 2012 00:00:00 GMT

The IRS recently issued two private letter rulings concluding that employers can offer lump sum buyouts to retirees who are already receiving their defined benefit pension benefits as annuity payments if certain conditions are met.

After Supreme Court Ruling, Health Care Reform Rollout Gathers Steam

Tue, 28 Aug 2012 00:00:00 GMT

Now that the U.S. Supreme Court has deemed the individual mandate in the health care reform law constitutional, its implementation and enforcement will continue on schedule. But the components of reform involving the Medicaid expansion will be shaped by the Court’s ruling that Congress may not withhold Medicaid funding from states that decline to comply.

The Case For Investing in Corporate Bonds Rated Below Single A

Tue, 28 Aug 2012 00:00:00 GMT

Insurance companies would be well served to consider investment in BBB-B corporate bonds to create a more diversified portfolio and increase income return potential.

HR’s early input key to M&A deal success

Mon, 27 Aug 2012 00:00:00 GMT

Singapore's leading business daily, Business Times, covers Asian Trailblazers.

The Evolving Australian Retirement System

Fri, 24 Aug 2012 00:00:00 GMT

As the Australian retirement system and population continue to mature, emerging issues are prompting new discussions and developments to help Australian workers better prepare for retirement.

Towers Watson 2012 Study Finds Influence of Asian Multinationals Is Growing

Thu, 23 Aug 2012 00:00:00 GMT

The Asian Trailblazers report documents more Asian-headquartered companies are extending their reach to overseas markets.

SEC Says Independence of Compensation Advisors Should Be Determined Holistically

Wed, 22 Aug 2012 00:00:00 GMT

Under final rules adopted by the SEC, national stock exchanges such as the New York Stock Exchange and NASDAQ must establish standards for evaluating the independence of compensation committee advisors for their listed companies.

Latvia: Parliament Raises the Bar for Social Security Pensions

Wed, 22 Aug 2012 00:00:00 GMT

Legislation approved by the Latvian parliament increases the normal retirement age and the minimum number of years of insured employment to qualify for an old-age pension from social security.

Finding the Flow

Wed, 22 Aug 2012 00:00:00 GMT

New organizational structure and people programs lead to dramatic improvements in operations.

Value at Risk for the TW Pension 100 in 2012: An Enhanced Analysis

Tue, 21 Aug 2012 00:00:00 GMT

The average funded status of the Towers Watson Pension 100 declined from 83% at the end of 2010 to 78% at the end of 2011, according to a recent analysis. Volatile economic conditions over recent years combined with wider funding gaps have sharpened sponsors’ concerns about pension risk.

Turkey: New Pension Reforms to Include Government Matching Contributions

Mon, 20 Aug 2012 00:00:00 GMT

In late June, the government announced pension reforms that will include government matching contributions, effective January 1, 2013. Effective immediately and lasting until the end of 2015, the new regulations also allow transfers from defined benefit (DB) to defined contribution (DC) plans without incurring tax, providing more favorable tax treatment of distributions at retirement.

The Talent Management Navigator: An evidence-based approach to effective talent management

Mon, 20 Aug 2012 00:00:00 GMT

The Talent Management Navigator is a unique diagnostic that shows organizations how effectively their talent management programs are performing in the most critical evidence-based areas.

2012 HR Service Delivery and Technology Survey Report

Fri, 17 Aug 2012 00:00:00 GMT

This year’s HR Service Delivery Survey — our 15th annual — reveals the HRSD and technology plans, goals and progress of more than 600 participating companies across North America, Europe and the Middle East, and the Asia Pacific region.

Vietnam: New Labor Code Will Increase Business Costs

Thu, 16 Aug 2012 00:00:00 GMT

The National Assembly passed a new labor code that will become effective May 1, 2013. The new code is more akin to a labor code recently introduced in Venezuela because it clarifies and enhances employee rights rather than increasing employer flexibility.

European Union: Holistic Balance Sheet Details Emerge for Funded Pensions

Tue, 14 Aug 2012 00:00:00 GMT

In June, the European Insurance and Occupational Pensions Authority (EIOPA) launched a consultation on the technical specifications for a quantitative impact study (QIS) of solvency recommendations for pension funds. It contains the first details of how EIOPA envisages that the “holistic balance sheet” might work in practice.

Italy: Major Social Security Pension Reform Introduces Austerity Measures

Mon, 13 Aug 2012 00:00:00 GMT

In December 2011, a major pension reform was enacted, introducing emergency austerity measures that have modified the Italian state pension system in several ways.

UK Long-term Statistics

Thu, 9 Aug 2012 00:00:00 GMT

Welcome to the 2012 edition of ‘Long-term statistics’, Towers Watson’s annual publication that presents historical data for key economic and investment indices.

DOL Backs Off Requirements for Brokerage Windows

Wed, 8 Aug 2012 00:00:00 GMT

The DOL has substantially softened its previous guidance about the implications under ERISA for individual account plans that give participants a wide array of investment choices through a brokerage window.

Broadening Horizons

Wed, 8 Aug 2012 00:00:00 GMT

At the international cable company, an innovative leadership development program stimulates young talent and boosts collaboration at all levels.

2011 – 2012 Retirement Attitudes Survey, Part 1

Wed, 8 Aug 2012 00:00:00 GMT

This report is one of two based on the 2011 – 2012 Towers Watson Retirement Attitudes Survey. The findings examine employees’ attitudes toward their household finances and retirement readiness.

2011 – 2012 Retirement Attitudes Survey, Part 2

Tue, 7 Aug 2012 00:00:00 GMT

Since the recent financial crisis and its fallout, employment and retirement security have acquired greater value for Canadian workers. Given persistent economic uncertainty and weaker pension promises from employers and the government, workers have become particularly concerned about their retirement future.

Solvency II - The matching adjustment and implications for long-term savings

Mon, 6 Aug 2012 00:00:00 GMT

Solvency II was initiated by the European Commission in 2000 and represents a fundamental change to European insurance regulations. The project aims to create a more harmonised, risk-oriented solvency regime, resulting in capital requirements that are reflective of the risks being run. It is expected to come into force in 2014.

U.S. Supreme Court: Individual Mandate Under Health Care Reform Is Constitutional

Fri, 3 Aug 2012 00:00:00 GMT

In June, the Supreme Court ruled by a vote of 5 to 4 that the individual mandate under the Patient Protection and Affordable Care Act (PPACA) is constitutional.

2012 Canadian Pension Risk Survey Report

Fri, 3 Aug 2012 00:00:00 GMT

Towers Watson conducted its ninth annual Survey of Pension Risk in December 2011, a particular focus of which was plan sponsors’ actions in dealing with the financial challenges posed by the current economic environment.

New Fees and Taxes Under Health Care Reform Looming for Employers

Mon, 30 Jul 2012 00:00:00 GMT

Last month, HHS released final regulations on the reinsurance, risk corridors and risk adjustment programs established by the health care reform law. Of the three, the reinsurance program is expected to be the most expensive for employer group health plans.

Onsite Health Center Survey 2012

Mon, 30 Jul 2012 00:00:00 GMT

This report offers clients an overview of onsite health center trends, expected changes in the next three years and employer motivations behind these changes.

House Votes to Repeal Health Care Reform Law

Mon, 30 Jul 2012 00:00:00 GMT

On July 12, the House approved the Repeal of Obamacare Act by a vote of 244 – 185; five Democrats joined House Republicans in the repeal effort. The legislation is not expected to advance.

Austria: Parliament Approves Second-Pillar Reform

Fri, 27 Jul 2012 00:00:00 GMT

On June 14, 2012, Austria’s parliament enacted an amendment to the Pension Fund Act that makes significant changes to the second-pillar pension system.

President Signs Student Loan/Highway Bill: Pension Funding Relief and Higher PBGC Premiums Ahead

Fri, 27 Jul 2012 00:00:00 GMT

President Obama signed the Moving Ahead for Progress in the 21st Century Act into law on July 6. While the so-called highway bill permanently changes the formula for the interest rate used in pension funding, the greatest reduction in pension contributions will occur in the next few years.

Global Markets Overview — July 2012

Thu, 26 Jul 2012 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

Maryland and Illinois Prohibit Employers From Requesting Social Media Passwords

Tue, 24 Jul 2012 00:00:00 GMT

Maryland became the first U.S. state to make it illegal for employers to ask employees or job applicants to hand over their Facebook, LinkedIn and Twitter user names and passwords. The Illinois legislature recently passed a similar bill, which the governor is likely to sign into law shortly.

Corporate Bond Liquidity Constrained, but Active Managers Can Still Excel

Mon, 23 Jul 2012 00:00:00 GMT

In this paper, we explore the decline in liquidity of corporate bonds by discussing the results of our survey to fixed-income managers about liquidity in the cash and derivatives credit markets.

A Global Talent Mobility Study: Regional Differences in Policy and Practice

Mon, 23 Jul 2012 00:00:00 GMT

Towers Watson and Worldwide ERC recently teamed together to study how multinationals based in three different regions approach their talent mobility strategies.

Investment for the P&C insurer – What investors think of your strategic investment policies

Mon, 23 Jul 2012 00:00:00 GMT

Towers Watson has recently undertaken a survey to assess the views of equity analysts, who specialise in researching Property and Casualty insurers, on the strategic investment policy being adopted by these insurers.

Lean and Clean: Making the Right Workday Data Conversion Decisions

Fri, 20 Jul 2012 00:00:00 GMT

Making the Right Workday Data Conversion Decisions.

401(k) Participant Fee Disclosures May Require More Detail Than Many Expected

Wed, 18 Jul 2012 00:00:00 GMT

The DOL recently released FAQs on participant fee disclosures from 401(k)-type plans. Some sponsors are concerned that, while the FAQs provide considerably more detail than the 2010 final regulations, they also arguably contain new requirements for brokerage windows.

Pension journey planning – The impact of adaptive buffers

Fri, 13 Jul 2012 00:00:00 GMT

This paper explores the implications for the journey plan when the availability of risk buffers is, or becomes, limited.

Groundbreaking IRS Private Letter Rulings Pivotal as General Motors and Ford Act to De-Risk Their Pension Plans

Fri, 13 Jul 2012 00:00:00 GMT

The IRS recently published private letter rulings originally issued several months ago to two taxpayers seeking approval to offer lump-sum settlements to their pension retirees. While the published PLRs omit the names of the taxpayers, it seems probable that these rulings were issued to General Motors Company and Ford Motor Company.

The impossibility of pensions – Can society support a retired population in the style to which it aspires?

Fri, 13 Jul 2012 00:00:00 GMT

In this paper, our Thinking Ahead Group looks at the ‘pension problem’ from a macro-economic perspective.

European Union: EU Endorses IAS 19 (rev. 2011)

Wed, 11 Jul 2012 00:00:00 GMT

In early June, the EU authorities approved IAS 19 (rev. 2011). Starting with fiscal years beginning on and after January 1, 2013, companies listed within the EU will be required to comply with the new standard. Early adoption is permitted and is expected to be considered by some companies. For unlisted companies, individual EU country regulators specify whether reporting under IAS 19 is required.

France: Government Officials Ready CEO Public Sector Pay Limit and Discussions on a Private Sector Limit

Tue, 10 Jul 2012 00:00:00 GMT

During his campaign, the newly elected French president, François Hollande, had promised to limit the pay of CEOs of state-owned companies.

Finding the right asset allocation – Is optimisation the solution?

Tue, 10 Jul 2012 00:00:00 GMT

We explain why the simplicity of optimisers used to find the right asset risk can cause major problems for investors and, while this is not new, the fixes proposed by academics and practitioners generally require more complex models that are harder for investors to rationalise and replicate.

Concentrated equity products – preferable to diversified products?

Tue, 10 Jul 2012 00:00:00 GMT

For a typical investor's portfolio, adding skilled active management increases expected return without much change in total risk. We therefore encourage equity investors to seek products with higher expected returns.

IRS Proposes Clarifications to ‘Substantial Risk of Forfeiture’ Standard for Stock Awards

Mon, 9 Jul 2012 00:00:00 GMT

The IRS issued proposed regulations under IRC Section 83 that define a “substantial risk of forfeiture,” which is key in determining when an award of restricted stock or certain other compensation becomes subject to income tax.

Global Alternatives Survey 2012

Sat, 7 Jul 2012 00:00:00 GMT

The Global Alternatives Survey aims to track the movements of alternative assets managed on behalf of pension funds by the world’s largest alternative investment managers and to produce authoritative rankings.

U.S. Labor Market Gives Off Mixed to Weak Signals in 2011

Fri, 6 Jul 2012 00:00:00 GMT

The 2011 employment numbers confirm some modest labor market improvements but also significant and persistent underlying weaknesses. This article discusses labor force trends, job turnover and retirement patterns based on the U.S. Census Bureau’s Current Population Survey and information from the Bureau of Labor Statistics.

Towers Watson Investment Services Defined Contribution Beliefs

Tue, 3 Jul 2012 00:00:00 GMT

Our key investment beliefs for defined contribution (DC) plan investments are outlined in this paper by Towers Watson Investment Services.

A Powerful Advantage

Mon, 2 Jul 2012 00:00:00 GMT

Strengthened safety, wellness and leadership development programs make the natural gas infrastructure company a better, safer place to work.

2012 Global Medical Trends

Mon, 2 Jul 2012 00:00:00 GMT

The 2012 Global Medical Trends survey finds that there's little relief ahead for multinational employers as medical trends in most markets the world over are set to continue to rise at double-digit levels.

Belgium: Changes in Labor Law Accommodate Older Employees and Starters

Fri, 29 Jun 2012 00:00:00 GMT

Recent changes to Belgium’s labor law reflect current efforts in Europe to preserve and enhance employment for older workers as the population ages. The changes also guarantee vacation time for new employees.

Emphasis 2012/2

Thu, 28 Jun 2012 00:00:00 GMT

Towers Watson's quarterly magazine on insurance industry issues.

First Circuit Finds DOMA Unconstitutional

Wed, 27 Jun 2012 00:00:00 GMT

The appeals court held that DOMA’s denial of federal benefits to lawfully married same-sex couples violated the Equal Protection Clause of the U.S. Constitution.

Pension Funding Stabilization Statement

Tue, 26 Jun 2012 00:00:00 GMT

Towers Watson supports pension funding stabilization and urges Congress to pass such legislation immediately.

Journey Well, Arrive Better — Life-Cycle Strategies

Tue, 26 Jun 2012 00:00:00 GMT

Today, life-cycle investment strategies are quickly becoming a well-established part of the defined contribution (DC) landscape in Canada as well — 24% of DC plans with a default option utilize a life-cycle strategy for this purpose, and another 14% are considering changing the default option to a life-cycle strategy over the next 18 months. How well, though, have life-cycle strategies stood the test of time?

Long-Term Incentive Valuation — Lessons From the 2012 Grant Season

Mon, 25 Jun 2012 00:00:00 GMT

A number of important valuation issues have emerged this year as companies have granted long-term incentive awards. Award valuations have wide-ranging effects, from the number of awards being granted to their financial reporting.

Have Regulators on Banking Compensation Gone the Right Way?

Mon, 25 Jun 2012 00:00:00 GMT

This three-part series of Bloomberg BNA articles examines banking compensation, including the fixes and policies in place as a result of deeper scrutiny and regulation.

Poland: New Law Increases Retirement Age

Fri, 22 Jun 2012 00:00:00 GMT

On May 25, Poland's President Bronisław Komorowski signed a bill to increase the retirement age under social security to 67, with partial benefits available to those who retire earlier. Currently, it is 65 for men and 60 for women. The change will be phased in for men by 2020 and for women by 2040. Starting in 2013, the retirement age will be increased by three months each year.

An Evidence-based Approach to Global Talent-Sourcing: Insights from the Oil & Gas Industry

Thu, 21 Jun 2012 00:00:00 GMT

This research discusses how organizations can improve their strategy for global talent-sourcing by using a three-stage evidence based approach.

Prescription for a Changing Tomorrow

Thu, 21 Jun 2012 00:00:00 GMT

Acting on employee survey results helps pharma company sharpen its competitive edge in Europe, the Middle East and Africa.

Investment unwrapped for the Property and Casualty insurer – Out with the old risks, in with the new

Wed, 20 Jun 2012 00:00:00 GMT

Many Property and Casualty insurers have been steadily reducing the level of investment risk in their asset strategy by investing less in equities with more in bonds. Although such a portfolio might be intuitively thought to be largely risk-free, some residual risks remain. Here we consider how these risks could be most effectively measured and managed.

Linking Life and Technology

Wed, 20 Jun 2012 00:00:00 GMT

Sound integration planning, teamwork and change management help Qualcomm successfully navigate a complex acquistion.

Global Markets Overview — June 2012

Tue, 19 Jun 2012 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

Life Insurance CFO Survey #30

Fri, 15 Jun 2012 00:00:00 GMT

Towers Watson’s Life CFO survey #30 focuses on issues related to the low interest rate environment; how companies measure interest rate risk; and how they are managing in-force business, design and implementation of new products and investment strategies in the current low interest rate environment.

Potential Money Market Regulations

Wed, 13 Jun 2012 00:00:00 GMT

Regulations governing money market funds could change in the near future and potentially transform the industry.

ADEA Disparate Impact Claims: EEOC Final “RFOA Defense” Rule

Wed, 13 Jun 2012 00:00:00 GMT

The EEOC recently issued a final rule on disparate impact claims under the ADEA, which addresses the reasonable factors other than age (RFOA) defense.

Health Care Reform Provisions Serve as Revenue Raisers on Legislative Agenda

Wed, 13 Jun 2012 00:00:00 GMT

Legislators are proposing to use money earmarked for health care reform as revenue offsets for legislation to avert budget sequestration and higher interest rates on student loans.

Exploiting Workforce Risks to Transform Your HR Function

Mon, 11 Jun 2012 00:00:00 GMT

“Exploiting Workforce Risks to Transform Your HR Function” by Towers Watson consultants Ravin Jesuthasan and Angel Hoover — recently published in WorldatWork’s magazine Workspan — outlines an evolved concept of risk that HR can use to help companies get the most out of their human capital.

What can tornado chasing teach us about managing financial risk?

Mon, 11 Jun 2012 00:00:00 GMT

We reflect upon the risk management practices that investors can learn from tornado chasers. Whilst many principles and practices are shared, a key difference is that tornado chasers seem to work on the basis that their forecasts will always be drastically wrong.

The cost of trigger-happy investing

Mon, 11 Jun 2012 00:00:00 GMT

We discourage clients from being 'trigger happy'. Instead, we usually counsel them to wait before firing an underperforming investment manager. We do so because evidence and experience shows that retaining an underperforming manager often proves more profitable than replacing it.

China: New Rules Extend Registration Requirements to All Types of Employee Share Plans of Foreign-Listed Companies

Mon, 11 Jun 2012 00:00:00 GMT

More multinational companies are attracting and retaining talent in China with employee stock options, prompting Chinese authorities to issue new regulations to better monitor the employee share plans of foreign-listed companies.

Netherlands: Draft Bill on Pension Fund Governance Published

Thu, 7 Jun 2012 00:00:00 GMT

The Dutch parliament issued a significant bill to improve the governance of pension funds. The proposal is expected to be modified, but the draft announces important changes to the pension landscape.

Defined benefit pension schemes - The impact on FTSE350 company accounts at 31 December 2011

Thu, 7 Jun 2012 00:00:00 GMT

Our analysis of FTSE350 companies’ published accounts highlights the assumptions used to calculate the pension obligations that leading UK companies have disclosed to investors.

Defined Benefit Plan Funding of the TW Pension 100 on a Regulatory Basis for 2010: A Look at Elections and Funding Methods

Tue, 5 Jun 2012 00:00:00 GMT

As calculated on a regulatory basis, the average funded status of defined benefit plans for plan year 2010 was much higher than it was on an accounting basis. This annual analysis identifies funded status, minimum contribution requirements, funding balances, funding balance usage and sponsors’ use of funding relief for plan year 2010.

Total Rewards: The Right Time Is Right Now

Tue, 5 Jun 2012 00:00:00 GMT

In a global economy, securing talent requires a compelling and differentiated employee value proposition (EVP) that goes well beyond core salary and incentives, treating your workforce programs as a portfolio of integrated investments with different yet complementary purposes designed to provide desired business outcomes.

Transformative HR — It’s an Award Winner!

Tue, 5 Jun 2012 00:00:00 GMT

Transformative HR: How Great Companies Use Evidence-Based Change for Sustainable Advantage, by John W. Boudreau and Towers Watson consultant Ravin Jesuthasan, has been named a recipient of the Fifth Annual Axiom Business Book Awards, which recognizes exemplary books that inspire business people eager to learn and improve their careers and businesses.

2011 EEV/MCEV: Stable reporting amidst uncertainty

Fri, 1 Jun 2012 00:00:00 GMT

The 2011 life insurer reporting season has shown a continuing place for supplementary reporting, including EV and related metrics, as well as IFRS profit drivers.

Venezuela: New Labor Code Enacted

Fri, 1 Jun 2012 00:00:00 GMT

A controversial new labor law took effect on May 7, 2012. The new Organic Labor Code, announced on Venezuela's Labor Day by President Hugo Chavez, shortens the normal workweek, increases minimum vacation provisions, increases the duration of maternity leave and requires employers to provide retirement indemnities, among other things.

Strengthen Sales Incentive Programs

Thu, 31 May 2012 00:00:00 GMT

Towers Watson’s Sales Effectiveness and Rewards practice offers a turnkey solution that lets you easily complete a “health check” on your organization’s sales incentive plan — the Sales Compensation Health Check.

Transforming Into the Health Care Workforce of the Future

Tue, 29 May 2012 00:00:00 GMT

This Perspectives piece discusses the changing nature of the health care industry from a workforce perspective and explores the importance of workforce planning and analytics in a hospital’s ability to survive and thrive as the future of health care evolves.

Ghana: Stepping Up of Pension Law Enforcement Nears

Tue, 29 May 2012 00:00:00 GMT

The National Pensions Act was promulgated in Ghana in 2008, but enforcement of the Act's provisions by the National Pensions Regulation Authority (NPRA) has not been consistent. In March, parliament passed a law that clarified the roles of various parties under the act and set an April 30 deadline for full compliance. We understand this deadline has now been extended to June 30, and companies that are not fully compliant may be subject to various tax and other penalties.

Investing in Private Markets – The Right Strategy, the Right Geography, the Right Manager

Mon, 28 May 2012 00:00:00 GMT

This new publication is designed to share some of the key insights from the extensive and ongoing research Towers Watson conducts into private markets. We have a global team who work to continuously identify investment products, managers and themes in private markets that could enhance the portfolios of a broad variety of institutional investors.

Canada: Benefit Highlights of the Federal, Ontario and Quebec 2012 Budgets

Thu, 24 May 2012 00:00:00 GMT

The federal, Ontario and Quebec budgets introduced at the end of March present challenges and some opportunities for employers. A brief overview of some of the changes affecting employers is given below. Towers Watson has issued advisories that offer more details on each budget, and how each affects employers and their benefit programs.

Is Your HR Function Ready for Health Care Reform?

Thu, 24 May 2012 00:00:00 GMT

Consultants Linda Anderson and Denise LaForte examine how health care reform is likely to affect the HR function and how employers can prepare.

Pensions in Transition: Retirement Plan Changes Survey 2012 Report

Tue, 22 May 2012 00:00:00 GMT

This survey report offers benchmarking on plan design changes within large U.S. retirement plans over the last decade and changes planned in the next two to three years. The report also provides the employer motivations behind plan design changes.

IRS Provides Guidance on Longevity Insurance and Lifetime Income Options in DC Plans

Mon, 21 May 2012 00:00:00 GMT

The IRS has proposed new rules to encourage longevity insurance and issued two revenue rulings as part of a broader effort to make lifetime retirement income options more available to participants in defined contribution plans. These efforts reflect the government’s interest in helping retirees hedge their longevity risk.

Global Markets Overview — May 2012

Fri, 18 May 2012 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

U.S. Supreme Court Hears Arguments on Health Care Reform and the Mandate

Thu, 17 May 2012 00:00:00 GMT

On March 26 – 28, the Supreme Court heard over six hours of oral arguments on the constitutionality of the Patient Protection and Affordable Care Act. By late June, the court is expected to rule on challenges to the constitutionality of the individual mandate and the Medicaid expansion.

Russia: Draft Bill Would Protect Jobs of Fathers With Large Families

Thu, 17 May 2012 00:00:00 GMT

Last month, Russia’s Ministry of Public Health and Social Development issued a draft bill amending the labor code to bar employers from firing the fathers of large families who are the only breadwinners.

Rebuild America Act Would Affect Benefit and Compensation Programs

Thu, 17 May 2012 00:00:00 GMT

Senate Health, Education, Labor and Pensions Committee Chair Tom Harkin (D-Iowa) introduced the Rebuild America Act on March 29, which includes a range of benefit-related provisions. The act would stabilize interest rates for defined benefit plans.

Legislation to Prevent Worker Misclassification Reintroduced

Thu, 17 May 2012 00:00:00 GMT

Senator John Kerry and Representative Jim McDermott recently reintroduced the Fair Playing Field Act, which would end the moratorium on IRS guidance on worker classification that has been in effect since 1978.

Senate Approves Highway Bill With Benefit-Related Provisions

Thu, 17 May 2012 00:00:00 GMT

On March 14, the Senate approved the so-called highway bill, which would affect defined benefit (DB) plan funding, asset transfers from DB defined benefit plans to retiree health accounts and qualified transportation benefits.

Towers Watson Korea Pension Report 2011 — Providers and Performance

Wed, 16 May 2012 00:00:00 GMT

Towers Watson is delighted to present the 2011 edition of the Towers Watson Korea Pension Report — Providers and Performance. Towers Watson’s lack of affiliation with local service providers puts us in a unique position to offer an independent perspective and a comprehensive source of information on Korea’s corporate pension market in one easily accessible report. We hope that this report will provide plan sponsors and employers (both local and multi-national) with invaluable information to enable sensible comparison of the vast pool of pension providers and products in the market. In this third issue of the report, we have made more enhancements, and along with the fees comparision introduced last year, we have incorporated a new section comparing aggregate investment returns by service provider.

Sponsor Strength/Covenant Asset Liability Modeling (C-ALM)

Tue, 15 May 2012 00:00:00 GMT

In this paper, we look at the possible outcomes for a pension fund, consider how their assets are likely to behave under a sponsor default and introduce the sophisticated proprietary tools that allow us to integrate covenant risk directly into ALM analysis.

Projected Finances of Social Security and Medicare Worsen Significantly in 2012

Tue, 15 May 2012 00:00:00 GMT

The recently released annual reports for 2012 from the trustees on the financial states of Social Security and Medicare show accelerating deterioration in the finances of both programs. Slower growth in average earnings and higher unemployment reduced current and projected payroll taxes.

Economic Expectations 2012 — 31st Annual Canadian Survey

Tue, 15 May 2012 00:00:00 GMT

This survey provides key insights from Canada’s leading business economists, strategists and portfolio managers into current and emerging economic, investment and governance issues.

PBGC Develops New Enforcement Approach for Plant Shutdowns

Tue, 15 May 2012 00:00:00 GMT

When a DB plan sponsor shuts down operations at a facility and, as a result, more than 20% of plan participants lose their jobs, the sponsor may be required to provide extra security to the PBGC. According to reports from a national trade association focusing on employer-sponsored benefits, the PBGC has adopted a new enforcement approach that treats affected sponsors differently based on their financial health.

United States: Supreme Court Mulls PPACA’s Individual Mandate

Mon, 7 May 2012 00:00:00 GMT

In late March, the U.S. Supreme Court heard six hours of oral arguments on the constitutionality of the PPACA (Patient Protection and Affordable Care Act). Oral arguments centered on whether the law’s individual mandate is constitutional. The Court is expected to reveal its decision by the end of June.

Argentina: Social Tax Wage Ceiling Increases Over 35% in 2012

Mon, 7 May 2012 00:00:00 GMT

The monthly ceiling on wages subject to social taxes in Argentina has increased by 37.4% in 2012. In 2011, the ceiling was ArP13,879. Due to routine inflation adjustments, it had been scheduled to increase to ArP16,241 in 2012. Instead, the government increased the ceiling to ArP19,071 to strengthen the finances of the social welfare system. This is the equivalent of about US$4,350 or €3,328, which is still considerably lower than the comparable ceiling in most developed countries.

Australia: Changes to Private Health Insurance Premium Rebate and Medicare Levy Surcharge

Thu, 3 May 2012 00:00:00 GMT

Employers with private health insurance arrangements for employees need to review the impact of recent legislative changes made to Australia’s private health insurance rebate and Medicare Levy Surcharge.

Asia Pacific: 2011 Asia Incentive Plan Survey Finds That Plan Design Is Increasingly Tied to Company Performance

Thu, 3 May 2012 00:00:00 GMT

Towers Watson’s 2011 Asia Incentive Plan Design Survey has found that annual and long-term incentive plans continue to play a critical role in supporting organizational objectives, encouraging desired behaviors, and attracting and retaining skilled talent.

JOBS Act Reduces SEC Burdens for Executive Compensation

Thu, 3 May 2012 00:00:00 GMT

The JOBS Act exempts certain companies that have recently undergone an IPO from some compensation proxy disclosures and from having to provide shareholder say-on-pay advisory votes for up to five years. The new law also allows private companies to provide equity compensation to more employees without extensive periodic SEC reporting.

Puerto Rico Retirement Plans: A Time-Saving Filing Alternative and Tax Considerations for DB Plan Contributions

Wed, 2 May 2012 00:00:00 GMT

A retirement plan qualified in Puerto Rico may now file a copy of Form 5500 as a substitute for information that used to be filed in a separate Puerto Rican annual report, which will allow plan sponsors to avoid filing some duplicative information.

TW Pension 100: 2011 Reporting of Funding, Discount Rates, Asset Allocations and Contributions

Mon, 30 Apr 2012 00:00:00 GMT

During 2011, the aggregate funded status for DB plans in the Towers Watson 100 fell from 85% to 79%. This annual analysis examines reported funding results at year-end 2011, the discount rates used to measure liabilities, target asset allocation policies, returns on plan investments and plan contributions made for 2011 as well as those expected for 2012.

Hedge Fund investing — opportunities and challenges

Mon, 30 Apr 2012 00:00:00 GMT

Our new publication "Hedge Fund investing — opportunities and challenges’ aims to provide insights for institutional investors with direct hedge fund portfolios or those considering investing directly in hedge funds. It offers practical analysis and advice about how to structure investments as well as about the investments themselves.

Global Markets Overview — April 2012

Mon, 30 Apr 2012 00:00:00 GMT

Our Global Markets Overview provides a high level review and outlook each month for markets and economies.

Insights: Periodical Payment Orders (PPOs)

Fri, 27 Apr 2012 00:00:00 GMT

The award of periodical payment orders (PPOs) in the UK, as an alternative to lump sum settlement of large insurance claims, has increased in prevalence in recent years.

Is This the End of OTC Derivatives for Pension Plans?

Thu, 26 Apr 2012 00:00:00 GMT

Over-the-counter (OTC) derivatives, such as interest rate and inflation swaps, have become standard tools for defined benefit pension plans. But the recent financial crisis and subsequent changes in regulation mean it is likely that the way pension plans use such instruments will change.

Australia: Employers’ Mandatory Pension Contributions to Increase to 12%

Thu, 26 Apr 2012 00:00:00 GMT

Employers’ mandatory pension contributions under the Superannuation Guarantee (SG) will increase from 9% to 12% of employees’ earnings (up to a certain ceiling). The increase will be phased in between July 2013 and July 2019.

Ireland: Further Details on Operation of Funding Standard for Defined Benefit Plans

Thu, 26 Apr 2012 00:00:00 GMT

On April 5, 2012, the Social Welfare and Pensions Bill was published. Although the bill provides some additional clarity about how the new funding proposal will operate, it is going to be very difficult for trustees and sponsors to move forward until further regulations and guidance are published.

Brazil: Salary Increase and Variable Pay Trends for 2012

Wed, 25 Apr 2012 00:00:00 GMT

Towers Watson annual survey on salary increases and variable pay trends in Brazil.

Europe: European Commission Urges Member States to Tackle Demographic Issues

Wed, 25 Apr 2012 00:00:00 GMT

In its February 2012 white paper, the European Commission (EC) urged member states to tackle the demographic issues facing the continent through a series of measures. The paper, entitled “An Agenda for Adequate, Safe and Sustainable Pensions,” considers how changes to employment and social security pensions could encourage longer working lives.

United States: New Tax Reporting Requirements Implemented for Overseas Plans

Tue, 24 Apr 2012 00:00:00 GMT

New tax reporting requirements may affect employers that sponsor overseas retirement and deferred compensations plans for employees who are U.S. taxpayers.

De-risking report 2012 — Provider views in an evolving market

Fri, 20 Apr 2012 00:00:00 GMT

The results of a survey carried out with several major providers – both insurance companies and investment banks – to gauge their views on what could influence the evolution of the risk transfer market over the next year, as well as drawing on Towers Watson’s experience and analysis of the key drivers of activity during 2011.

Funds of Hedge Funds – Heavy Weather Ahead

Thu, 19 Apr 2012 00:00:00 GMT

2011 was a challenging year for hedge funds generally and for funds of hedge funds) in particular. In this paper we look at industry developments and what the future may hold for funds of hedge funds.

Real Estate – The Case for Global Diversification

Thu, 19 Apr 2012 00:00:00 GMT

Global diversification in real estate portfolios is less common than in equity and bonds despite some obvious advantages. In this paper we look at why global diversification makes sense for real estate portfolios and consider what has been holding investors back.

The Truths About Change: What It Takes to Get It Right

Wed, 18 Apr 2012 00:00:00 GMT

Towers Watson takes a deeper look at effective change management based on the research results from the 2011/2012 Change and Communication ROI Study.

Germany: Employers Consider Options as Private Health Insurance Premiums Rise

Wed, 18 Apr 2012 00:00:00 GMT

In early 2012, some private health funds in Germany increased premiums for health insurance by more than 10%, while others increased them more moderately or didn’t increase them at all. As employers are required to reimburse employees part of their private insurance contributions, any increase in these premiums will affect company labor expenses.

Spain: Important Labor Law Reforms Enacted

Wed, 18 Apr 2012 00:00:00 GMT

As part of the response to the economic difficulties confronting Spain, the newly established government of Prime Minister Rajoy (of the center-right Popular Party) published a Royal Decree on February 11, 2012, that reforms the Spanish labor law. It introduces more flexibility to one of the most rigid labor markets in Europe and reduces financial disincentives to hiring permanent staff.

2012 Risk and Finance Manager Survey

Mon, 16 Apr 2012 00:00:00 GMT

The 2012 Risk and Finance Manager Survey examines how North American companies use outside resources, tools and frameworks to assist them in addressing risk.

Investment Governance — Enhancing the value chain

Fri, 13 Apr 2012 00:00:00 GMT

Defined contribution (DC) pension plans have been growing steadily in number, size, importance and sophistication over the last decade or so. As their size and importance have grown, so has focus on the level of governance and management oversight. The recent financial crisis has further emphasized the governance challenge facing DC retirement savings plans. In this article, we explore the concept of governance in a DC context and the options available to fiduciaries in aligning their governance to investment, and suggest how they may be adopted in a DC environment.

Czech Republic: Significant Changes to the Labor Code

Tue, 10 Apr 2012 00:00:00 GMT

The current thinking on Europe’s labor markets is that governments need to make labor laws more flexible and reduce the cost of employing workers to encourage companies to expand hiring and boost economic growth. Following on the heels of such reforms in neighboring Slovakia, which took effect in September 2011, the Czech Republic recently amended the 2007 Labor Code to do just that, relaxing the rules on compensation for overtime, increasing the maximum duration for fixed-term contracts from two to three years and lowering statutory severance for collective dismissals, among other things.

Executive Compensation in the 2012 Proxy Season: Year Two of Say on Pay — and Beyond

Tue, 10 Apr 2012 00:00:00 GMT

Most companies gained strong shareholder support for their executive pay programs in last year’s first round of mandatory say-on-pay votes, and year two of say on pay play is following a similar pattern in the early votes.

United States: Reduction in Social Security Payroll Taxes Extended to the End of 2012

Tue, 10 Apr 2012 00:00:00 GMT

In February, Congress approved and the President signed a bill to further extend the two-percentage-point reduction in the employee Social Security tax rate. In December, it was extended for two months as a stopgap measure. The February extension, which expires at the end of this year, did not receive the political attention generated in December.

Creating a Genuine SharePoint HR Portal

Mon, 9 Apr 2012 00:00:00 GMT

Towers Watson's pre-configured HR SharePoint Portal, built entirely on the SharePoint platform, helps HR improve service delivery, enhance communication, reduce dependency on IT and lower operating costs.

Insights: Investing for PPOs

Thu, 5 Apr 2012 00:00:00 GMT

Towers Watson’s investment specialists look at the lessons that can be learned from their experience in advising other segments of the financial services industry, and particularly pension funds.

House Approves Legislation to Repeal Medicare Board

Wed, 4 Apr 2012 00:00:00 GMT

The House of Representatives recently approved legislation to repeal the Independent Payment Advisory Board, which was established under the Patient Protection and Affordable Care Act to help control Medicare spending. If the IPAB is repealed, the responsibility for oversight of Medicare spending falls back to Congress.

An American Retirement Story

Wed, 4 Apr 2012 00:00:00 GMT

In The Predictable Surprise: The Unraveling of the U.S. Retirement System, Sylvester J. Schieber (formerly of Watson Wyatt Worldwide) tells the story of retirement in America. He also offers several practical suggestions for protecting retirees’ financial interests without levying ever more punitive payroll taxes on workers.

U.K. Pension Legislative Changes — A Perspective for U.S. Employers

Mon, 2 Apr 2012 00:00:00 GMT

In this webcast, our pension experts from the U.K. covered the U.K. defined contribution landscape, including implications for U.S. employers around final auto-enrollment regulations.

Powerful Performance: Towers Watson fiduciary management

Thu, 29 Mar 2012 00:00:00 GMT

Does the level of return you get in relation to risk in your pension fund portfolio concern you? Of course it does. But what can you do about it? What can you do to manage your assets more effectively? How do you expand the skills available to you, in order to manage your assets more effectively.

Evaluating an Investment Manager in an Uncertain World

Thu, 29 Mar 2012 00:00:00 GMT

When an investment board hires a manager, it has beliefs about the future performance that the manager will generate. In this technical paper we formulate a method that enables an investor to review the manager’s performance and reveal some profound issues with many of the prevailing conventions of performance evaluation.

IAIS Insurance Core Principles Pose Various Challenges for Insurers

Wed, 28 Mar 2012 00:00:00 GMT

This Insights article discusses the implications of the new set of insurance principles set out in the Insurance Core Principles (ICPs), that were adopted in October 2011 by The International Association of Insurance Supervisors (IAIS).

Investment Beliefs

Wed, 28 Mar 2012 00:00:00 GMT

This paper documents the key investment beliefs held by Towers Watson's Global Investment Committee. These beliefs support how we work with our clients and may be used to assist clients in determining their beliefs. This document is not intended to be comprehensive and will evolve over time.

President Obama's FY 2013 Budget Includes Benefits and Compensation Proposals

Wed, 28 Mar 2012 00:00:00 GMT

President Obama’s proposed budget for fiscal year 2013 would affect retirement, health, compensation and other benefit programs. Many of the proposals, such as taxing carried interest at ordinary rates, encouraging automatic IRAs, addressing worker misclassification and authorizing the PBGC to raise premiums, also appeared in last year’s budget submission.

Emphasis 2012/1

Wed, 28 Mar 2012 00:00:00 GMT

Towers Watson's quarterly magazine on insurance industry issues.

2012 Global Survey of Investment and Economic Expectations

Wed, 28 Mar 2012 00:00:00 GMT

Because of the euro debt crisis and other developments, investment managers anticipate lower economic growth and muted investment returns around the globe, according to Towers Watson's 2012 Global Survey of Investment and Economic Expectations.

When We're Feeling Better, They're Feeling Better: How Hospitals Can Impact Employee Behavior to Drive Better Care Outcomes

Wed, 28 Mar 2012 00:00:00 GMT

This Perspectives focuses on the hospital industry. It examines the relationship between employee attitudes and aspects of patient care, highlighting actions that hospital leaders can take to influence the employee behaviors that help drive better results for the organization.

Attraction and Retention: What Employees Value Most

Tue, 27 Mar 2012 00:00:00 GMT

This is the last article in the series based on the 2011 Towers Watson Retirement Attitudes Survey highlighting American workers’ attitudes toward their household finances and retirement readiness. Workers’ reordered priorities are changing the attraction and retention value of health care and retirement benefits.

The 2012 Towers Watson/WorldatWork Global Talent Management and Rewards Report

Fri, 23 Mar 2012 00:00:00 GMT

We invite you to participate in the 2012 Towers Watson/WorldatWork Global Talent Management and Rewards Survey. You’ll gain valuable insights into how other leading organizations are managing their talent management and reward programs to meet major challenges.

Global Outlook: Moderate Economic Growth, Muted Investment Returns

Tue, 20 Mar 2012 00:00:00 GMT

Investment managers expect moderate economic growth, contained inflation, low interest rates and lackluster investment returns across national economies in the year ahead, according to the Towers Watson 2012 Global Survey of Investment and Economic Expectations.

2012 Multinational Pooling Network Matrix

Tue, 20 Mar 2012 00:00:00 GMT

Multinational pooling and captive benefit financing are increasingly important tools for multinational companies. By better leveraging your global purchasing power through pooling and captive arrangements, you can maximize cost savings for your employee benefit programs around the world and optimize non-financial benefits, such as improved service and underwriting.

United Kingdom: Treasury Considers Contractual Plans for Collective Investment

Mon, 19 Mar 2012 00:00:00 GMT

In January, the U.K. Treasury released a consultation document on “Contractual Schemes for Collective Investment.” The consultation period ran from January 10 to March 19. A Response Document will follow with the intent of introducing enabling legislation this summer.

Summary Results from 2011 Asia Incentive Plan Design Survey: Regional Report

Mon, 19 Mar 2012 00:00:00 GMT

To help companies ensure that their annual and long-term incentive plans provide competitive reward opportunities and remain effective in supporting key business and talent goals, Towers Watson conducts ongoing research into incentive plan design practices and operations. Our latest survey highlights the continuing evolution of plan design, along with emerging trends in plan management.

Perceived Value

Mon, 19 Mar 2012 00:00:00 GMT

Towers Watson’s clients are becoming more and more interested in the perceived value of the variable elements of the reward package. Rules and regulations, especially in the financial sector, limit the level of variable pay and therefore induce the question of a reasonable rate of exchange between variable programmes and fixed pay.

Pension Plans Continue to Face Large Funding Obligations

Fri, 16 Mar 2012 00:00:00 GMT

Average regulatory funded status of single-employer DB pension plans is estimated to have improved for plan year 2012 (measured at year-end 2011), relative to our September 2011 projection. Nonetheless, the longer-term funding outlook has worsened, and required plan contributions are projected to balloon over 2013-2015.

Estonia: Change in Tax Law Encourages Employer Contributions to Supplementary Pension Plans

Wed, 14 Mar 2012 00:00:00 GMT

Employers in Estonia now have the opportunity to make contributions to a third-pillar employee pension fund on a tax-effective basis for employees. Under amendments to the Income Tax Act, effective January 1, 2012, employer contributions will no longer be taxed as part of an employee’s income, up to certain limits.

Managing DC Plans with our Membership Risk Tolerance Tool

Mon, 12 Mar 2012 00:00:00 GMT

What are the investment needs of your plan’s membership? How much risk can your members cope with and what level of return do they need to achieve an adequate retirement outcome? To what extent is your default investment strategy successful in meeting these needs? Our DC Membership Risk Tolerance Tool can help you answer these questions and more.

Towers Watson/NBGH Employer Survey on Value in Purchasing Health Care

Thu, 8 Mar 2012 00:00:00 GMT

A survey that provides strategic insights into the actions and plans of leading U.S. employers and what the future of employer provided health care in the U.S. may look like this year and in the coming three years.

Directors and Officers Liability: 2011 Survey of Insurance Purchasing Trends

Wed, 7 Mar 2012 00:00:00 GMT

The 2011 Directors and Officers (D&O) Liability Survey is an annual survey that tracks D&O coverage purchasing patterns.

Strategic Risk Management

Wed, 7 Mar 2012 00:00:00 GMT

Five approaches to best manage strategic risk in investing are presented in this white paper.

2012 ERISA Compliance Calendar Available

Wed, 7 Mar 2012 00:00:00 GMT

The 2012 Expanded Reporting and Disclosure Requirements Calendar provides who, what, when and where reporting and disclosure information for single-employer pension and welfare plans under ERISA.

Thematic Investing

Tue, 6 Mar 2012 00:00:00 GMT

Why is thematic investing a good idea? Our paper highlights potential investment themes we believe will be important in successfully shaping future asset allocation and risk management strategies.

Russia: Significant Changes to Social Provisions Implemented

Tue, 6 Mar 2012 00:00:00 GMT

On December 3, 2011, Russian President Medvedev signed into law a number of measures affecting social insurance, and health and pension provisions. The law took effect on January 1, 2012 and could raise or lower staffing costs depending on payroll profiles.

Risk management revisited: The Wrong Type of Snow

Mon, 5 Mar 2012 00:00:00 GMT

The Wrong Type of Snow is written by our Thinking Ahead Group. They share their work on risk and how better risk management can provide a competitive advantage. The publication includes a study of existing practices, a new way of thinking about risk in the context of mission and proposals for improving risk management by institutional funds.

Private Equity Benchmarking — Where Should I Start?

Fri, 2 Mar 2012 00:00:00 GMT

Helpful pointers and best practices for setting benchmarks in private equity are provided in this white paper.

Europe: EIOPA Provides Advice on IORP Directive

Thu, 1 Mar 2012 00:00:00 GMT

On February 15, 2012, the European Insurance and Occupational Pensions Authority (EIOPA) published its response to the European Commission’s (EC’s) “Call for Advice” on the review of the 2003 Pensions Directive (the IORP Directive).

Canadian 2011-2012 Pension Administration Survey Results

Wed, 29 Feb 2012 00:00:00 GMT

The survey results show that sponsors view pension administration through a risk management lens. Sponsors today seek efficient administration at a competitive cost, offered by a team with experience and expertise with plan designs like theirs.

American Workers Seek More Security in Retirement and Health Plans

Fri, 24 Feb 2012 00:00:00 GMT

This is the second of three articles based on the 2011 Towers Watson Retirement Attitudes Survey highlighting American workers’ attitudes toward their household finances and retirement readiness. Recent financial losses and higher health costs have highlighted the value of security, and many workers exhibit a new willingness to pay for guaranteed benefits.

Capital Markets Review - Fourth Quarter 2011

Thu, 23 Feb 2012 00:00:00 GMT

Towers Watson’s quarterly Capital Markets Review provides a high-level summary of capital markets and economic developments. February 2012.

Insights: Beware the PPO iceberg

Thu, 23 Feb 2012 00:00:00 GMT

The award of periodical payment orders to settle large insurance claims has steadily become more prevalent in recent years.

IRS Says Rehired Employees Are Not Retirees

Thu, 23 Feb 2012 00:00:00 GMT

The IRS recently issued a private letter ruling concluding that DB plan participants who stop working for their employer with the explicit expectation of being rehired a short time later have not legitimately retired. As such, these participants would not be eligible for early retirement benefits, and the practice would put the DB plan at risk of disqualification.

Benefits Advisory and Compliance Update: DOL Issues Final Service Provider Fee Disclosure Rules

Wed, 22 Feb 2012 00:00:00 GMT

The DOL recently published final rules requiring retirement plan service providers to disclose comprehensive information about their fees and potential conflicts of interest.

Towers Watson Perspective: De-risking Investment Policies

Wed, 22 Feb 2012 00:00:00 GMT

How de-risking can help DB plan sponsors better meet their long-term risk/reward objectives.

Funded Status of Fortune 1000 DB Plans Declines in 2011

Tue, 21 Feb 2012 00:00:00 GMT

In pension plans sponsored by Fortune 1000 companies, assets continued to grow in 2011 — albeit not by much — and asset growth was outpaced by the growth of liabilities. On an aggregate level — total assets divided by total PBO for all 422 firms — we estimate that funded status fell from 84% in 2010 to 78% in 2011.

Wellness Programs and In-House Care: How Hospitals Can Lower Employee Health Coverage Costs

Thu, 16 Feb 2012 00:00:00 GMT

Hospitals, under unprecedented pressure to control costs, are taking a hard look at their escalating budgets for employee health care benefits, which have been rising faster than in most other industries.

Insights — AG 38 Developments: Industry Responds to Draft Framework

Wed, 15 Feb 2012 00:00:00 GMT

This Towers Watson Insights article provides life insurers and other interested parties with a better understanding of both the AG 38 Draft Framework and industry comments, as well as our perspectives on this issue’s impact on the industry over the next six to 12 months.

The future of UK and Ireland GAAP for insurers

Wed, 15 Feb 2012 00:00:00 GMT

On 30 January 2012, the UK and Republic of Ireland’s Accounting Standards Board (ASB) published three Financial Reporting Exposure Drafts (FREDs) 46 to 48, setting out proposals for the future of UK GAAP in the UK and Republic of Ireland (RoI).

Switzerland: Revised Pension Legislation in Effect

Tue, 14 Feb 2012 00:00:00 GMT

On January 1, 2012, the provisions of the structural occupational pension reform became fully effective. For some provisions, a transition period applies.

Hungary: New Labor Code Passed

Tue, 14 Feb 2012 00:00:00 GMT

In late December 2011, parliament passed a new Labor Code intended to make employment more flexible and improve worker protections. The code will come into effect as of July 1, 2012.

Brazil: Health Care for Retirees Reinforced

Tue, 14 Feb 2012 00:00:00 GMT

The Brazilian agency that regulates health plans (ANS) recently published a resolution that clarifies the controversial Articles 30 and 31 of the Brazilian Health Law, enacted in 1998. These two articles were the legislature’s response to societal demands to increase private health plan access when people leave their jobs, including upon retirement.

Puerto Rico Plan Spin-Off Deadline Extended; Compliance Deadlines Set

Wed, 8 Feb 2012 00:00:00 GMT

In Notice 2012-6, the IRS extends the deadline for a spin-off from a U.S.-qualified plan to a retirement plan qualified only in Puerto Rico to December 31, 2012, to give plan sponsors more time to decide whether to spin off benefits from a dual-qualified plan.

Europe: Retirement Ages to Be Increased in France, Italy and the U.K.

Mon, 6 Feb 2012 00:00:00 GMT

Most European countries are trying to control their deficits, while at the same time, their populations are aging, and life expectancy is increasing. In the face of these trends, it is not surprising that many of them are increasing the retirement ages under mandated retirement programs.

Indonesia: Government Passes Universal Health Care Law

Mon, 6 Feb 2012 00:00:00 GMT

Universal health care for Indonesian citizens will be implemented by 2014, 10 years after it was first mandated by law. Last October, the Indonesian government passed the Social Security Providers Bill (BPJS) even though the law to provide a national social security system was passed in 2004. The government must now implement health care coverage for all citizens by January 2014 and other social security benefits for workers by July 2015 at the latest.

Insights: Predictive Modeling Proving Its Worth Among P&C Insurers

Mon, 6 Feb 2012 00:00:00 GMT

Predictive modeling — using statistical modeling approaches to better understand and price individual risk — is increasingly proving its worth in the property & casualty (P&C) insurance industry, according to results of Towers Watson’s 2011 Predictive Modeling Benchmarking Survey.

President Signs Deal to Extend Payroll Tax Holiday Through 2012

Mon, 6 Feb 2012 00:00:00 GMT

In December 2011, President Obama signed into law a two-month extension of the 2011 payroll tax reduction for employees and another delay for the scheduled reduction in Medicare physician reimbursement rates. The extensions were slated to expire February 29, but congressional negotiators agreed to extend the payroll tax cuts, unemployment benefits and “doc fix” for Medicare physicians through the end of the year.

Retirement Income: Risks and Strategies Sets Out a Path to Retirement Security

Fri, 3 Feb 2012 00:00:00 GMT

In a new book, Retirement Income: Risks and Strategies, Mark Warshawsky and colleagues suggest strategies, plan provisions, products and public policies to help middle-class American retirees, now and in the future, maximize their incomes and reduce their risks.

IRS Addresses Troubling New Question on Form 8955-SSA

Fri, 3 Feb 2012 00:00:00 GMT

In a FAQ recently posted on its website, the IRS clarified an issue that had been worrying filers of new Form 8955-SSA. The form is used to report information about participants who separate from service with a deferred vested benefit.

Journey Planning — A More Engaging Approach

Tue, 31 Jan 2012 00:00:00 GMT

Historically, defined contribution (DC) plans have usually operated within a relatively low engagement environment. Members have tended to save what they can, when they can, and hoped they would somehow have enough saved up in their account to fund a comfortable retirement. Little or no consideration has been given to a member’s ability to take investment risk and the resulting implications.

U.S. Supreme Court and Health Care Reform: A Momentous Decision Ahead

Mon, 30 Jan 2012 00:00:00 GMT

The Supreme Court will spend three days in late March hearing the challenges to the 2010 health care reform law. If the court finds the mandate unconstitutional, the next order of judicial business will be ruling on its severability from the rest of the Patient Protection and Affordable Care Act.

Global Pensions Asset Study - 2012

Fri, 27 Jan 2012 00:00:00 GMT

This is a study of the 13 largest pension markets in the world and accounts for more than 85% of global pension assets. The countries included are Australia, Canada, Brazil, France, Germany, Hong Kong, Ireland, Japan, Netherlands, South Africa, Switzerland, the UK and the US.

Finding your balance – top tips for successful HR delivery in multiple countries across Europe

Fri, 27 Jan 2012 00:00:00 GMT

The complex European landscape can deter organisations from considering a multi-county HR service delivery model. Successful implementation of such a model can be challenging, however it is achievable if carefully planned, with key issues acknowledged and addressed at the outset.

2011 Update on U.S. Tort Cost Trends

Thu, 26 Jan 2012 00:00:00 GMT

U.S. tort costs increased by 5.1% in 2010, an increase which is attributable to the April 2010 Deepwater Horizon drilling rig explosion and resulting oil spill in the Gulf of Mexico.

Property & Casualty Insurance CFO Survey # 2: Mergers & Acquisitions

Wed, 25 Jan 2012 00:00:00 GMT

The second installment of Towers Watson’s Property & Casualty Insurance CFO Survey focuses on views about mergers and acquisitions as of fourth quarter 2011 and compares views on how the M&A market has changed since 2010.

Qualified Domestic Relations Order Answer Book

Tue, 24 Jan 2012 00:00:00 GMT

Retirement plan sponsors can face the tedious undertaking of dividing benefits of employees involved in a separation or divorce. In these instances, a Qualified Domestic Relations Order (QDRO) recognizes a spouse’s right to receive all or a portion of the benefits payable with respect to a participant’s retirement plan.

The Economic Significance of the Individual Mandate in the Health Care Reform Law

Mon, 23 Jan 2012 00:00:00 GMT

If the Supreme Court strikes down the individual mandate but finds it is severable from the rest of the health care reform law, would the PPACA remain viable economically? This article reviews the architecture of the new law, summarizes three economic studies that examine the question empirically and gives some “outside-the-model” considerations of this pivotal issue.

Thematic investing

Fri, 20 Jan 2012 00:00:00 GMT

Why is this approach a good idea? Our paper highlights potential investment themes that we believe will be important in shaping future asset allocation and risk management strategies.

Accessing China - Wealth of Investment Opportunities

Fri, 20 Jan 2012 00:00:00 GMT

While issues troubling the Euro zone and the US economy seem far from being resolved, China’s importance as a primary growth engine for the global economy continues to attract the attention of institutional investors from around the world.

Expected property returns when government bond yields are rising

Thu, 19 Jan 2012 00:00:00 GMT

Conventional wisdom says that property suffers when gilt yields rise. In this paper, we show that no obvious historical pattern exists between property returns and yield increases and summarise some previous research on this matter.

Is this the end of OTC derivatives for pension schemes?

Thu, 19 Jan 2012 00:00:00 GMT

Over-the-counter (OTC) derivatives, such as interest rate and inflation swaps, have become standard tools for defined benefit pension schemes. However, the financial crisis and subsequent changes in regulation means it is likely that the way pension schemes will use such instruments will change.

Retirement Planning in a Post-Crisis Economy

Wed, 18 Jan 2012 00:00:00 GMT

This article is the first in a three-part series based on the 2011 Towers Watson Retirement Attitudes Survey highlighting American workers’ attitudes toward their household finances and retirement readiness. Many Americans have become more financially conservative, cutting back on spending and paying more attention to household finances and retirement planning and saving.

The Defined Contribution Plans of Fortune 100 Companies for the 2010 Plan Year

Wed, 18 Jan 2012 00:00:00 GMT

This Towers Watson study analyzes Fortune 100 companies’ 2010 accounting reports for their largest DC plan. It looks at eligibility and vesting rules, employee and employer contributions, and plan investments as well as five-year trends in plan design and practices.

Job Levelling

Tue, 17 Jan 2012 00:00:00 GMT

Towers Watson’s systematic approach to job levelling helps organisations manage the opportunities and challenges of talent and reward programme design and delivery.

Everything Is Possible; Nothing Is Easy: What You Need to Know About HR Service Delivery in Asia

Tue, 17 Jan 2012 00:00:00 GMT

Whether your organisation is growing in — or going into — Asia, the same HR service delivery principles and best practices apply as in North America or Europe. The Asian region certainly is ready for all the service delivery fundamentals: centres of expertise, well-defined business partner roles, shared services organisations, change management, outsourcing, technology solutions and self-service. However, many factors complicate, and can even halt, the growth process unless your organisation understands and addresses the special challenges of the region.

Benefits Advisory and Compliance Update: DOL Revises Requirements for Electronic Disclosure of DC Plan Expenses

Mon, 16 Jan 2012 00:00:00 GMT

The Department of Labor recently issued guidance (Technical Release 2011-03R) on electronic disclosure of investment fees in DC plans. The new guidance primarily affects sponsors that wish to combine participant benefit statements with fee disclosure.

Romania: Pension Fund Changes Made

Thu, 12 Jan 2012 00:00:00 GMT

In recent months, Romania introduced reforms to make changes to pension plan provisions, including the creation of a pension guarantee fund and increases in the retirement age.

Czech Republic: Government Approves New Second-Pillar Pension System

Wed, 11 Jan 2012 00:00:00 GMT

Czech pension reform, which created a voluntary second pillar, finally became law at the beginning of December, after the president declined to sign the law but allowed the time for a veto to pass. The reform is intended to take effect in 2013 and allows employees to partially opt out of the unfunded state pension system and have part of their social security contributions diverted into a private pension fund.

Investment: Capturing Long-Term Themes

Tue, 10 Jan 2012 00:00:00 GMT

Investment macro factor themes are multi-year and international in nature. They have substantial impact on assets and can cut across asset classes and managers. This paper explores how macro factors can be exploited through thematic investing.

Retirement Income: Risks and Strategies

Tue, 3 Jan 2012 00:00:00 GMT

In Retirement Income, Warshawsky offers informed and practical ideas that can be applied to household decisions made by retirees and their financial planners.

Brazil: Articles 30 and 31 of Law 9.656/98 - The New Regulation

Tue, 27 Dec 2011 00:00:00 GMT

After 13 years, ANS publishes Resolution No. 279 that regulates the controversial Articles 30 and 31 of Law 9.656/98.

Exchange-Traded Funds

Tue, 27 Dec 2011 00:00:00 GMT

Exchange-traded funds (ETFs) form a growing asset management and banking segment that simultaneously provides implementation tools to institutional investors and fund alternatives for the retail investor.

Benefits Advisory and Compliance Update: Revised Form 5300 Not Required for Cycle A

Tue, 27 Dec 2011 00:00:00 GMT

Although the IRS released a revised Form 5300 earlier this year, the agency recently announced that plan sponsors filing Cycle A determination letter requests may use either version of the form. The Cycle A deadline is January 31, 2012.

Sustainable Talent Management Strategy – Asia Pacific versus Vietnam’s perspective

Wed, 21 Dec 2011 00:00:00 GMT

Talent management remains one of the most pressing and challenging issues for business leaders globally. With Asia Pacific being one of the fastest growing region and a rapidly ageing demographic, the war for talent is even more important to organizations in the region. Yet organizations are struggling to find the right approaches and solutions to implement a successful talent management strategy.

Time for Organisations to Check-up on their Sales Effectiveness!

Wed, 21 Dec 2011 00:00:00 GMT

Are your sales teams getting as much traction as they possibly can? It’s a good idea to conduct a yearly Sales Effectiveness check-up.

Europe: European Commission Considering EU-Wide Legislative Framework for Pensions

Wed, 21 Dec 2011 00:00:00 GMT

European pension funds could be required to have the same level of financing as insurance companies. The European Commission has asked the European Insurance and Occupational Pensions Authority (EIOPA) to advise on an EU-wide legislative framework for pension plans — referred to as Institutions for Occupational Retirement Provision (IORPs). The EIOPA draft advice is currently open for comment, with interested parties asked to provide feedback by January 2, 2012.

Engagement Catch-Up

Mon, 19 Dec 2011 00:00:00 GMT

The company's first-ever global employee survey yields valuable guidance for strengthening the employment brand.

Exchange Traded Funds for institutional investors

Mon, 19 Dec 2011 00:00:00 GMT

In this paper we have provided a high level introduction to ETFs and set out some of the advantages and disadvantages of their use within investors’ portfolios.

Recent market performance - the benefits of diversification

Mon, 19 Dec 2011 00:00:00 GMT

In this paper we set out the longer-term case for diversification and our approach to building portfolios that can balance true diversity of return with most investors’ desire not to overcomplicate their asset structure.

2012 Benefit Basics and Reporting & Disclosure Requirements

Mon, 19 Dec 2011 00:00:00 GMT

This piece provides a handy listing of updated statutory limits, disclosure requirements and deadlines, and related 2011 information for retirement and health and welfare plans in the United States.

The New Governance Landscape: Implications From the 2011 Towers Watson U.S. Retirement Plan Governance Survey December 2011

Fri, 16 Dec 2011 00:00:00 GMT

This Towers Watson survey analyzes the retirement benefit plan governance practices (both DB and DC plans) of over 245 U.S. employers, representing a broad range of industries and sizes.

2011/2012 Staying@Work Report - Canada Executive Summary

Thu, 15 Dec 2011 00:00:00 GMT

2011/2012 Staying@Work Highlights Report: A Pathway to Employee Health and Workplace Productivity

United Arab Emirates: Government Consulting on a Pension Plan Framework for Expatriates

Thu, 15 Dec 2011 00:00:00 GMT

The UAE is considering developing a new framework for a pension plan for foreign workers that builds on, and could potentially replace, the current system of end-of-service lump sum payments.

Benefits Advisory and Compliance Update: IRS Extends 436 Amendment Deadline and Releases Sample Amendment

Thu, 15 Dec 2011 00:00:00 GMT

In Notice 2011-96, the IRS extends the deadline for amending defined benefit plans to incorporate the benefit restrictions in IRC section 436, which limit the accrual and payment of benefits in certain underfunded plans. The deadline has been extended from the end of the 2011 plan year to the last day of the 2012 plan year.

New Law Affects Eligibility for Medicaid and Subsidies Under Health Care Reform Law

Thu, 15 Dec 2011 00:00:00 GMT

On November 21, President Obama signed legislation into law amending the calculation of modified adjusted gross income under the PPACA. The law will reduce the number of individuals and families who qualify for Medicaid coverage, subsidies and other health insurance assistance programs.

Joining Forces: Forging an HR/Finance Partnership to Shape Employee Rewards for the Future

Wed, 14 Dec 2011 00:00:00 GMT

More than 300 HR and Finance professionals give their opinion on how Health Care Reform will impact employee rewards programs, cost containment efforts and talent management strategy at U.S.-based organizations.

International Pension Plan survey 2011

Mon, 12 Dec 2011 00:00:00 GMT

This report summarises Towers Watson's annual survey on International Pension Plan covering design, membership criteria, investment and other key areas of interest.

2011/2012 Staying@Work Survey Report: A Pathway to Employee Health and Workplace Productivity

Mon, 12 Dec 2011 00:00:00 GMT

A biennial survey that summarizes the results of Towers Watson's North American survey of companies' employee health and workplace productivity programs.

Emphasis 2011/4

Mon, 12 Dec 2011 00:00:00 GMT

Towers Watson's quarterly magazine on insurance industry issues.

2011/12 Latam Salary Budget Planning Report – General Industries Salary Movement

Tue, 6 Dec 2011 00:00:00 GMT

The Salary Budget Planning Report summarises the findings of Towers Watson’s annual survey on salary movement and review practices as a means of helping companies with their compensation planning for 2011.

Australia: Government Finalises Key Elements of Pension Reform

Mon, 5 Dec 2011 00:00:00 GMT

The Australian government has unveiled further key elements of its superannuation (pension) reform package, called “Stronger Super.” The reform aims to provide a more secure retirement for workers by delivering better and more cost-effective superannuation funds.

TAA Extension Act Includes Health Coverage Provisions

Mon, 5 Dec 2011 00:00:00 GMT

The TAA Extension Act of 2011 retroactively increases the health coverage tax credit and extends COBRA periods for eligible TAA program participants and certain PBGC payees.

A Strong Connection: DIRECTV Raises the Bar on Employee Engagement

Sat, 3 Dec 2011 00:00:00 GMT

Surveying employees annually and acting on the results helps a service division reshape the culture, improve the employee experience and boost customer satisfaction.

2012 Global Economic Expectations Survey

Sat, 3 Dec 2011 00:00:00 GMT

We invite investment managers to join our 2012 Global Investment and Economic Expectations Survey for a complimentary summary of the findings.

The Case for Diversification

Wed, 30 Nov 2011 00:00:00 GMT

A number of markets have experienced dramatic moves in recent months as investors respond to a deteriorating growth outlook for the global economy and increased sovereign risk in a number of developed countries. This is unwelcome news for pension plan fiduciaries because of the combined impact of sharp equity drops and lower bond yields, which increase liabilities.

Raising PBGC Premiums and Reforming DB Plan Funding Rules Remain on Legislative Agenda

Tue, 29 Nov 2011 00:00:00 GMT

For a while, it looked as if higher PBGC premiums for defined benefit plans would become part of a deal crafted by the Joint Select Committee on Deficit Reduction, and plan sponsors had hoped to include proposals to stabilize required contributions to DB plans in the package.

Benefits Advisory and Compliance Update: DOL Finalizes Investment Advice Regulation

Mon, 28 Nov 2011 00:00:00 GMT

The DOL finalized its regulation allowing investment advice to be provided to participants in defined contribution plans either through a fiduciary advisor compensated on a level-fee basis or by using a computer model certified as unbiased.

Stable-Value Strategies

Mon, 28 Nov 2011 00:00:00 GMT

It is time to ask tough questions about a stable value investment strategy.

Accounting for Pensions and Other Postretirement Benefits, 2011

Thu, 17 Nov 2011 00:00:00 GMT

In this report, Towers Watson analyzes disclosures for fiscal year (FY) 2010 under the Financial Accounting Standards Board’s (FASB’s) Accounting Standards Codification (ASC) topic 715 Compensation-Retirement Benefits. The disclosures are from the most recent annual reports or financial statements of the nation’s largest public companies — those in the most recent listing of the Fortune 1000.

Pension Freezes Among the Fortune 1000 in 2011

Tue, 15 Nov 2011 00:00:00 GMT

From 2010 to 2011, the number of Fortune 1000 pension sponsors that froze at least one of their plans increased by 6%. Only 35% of these companies maintain a DB plan and have no frozen plans, compared with 59% in 2004.

M&A HR Readiness

Tue, 15 Nov 2011 00:00:00 GMT

This piece describes how HR can prepare for its critical role in all phases of a corporate transaction -- from target evaluation and due diligence, through integration planning and implementation.

Leverage Sales Managers to Create Superior Performance

Fri, 11 Nov 2011 00:00:00 GMT

Towers Watson research into the key factors and attributes that differentiate high-performing and effective sales managers from all others.

Perspectives : Incentive Plan Risk Assessment

Wed, 9 Nov 2011 00:00:00 GMT

Incentive Plan Risk Assessment — What Canadian Companies Need to Know

Building HR Capabilities Through the Employee Survey Process

Tue, 8 Nov 2011 00:00:00 GMT

While most Fortune 1000 companies regularly conduct employee surveys, survey results are only data unless you have the capabilities to analyze, interpret, understand and act on them.

Netherlands: Further Progress in the Pension Agreement

Mon, 7 Nov 2011 00:00:00 GMT

On October 12, as part of the fundamental restructuring of the national pension system (the “Pension Accord”), the Dutch government published a formal proposal to change the retirement age, a follow-up to a draft issued in June of this year. Further changes are expected between now and spring of 2012, since the Ministry of Social Affairs is looking into some key aspects of a Pension Accord agreed upon by labor unions in September.

Capital Markets Review - Third Quarter 2011

Fri, 4 Nov 2011 00:00:00 GMT

Towers Watson’s quarterly Capital Markets Review provides a high-level summary of capital markets and economic developments.

Balancing Cost and Talent Objectives Amid a Massive Change Agenda - Why Hospitals Are Taking a Fresh Approach to Rewards

Fri, 4 Nov 2011 00:00:00 GMT

While the hospital industry takes time to develop a long-term vision for what appears to be a massive shift in its traditional business model, there are steps health care executives can take right away in the workforce area to begin to address the risks associated with shrinking revenue and growing costs.

The World’s 500 largest asset managers - Year end 2010

Mon, 31 Oct 2011 00:00:00 GMT

The P&I/Towers Watson global 500 ranking is prepared using joint research by Pensions & Investments and Towers Watson.

Brazil: Employer Social Tax Becomes an Instrument of Economic Policy

Thu, 27 Oct 2011 00:00:00 GMT

In August 2011, Brazilian President Dilma Rousseff announced that the employer social tax will be suspended for 13 months in certain industry sectors and replaced with a temporary gross revenue tax.

Employer Groups Submit Recommendations on Hybrid Plan Regulations, and IRS Delays Effective Dates of Regulations

Thu, 27 Oct 2011 00:00:00 GMT

Defined benefit plan sponsor groups and Towers Watson submitted recommendations to the Department of the Treasury and the IRS for the proposed hybrid plan regulations. Since then, the IRS has delayed the effective date of the hybrid plan regulations, which were scheduled to take effect for plan years beginning on or after January 1, 2012.

Court Upholds Stock Deferral Plan Forfeiture Provision

Thu, 27 Oct 2011 00:00:00 GMT

In Renaudin v. Citigroup Global Markets Inc., the U.S. Court of Appeals for the 1st Circuit held that a forfeiture clause in a voluntary stock deferral plan (a capital accumulation plan) that was clearly described and agreed to by participating employees did not violate Colorado or Louisiana wage and labor laws.

IRS Lifts Church Plan Moratorium But Imposes New Notice Requirements

Thu, 27 Oct 2011 00:00:00 GMT

In Revenue Procedure 2011-44, the IRS modified the process for obtaining a private letter ruling that a retirement plan qualifies as a “church plan,” thereby lifting the years-long moratorium on such rulings. Applicants for a private letter ruling must notify participants and other “interested persons” about how church plan status would affect their benefits and of their right to submit comments to the IRS.

Government Halts Implementation of the CLASS Act

Thu, 27 Oct 2011 00:00:00 GMT

On October 14, HHS announced the cancellation of the Community Living Assistance Services and Supports (CLASS) program, the long-term care insurance plan created under the health care reform law. The department said the program was not financially sustainable.

Selecting Your Workday Implementation Partner

Fri, 21 Oct 2011 00:00:00 GMT

Many organizations have found that software-as-a-service (SaaS) is a good fit for their company, and have made the shift from older, more expensive legacy Enterprise Resource Planning (ERP) and/or HR information systems (HRIS) to SaaS technologies.

IRS Releases 2012 Benefit Limits

Fri, 21 Oct 2011 00:00:00 GMT

The IRS has announced the annual cost-of-living and statutory adjustments of various dollar limits for retirement plans.

In Search of an HRMS Integration System: Software-as-a-Service Versus Traditional System Upgrades

Fri, 21 Oct 2011 00:00:00 GMT

Are you thinking of making a switch? In the past few years, the automation of HR processes has created cost efficiencies for most organizations.

Insights: Capital management

Fri, 21 Oct 2011 00:00:00 GMT

Effective and efficient capital management has always been an important consideration in managing both life and property and casualty (P&C) insurance companies. However, the need for insurers to focus on target capital levels, the type and mix of capital used and its distribution among companies within insurance groups is increasing.

China: Foreign Workers Must Participate in Chinese Social Security System

Wed, 19 Oct 2011 00:00:00 GMT

Companies in China employing foreigners face marginally higher employment costs following confirmation from the Ministry of Human Resources and Social Security that foreigners must be covered under China’s new social security system.

EEOC and DOL Seek Employer Pay Data to Support Equal Pay Initiative

Tue, 18 Oct 2011 00:00:00 GMT

The National Equal Pay Enforcement Task Force has recommended collecting pay data on the private workforce to better understand the scope of the gender pay gap and target enforcement efforts. The initiative will require employers to collect a significant amount of data and might lead to more investigations by federal agencies and more pay-related litigation.

Overtime Pay and PDAs

Tue, 18 Oct 2011 00:00:00 GMT

Under the FLSA, nonexempt employees must receive overtime pay for working more than 40 hours a week, regardless of where they perform the work. Calculating offsite hours, however, can be complicated, especially given that so many nonexempt employees have smartphones or PDAs.

Court Determines Software Account Manager Is Exempt From Overtime Pay

Tue, 18 Oct 2011 00:00:00 GMT

Under the FLSA, nonexempt employees generally must be paid at least minimum wage and, if they work more than 40 hours a week, overtime pay. In Verkuilen v. MediaBank LLC, the 7th U.S. Circuit Court of Appeals ruled that the administrative employee exemption applied to a software account manager.

Supreme Court Asked to Rule on Health Care Reform

Tue, 18 Oct 2011 00:00:00 GMT

Twenty-six states, various business groups and the Department of Justice have petitioned the U.S. Supreme Court to review the ruling of the U.S. Court of Appeals for the 11th Circuit that the individual mandate in the health care reform law is unconstitutional.

Safe and Sound: Managing Health and Welfare at Diebold

Mon, 17 Oct 2011 00:00:00 GMT

The multinational company invests in employee wellness and internal communication, and reins in health care benefit cost increases.

A Look at Defined Contribution Match Reinstatements

Fri, 14 Oct 2011 00:00:00 GMT

During the recent financial crisis, many employers took cost-cutting measures to preserve their cash. Some employers scaled back retirement benefits, and this analysis looks at 260 companies that either reduced or suspended their 401(k) plan matching contribution after 2008 to see what happened next.

Towers Watson Health Care Changes Ahead Survey

Fri, 14 Oct 2011 00:00:00 GMT

With many details of health care reform still unknown and employee health care costs continuing to rise, organizations are planning small to moderate changes and monitoring the responses of their industry peers.

The ERM Bar Is Raised Again

Thu, 13 Oct 2011 00:00:00 GMT

As U.S. insurers make their 2012 business plans and set their risk management priorities, companies will need to more deliberately consider the emerging enterprise risk management (ERM) requirements of the National Association of Insurance Commissioners (NAIC) and A.M. Best.

Asset Allocations of Corporate Pension Plans as of Year-End 2010

Thu, 13 Oct 2011 00:00:00 GMT

This is Towers Watson’s second detailed analysis of the asset allocations of Fortune 1000 pension plan sponsors. Once again, we look at allocations by asset class and valuation level on both an aggregate and average-sponsor basis, as well as by plan size, plan status (closed, frozen or active) and funded status.

Investment thinking outside the box

Wed, 12 Oct 2011 00:00:00 GMT

Carl Hess, Global Head of Investment talks to Pauline Skypala, Editor of FTfm, about the investment challenges, facing pension funds, posed by the uncertain economic environment and continued market volatility.

Italy: Implications of the Administration's Current Austerity Package for Pensions

Mon, 10 Oct 2011 00:00:00 GMT

Confronted by the prevailing adverse economy, this past summer, the Italian Parliament was compelled to adopt a number of unpopular changes to state pension provisions to meet breakeven requirements imposed by the EU.

Insights: Variable Annuity Hedging Practices in North America: Selected Results From the 2011 Towers Watson Variable Annuity Hedging Survey

Mon, 3 Oct 2011 00:00:00 GMT

The 2011 Towers Watson VA Hedging Survey explores VA hedging practices from several key perspectives including operational overview, strategy, modeling, systems, and response to the Global Financial Crisis and AG 43.

Insights: Property & Casualty Claim Officer Survey #6: Claim Implications, Challenges and Innovations

Mon, 3 Oct 2011 00:00:00 GMT

This is the sixth installment of Towers Watson’s Property & Casualty Claim Officer Survey, conducted by the company’s Claim Management practice. It focuses on the challenges claim officers currently face in today’s marketplace in delivering a positive customer experience, achieving operational effectiveness and leveraging technology

Spain: Retirement Age Increased to 67

Fri, 30 Sep 2011 00:00:00 GMT

The retirement age for most Spanish employees will increase to 67 under a new social security law passed by the Spanish Parliament at the end of July.

Corporate briefing - Markets in turmoil

Thu, 29 Sep 2011 00:00:00 GMT

Balance sheet and P&L implications of reporting pensions under IAS19

What makes remuneration committees effective?

Thu, 29 Sep 2011 00:00:00 GMT

In recent months, Towers Watson has conducted a series of interviews with remuneration committee chairmen to update our understanding of how remuneration committees operate and make decisions.

Pensions Reform 2012: Making auto-enrolment work

Thu, 29 Sep 2011 00:00:00 GMT

The announcement on 27 October 2010 fires the starting pistol for employers to get their planning right for the introduction of auto-enrolment which will go ahead from 2012. Our webcast brings you right up to date with the Government's requirements and considers the options employers have in responding to this critical pensions initiative.

Prescribed U.S. Statutory and Tax Interest Rates for the Valuation of Life Insurance and Annuity Products

Tue, 27 Sep 2011 00:00:00 GMT

The full Prescribed U.S. Statutory and Tax Interest Rate Report prepared by Towers Watson is now available

Benefit Plans in Brazil 28th survey - 2010

Tue, 27 Sep 2011 00:00:00 GMT

In its 28th edition, the Towers Watson Benefi t Survey — with 236 Brazilian and multinational participating companies from different market segments — looks into the details of the 10 most common benefi ts offered to employees in Brazil.

Emphasis 2011/3

Tue, 27 Sep 2011 00:00:00 GMT

Towers Watson"s quarterly magazine on insurance industry issues.

Property & Casualty Insurance CFO Survey #1: The State of the Insurance Market

Thu, 22 Sep 2011 00:00:00 GMT

Towers Watson’s inaugural Property & Casualty Insurance CFO Survey focuses on the state of the North American property & casualty (P&C) insurance market as of the second quarter of 2011.

FASB Issues Accounting Standards Update 2011-09, Disclosure About an Employer’s Participation in a Multiemployer Plan

Thu, 22 Sep 2011 00:00:00 GMT

The Financial Accounting Standards Board (FASB) has issued Accounting Standards Update (ASU) No. 2011-09, which modifies Accounting Standards Codification Subtopic 715-80 (ASC 715-80), Multiemployer Plans.

Corporate briefing - Markets in turmoil

Tue, 20 Sep 2011 00:00:00 GMT

Balance sheet and P&L implications of reporting pensions under IAS19

Revisiting Rewards in the Hospital Industry: Using Total Rewards Optimization to Increase Your Return on Investment in Your Workforce

Fri, 16 Sep 2011 00:00:00 GMT

This white paper guides hospital executives on how to use Total Rewards Optimization to increase their return on investment in their workforce.

Debt Ceiling Legislation Could Affect Benefit Programs

Thu, 15 Sep 2011 00:00:00 GMT

The Budget Control Act increased the debt ceiling by up to $2.4 trillion and charged a newly created congressional super committee with finding $1.5 trillion in savings. The committee is likely to look at existing deficit reduction and revenue-raising proposals for potential savings, including some that would affect employer benefit programs.

DOL to Re-Propose Regulation on Fiduciary Definition

Wed, 14 Sep 2011 00:00:00 GMT

Congress has been discussing regulations to expand the definition of “plan fiduciary,” as proposed by the DOL. Plan sponsors, service providers and lawmakers protested that the proposed definition was overly broad and would interfere with plan investment decisions, limit investment education, and increase costs for plan sponsors and participants.

Funding Obligations for Single-Employer DB Plans After Recent Stock Market and Interest Rate Declines

Tue, 13 Sep 2011 00:00:00 GMT

Capital markets were volatile and stock market returns were negative in August 2011. The projected average DB plan funded ratio has deteriorated, and aggregate funding obligations have increased significantly from our projections as of January 1, 2011.

Managing Compensation Plans at Financial Institutions — Potential Implications of the Draft Rules

Thu, 8 Sep 2011 00:00:00 GMT

Several agencies recently issued draft rules on compensation plans and risk under the Dodd‐Frank Wall Street Reform and Consumer Protection Act. Under the proposals, all but the largest financial institutions would continue to have considerable flexibility in designing their compensation programs.

Readiness for Change: New Directions for the Hospital Industry — Talent, Risk and Rewards Survey

Wed, 7 Sep 2011 00:00:00 GMT

The results of the Talent, Rewards and Risk Survey, conducted by Towers Watson and the American Society for Healthcare Human Resources Administration (ASHHRA), suggest that hospitals aren’t adequately preparing for the sweeping changes health care reform will bring to the industry.

2011 – 2012 HR Service Delivery Survey

Tue, 6 Sep 2011 00:00:00 GMT

Nearly 450 organizations participated in the 14th annual Towers Watson 2011 – 2012 HR Service Delivery and Technology Survey. The results show respondents are well positioned to take advantage of enhanced talent management strategies, including integrated SaaS-based solutions, HR shared services organizations (HRSSOs) and new outsourcing opportunities.

The world’s 300 largest pension funds – year end 2010

Mon, 5 Sep 2011 00:00:00 GMT

The 2010 P&I/Towers Watson global 300 pension funds ranking is prepared using joint research by Pensions & Investments and Towers Watson and includes a ranking of sovereign funds.

What Happens to Executive Retirement Benefits When Companies Close or Freeze Their Broad-Based Pension Plans?

Thu, 1 Sep 2011 00:00:00 GMT

Over the last several years, employers have been moving away from traditional, annuity-based DB plans for their newly hired salaried workers, often shifting to a solely DC plan design. Meanwhile, a parallel transformation has been taking place in the retirement benefits provided to executives at these companies.

New Zealand: KiwiSaver Rules Changed

Wed, 31 Aug 2011 00:00:00 GMT

The New Zealand government has changed a number of the KiwiSaver plan’s rules for member and employer contributions and the government-provided member tax credit.

Insight Vietnam features Yvonne Cox, Managing Director, Towers Watson-South East Asia

Wed, 31 Aug 2011 00:00:00 GMT

A wide gap remains between the demand and supply of skilled and qualified workforce in Vietnam making the war for talent very real. Watch the interview for key insights to help you attract, engage and retain your employees in this key high growth market.

10 Questions for Nora Abd Manaf, Senior Executive Vice President and Head, Group Human Capital, Maybank, Malaysia

Tue, 30 Aug 2011 00:00:00 GMT

Corporate briefing – Markets in turmoil

Wed, 24 Aug 2011 00:00:00 GMT

Equities down, liabilities up – so what?

Court Awards Interest on Delayed Lump-Sum Benefit

Wed, 24 Aug 2011 00:00:00 GMT

In Stephens v. U.S. Airways Group, a U.S. Court of Appeals ruled that defined benefit plan participants who received a lump-sum benefit 45 days after the annuity starting date were entitled to receive interest.

IRS Revises Form 5558 Used to Request Filing Extension for Certain Returns

Mon, 22 Aug 2011 00:00:00 GMT

The IRS has released revised Form 5558, “Application for Extension of Time to File Certain Employee Plan Returns,” which is used to request filing extensions for defined benefit and defined contribution plans and certain 403(b) plans. The revision enables filers to extend the deadline for filing Form 8955-SSA, “Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits.”

Sweden: New Longevity Assumptions to Increase Pension Liabilities

Thu, 18 Aug 2011 00:00:00 GMT

Swedish companies are likely to face higher pension liabilities following the PRI pensionsgaranti (PRI pension guarantee) announcement that is strengthening its longevity assumptions (sometimes called mortality assumptions) effective June 30, 2011. Swedish GAAP liabilities will increase by 7%, on average, according to the PRI.

Japan: Employee DC Plan Contributions to Be Permitted Beginning January 1, 2012

Thu, 18 Aug 2011 00:00:00 GMT

A new pension bill that allows employees to contribute to defined contribution (DC) plans on a pretax basis passed in the August 4, 2011 Diet session in Japan. Employee contributions will be permitted in employer-sponsored DC plans effective January 1, 2012.

TAS19 - A new era in accounting for long-term employee benefits

Thu, 18 Aug 2011 00:00:00 GMT

After having remained in draft form for some time, TAS 19 was formally “Gazetted” in the Royal Thai Gazette on 15 December 2010 and therefore became effective for companies’ financial reporting starting on or after 1 January 2011.

10 Questions for Hoang Cao Tri, Deputy CEO, Acecook Vietnam JSC

Wed, 17 Aug 2011 00:00:00 GMT

Acecook Vietnam — a leading Southeast Asian food manufacturer with over 5,000 employees — exports its products to more than 40 countries around the world. The company is a client of Towers Watson’s Ho Chi Minh City office. Mr. Hoang has served as Acecook's Deputy CEO since 2001.

Capturing the Value of a Corporate Deal

Wed, 17 Aug 2011 00:00:00 GMT

Slovakia: Major Labor Code Changes to Come Into Effect in September 2011

Tue, 16 Aug 2011 00:00:00 GMT

The government’s efforts to make the Slovak economy and labor market more competitive include amendments to the Labor Code affecting annual leave, noncompete clauses, notice periods and flexible work arrangements.

India: Tax Treatment of “New Pension Scheme” Contributions Improved

Tue, 16 Aug 2011 00:00:00 GMT

The 2011 Finance Act has added a provision to the tax code that allows employers to take a tax deduction on their New Pension Scheme (NPS) contributions.

Hong Kong: Proposed Changes in MPF Relevant Income Levels May Result in Higher Employer Contributions

Tue, 16 Aug 2011 00:00:00 GMT

In June 2011, the Hong Kong government proposed an increase to the minimum and maximum relevant income (RI) levels for the purpose of determining contributions to the Mandatory Provident Fund (MPF).

Asset Allocation Considerations for Nonprofits

Tue, 16 Aug 2011 00:00:00 GMT

In this paper, we briefly review reasons why endowments and foundations should view their asset allocation strategy in an integrated framework (i.e., assets and obligations) instead of the historical “asset only” approach to setting long-term investment structure.

Chile: New Rules to Encourage Saving in Voluntary Collective Pensions

Fri, 12 Aug 2011 00:00:00 GMT

In April, the Chilean Financial Services Authority, the Superintendencia de Pensiones, de Valores y Seguros y de Bancos e Instituciones Financieras, issued new regulations to encourage saving through voluntary collective pensions (VCPs). These regulations took effect June 1, 2011.

Treating Our Ills and Killing Our Prospects

Thu, 11 Aug 2011 00:00:00 GMT

Health benefit costs have been rising so fast that they now are contributing to the noticeable slowdown in workers’ pay and income growth.

2011 Global Survey of Accounting Assumptions for Defined Benefit Plans: Executive Summary

Thu, 4 Aug 2011 00:00:00 GMT

The 2011 Global Survey of Accounting Assumptions for Defined Benefit Plans is the 22nd annual survey by Towers Watson of assumptions selected by major corporations for their defined benefit plans around the world.

Budgeting for Changes to the MPF Relevant Income Limits - What Do Companies Need to Consider?

Thu, 4 Aug 2011 00:00:00 GMT

In 14 June 2011, the Hong Kong Government presented to the Legislative Council its proposal to increase the minimum and maximum Relevant Income (“RI”) levels for the purpose of determining contributions to the MPF.

The Economic Recession: Impact on Employment Trends and Retirement Patterns

Mon, 1 Aug 2011 00:00:00 GMT

The economic recession that began in December 2007 dealt a harsh blow to the U.S. labor market. By the close of 2008, both workers and employers found themselves navigating a reconfigured employment landscape. Young and middle-aged workers suffered high unemployment rates, and many older workers who lost their jobs had no choice but to start taking retirement payments sooner than planned. A large number of these older workers who had not saved enough or lost savings in the investment market also had to look for new jobs rather than fully retiring.

Slovenia: Increase in Retirement Age Soundly Rejected

Wed, 27 Jul 2011 00:00:00 GMT

In a February Global News Brief, we noted that several countries in Eastern and Central Europe were under pressure to shore up their finances following the recent global financial crisis.

Hungary: Public Reforms Include Cuts to Unemployment Benefits

Wed, 27 Jul 2011 00:00:00 GMT

Intense pressure to bring Hungary’s fiscal house in order prompted the National Economy Minister to announce several changes in government support systems in April.

Lithuania: New Law to Phase In Age 65 Retirement

Wed, 27 Jul 2011 00:00:00 GMT

In June, the Lithuanian parliament enacted a law that increases the normal retirement age under social security from 62½ for men and 60 for women, to 65 for both. The increase will be phased in to ultimately take effect by 2026.

IASB Amends IAS 19: The Next Phase in the Evolution of the Accounting for Retirement Benefits

Mon, 25 Jul 2011 00:00:00 GMT

In a further step in the evolution of the accounting for retirement benefits, the International Accounting Standards Board (IASB) has issued its long-awaited amendment to IAS 19, Employee Benefits (IAS 19, rev. 2011).

Canada: Courts Weigh Responsibilities of Insolvent Companies to Fund Pension Plan Deficits

Wed, 20 Jul 2011 00:00:00 GMT

A recent Ontario Court of Appeal ruling that gives the beneficiaries of two underfunded pension plans priority to reserve fund contents ahead of the sponsoring company’s secured creditors is being appealed.

2011 Insurer Asset Management Survey

Wed, 20 Jul 2011 00:00:00 GMT

Towers Watson’s 2011 Insurer Asset Management Survey examines current investment management practices, including the outsourcing of investment services, as well as potential changes in investment strategy over the next year.

Communicating Change: Doing it Creatively Right

Wed, 20 Jul 2011 00:00:00 GMT

Year-end parties have usually been part of companies’ annual events. Like any leisure, corporate, or private events, these cannot be organized successfully without communicating related activities, including sudden changes and updates to all participants and attendees. Similarly, change within organizations, considering the recession’s aftermath across most countries, should be communicated effectively… and creatively.

Prevalence of Retirement Plan Types in the Fortune 100 in 2011

Wed, 20 Jul 2011 00:00:00 GMT

In 2011, the number of Fortune 100 companies offering new salaried employees only a defined contribution plan, such as a 401(k) plan, grew significantly. Today, less than a third of these companies offer any defined benefit (DB) pension to newly hired salaried employees, and only 13 sponsor a traditional DB plan open to new hires.

The Power of People

Mon, 18 Jul 2011 00:00:00 GMT

With the help of engagement data, a U.K.-based energy company strengthens and deepens the employer-employee relationship.

South Korea: ERBSA Amendment May Spur Growth of Pre-Funded Retirement Plans

Fri, 15 Jul 2011 00:00:00 GMT

In June, South Korea issued the first significant amendment to the Employee Retirement Benefit Security Act, 2005 (ERBSA), to take effect on July 1, 2012. The amendment restricts Severance Pay Scheme (SPS) withdrawals and enhances Individual Retirement Products (IRPs), which together are expected to spur demand for pre-funded retirement plans.

Proposed Legislation Would Expand HSAs

Thu, 14 Jul 2011 00:00:00 GMT

The Family and Retirement Health Investment Act aims to make HSAs more widely available and expand their use. The act would increase the number of people eligible for HSAs, expand allowable distributions, permit unused funds in health FSAs to carry forward and make other changes.

Challenges and opportunities in a world of risk

Wed, 13 Jul 2011 00:00:00 GMT

Regulation and wider pressures for more effective risk management across the financial services sector are changing the nature and potential influence of the work carried out by actuaries.

Insights: With-profits: adapting to a changing environment

Wed, 13 Jul 2011 00:00:00 GMT

The recent FSA consultation is the latest step in the evolution of the regulatory framework for with-profits business, dating back to the five issues papers published in 2001.

UK Long-term Statistics

Tue, 12 Jul 2011 00:00:00 GMT

Welcome to the 2011 edition of ‘Long-term statistics’, Towers Watson’s annual publication that presents historical data for key economic and investment indices.

Global Alternatives Survey 2011

Mon, 11 Jul 2011 00:00:00 GMT

Banking on Employees’ Readiness for Change

Fri, 8 Jul 2011 00:00:00 GMT

When Capital One Bank purchased mid-Atlantic banking mainstay Chevy Chase Bank, it acquired 3,600 associates, $11 billion in assets and a legacy of exceptional customer service. The purchase cemented Capital One’s position as a leading U.S. bank and bolstered its reputation as a company ready and able to grow.

Switzerland: New Actuarial Tables Issued

Wed, 6 Jul 2011 00:00:00 GMT

Last December, a new set of actuarial tables, BVG/LPP 2010, was published in Switzerland. It now includes “generational” mortality rates, which allow for future projections of increasing longevity. The new tables will change benefit obligations and service cost.

To Accurately Evaluate the Effectiveness of Your HR Function: Begin With Benchmarking

Thu, 30 Jun 2011 00:00:00 GMT

Because benchmarking arguably can encourage the replication of practices implemented by other organizations or functions, we stress that — rather than consider benchmarking output a gold standard — it is important to use the results as a starting point from which to identify a sustainable competitive advantage.

Uruguay: Tax Breaks for New Hires Approved

Thu, 30 Jun 2011 00:00:00 GMT

In April, in a bid to encourage job creation, the government extended tax incentives for employers to hire additional workers in two industries — electronics and shipping. Companies meeting certain requirements in these industries will see their income tax payments reduced until December 31, 2018.

Legislation Would Extend Tax Exclusion to Domestic Partners, Other Health Plan Beneficiaries

Wed, 29 Jun 2011 00:00:00 GMT

The Tax Parity for Health Plan Beneficiaries Act introduced by Representative Jim McDermott (D-Wash.) and Senator Charles Schumer (D-N.Y.) would extend tax preferences for employer-provided health benefits to all those eligible for the employer’s health plans.

China: New Law in China Will Create a More Unified Nationwide Social Security System

Tue, 28 Jun 2011 00:00:00 GMT

China enacted a new social security law in October 2010 that aims to move toward a more uniform nationwide system, strengthen central government supervision of social security funds, expand coverage, build a more cohesive system and facilitate labor mobility within China.

CIGNA v. Amara: U.S. Supreme Court ERISA Disclosure Decision

Mon, 27 Jun 2011 00:00:00 GMT

In a “good news, bad news” opinion for plan sponsors, the U.S. Supreme Court, in CIGNA v. Amara, has addressed participants’ ability under ERISA to sue employers for allegedly incomplete, inaccurate and misleading communications. The opinion serves as a reminder to plan sponsors of the importance of consistency among the summary plan description, other participant communications, formal plan documents and actual plan operations.

Emphasis 2011/2

Mon, 27 Jun 2011 00:00:00 GMT

Towers Watson's quarterly magazine on insurance industry issues.

Insights: Traffic safety measures turn a corner

Fri, 24 Jun 2011 00:00:00 GMT

In response to the growing number of road traffics accidents, several Middle East nations have taken actions and enacted a series of harsher regulations and stricter enforcement policies aimed at curtailing the disturbing growth in road casualties and fatalities. In this article, we examine the economic impact of this policy shift.

New ideas to reward sustained performance

Wed, 22 Jun 2011 00:00:00 GMT

There is growing pressure on boards to rethink executive incentive packages. This Perspectives looks at how career shares may provide a partial solution to aligning executive rewards with sustained long-term performance.

Bolivia: Universal Health Insurance to Be Introduced

Wed, 22 Jun 2011 00:00:00 GMT

A new Universal Health Insurance system, designed to provide health coverage to people with no private insurance, is under consideration by the Bolivian Chamber of Deputies. The new system will replace the old Unified Health System and is expected to be implemented soon, according to the Health Minister.

DOL Formally Proposes Delay of Retirement Plan Fee Disclosure Rules

Wed, 22 Jun 2011 00:00:00 GMT

The Department of Labor has proposed to extend both the effective date of the interim final rules concerning fiduciary-level fee disclosure and the transition period in the final rules concerning participant-level fee disclosure.

Senator Kerry Introduces Bill to Increase ERRP Funding

Wed, 22 Jun 2011 00:00:00 GMT

Senator John Kerry (D-Mass.) has introduced the Retiree Health Coverage Protection Act. The legislation would add $5 billion to the Early Retiree Reinsurance Program, bringing total funding up to $10 billion. In a statement on the Senate floor, Senator Kerry said the additional funding “could be used to allow more employers to participate in the program and to further reduce the cost of the retiree health coverage.”

International Accounting Standards Board (IASB) - latest news

Fri, 17 Jun 2011 00:00:00 GMT

In a further step in the evolution of the accounting for retirement benefits, the International Accounting Standards Board (IASB) issued an amendment to IAS 19, Employee Benefits.

IASB Issues IAS 19, rev. 2011, Employee Benefits - reporting under IFRS

Fri, 17 Jun 2011 00:00:00 GMT

The International Accounting Standards Board (IASB) has issued an amendment to IAS 19, Employee Benefits, that will require immediate recognition of all changes in the funded position of employers’ retirement plans.

Employee Engagement and Health Plan Management: Fresh Perspectives and Innovative Approaches

Fri, 17 Jun 2011 00:00:00 GMT

A collection of recent Towers Watson research and fresh thinking on the topic of employee engagement.

Embracing Diversity and Inclusion to Improve Workforce Health and Drive Down Costs

Fri, 17 Jun 2011 00:00:00 GMT

Although cultural and socioeconomic disparities have long been embedded in health care, employers now have the data, tools and strategies to better understand and address them. Doing so will help organizations deliver a significant return on their investment by boosting productivity, engaging employees in managing their health, lowering health benefit plan costs, and advancing the goals of diversity and inclusion.

Ireland: Tax Levy Is Introduced on Pension Funds, and Tighter Funding Standards Are Forthcoming

Tue, 14 Jun 2011 00:00:00 GMT

In May, Ireland's Minister for Finance confirmed the introduction of a tax levy of 0.6% on pension funds approved by the Irish authorities. The levy will apply to corporate and personal pension funds, as well as defined benefit and defined contribution plans.

Life Insurance CFO Survey #28 Regulatory and Reporting Issues

Tue, 14 Jun 2011 00:00:00 GMT

The 28th installment in Towers Watson's Life CFO survey series focused on issues related to regulatory and financial reporting, specifically changes in IFRS and the implementation of U.S. principle-based approaches to determining reserves and capital, as well as CFOs’ expectations for first quarter 2011 results.

Insurance Managers Can Ease M&A Employee Transition

Thu, 9 Jun 2011 00:00:00 GMT

Insurance mergers and acquisitions (M&As) are on the upswing and are likely to continue to grow as the economy improves.

Towers Watson/International Society of Certified Employee Benefit Specialists Sixth Annual Retiree Health Survey

Wed, 8 Jun 2011 00:00:00 GMT

The results of the sixth annual Towers Watson/ISCEBS Retiree Health Survey, conducted jointly by Towers Watson and the International Society of Certified Employee Benefit Specialists (ISCEBS), illustrate a changing landscape for all employers that sponsor or financially support retiree medical coverage.

Perspectives: Top Performance for European Acquirers

Wed, 8 Jun 2011 00:00:00 GMT

European acquirers have seen the best market outperformance since the credit crunch, according to data released in the April 2011 Towers Watson Quarterly Deal Performance Monitor (QDPM).

Legislation Would Tax Some FSA, HSA Distributions

Mon, 6 Jun 2011 00:00:00 GMT

Legislation approved by the House would require account holders to pay taxes on distributions from health care flexible spending accounts, health savings accounts and Archer medical savings accounts that were used to pay for abortion services.

Building a New Suncor

Mon, 6 Jun 2011 00:00:00 GMT

While most companies began 2009 confronting one of the most challenging global economic downturns in history, Suncor Energy chose not to retrench. Instead of waiting out the financial storm, Suncor explored ways to turn adversity into opportunity.

Insights: 2010 EEV/MCEV

Mon, 6 Jun 2011 00:00:00 GMT

In this publication, we review the year-end 2010 embedded value (EV) and related supplementary metrics published by life insurers who reported under the European Embedded Value Principles (EEV Principles) or the European insurance CFO Forum Market Consistent Embedded Value Principles.

Legislation to Amend Commuter Benefits Introduced

Mon, 6 Jun 2011 00:00:00 GMT

Four recently introduced bills would affect employer-provided commuter and parking benefits. The Transportation Flexible Savings Accounts Act would allow employees to establish commuter FSAs under cafeteria plans. The Family Account to Save on Transportation Act would temporarily authorize transportation FSAs — and allow them to include the cost of the employee’s gas in certain cases.

Retirement Plan Disqualification — Not Just a Threat

Fri, 3 Jun 2011 00:00:00 GMT

In two recent cases — Michael C. Hollen v. Commissioner and Christy & Swan Profit Sharing Plan v. Commissioner — the U.S. Tax Court upheld the IRS's disqualification of a retirement plan because of plan document and operational failures.

FTSE 100 DC pension scheme survey 2011

Fri, 3 Jun 2011 00:00:00 GMT

Towers Watson has published the seventh edition of our survey on the provision of DC pension arrangements offered by FTSE 100 companies. The survey is based on information from 96 companies and is truly representative in revealing DC trends for the biggest companies in the UK, allowing employers and trustees to benchmark their DC plans against those who historically have set the trends for the industry.

Projected Financial Conditions of Social Security and Medicare Worsen

Wed, 1 Jun 2011 00:00:00 GMT

The recently released annual reports for 2011 from the trustees on the financial states of Social Security and Medicare show the “great recession” continues to take a toll on both programs.

Recent Compliance-Related Developments Affecting Reward Programs

Tue, 31 May 2011 00:00:00 GMT

Employers should be mindful of recent legal developments that could affect their compensation and other reward programs. These include a court ruling that payments for unused sick days are part of an employee’s regular pay rate for purposes of calculating overtime pay, a court’s determination that pharmaceutical sales representatives are not entitled to overtime pay and a DOL initiative connecting employees to attorneys for Fair Labor Standards Act and Family and Medical Leave Act claims.

Romania: Employers Given More Flexibility Under New Labor Code

Fri, 27 May 2011 00:00:00 GMT

Romania’s new Labor Code took effect May 1, 2011, and is designed to create jobs by giving employers greater flexibility in setting the terms and conditions of employment.

IRS Announces 2012 HSA Amounts

Wed, 25 May 2011 00:00:00 GMT

The IRS has announced the official 2012 inflation-adjusted amounts for health savings accounts (HSAs). These include the maximum annual HSA contribution amount, minimum annual deductible for a high-deductible health plan (HDHP) and maximum annual out-of-pocket expenses for an HDHP.

APRA’s Review of Life Insurance Capital Standards

Tue, 24 May 2011 00:00:00 GMT

Following on from the Quantitative Impact Study conducted in 2010, APRA released a Response to Submissions paper as part of its review of capital standards for general insurers and life insurers on 31 March 2011.

Perspectives: Talent and Culture in M&A

Tue, 24 May 2011 00:00:00 GMT

This Perspectives piece takes a deeper dive into their discussion which centered on talent and culture issues in M&As — specifically what their companies do to tackle these complex issues from the earliest stages of a deal onward.

United States: Budget Deal Removes Voucher Requirements of Health Care Reform

Thu, 19 May 2011 00:00:00 GMT

The budget agreement reached by the U.S. Congress in April to fund the activities of the federal government for the balance of fiscal year 2011 included provisions that repealed the controversial voucher requirements of the Patient Protection and Affordable Care Act (PPACA) passed a year ago.

United States: Changes in Puerto Rico Tax Code Have Ramifications for Retirement Plans

Thu, 19 May 2011 00:00:00 GMT

A completely new tax code was adopted in Puerto Rico on January 31, 2011. The changes include a number of provisions that affect qualified retirement plans.

The Hospital Industry in Transition: Building Capability to Successfully Drive Change

Thu, 19 May 2011 00:00:00 GMT

U.S hospitals face major changes as the prepare for the impact of Health Care Reform. Well-executed project management will be critical to how well hospitals manage the impending chagnes; this report analyzes the current state of hospital project management practices and what can be improved.

Dan Rather Launches Towers Watson’s 2011 Dinner and Dialogue Series

Wed, 18 May 2011 00:00:00 GMT

Dan Rather, legendary CBS News anchor and 60 Minutes correspondent, discussed his humble beginnings as a radio rookie in rural Texas, insights about leadership, health care reform, the global economy and other pressing issues at Towers Watson’s Executive Dinner and Dialogue event, held on January 20.

How Cultural Diagnostics Contribute to an Effective M&A Integration

Wed, 18 May 2011 00:00:00 GMT

This white paper provides case study examples of the impact of culture on the effectiveness on an M&A transaction.

Fiscal Year 2012 Budget, Deficit Reduction Proposals Have Implications for Health Plans

Tue, 17 May 2011 00:00:00 GMT

Deficit reduction will be a central focus in the upcoming 2012 budget battle, and the discussions could herald changes ahead for employer-provided health plans. Amendments to the health care reform law, Medicare and the tax code would significantly affect employers, workers and retirees.

2009 Plan Funding of the TW 100 on a Regulatory Basis: Actuarial Assumptions and Methods

Mon, 16 May 2011 00:00:00 GMT

The Towers Watson 100 (TW 100) is a group of sponsors of the largest U.S. plans, based on the size of their pension liabilities. For the TW 100, this analysis identifies valuation methods, asset values, funding targets, funded status, plan contributions, funding balances and actuarial assumptions for the 2009 plan year.

Multinational Workforce Health: Building a Sustainable Global Strategy

Fri, 13 May 2011 00:00:00 GMT

As companies around the world strive for competitive advantage, they are stepping up their efforts to improve the health and productivity of their workers. Even in countries with government-provided health care, employers are offering additional coverage to supplement these provisions or to allow faster access to treatment.

Proposed SEC Rules Require Scrutiny of Potential for Conflicts of Interest in Compensation Advisors

Thu, 12 May 2011 00:00:00 GMT

On March 30, the SEC voted unanimously to propose regulations to require compensation committees to closely examine the “independence” of their compensation consultants, legal counsel and other advisors. The SEC also proposes to require companies to disclose in their proxies the way they evaluate and address potential conflicts of interest.

Higher PBGC Premiums Might Be on the Table in Upcoming Budget and Deficit Reduction Discussions

Tue, 10 May 2011 00:00:00 GMT

Higher PBGC premiums for defined benefit plan sponsors could come under discussion on Capitol Hill, as lawmakers struggle with the fiscal year 2012 budget and deficit reductions. President Obama’s budget proposal for fiscal 2012 and other deficit reduction proposals would increase PBGC premiums for some DB plan sponsors.

Employee Engagement and the Transformation of the Health Care Industry

Tue, 10 May 2011 00:00:00 GMT

Health care providers are poised to experience tremendous change in the next decade, and thriving in the midst of this change will require a highly engaged, high-performing workforce.

Law Repeals Expanded 1099 Reporting Requirements, Amends Subsidy Repayment Requirements

Tue, 10 May 2011 00:00:00 GMT

The Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act repeals reporting requirements that had been expanded under the Patient Protection and Affordable Care Act.

The Philippines: Government Increases Social Tax Rates and Fringe Benefits Income Tax

Mon, 9 May 2011 00:00:00 GMT

Two recent changes in the Philippines highlight government efforts to strengthen social security finances and to increase government tax revenues.

Getting Real With Enterprise Risk Management (ERM)

Thu, 5 May 2011 00:00:00 GMT

Organizations need a more strategic, measured and monitored approach to ERM to help them pinpoint key business risks, manage them in a comprehensive and integrated way, and measure the effectiveness of those efforts.

Investing in Core Infrastructure

Wed, 4 May 2011 00:00:00 GMT

Many institutional investors are thinking of, or have already made, an allocation to infrastructure.

Belgium: New Inter-Professional Agreement — The Impact on Pay and Benefits

Tue, 3 May 2011 00:00:00 GMT

Collective bargaining is highly structured in Belgium. A new two-year national inter-sectoral agreement known as the Inter-Professional Agreement (IPA) sets the framework for pay increases and also deals with a wide range of employment-related topics, such as job creation measures and training.

The Recipe for Successful Web Communication — The Right Ingredient Mix for Your Audience

Fri, 29 Apr 2011 00:00:00 GMT

The right mix of communication can help you break through competing demands on employees' attention, and more effectively share HR and other important messages.

2011 Risk & Finance Manager Survey

Fri, 29 Apr 2011 00:00:00 GMT

Our second annual Risk & Finance Manager survey results indicate surprising trends surrounding cyber security risks, enterprise risk management (ERM), and claim management strategies.

Insights: Run-off: the highway or the by-way?

Wed, 27 Apr 2011 00:00:00 GMT

Although it is clear that Solvency II will apply to the vast majority of run-off businesses, there may still be a temptation by some to take the ‘path of least resistance’. In this document, we look at the risk of taking the easier option without first considering the implications for both policyholders and shareholders.

TW Pension 100: 2010 Disclosures of Funding, Discount Rates, Asset Allocations and Contributions

Wed, 27 Apr 2011 00:00:00 GMT

During 2010, aggregate funded status for defined benefit plans sponsored by the Towers Watson 100 increased from 82% to 84%. The results are based on just-reported pension disclosures from the SEC 10-K filings of the 100 largest publicly traded U.S. plan sponsors with year-end 2010 fiscal dates.

Insights: Asbestos: looking for answers

Wed, 27 Apr 2011 00:00:00 GMT

Despite recent government pronouncements and legal developments, future claims costs arising from asbestos-related diseases remain clouded in uncertainty. In this document, we summarise the latest rounds in the continuing debate.

EEOC Issues Final Regulations Implementing the ADA Amendments Act

Fri, 22 Apr 2011 00:00:00 GMT

The EEOC has finalized amendments to its ADA regulations, which implement changes made by the ADA Amendments Act of 2008. The ADAAA significantly expanded the scope of ADA-protected disabilities, essentially overturning several U.S. Supreme Court rulings and rejecting portions of the EEOC’s earlier ADA regulations.

HHS Announces May 5 Deadline for Filing New ERRP Applications

Fri, 22 Apr 2011 00:00:00 GMT

Employers planning to apply for reimbursement of early retiree health care expenses under the Early Retiree Reinsurance Program must ensure that HHS receives their ERRP application by 5:00 p.m. ET on May 5, 2011.

Quebec: Budget Calls for Pension Plan and Other Benefit-Related Changes

Tue, 19 Apr 2011 00:00:00 GMT

The 2011 Quebec budget was tabled on March 17, 2011. The budget contained proposed changes to the Quebec Pension Plan (QPP), introduction of mandatory (unless opted out) savings plans, a tax credit for the employment of older workers and increases in the required per-employee health contribution.

Achieving growth through innovation

Fri, 15 Apr 2011 00:00:00 GMT

Innovation is increasingly being seen as a strategy for growth. This paper looks at how Towers Watson's innovation survey can assist in defining and building the right culture to support successful innovation.

State and Federal Income Tax Treatment of Adult Child Coverage May Differ

Wed, 13 Apr 2011 00:00:00 GMT

The PPACA generally requires group health plans that offer dependent coverage of children to extend that coverage to employees’ children until age 26, and provides favorable federal tax treatment for such coverage. But some state income tax laws do not follow suit, at least not yet.

IRS Issues Guidance on Terminating 403(b) Plans

Wed, 13 Apr 2011 00:00:00 GMT

Although the IRS has provided regulatory guidance on terminating 403(b) plans, certain issues were not addressed in detail. In Revenue Ruling 2011-7, the IRS clarifies benefit distribution, taxation and timing requirements for 403(b) plan terminations.

Retirement Plan Implications of New Puerto Rico Tax Code

Wed, 13 Apr 2011 00:00:00 GMT

Puerto Rico has revised its tax code, and the new code makes several noteworthy changes to the rules for qualified retirement plans.Sponsors of Puerto Rican qualified plans must amend their plans to reflect new limits on benefits, contributions and compensation.

Japan Earthquake: Insurance Industry Impact and Risk Management Lessons

Fri, 8 Apr 2011 00:00:00 GMT

The terrible human cost and the financial impact of the devastating March 11 earthquake and tsunami that hit Japan are still being assessed, but it appears that, while economic losses are substantial and are expected to rise further, insurers’ exposure will be limited. Towers Watson estimates that total insured losses from the disaster will be between US$20 billion and US$45 billion.

Impact of the Financial Crisis on Retirement Plans Through 2008

Thu, 7 Apr 2011 00:00:00 GMT

To quantify how the stock market collapse affected participants and plan sponsors early in the financial crisis, we compare pension financials at year-end 2007 with those at year-end 2008. Our analysis looks at total benefit disbursements and assets of retirement plans with at least 100 participants for 2007 and 2008 and retirement plan trends since 1975.

Final Revised SSA Form to Be Issued Shortly

Wed, 6 Apr 2011 00:00:00 GMT

In Announcement 2011-21, the IRS formally designates Form 8955-SSA to replace Form 5500 Schedule SSA, which is used to report information about participants with deferred vested retirement benefits for plan years beginning on or after January 1, 2009.

Healthcare Trends Survey 2010-2011, India: Report Summary

Mon, 4 Apr 2011 00:00:00 GMT

For the second consecutive year, Towers Watson has conducted the “Healthcare trends survey” in the third quarter of 2010. The survey focuses on emerging trends in health and wellness benefits provision and strategies adopted by employers to manage employer sponsored health benefits.

Economic Expectations - 30th Annual Canadian Survey

Fri, 1 Apr 2011 00:00:00 GMT

Towers Watson's 30th annual Survey of Economic Expectations provides key insights from Canada’s leading business economists, strategists and portfolio managers into current and emerging economic, investment and governance issues.

Professional Service Firms - Re-engaging and Retaining Employees

Tue, 29 Mar 2011 00:00:00 GMT

Maximising engagement and retention of employees are vital for professional service firms seeking an edge as the global economy recovers. Towers Watson research shows an engaged workforce is perhaps the greatest source of competitive advantage for any organisation and could spell the difference between a firm experiencing a sluggish recovery or a strong return to growth.

Towers Watson Director Testifies at House Hearing “A Framework for Employers in Deciding Whether or Not to Participate in the CLASS Program”

Tue, 29 Mar 2011 00:00:00 GMT

The following is the testimony of Mark J. Warshawsky, PH.D,. Director of Retirement Research, Towers Watson and Mamerber, Social Security Advisory Board, before the House Committee on Energy and Commerce Subcommittee on health. The March 17, 2011, hearing was on "The Implementation and Sustainability of the New Government-Administered Communicty Living Assistance Services and Supports (CLASS) Program.

Emphasis 2011/1

Mon, 28 Mar 2011 00:00:00 GMT

Towers Watson's quarterly magazine on insurance industry issues.

The Brazilian Private Pension Fund Scenario for Today and the Next Decade

Thu, 24 Mar 2011 00:00:00 GMT

This study seeks to contribute to the debate regarding the closed private pension fund sector in the Brazilian system and to define the issues that will dominate the agendas of fund managers and representatives over the next decade.

Insights: Measuring Risk Culture

Thu, 24 Mar 2011 00:00:00 GMT

In this article we discuss ways companies can make a quick start measuring and improving risk culture and associated risk management, and discuss our experience of doing this in practice.

Bill Eyre Discusses Impact of Japan Quake on Bloomberg TV

Wed, 23 Mar 2011 00:00:00 GMT

Bill Eyre, managing director of Towers Watson's Reinsurance Brokerage business, discusses impact of Japan earthquake on reinsurance market on Bloomberg TV.

Towers Watson Insights: Predictive Modeling

Mon, 21 Mar 2011 00:00:00 GMT

More property & casualty (P&C) insurers that use predictive modeling techniques are seeing top-line and bottom-line improvements, according to Towers Watson’ssecond annual Predictive Modeling Survey. What’s more,predictive modeling continues to gain momentum, with most carriers expanding current implementations and/or planning new applications.

2011 Global Survey of Investment and Economic Expectations

Fri, 18 Mar 2011 00:00:00 GMT

To learn more about how investors are seeking to manage their risks, optimize returns and improve their governance strategies, Towers Watson conducted a global survey of investment managers. The analysis focuses on 141 managers’ views of capital markets, economies, investment strategies and governance.

Insights: Interesting Challenges for Insurers

Thu, 17 Mar 2011 00:00:00 GMT

This Towers Watson Insights explains how life insurers can adapt to the current uncertain environment of squeezed interest margins.

Congress Works to Repeal New 1099 Reporting Requirement

Wed, 16 Mar 2011 00:00:00 GMT

The PPACA requires businesses to issue Form 1099s to all payees who receive $600 or more in a year, but businesses want to repeal this expanded reporting requirement because of the administrative burdens it will impose.

Europe: European Court Rules Insurers’ Premium and Annuity Rates Must Be Gender-Neutral

Wed, 16 Mar 2011 00:00:00 GMT

Insurers will no longer be able to offer men and women different insurance premium and annuity rates. This is a result of a European Court of Justice (ECJ) ruling that a current exemption allowed under EU law will not apply beginning December 21, 2012.

2011 Recession, Recovery and Rewards Flash Survey

Wed, 16 Mar 2011 00:00:00 GMT

To better understand the impact of the recession on reward decisions, Towers Watson surveyed large and midsize employers in January and February 2011. Our key findings are detailed in this report.

Investments in DC Plans: Results and Analysis From the 2010 Survey of DC Plan Sponsors

Tue, 15 Mar 2011 00:00:00 GMT

As employers continue to close and freeze their DB plans, DC plan participants — rather than plan sponsors — decide how much to save and where to invest. But the evidence suggests a tremendous disconnect between employee risk preferences and their investment decisions.

Towers Watson Insights: Risk Horizon and the Measurement of Economic Capital for General Insurer

Tue, 15 Mar 2011 00:00:00 GMT

This article summarizes some of the key conclusions associated with the use alternative risk horizons for determining internal economic capital requirements.

Selecting an Executive Compensation Consultant Today Requires Compensation Committees to Use a Wider Lens

Tue, 15 Mar 2011 00:00:00 GMT

With the recent changes in the executive compensation consulting landscape and new rules governing consultant independence, this may be a good time for compensation committees to take a fresh look at how they use consultants and what types of advisors will best meet their needs.

Funding Obligations for Single-Employer DB Pension Plans: Updated Projections for 2011-2014

Mon, 14 Mar 2011 00:00:00 GMT

This analysis projects aggregate regulatory funded status and minimum required contributions for single-employer DB plans through 2014, reflecting the legislative relief of 2010, and current capital market conditions and outlooks. Aggregate funding obligations are likely to remain large for 2011 through 2014 relative to the historical plan contributions.

16th Annual Towers Watson/National Business Group on Health Employer Survey on Purchasing Value in Health Care

Thu, 10 Mar 2011 00:00:00 GMT

The 16th Annual Towers Watson/National Business Group on Health Employer Survey on Purchasing Value in Health Care tracks employers’ strategies and practices, and the results of their efforts to provide and manage health benefits for their workforce. This report identifies the actions of high-performing companies, as well as current trends in the health care benefit programs of U.S. employers with at least 1,000 employees.

DB Versus DC Plan Investment Returns: The 2008-2009 Update

Tue, 8 Mar 2011 00:00:00 GMT

In 2008, DB plans outperformed DC plans by roughly 2.7 percentage points, with aggregate returns negative for both plan types, but our current analysis of year-end 2009 data — albeit drawn from a small sample — finds a reversal in median returns.

Funded Status of Fortune 1000 DB Plans Improves Slightly in 2010

Tue, 8 Mar 2011 00:00:00 GMT

Our estimate of aggregate 2010 funded status in pension plans sponsored by Fortune 1000 companies is 83%, a slight uptick from 81% in 2009.

Investment in 2011 and Beyond: Modest Pickup of Risk Taking Amid Evolving Capital Markets and Global Economies

Mon, 7 Mar 2011 00:00:00 GMT

Generally upbeat about capital markets and global economies, investment managers expect that institutional clients will adopt modestly more aggressive investment strategies in 2011, according to the latest Towers Watson Global Survey of Investment and Economic Expectations. Investment managers are bullish about public equities and emerging markets in 2011 but bearish about nominal government bonds and the money market.

Engaging Talent in a Growing Vietnam Economy

Fri, 4 Mar 2011 00:00:00 GMT

As Vietnam labor market experiences an ever fiercer talent war, Vietnamese employers are more eager to engage their talent and implement employee engagement programs as a way to attract and retain their talent.

President’s FY2012 Budget Proposal Includes Retirement, Health and Compensation Recommendations

Fri, 4 Mar 2011 00:00:00 GMT

On February 14, President Obama released his fiscal year 2012 proposed budget, which would affect employer-sponsored health care, retirement and compensation programs.

Benefits Issues to Watch in 112th Congress

Wed, 2 Mar 2011 00:00:00 GMT

While health care reform will likely remain high on the legislative agenda through the 2011-2012 legislative term, other issues that affect benefit and compensation programs will likely come under discussion as well.

Portugal: Banking Sector Workers to Be Covered Under Social Security

Thu, 24 Feb 2011 00:00:00 GMT

Effective in 2011, employees in the banking sector in Portugal will begin accruing benefits under social security, which most of them were previously excluded from. The tactic of adding new employee groups to the social security system is often seen in countries where the government is under fiscal strain.

Global and European sovereign outlook and market risks

Wed, 23 Feb 2011 00:00:00 GMT

In this report, we highlight the economic and financial conditions of the major sovereigns, focusingm specifically on the euro area. We also consider the remaining downside risks.

Reform Legislation Poses New Challenges for Executive Compensation

Wed, 23 Feb 2011 00:00:00 GMT

The sweeping financial services reform law ushers in a say-on-pay era that holds profound implications for executive compensation governance in major U.S. companies. Towers Watson offers insights on what companies can do to prepare for say on pay, provide an overview of executive compensation reforms near enactment and offer insights on new SEC guidance.

The Power of Three: Taking Engagement to New Heights

Tue, 22 Feb 2011 00:00:00 GMT

While highly engaged employees generally produce better business outcomes than their less engaged coworkers, engagement alone doesn’t guarantee top performance. Companies can realize greater value by seizing the opportunity to not only engage employees, but also enable and energize their efforts. It is sustainable engagement - or engagement to the power of three.

Directors and Officers Liability: 2010 Survey of Insurance Purchasing Trends

Tue, 22 Feb 2011 00:00:00 GMT

The 2010 Directors and Officers (D&O) Liability survey, the 32nd in a series of studies conducted by Towers Watson, continues to track D&O coverage purchasing patterns, providing organizations with critical information on the structure and cost of D&O insurance programs.

What Matters in Global Markets: Pricing of U.S. Interest Rate Swaps

Fri, 18 Feb 2011 00:00:00 GMT

Over the short term, market pricing is subject to the forces of supply and demand. This paper analyzes a few components that make up today’s mosaic of supply and demand in the interest rate swap market.

2011 Benefit Basics and Reporting & Disclosure Requirements

Fri, 18 Feb 2011 00:00:00 GMT

This piece provides a handy listing of updated statutory limits, disclosure requirements and deadlines, and related 2011 information for retirement and health and welfare plans in the United States.

Spain: Government Approves Social Security Bill

Thu, 17 Feb 2011 00:00:00 GMT

At the end of January 2011, the Council of Ministers approved a draft bill to reform the public pension system and to underpin its future sustainability. The legislation includes some fundamental changes, and while these are subject to further amendment as it passes through Parliament, the key aspects are summarized here.

China: The Development of Occupational Annuities in China

Thu, 17 Feb 2011 00:00:00 GMT

China’s rapid economic development and changing demographics have put pressure on the country’s old-age security system, which is financed jointly by the government, the employer and the individual. The government has responded with a series of reforms, including one that focuses on employer-provided plans for civil servants who work in nonprofit organizations such as schools, universities, government-funded research centers, public hospitals and other government facilities.

United Kingdom: Pensions Bill Creates Some Cost-Saving Measures for Employers

Thu, 17 Feb 2011 00:00:00 GMT

Employers may be able to take advantage of some cost-saving measures under the U.K. government’s Pensions Bill 2011. This bill amends the requirement for increases to plan pensions and relaxes the auto-enrollment rules starting in 2012. Separately, the government announced the removal of the default compulsory retirement age of 65.

France: Finance Law for 2011 Introduces a New Tax on Defined Benefit Pensions

Thu, 17 Feb 2011 00:00:00 GMT

Retirees will be subject to a new tax on pensions, according to France’s Finance Law for 2011, adopted at the end of 2010. The so-called “Article 39 tax” is part of continuing reform of retirement policies in France.

Employee Perspectives on Health Care

Wed, 16 Feb 2011 00:00:00 GMT

As they face competing pressures, many employees are failing to place a high priority on managing their health. In our second Employee Perspectives on Health Care report, we examine the implications of this trend on both employees and employers.

Towers Watson Comments on Target Date Fund Disclosure Proposed Regulations

Wed, 16 Feb 2011 00:00:00 GMT

Towers Watson submitted comments to the DOL on its proposed amendments to regulations on QDIAs in DC plans and to disclosures required for participant-directed investments as they relate to target date funds. The comments address identifying assumptions in disclosures, the effective date, benchmarking and considerations for plan fiduciaries in choosing target date funds.

A Synthesis of Asbestos Disclosures from Form 10-Ks — Updated

Tue, 15 Feb 2011 00:00:00 GMT

A comparative analysis of asbestos disclosures from annual reports on Form 10-K submitted by public corporations that are known to have been named in asbestos personal injury litigation.

Taking Better Control: Opportunities to Build Governance

Mon, 14 Feb 2011 00:00:00 GMT

This paper considers the options available for improving investment governance and explores some of the implications of pursuing different structures.

Educational Institutions Must Review “Incentive Pay” Programs Before July 1, 2011

Mon, 14 Feb 2011 00:00:00 GMT

Under regulations recently finalized by the Department of Education (ED), institutions of higher learning can no longer rely on the 12 safe harbors adopted by the ED in 2002, which means they need to terminate any pay practices or programs based on those safe harbors.

The Importance of Beliefs: Building a Better Map

Mon, 14 Feb 2011 00:00:00 GMT

This paper explores why beliefs are so important, and suggests that the quality of our beliefs is a major determinant of success in investment. The key questions are how can good beliefs be developed and how can they be used successfully.

Sustainable Investing: Principles and Practices

Mon, 14 Feb 2011 00:00:00 GMT

In this paper we observe that sustainable investing has not yet reached the top of the agenda for many institutional funds, but that opportunities exist for priorities to be realigned to better meet the long-term needs of the funds and beneficiaries.

Deal Making Is on the Rise — Are Managers Prepared?

Fri, 11 Feb 2011 00:00:00 GMT

Research confirms that effective leadership and support from the immediate supervisor are essential to maintaining employee engagement and high performance during any corporate transaction.

Why aren't we making money…

Thu, 10 Feb 2011 00:00:00 GMT

The UK motor market is now in a situation similar to the airline industry where competition is making profitability elusive. The situation will not likely improve until some consolidation occurs or someone comes up with a new business model.

Insights: Financial Modelling

Thu, 10 Feb 2011 00:00:00 GMT

Insights: Financial Modelling gives an overview of developments in financial modelling software. In this edition, we look at news from the world of financial modelling, and consider the reasons for using an internal model.

Use of ERM Techniques Leads to Key Business Changes Among U.S. Insurers

Wed, 9 Feb 2011 00:00:00 GMT

In spite of the challenges of embedding enterprise risk management (ERM) programs, the proportion of U.S. respondents indicating that their ERM program has resulted in key business changes has increased significantly.

Global Pensions Asset Study - 2011

Mon, 7 Feb 2011 00:00:00 GMT

Education and Communication About DC Plans: Results and Analysis From the 2010 Survey of DC Plan Sponsors

Mon, 7 Feb 2011 00:00:00 GMT

As increasing numbers of American workers rely on their defined contribution (DC) plans as their primary retirement savings vehicle, plan sponsors are using education and communication to help participants map out a path to a financially secure retirement.

2011 Annual Enrollment Flash Survey

Fri, 4 Feb 2011 00:00:00 GMT

In December 2010, Towers Watson surveyed employers to learn what actions they have taken to manage health and welfare annual enrollment this year, and what changes they expect to make next year. The survey was completed by 209 U.S. employers (47 large and 162 midsize companies) from 22 industries. This year’s participants offer an average of 5.45 health plans and have an average of 14,232 employees.

Europe: Social Security Systems Held Hostage to Financial and Demographic Issues

Thu, 3 Feb 2011 00:00:00 GMT

As a result of the recent global financial crisis, a number of Central and Eastern European governments have found themselves beset by weak economic growth and declining government revenues. Those that are E.U. member states have been forced by E.U. rules to drastically cut spending, while many non-E.U. states have been forced to go to the IMF or other international agencies for assistance in stabilizing their economies.

The Defined Contribution Plans of Fortune 100 Companies in 2009

Thu, 3 Feb 2011 00:00:00 GMT

DC plan designs affect the financial security of millions of Americans and deserve thorough evaluation and careful management; this Towers Watson analysis looks at eligibility and vesting rules, employee and employer contributions, and plan investments, as well as four-year trends in plan design and practices.

EMB Acquisition Will Expand P&C Offerings

Tue, 1 Feb 2011 00:00:00 GMT

Towers Watson has completed its acquisition of EMB, the property and casualty (P&C) consulting and software company.

India: Amendments Made to Provident Fund and Pension Plan Regulations for Expatriates

Mon, 31 Jan 2011 00:00:00 GMT

In October 2008, the Ministry of Labor and Employment made some fundamental changes to the Employee Provident Fund (EPF) and the Employee Pension Scheme (EPS), making it compulsory for international workers (IWs) or their employers to contribute to these Indian social security plans. Under those rules, IWs were able to withdraw their fund balances under the EPF and EPS when they left the country.

United States: IRS Provides Guidance on Cash Balance and Pension Equity Plans

Mon, 31 Jan 2011 00:00:00 GMT

In October, the U.S. Internal Revenue Service (IRS) issued regulations on hybrid plans, which include cash balance and pension equity plans. One set of regulations finalized regulations that had been proposed in 2007, implementing certain requirements of the Pension Protection Act of 2006 (PPA), and a new set of proposed regulations was also issued.

Bolivia: Government Lowers Retirement Age and Nationalizes Pensions

Mon, 31 Jan 2011 00:00:00 GMT

On December 10, President Evo Morales signed a new pension reform law (approved by the Bolivian Parliament on December 3) that lowers the retirement age, nationalizes the privately run pension system and extends pension protection to the informal workers sector. The reforms are scheduled to be implemented mid-2011.

Canada: New Tax-Preferred Funding Vehicle for Group Risk Benefit Obligations

Tue, 25 Jan 2011 00:00:00 GMT

Federal legislation passed on December 15, 2010, creates a new tax-preferred vehicle, the Employee Life and Health Trust (ELHT), intended to assist employers that prefund postretirement medical and other group risk benefit obligations.

Netherlands: Changes Introduced to the Taxation of Various Reimbursements

Tue, 25 Jan 2011 00:00:00 GMT

The Dutch government, in response to calls for simplification, is introducing changes in the tax treatment of certain work-related costs that are reimbursed by employers, to be effective on January 1, 2011.

No W-2 Guidance on Calculating Cost of Health Coverage, but Reporting Optional for 2011

Tue, 25 Jan 2011 00:00:00 GMT

The Patient Protection and Affordable Care Act requires employers to report the aggregate cost of health coverage on their employees’ W-2s, but the IRS made such reporting optional for 2011 and it appears that employers wishing to report can base the calculations on a good-faith interpretation of the statutory requirements.

Netherlands: Contribution Cushioning to Still Be Allowed in 2011

Tue, 25 Jan 2011 00:00:00 GMT

On November 1, 2011, the central bank of the Netherlands (DNB) notified pension funds that contributions are not required to have a positive effect on the recovery plan in 2011 for funds with existing funding shortfalls.

2011 Global Medical Trends Survey Report

Wed, 19 Jan 2011 00:00:00 GMT

This global survey of medical insurers tracks medical trends in 37 countries throughout Asia, Africa, Europe and the Americas. The 2011 report is a follow-up to the 2008 Global Medical Trends survey and offers comparisons to that data.

Multilatinas: capitalizing regional strengths

Wed, 19 Jan 2011 00:00:00 GMT

Multinational Companies in Latin America — so called Multilatinas — coped better with the economic crisis in terms of their Human Resources strategies than their peers from other regions and display interesting Talent Management strategies.

Insights: Measuring Policyholder Behavior in Variable Annuity Contracts — Is Predictive Modeling the Answer?

Tue, 18 Jan 2011 00:00:00 GMT

In this Insights article, we explore how important tools used in property & casualty (P&C) insurance — predictive modeling and data mining — can be applied to more effectively model policyholder behavior risks in VA contracts.

Treasury Inflation-Protected Securities (TIPS): A primer on inflation-linked bonds and their relative value as an inflation hedge

Tue, 18 Jan 2011 00:00:00 GMT

This article explores the different motivations for using Treasury Inflation-Protected Securities (TIPS) and other inflation hedges within a broader investment portfolio.

A.M. Best Supplemental Rating Questionnaire Changes

Tue, 18 Jan 2011 00:00:00 GMT

Towers Watson summarizes A.M. Best's supplemental rating questionnaire changes and their potential future impact on ratings and the evaluation of risk-adjusted capitalization.

Tax Law Extends Expiring Provisions

Mon, 17 Jan 2011 00:00:00 GMT

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 extends the 2001 and 2003 tax cuts through 2012, along with other tax provisions that affect employer-sponsored benefit programs, including educational assistance programs and qualified transportation benefits.

Professional service firms - re-engaging and retaining employees

Wed, 12 Jan 2011 00:00:00 GMT

An engaged workforce - one that is firing on all cylinders and performing at its very best - is perhaps the greatest source of competitive advantage for any organisation. And as professional service firms seek an edge climbing out of the recession, maximising the engagement and retention of its employees could spell the difference between a firm experiencing a sluggish recovery or a strong return to growth.

Deficit Reduction Groups Recommend Increasing PBGC Premiums, Imposing New Limits on Retirement Savings

Fri, 7 Jan 2011 00:00:00 GMT

Two recent deficit reduction proposals would increase the premiums paid by some DB plan sponsors to the PBGC and recommend new limits on workers’ and employers’ contributions to DC retirement savings programs.

One-Year Medicare Provider Payment Adjustment Enacted

Fri, 7 Jan 2011 00:00:00 GMT

The Medicare and Medicaid Extenders Act of 2010 extends current Medicare physician reimbursement rates through 2011, makes technical corrections to Medicare and Medicaid, and continues some programs for low-income families that were slated to expire.

New Strategies in Defined Contribution Plan Design

Fri, 7 Jan 2011 00:00:00 GMT

To better understand what employers are doing to improve the success of DC plans during these difficult economic times, Towers Watson conducted its 2010 Survey of DC Plan Sponsors.

EEOC Issues Final GINA Title II Regulations

Fri, 7 Jan 2011 00:00:00 GMT

The EEOC issued final regulations under the Title II nondiscrimination requirements of the Genetic Information Nondiscrimination Act, which prohibits employers from discriminating on the basis of genetic information and from requesting genetic information — including family medical history — about employees or applicants (with a few exceptions, explained below).

Manage the Survey Life Cycle: Insights Action Platform

Wed, 5 Jan 2011 00:00:00 GMT

The Insights Action Platform is a comprehensive, integrated technology platform that helps your managers, executives and HR staff manage and analyze employee survey data so you can focus on what matters most: turning data into insights, and insights into action.

IRS Releases Final and Proposed Hybrid Plan Regulations

Tue, 4 Jan 2011 00:00:00 GMT

The final and proposed regulations on the PPA provisions relating to cash balance plans and PEPs mostly firm up earlier proposed rules and address interest crediting rates that satisfy the market-rate-of-return standard.

DOL Issues Regulations on Disclosure Requirements for Participant-Directed Individual Account Plans

Mon, 3 Jan 2011 00:00:00 GMT

As part of its effort to ensure that workers have enough information about retirement plan investment fees and expenses to make informed retirement savings choices, the DOL has released final regulations on fee disclosure in defined contribution-type retirement plans, such as 401(k) plans.

Ireland: Retirement Savings Under Attack in Recent Irish Budget Proposals

Wed, 22 Dec 2010 00:00:00 GMT

The Irish government announced its 2011 budget early in December. Although the country remains under intense pressure to reduce spending deficits, it was somewhat surprising that there were several direct attacks on the tax-favored status of retirement savings.

Slovenia: Retirement Age Increased and Benefit Expectations Reduced Under Social Security

Wed, 22 Dec 2010 00:00:00 GMT

In mid-December, Slovenia’s Parliament enacted measures to reduce expenditures under its social security system.

Emerging Markets To Remain Winners in 2011

Tue, 21 Dec 2010 00:00:00 GMT

In a recent interview with Reuters TV, Carl Hess, global head of Investment Consulting at Towers Watson, discusses areas of growth and investment trends in emerging markets.

2010 Update on US Tort Cost Trends

Tue, 21 Dec 2010 00:00:00 GMT

The 2010 Update on U.S. Tort Cost Trends represents the 14th study of U.S. tort costs published by Towers Watson.

Germany: 2010 Premiums for Pension Protection Slashed

Thu, 16 Dec 2010 00:00:00 GMT

Germany’s pension protection insurer, known as the PSV (Pensions Sicherungs Verein), has announced that there will be a sharp reduction in the premiums that companies have to pay this year.

Towers Watson–Forbes Insights 2010 Pension Risk Survey

Thu, 16 Dec 2010 00:00:00 GMT

U.S. pension plans are seeking to more effectively manage their risks through better investment and funding strategies and implementation, according to the Towers Watson 2010 Survey on Pension Risk.

Talent Management Technology: Why the Future is Now

Wed, 15 Dec 2010 00:00:00 GMT

Talent management technology has been steadily evolving — from single-process modules to the full integration of all HR transactions. However, what many talent managers are still missing is the level beyond transactions.

Strategies for Growth

Tue, 14 Dec 2010 00:00:00 GMT

As businesses begin to emerge — however slowly — from the worst global recession in decades, many are starting to refocus on growth, albeit with varying levels of aggressiveness. The biggest workforce obstacle to achieving this growth, according to the results of a recent global survey of over 700 companies, is finding and keeping talent.

Emphasis 2010/3

Fri, 10 Dec 2010 00:00:00 GMT

Towers Watson's quarterly magazine on insurance industry issues.

Company Securities in Pension Plan Assets

Thu, 9 Dec 2010 00:00:00 GMT

Despite recent discussion about making pension plan contributions in the form of company securities instead of cash, a recent Towers Watson analysis shows that while a few companies contributed company securities to their DB plans over the last year, the overall trend has been away from holding these securities as pension assets.

Portugal: Postretirement Medical Plans Can Be Funded Through Pension Funds

Wed, 8 Dec 2010 00:00:00 GMT

New regulations issued in July 2010 give employers the opportunity to fund their postretirement medical plans through their pension funds.

Global Insurance and Risk Management Survey: Financial Crisis Spotlights ERM

Wed, 8 Dec 2010 00:00:00 GMT

The global financial crisis spotlighted insurers’ enterprise risk management practices, revealing room for improvement in their ERM programs given investor interest, Solvency II requirements and rating agency expectations.

Retirement Attitudes

Wed, 8 Dec 2010 00:00:00 GMT

This report is the third in a research series that explores how employee attitudes toward retirement have changed as a result of the economic crisis.

Granting Higher Priority to DB Plan Deficits: Solving Problems or Creating Them?

Thu, 2 Dec 2010 00:00:00 GMT

In response to concerns about the impact of corporate insolvency on the benefit security of employees with DB pension plans, opposition bills have been introduced in both the House of Commons and the Senate proposing changes to priority of payments outlined in legislation governing bankruptcy and insolvency.

Hungary: Payments Into Second-Pillar Pension Funds Suspended

Thu, 2 Dec 2010 00:00:00 GMT

Hungarian Prime Minister Viktor Orbán has announced that payments into second-pillar (occupational) pension funds will be suspended effective November 1, 2010, until at least the end of 2011. Instead, payments will be redirected to the government-run first pillar (a traditional defined benefit, pay-as-you-go system).

France: Retirement Reform Adopted

Wed, 1 Dec 2010 00:00:00 GMT

Retirement reform in France was promulgated on November 9, in the face of widespread protests. While compromises were made on some points, the core of the text is largely unchanged from the proposal issued by the French government in June.

Hybrid Pension Plans: Yesterday, Today and Tomorrow

Wed, 1 Dec 2010 00:00:00 GMT

Hybrid pension plans have been around since the mid-1980s and their evolution has been a rocky one, with very strong initial adoption rates among large employers followed by legal challenges and regulatory glitches and delays.

Congress Might Consider Worker Classification Legislation

Wed, 1 Dec 2010 00:00:00 GMT

A long-standing moratorium that has kept the Internal Revenue Service (IRS) from issuing rules on determining whether workers are employees or independent contractors would end under legislation introduced by Senator John Kerry (D-Mass.) and Representative Jim McDermott (D-Wash.).

Deferred shares - a partial solution to executive remuneration alignment

Thu, 25 Nov 2010 00:00:00 GMT

Our latest research which examines whether deferred shares are a fairer way to reward executives for sustained long-term performance. The research analyses the impact of making a greater proportion of pay both long-term and share-based and the extent to which this enhances the alignment of executives with shareholders.

Directors and Officers Liability

Tue, 23 Nov 2010 00:00:00 GMT

Towers Watson professionals have extensive experience negotiating D&O coverage for a wide range of clients.

United Kingdom: New Government Changes Direction on Restrictions to High Earners’ Pension Tax Relief

Mon, 22 Nov 2010 00:00:00 GMT

Employers will need to move quickly to adapt to new pension tax restrictions for high earners announced by the government for implementation starting in April 2011.

Fast, Friendly and Clean

Fri, 19 Nov 2010 00:00:00 GMT

A simplified, automated talent management solution gives managers a clearer picture of workforce strengths and needs.

Transforming Life

Wed, 17 Nov 2010 00:00:00 GMT

A global reward philosophy aligns with the company's mission and strengthens the employment deal.

Capital Markets Review - Third Quarter 2010

Wed, 17 Nov 2010 00:00:00 GMT

Towers Watson’s quarterly Capital Markets Review provides a high-level summary of capital markets and economic developments.

Towers Watson Comments on PBGC’s Proposed 4062(e) Regulation

Tue, 16 Nov 2010 00:00:00 GMT

Towers Watson recently submitted comments to the Pension Benefit Guaranty Corporation (PBGC) regarding the agency’s proposed regulations on single-employer defined benefit (DB) plan sponsors’ reporting and liability for certain substantial cessations of operations.

Sweden: Employers Face Changed Pension Costs

Thu, 11 Nov 2010 00:00:00 GMT

This summer, Alecta, the monopoly insurer to the Swedish ITP2 plan — the defined benefit occupational pension plan that covers most salaried employees in Sweden — announced that it is increasing its premiums as a result of increased life expectancy. But premiums for dependents’ pensions will be cut, resulting in a mixed picture.

Czech Republic: New Budget Taxes Pension Contributions

Thu, 11 Nov 2010 00:00:00 GMT

Pensions of high-income workers will be taxed starting in 2011, following the Cabinet’s approval of the state budget on September 23, 2010. The new budget is now being considered by the full Parliament, where the ruling coalition enjoys a comfortable majority.

India: Direct Tax Code Introduced

Thu, 11 Nov 2010 00:00:00 GMT

The much-awaited Direct Tax Code Bill was approved by the Cabinet on August 26, 2010, and presented in Parliament on August 30. The bill — which becomes effective on April 1, 2012 — includes many measures that will directly affect both employers and employees, including a change in the treatment of taxes on pension contributions, reimbursements and savings plans.

Global: Accounting Standard-Setters Focus on Risks of Multiemployer Plans

Thu, 11 Nov 2010 00:00:00 GMT

In parallel moves on both sides of the Atlantic, the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) are proposing more extensive disclosure of companies’ participation in multiemployer defined benefit pension plans. The changes will require employers to uncover more information about plans in which they participate, and provide more details to shareholders and analysts in their annual reporting.

Asset Allocations of Corporate Pension Plans as of Year-End 2009

Thu, 11 Nov 2010 00:00:00 GMT

The asset allocation of investment funds held for defined benefit (DB) pension plans is an important determinant of their overall investment performance and their role in financial markets. It strongly influences volatility in the plan’s funded status and the plan sponsor’s cash cost, accounting expense and risk.

Switzerland: Phased Retirement Incentives and New Unemployment Insurance Provisions Established

Thu, 11 Nov 2010 00:00:00 GMT

The Swiss government recently passed legislation to allow pension funds (Pensionskassen, caisses de pensions) to permit older members to continue paying into their funds beyond their retirement age. Furthermore, effective January 1, 2011, contributions to unemployment insurance will be increased and benefits reduced. These changes were passed as the result of a referendum on a new unemployment insurance plan on September 26, 2010.

Netherlands: New Mortality Tables Published

Thu, 11 Nov 2010 00:00:00 GMT

In the wake of the publication of new mortality tables by the Dutch Actuarial Association (AG), new approaches to selecting mortality assumptions are being considered.

Towers Watson Signs Agreement to Acquire Risk Software and Consulting Firm EMB

Wed, 10 Nov 2010 00:00:00 GMT

Towers Watson and EMB, a property & casualty (P&C) consulting and software company, have announced the signing of a definitive agreement for Towers Watson’s acquisition of EMB’s worldwide operations. The move furthers Towers Watson's strategy to serve clients with increasingly sophisticated risk analytics and consulting solutions.

Merger and Acquisition Strategies: Insurance Deal Activity Potentially on the Upswing

Tue, 9 Nov 2010 00:00:00 GMT

Insurance executives at Towers Watson's "Insurance M&A Growth Strategies and Deal-Making Challenges" conference discuss the potential for increased deal activity over the next 12 to 18 months.

Accounting for Pensions and Other Postretirement Benefits, 2010

Tue, 9 Nov 2010 00:00:00 GMT

In this report, Towers Watson analyzes disclosures for fiscal year (FY) 2009 under U.S. GAAP.

Small Business Jobs and Credit Act Facilitates Roth Conversions

Thu, 4 Nov 2010 00:00:00 GMT

President Obama signed the Small Business Jobs and Credit Act of 2010 (H.R. 5297) into law on September 27. The act creates a $30 billion fund to give small banks access to capital earmarked for loans to small businesses and provides tax incentives for small business job creation.

FASB Issues Insurance Contracts Discussion Paper

Tue, 2 Nov 2010 00:00:00 GMT

On September 17, 2010, the Financial Accounting Standards Board (FASB) published its discussion paper entitled “Preliminary Views on Insurance Contracts.”

Hybrid Pension Plans: A Comprehensive Look at Their History, Economics and Features

Tue, 2 Nov 2010 00:00:00 GMT

The Hybrid Pension Plans study assists plan sponsors in evaluating this plan design in light of recent regulations provided by the Treasury Department and the IRS.

Italy: New Labor Regulations on Diverse Fronts

Mon, 1 Nov 2010 00:00:00 GMT

Several measures affecting labor relations were approved by the Italian Parliament on October 19, 2010, under the Collegato Lavoro 2010.

Insights: IASB's Insurance Contracts Exposure Draft

Fri, 29 Oct 2010 00:00:00 GMT

The IASB’s long-awaited Insurance Contracts Exposure Draft represents a significant step forward in financial reporting for insurers. However, there are a number of areas where we believe changes are needed.

Korea: Tax Changes Introduced to Incentivize Saving for Retirement

Fri, 29 Oct 2010 00:00:00 GMT

The Ministry of Finance in Seoul recently announced broad tax reforms that would, among other changes, decrease tax deductions on the statutory severance pay scheme (SPS) plan and increase personal tax deductions on employee contributions to employer-sponsored defined contribution (DC) pension plans.

Asset Allocation Considerations for Nonprofits

Thu, 28 Oct 2010 00:00:00 GMT

In this paper we briefly review reasons why endowments and foundations should view their asset allocation strategy in an integrated framework (i.e., assets and obligations) instead of the historical “asset only” approach to setting long-term investment structure.

SEC Puts Proxy Access Rule on Hold

Wed, 27 Oct 2010 00:00:00 GMT

The Securities and Exchange Commission (SEC) has announced a temporary stay in its recently adopted rule to give certain large shareholders the right to include their own director nominees in proxy material sent to the company’s shareholders.

Stock Compensation Disclosures Under U.S. GAAP: The 2009 Results

Wed, 27 Oct 2010 00:00:00 GMT

Towers Watson recently completed its fourth annual analysis of stock option valuation assumptions and stock compensation disclosure results under the U.S. Generally Accepted Accounting Principles (GAAP). From 2008 to 2009, the percentage of companies disclosing stock option fair values decreased from 72% to 70%.

Public Policy: Where to from here?

Fri, 22 Oct 2010 00:00:00 GMT

This paper takes a closer look at public policy through four possible future scenarios.

Emphasis 2010/2

Tue, 19 Oct 2010 00:00:00 GMT

Towers Watson's quarterly magazine on insurance industry issues.

The World’s 500 Largest Asset Managers – Year End 2009

Mon, 18 Oct 2010 00:00:00 GMT

The P&I/Towers Watson global 500 ranking is prepared using joint research by Pensions & Investments and Towers Watson.

Podcast Series: Hot Topics in Executive Compensation

Thu, 14 Oct 2010 00:00:00 GMT

As scrutiny of executive compensation intensifies, companies around face growing questions about how — and how much — their top people are paid. This podcast series is designed to help organizations think through these issues. Hosted by Doug Friske, leader of Towers Watson’s global Executive Compensation business, the series features experts from across the firm discussing many of the most challenging issues in executive compensation today.

Perspectives: Turbocharging Employee Engagement — The Power of Recognition from Managers

Wed, 13 Oct 2010 00:00:00 GMT

A turbocharger enhances a car’s performance by increasing the amount of horsepower without increasing the size of the engine. In a similar way, manager recognition has the power to noticeably ‘boost’ the engagement of employees without increasing the size of companies’ reward expenditure. Our research shows that recognition can ‘turbocharge’ employee engagement for better productivity and performance and that companies with highly engaged employees generate more marketplace power than their competitors.

Building Retirement Responsibility

Tue, 12 Oct 2010 00:00:00 GMT

The survey results contained in this report provide insights into CAP plan sponsors’ actions for dealing with short-term challenges as well as future strategies for managing cost and risks — for both employees and the organization.

Mandated Clawbacks Will Create New Tensions Between Executives and Boards

Fri, 8 Oct 2010 00:00:00 GMT

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 is widely viewed as the “say on pay” legislation, but its clawback requirements will likely spark contention and litigation for years to come.

It is 'no accident' that bodily injury is out of control

Fri, 8 Oct 2010 00:00:00 GMT

The UK personal motor market is not profitable. FSA returns show an industry loss ratio of nearly 100% and combined ratio in excess of 120% for accident year 2009. and, based on a recent 2010 Towers Watson survey of pricing actuaries from leading UK insurers, the consensus seems to be that event with underwriting rate increases of 10-15% over the next 2-3 years the personal motor market will remain unprofitable through to 2015.

Tax Recommendations From President’s Advisory Board Would Affect Retirement, Health Accounts

Fri, 1 Oct 2010 00:00:00 GMT

A report from the President’s Economic Recovery Advisory Board (PERAB) outlines tax reform options, including some with implications for retirement, health care and education savings accounts.

Bending the Cost Curve: Will Health Care Reform Rein in Health Care Spending?

Fri, 1 Oct 2010 00:00:00 GMT

One of the main stated motivations for health care reform is “bending the cost curve” — reducing the high rate of growth of total U.S. health care spending.

Build America Bonds

Fri, 1 Oct 2010 00:00:00 GMT

In order to provide relief for municipalities after the the credit crunch of 2008, Build America Bonds (BABs) were created under the Federal Stimulus Bill of February 2009. This paper takes a closer look at BABs and assesses their effectiveness nearly one year after their establishment.

China: Collective Negotiation — an Emerging Trend

Thu, 30 Sep 2010 00:00:00 GMT

As the Chinese economy develops, workers are beginning to think about exerting their collective leverage when it comes to wages and working conditions. Collective negotiation is not a new concept in China; it can be traced back to the Trial Act of Collective Negotiation on Salary, which was issued by the Ministry of Labor and Social Security in 2000.

Changes Ahead: Health Care Reform in a Challenging Economy

Thu, 30 Sep 2010 00:00:00 GMT

To find out more about anticipated changes after Health Care Reform (HCR) passed, Towers Watson launched a survey to gain insight as to what HR and business professionals are doing to ensure they appropriately engage employees, manage costs, and what they think the longer-term impact of HCR will be.

U.S. Health Care Reform Legislation: Implications for Medical Plans Covering Expatriates

Wed, 29 Sep 2010 00:00:00 GMT

Although health care reform has significantly affected employers across all industries, its full impact on International Medical Expatriate plans is still unclear. In this paper, we take a look at which mandates within the Patient Protection and Affordable Care Act may be most relevant for employers, and recommend action items to consider over the coming period.

Canada: Legislative Reforms Could Help Reduce Volatility for Federally Regulated Plans

Tue, 28 Sep 2010 00:00:00 GMT

Recent changes to legislation are likely to reduce the funding volatility for Canada’s federally regulated defined benefit plans, while giving plan participants enhanced benefit security. Additionally, they remove some quantitative investment limits that also apply to plans in many provinces. These changes stem from the Federal Pension Reform Framework, which was released in October 2009.

United Kingdom: Employees Must Pay Tax on Flex Plan Vouchers

Wed, 22 Sep 2010 00:00:00 GMT

On July 29, 2010, the European Court of Justice (ECJ) passed a judgment on the tax treatment covering the use of retail vouchers as partial payment of remuneration.

Brazil: Maternity and Compassionate Leave Extended

Tue, 21 Sep 2010 00:00:00 GMT

New legislation approved by the Brazilian Senate in August will expand leave benefits for employees. Compassionate leave will be extended from two to five days in the case of the death of a close relative, and maternity leave from four to six months. Both regulations are now being considered by the Lower House and are expected to be enacted shortly.

Outside Director Pay Increases Stall in 2009

Tue, 21 Sep 2010 00:00:00 GMT

As most companies adopted a cautious approach, compensation for outside directors at the largest U.S. corporations remained nearly flat last year.

Global: Corporate Bond Rates Tumble in August

Mon, 20 Sep 2010 00:00:00 GMT

The latest manifestation of turbulence in global financial markets was a tumble in corporate bond yields in many markets during the month of August. AA corporate bond yields are the basis for the discount rates used to calculate costs and liabilities under pension and other postretirement benefit plans for accounting purposes. Generally, the lower the discount rate, the higher the liabilities and the costs for a plan. So this phenomenon could have significant ramifications for companies that sponsor these types of plans.

Canada: Ontario Announces Next Step in Pension Reform

Mon, 20 Sep 2010 00:00:00 GMT

On August 24, 2010, the Ontario government announced its proposals for the next step in the province’s reform of its pension legislation and regulations. These reforms are positioned as the second phase in the government’s commitment to make Ontario’s pension system more sustainable.

Towers Watson Testifies on Products and Strategies for Lifelong Retirement Distributions

Mon, 20 Sep 2010 00:00:00 GMT

Testimony of Mark Warshawsky, Director of Retirement Research, Towers Watson, presented to the Departments of Treasury and Labor at the joint hearing “On Certain Issues Relating to Lifetime Income Options for Participants and Beneficiaries in Retirement Plans,” September 15, 2010, Washington, D.C., Department of Labor Auditorium

Sustaining engagement in non-governmental international organisations

Mon, 20 Sep 2010 00:00:00 GMT

Staff surveys have revealed that public sector and non-governmental international organisations, such as members of the United Nations and European Union institutions and agencies, have specific organisational challenges rarely found in other sectors. This paper will examine the impact of these challenges and address the next steps for international organisations.

Prescribed U.S. Statutory and Tax Interest Rates for the Valuation of Life Insurance and Annuity Products

Fri, 17 Sep 2010 00:00:00 GMT

The full Prescribed U.S. Statutory and Tax Interest Rate Report prepared by Towers Watson is now available.

Netherlands: Day of Reckoning Arrives for 14 Pension Funds

Mon, 13 Sep 2010 00:00:00 GMT

On August 17, 2010, Social Affairs Minister Piet Hein Donner announced that potential reductions in rights for chronically underfunded pension plans may no longer be delayed. This means that 14 pension funds may have to cut rights starting on January 1, 2011.

Bringing Strategy to Life: Aligning Your Corporate Culture with Business Goals

Fri, 10 Sep 2010 00:00:00 GMT

Discover how organizations can use the Culture Alignment Tool to align their cultures with their strategic objectives in order to drive business performance.

Pension Freezes Continue Among Fortune 1000 Companies in 2010

Thu, 9 Sep 2010 00:00:00 GMT

From 2009 to 2010, the number of Fortune 1000 companies sponsoring a frozen pension plan increased by 4%. After peaking in 2006, the overall freeze rate has remained relatively constant over the last three years, as the economic climate has remained uncertain. Meanwhile, the number of sponsors of defined benefit (DB) plans (both active and frozen) in the Fortune 1000 has continued to decline modestly, as new entrants to the list are more likely to sponsor only defined contribution (DC) plans.

DOL FAQ Provides Enforcement Safe Harbor for Outpatient Benefits Under MHPAEA

Thu, 9 Sep 2010 00:00:00 GMT

The Department of Labor (DOL) recently released a new and very welcome Frequently Asked Questions (FAQ) document about the Mental Health Parity and Addiction Equity Act (MHPAEA). The MHPAEA requires parity between mental health/substance use disorder (MH/SUD) benefits and medical/surgical (M/S) benefits. The FAQ establishes a safe harbor for complying with the parity requirement.

Recession Continues to Undercut Social Security and Medicare in the Short Run

Thu, 9 Sep 2010 00:00:00 GMT

The recently released and long-delayed annual reports from the trustees on the financial state of Social Security and Medicare show the recession continues to take a toll on both programs. The toll is particularly costly in the short run — as outlays rise and, especially, revenues from payroll taxes fall even more steeply than under prior projections.

Puerto Rico: Implications for U.S.-Qualified Plans With Puerto Rico Participants

Tue, 7 Sep 2010 00:00:00 GMT

Sponsors of U.S. retirement plans with Puerto Rico participants (including dual-qualified plans) have until the end of 2010 to address some potential tax troubles.

The World's 300 Largest Pension Funds – Year End 2009

Mon, 6 Sep 2010 00:00:00 GMT

The P&I/Towers Watson global 300 ranking is prepared using joint research by Pensions & Investments and Towers Watson and includes a ranking of sovereign funds.

A Fresh Perspective

Fri, 3 Sep 2010 00:00:00 GMT

Air Liquide's outsourcing solution for the company's pension administration makes employees happy and frees HR staff to work more strategically.

Ireland: Irish Parliament Passes Civil Partnership Act

Thu, 2 Sep 2010 00:00:00 GMT

The Civil Partnership and Certain Rights and Obligations of Cohabitants Act, a significant piece of legislation that recognizes the rights of same-sex couples and cohabitants, was recently passed through the Oireachtas. It will come into effect when the appropriate public arrangements have been made, and following changes in the tax codes and social welfare legislation. There are no indications yet of a likely time frame, but it is unlikely to become effective before January 1, 2011.

Italy: New Budget Increases Retirement Age

Thu, 2 Sep 2010 00:00:00 GMT

The new 2011-2013 budget increased the de facto retirement age by up to 12 months starting in 2011, and that measure was finally approved by the Italian Parliament in late July. Although the minimum age for retirement will remain at 65 for men and 60 for women, the transfer of benefits will now be delayed by up to a year, thus effectively postponing retirement for all those who meet the requirements.

2010 HR Service Delivery Survey Report

Mon, 30 Aug 2010 00:00:00 GMT

Although it's been a top priority of HR executives for four consecutive years, more respondents than ever (nearly half) cited talent/performance systems as their main objective for 2010, according to Towers Watson's HR Service Delivery Survey of nearly 500 large and midsize companies around the world.

DOL Issues Interim Final Rules on Service Provider Fee Disclosure Under ERISA

Wed, 25 Aug 2010 00:00:00 GMT

The Department of Labor recently issued interim final regulations detailing the fee and compensation information that certain service providers must disclose to retirement plan sponsors. The new disclosure requirements are intended to make it easier for defined benefit and defined contribution plan fiduciaries to prudently select and monitor service providers and plan investments.

The Netherlands: Act Permits Cross-Border DC Plans

Mon, 23 Aug 2010 00:00:00 GMT

The Netherlands is set to join other countries in Europe offering a pan-European pension arrangement. Legislation allowing the creation of premium pension institutions (PPIs) — essentially, defined contribution plans for multinational companies or domestic employers — has been passed by the Dutch Lower House and is due to be ratified by the Upper House later in the year. It will become effective January 1, 2011.

United Kingdom: Regulator Issues Contribution Notice Against Belgian Firm

Mon, 23 Aug 2010 00:00:00 GMT

The U.K. Pensions Regulator has issued a contribution notice ordering a Belgian company to pay £5 million into a U.K. pension plan.

Peru: Law on Health Insurance Coverage Passed

Thu, 19 Aug 2010 00:00:00 GMT

In July 2010, a law (law 29.561) was passed requiring private health insurers (EPSs) to provide workers with coverage for preexisting conditions despite their having switched health plans or employers. In Peru, more than one million workers are covered by EPSs.

Argentina: Paternity Leave Extended and Same-Sex Marriage Approved

Thu, 19 Aug 2010 00:00:00 GMT

A bill that extends paternity leave benefits for both childbirth and adoption, and another that recognizes same-sex marriages, have been approved by the Argentinean Senate. Paternity leave will be extended from the current three days to five, with the benefit extended for both parents in the case of adoption. In addition, marriages between same-sex couples are now to be recognized as equal to those between opposite-sex couples. The expression “man and woman” has been replaced with “couple” in the Civil Code, ensuring equality under the marriage statutes.

Legislative Glitch Could Affect Pension Contributions for Eligible Charity Plans

Wed, 18 Aug 2010 00:00:00 GMT

Under a provision in the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act (the 2010 Act) passed earlier this year, funding requirements and benefit restrictions enacted by the Pension Protection Act of 2006 (PPA) do not apply to eligible charity plans until 2017. This change may cast a wider net than intended.

An HR Guide for Navigating Joint Ventures

Wed, 18 Aug 2010 00:00:00 GMT

This article describes HR's role in strategic joint ventures.

Capital Markets Review - Second Quarter 2010

Tue, 17 Aug 2010 00:00:00 GMT

Towers Watson’s quarterly Capital Markets Review provides a high-level summary of capital markets and economic developments.

United Kingdom: Equality Act 2010 Brings New Measures to Fight Discrimination

Sun, 15 Aug 2010 00:00:00 GMT

Under measures contained in the Equality Act 2010, employers will no longer be allowed to stop employees from disclosing their pay to each other and will be encouraged to report on the gender pay gaps in their organization. The Act, passed on April 8, 2010, brings race, disability, sex and other grounds for discrimination into a single piece of legislation, with the aim of rationalizing and streamlining the law. The main provisions are expected to come into effect starting October 2010.

Europe: EC Green Paper Recommends Overhaul of Europe’s Pension System

Fri, 13 Aug 2010 00:00:00 GMT

The European Commission (EC) has published a consultation paper — “Towards Adequate, Sustainable and Safe European Pension Systems” — that is likely to have a significant impact on pensions throughout Europe.

Overhauling Europe's Pensions

Fri, 13 Aug 2010 00:00:00 GMT

Australia: Paid Parental Leave to Be Introduced From 2011

Thu, 12 Aug 2010 00:00:00 GMT

The bill to implement the federal government’s Paid Parental Leave (PPL) Scheme received Royal Assent on July 14, 2010. A brief summary and employer obligations follow.

Norway: New National Insurance Pension System to Be Introduced

Thu, 12 Aug 2010 00:00:00 GMT

On January 1, 2011, a new government pension system will replace the current system. As in many European countries, the main driver for the reform is to help the government deal with increasing longevity and rising pension fund costs.

IRS Extends Filing Deadline for New Form 8955-SSA

Thu, 12 Aug 2010 00:00:00 GMT

According to the Internal Revenue Service (IRS) July 2010 Special Edition of Employee Plans News, plan administrators of defined benefit and defined contribution plans will not be required to file Form 8955-SSA for the 2009 plan year until the IRS issues further guidance. The form reports plan participants who separate from service with a right to a deferred vested benefit. It replaces Schedule SSA, Annual Registration Statement for Deferred Vested Participants, from the Form 5500 annual return/report.

Deepwater Horizon Disaster Not a Watershed Event for P&C Insurance Market

Wed, 11 Aug 2010 00:00:00 GMT

Towers Watson discusses insurance industry implications and estimates net commercial insured losses between $4 billion and $6 billion.

From Recovery to Sustainability: Towers Watson’s 2010 Survey on Pension Risk

Tue, 10 Aug 2010 00:00:00 GMT

The Towers Watson seventh annual Survey on Pension Risk provides essential insights into defined benefit (DB) plan sponsors’ actions for dealing with short-term challenges as well as future strategies for improving the long-term sustainability of the Canadian retirement system.

North America Leads Deal Performance in Second Quarter 2010

Tue, 10 Aug 2010 00:00:00 GMT

North America posted nearly 50% increases for both domestic and cross-border deals in the second quarter and, for the first time, cross-border deals outperformed domestic deals.

The Proposed International Accounting Standard for Pension Plans

Mon, 9 Aug 2010 00:00:00 GMT

This white paper discusses the potential implications of the International Accounting Standard Board's proposed regulations on accounting for defined benefit pension plans.

IASB Issues Insurance Contracts Exposure Draft

Thu, 5 Aug 2010 00:00:00 GMT

IASB published its Insurance Contracts (Phase II) Exposure Draft for consultation, together with a Basis for Conclusions. The IASB’s intention is to replace the existing interim standard IFRS 4 Insurance Contracts, which allows different local liability measurement practices across jurisdictions, with a single standard for the measurement of insurance contracts to be applied across all jurisdictions adopting IFRS.

United Kingdom: Major Change to Pension Costs Expected for Employers Due to Inflation Announcement

Sat, 31 Jul 2010 00:00:00 GMT

The government’s recently announced change in the inflation index used for benefit calculations will have an impact on both social security and employer-provided pension plans.

United States: Government Issues Guidance on Cost Sharing for Preventive Care

Thu, 29 Jul 2010 00:00:00 GMT

On July 14, the Departments of Health and Human Services, Labor and Treasury issued interim final regulations on certain preventive services that group health plans and insurers are required to cover under the PPACA. Plan sponsors that want to learn more about the regulations and how to access the lists of preventive services that are covered should read Towers Watson’s analysis.

United States: Relief Provided for Pension Funding and Benefit Restrictions

Thu, 29 Jul 2010 00:00:00 GMT

On June 25, the President signed the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 into law. The act restores cuts in Medicare reimbursements to doctors and makes available relief for pension plan funding for years through 2011, and certain benefit restrictions for 2010.

Mastering People Risks in M&A: The Heart of the Deal

Tue, 27 Jul 2010 00:00:00 GMT

This white paper takes a closer look at M&A success factors and the specific steps companies need to take in order to address the key people issues.

COBRA Subsidy Expires Amid Deficit Concerns

Mon, 26 Jul 2010 00:00:00 GMT

Legislative efforts to extend the expired COBRA premium subsidy have been derailed, and it’s not clear when or whether the legislation can be revived. Concern about the cost of the subsidy at a time of ballooning federal budget deficits prevailed over attempts by some lawmakers to extend the subsidy through the end of the year.

Survey: Companies Tighten Link Between Executive Pay and Performance

Mon, 26 Jul 2010 00:00:00 GMT

New research from Towers Watson shows that with say on pay looming, companies move to further tighten the link between executive pay and performance.

Medicare Payment Rates Fixed Until December

Fri, 23 Jul 2010 00:00:00 GMT

On June 25, President Obama signed the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act (H.R. 3962). The act replaces a scheduled 21% reduction in Medicare’s physician payment rates with a 2.2% increase for the period from June 1 to November 30, 2010.

France: Retirement Reform Project Unveiled

Thu, 22 Jul 2010 00:00:00 GMT

On June 16, 2010, the French government issued a press release detailing its plan for reforming the retirement system, aimed at achieving financial equilibrium by 2018.

Greece: Pension Reform Bill Ready for Parliament Approval

Thu, 22 Jul 2010 00:00:00 GMT

On June 25, the Greek government approved pension reform to increase the minimum number of years worked that are required for retirement, modify pension benefit calculations, increase disincentives for early retirement and cut pension benefits and bonuses.

S&P Clarifies ERM Treatment for Nonfinancial Companies

Tue, 20 Jul 2010 00:00:00 GMT

Standard & Poor’s (S&P) recently announced that the enterprise risk management (ERM) practices of nonfinancial companies will not be rated based on their implementation of a particular ERM framework or process.

CFO Guidebook: Pensions and Corporate Financial Performance ― Intricately Linked, Volume 2

Fri, 16 Jul 2010 00:00:00 GMT

Volume 2 of the CFO Guidebook, Pensions and Corporate Financial Performance -- Intricately Linked, explores four integrated primary policy areas that are crucial to successful retirement plan financial management: benefit poilicy, accounting policy, funding policy and investment policy.

Risk Managers Ready for Change

Wed, 14 Jul 2010 00:00:00 GMT

According to a recent Towers Watson flash survey, risk managers are ready for change once the financial crisis recedes.

Risk & Finance Survey

Wed, 14 Jul 2010 00:00:00 GMT

Managing consultant Barry Franklin discusses the top line findings of a 2010 survey Towers Watson flash survey of risk managers and finance executives.

Global Alternatives Survey 2010

Mon, 12 Jul 2010 00:00:00 GMT

Workforce Health Strategies: A Multinational Perspective

Mon, 12 Jul 2010 00:00:00 GMT

Roiled by the global economic crisis and faced with powerful imperatives to manage costs, productivity and a host of talent management issues, a growing number of multinationals are taking steps to stem long-term costs and drive performance by supporting employee health and well-being.

Leveraging the Power of Social Networking to Drive Performance

Fri, 9 Jul 2010 00:00:00 GMT

Social media is emerging as the next frontier of innovative communication. And savvy companies are taking notice.

Boosting Employee Wellness Participation Without Breaking the Bank

Fri, 9 Jul 2010 00:00:00 GMT

During 2009, rising health care costs, rocky economic conditions and the specter of health care reform drove employers to seek new ways to manage costs and help their workers lead healthier lives.

Egypt: Pension Reform Could Create Individual Pension Accounts, Increase Retirement Age

Thu, 8 Jul 2010 00:00:00 GMT

A draft of a new pension bill that the Egyptian government submitted to Parliament on June 9, 2010, proposes a gradual increase in retirement age from 60 to 65, effective beginning in January 2012.

IRS Revenue Ruling 2008-40: Deadline Approaching for U.S.-Qualified Plans With Puerto Rico Participants

Thu, 8 Jul 2010 00:00:00 GMT

Sponsors of U.S. retirement plans with Puerto Rican participants (including “dual-qualified” plans) have until the end of 2010 to eliminate some potential tax troubles.

United States: Regulations Issued to Implement Health Care Reform

Wed, 7 Jul 2010 00:00:00 GMT

In June, the Internal Revenue Service (IRS) and the Departments of Labor (DOL) and Health and Human Services (HHS) released two sets of interim regulations addressing various issues under the Patient Protection and Affordable Care Act (PPACA).

Single-Employer DB Plan Funding Obligations Under 2010 Funding Relief

Fri, 2 Jul 2010 00:00:00 GMT

On June 25, President Obama signed the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act (the Act) into law, thereby making further funding relief available to defined benefit (DB) plans. To advance discussions in the pension community, this analysis projects aggregate regulatory funded status and minimum required contributions for single-employer DB plans both with and without this latest relief.

Pension Funding Relief Will Affect Executive Pay Design

Fri, 2 Jul 2010 00:00:00 GMT

The pension funding relief in the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act comes with conditions. Relief recipients that pay "excess employee compensation" or make certain dividend payments in stock redemptions must also make higher pension contributions.

A Practitioner's Guide to Generalized Linear Models

Tue, 29 Jun 2010 00:00:00 GMT

The Practitioner's Guide to Generalized Linear Models is written for the practicing actuary who would like to understand generalized linear models (GLMs) and use them to analyze insurance data. The guide is divided into three sections.

India: Employers Face Higher Gratuity Benefit Costs

Tue, 29 Jun 2010 00:00:00 GMT

The government has increased the ceiling on the gratuity benefit from INR350,000 to INR1,000,000. The change, which was effective May 24, 2010, is likely to lead to increased costs for many employers, particularly because it also applies to benefits already accrued with the current employer.

Improving Foreign Exchange

Fri, 25 Jun 2010 00:00:00 GMT

This paper addresses what policies and procedures institutional investors should adopt to ensure that they are receiving good execution value for their FX transaction costs.

United Kingdom: Government Eases Pension Plan Regulations on Corporate Restructuring

Thu, 24 Jun 2010 00:00:00 GMT

Earlier this year, the government published regulations intended to ease the financial burden under the existing requirements for a cash injection to an underfunded pension plan in the event of restructuring within a group of companies. However, there are strict and complex restrictions.

United States: Survey Provides Insights on U.S. Employer Reactions to Health Care Reform

Mon, 21 Jun 2010 00:00:00 GMT

A survey conducted by Towers Watson in May 2010 provided an early temperature check on employer reactions to the Patient Protection and Affordable Care Act (PPACA), the health care reform legislation recently enacted in the U.S.

Australia: Government Publishes Response to the Henry Taxation Review

Fri, 18 Jun 2010 00:00:00 GMT

On May 2, 2010, the Australian government released its response to the Henry tax review, in which it adopted only a few of the review’s recommendations. The main change proposed, an increase in the Superannuation Guarantee (SG) level, was not one of the Henry review’s recommendations.

Developing a Global Sales Incentive Framework to Drive Pay for Performance

Fri, 18 Jun 2010 00:00:00 GMT

Listen in on this podcast as Towers Watson's Craig Ulrich explores advantages and issues around adopting a consistent global sales compensation approach, and discusses factors for organizations to consider around implementing such a model.

Korea Pension Report 2009

Fri, 18 Jun 2010 00:00:00 GMT

All about Korea’s pension market, providers and performance

Private Equity - Dealing With Headwinds

Mon, 14 Jun 2010 00:00:00 GMT

The conditions between the early 2000s and the fourth quarter of 2007 provided private equity managers with substantial tailwinds.

Private Equity Emerging From the Crisis

Mon, 14 Jun 2010 00:00:00 GMT

The private equity industry has been under the spotlight over the past few years, not always for the right reasons. This publication seeks to review how recent developments will affect the private equity industry and to identify areas of possible opportunity for investors over the next couple of years.

Is there a future for funds of funds?

Mon, 14 Jun 2010 00:00:00 GMT

Why invest in funds of funds?

Commercial Lines Insurance Pricing Survey

Fri, 11 Jun 2010 00:00:00 GMT

Commercial insurance prices in the United States remained flat during the fourth quarter of 2009, according to Towers Watson's most recent Commercial Lines Insurance Pricing Survey (CLIPS).

Emphasis 2010/1

Fri, 11 Jun 2010 00:00:00 GMT

This year, Emphasis celebrates 25 years of bringing readers clarity and perspective on a range of complex insurance industry issues.

Capital Markets Review - First Quarter 2010

Thu, 10 Jun 2010 00:00:00 GMT

Towers Watson’s quarterly Capital Markets Review provides a high-level summary of capital markets and economic developments.

Bringing Strategy to Life: Aligning Your Corporate Culture with Business Goals

Wed, 9 Jun 2010 00:00:00 GMT

Discover how organizations can use the Culture Alignment Tool to align their cultures with their strategic objectives in order to drive business performance.

UK Long-term Statistics

Tue, 8 Jun 2010 00:00:00 GMT

Welcome to the 2010 edition of UK Long-term statistics, Towers Watson’s annual publication that presents historical data for key economic and investment indices.

Prevalence of Retirement Plans by Type in the Fortune 100

Tue, 8 Jun 2010 00:00:00 GMT

Large employers have been rethinking their retirement plan configurations for some time. Over the last 10 years, many of them have shifted from defined benefit (DB) plans to defined contribution (DC) plans. A variety of motives have driven the shift — overcoming financial difficulties, remaining competitive in a global market, reducing expenses and minimizing risk.

Singapore: Employers Must Offer Reemployment to Older Workers

Mon, 7 Jun 2010 00:00:00 GMT

Starting in 2012, Singapore employers will be required by law to offer reemployment to workers who have reached the current statutory retirement age of 62. Rather than raise the retirement age, the government has formulated this legislation as a more flexible way to extend employment to older workers, initially to age 65 and later to age 67.

Canada: Towers Watson Survey Shows Pension Funding Crisis Is Viewed as Long Lasting

Mon, 7 Jun 2010 00:00:00 GMT

A Towers Watson survey of 110 major Canadian employers, released in April, indicates that about 52% view the current pension funding crisis as something that will be a long-term feature of the landscape rather than a temporary state of affairs.

United Kingdom: Trend Away From DB to DC Plans Continues

Thu, 3 Jun 2010 00:00:00 GMT

A recent survey conducted by Towers Watson indicates that the switch from defined benefit (DB) plans to defined contribution (DC) plans is continuing in the U.K. Most DB plans have already been closed to new members, but only some of those have also stopped the accrual of new benefits; the proportion of sponsors taking this second step is expected to grow.

Assessing the Effectiveness of Sales Compensation

Thu, 3 Jun 2010 00:00:00 GMT

Join us as Towers Watson's Mark Flavin discusses the attributes of an effective sales compensation model — what it should accomplish and what to keep in mind during development, including factors unique to the sales force.

Think You Can Predict Who is Likely to Succeed? Sometimes You Can’t.

Wed, 2 Jun 2010 00:00:00 GMT

Malcolm Gladwell, a noted author and speaker widely recognized for his unique perspectives, discussed three commonly made, yet misguided, assumptions about the power of prediction at a packed Towers Watson Dinner and Dialogue event at Le Bernardin in New York City, on April 29. This is a recap of his remarks.

Predictive Modeling for Insurers

Tue, 1 Jun 2010 00:00:00 GMT

Brian Stoll discusses predictive modeling and the company's predictive modeling software, Pretium.

Global: IASB proposes changes to accounting for pensions and other employee benefits

Mon, 31 May 2010 00:00:00 GMT

The International Accounting Standards Board (IASB) has issued an Exposure Draft (ED) of proposed changes to IAS 19, Employee Benefits. The proposals could have an adverse effect on some plan sponsors’ financial reporting by increasing costs and liabilities, increasing volatility in some areas and adding to the disclosure burdens for those with defined benefit plans.

United Kingdom: Pension Contributions Increase Under Defined Contribution Plans

Mon, 31 May 2010 00:00:00 GMT

Despite the economic downturn, the average maximum contribution that employers are making to defined contribution (DC) plans is increasing, which underscores the continued growth of DC arrangements in the UK. This is the key finding of the sixth Towers Watson survey of companies in the FTSE 100 index.

What Matters in Global Markets: Euro-zone sovereign risks and recent market activity

Mon, 31 May 2010 00:00:00 GMT

This piece has been written by our Global Investment Committee and provides a summary of the main market price action, important macro developments and new policy responses as a result of the Euro-zone economic crisis.

Five Rules for Talent Management in the New Economy

Thu, 27 May 2010 00:00:00 GMT

The recession of 2008/2009 forced many organizations to reexamine their talent management approach. Leading companies have begun to account for all the different dynamics of talent and have systematically changed their approaches to reflect the coming reality of the next five years. Discover five new rules for effective talent management today.

A New Deal

Thu, 27 May 2010 00:00:00 GMT

Molex's new employer brand and revamped employment deal help employees and recruits see the links between performance and rewards.

What Matters in Global Markets

Thu, 27 May 2010 00:00:00 GMT

Selecting Executive Compensation Advisors: Towers Watson's Perspective

Wed, 26 May 2010 00:00:00 GMT

With the recent announcement of our clients-first approach to executive compensation consulting, companies have more options when seeking objective and informed executive compensation advice. This article presents our perspective on the important questions companies should be asking themselves in choosing a consultant.

IRS Provides Limited Relief for Document Failures Under Section 409A

Wed, 26 May 2010 00:00:00 GMT

In Notice 2010-06, the IRS announces a new correction program for nonqualified deferred compensation plans with document provisions that do not comply with Internal Revenue Code section 409A.

Health Reform Limits Compensation Deduction for Health Insurers

Wed, 26 May 2010 00:00:00 GMT

To help pay for health reform, the Patient Protection and Affordable Care Act (PPACA) imposes a $500,000 cap on deductions for compensation paid to employees and individual service providers at health insurance companies (even those not publicly traded). The new deduction limit applies to most forms of compensation, including performance-based pay, commissions and pay under certain existing contracts.

Early Retiree Reinsurance Program — Regulatory Guidance Arrives

Wed, 26 May 2010 00:00:00 GMT

Health care reform established a $5 billion Early Retiree Reinsurance Program (ERRP) to pay a share of the health claims incurred by early retirees (along with their spouses and dependents) under employment-based health plans.

The Impact of Health Care Reform on Employers

Tue, 25 May 2010 00:00:00 GMT

This survey of benefits professionals provides a snapshot of how employers are responding to health care reform challenges that have far-reaching implications for retention, recruitment, productivity, workforce planning, change management and the overall employer-employee deal.

Catastrophe Bonds Evolve to Address Credit Risk Issues

Mon, 24 May 2010 00:00:00 GMT

Towers Watson clarifies causes of recent failures of catastrophe bonds to protect investors and describes what can be done to restore market confidence and protect assets going forward.

Financial Reform Bill Will Affect Executive Compensation and Corporate Governance

Mon, 24 May 2010 00:00:00 GMT

On May 20, the Senate passed the Restoring American Financial Stability Act (S. 3217) by a 59-39 vote. Along with taking other measures aimed at ensuring economic stability, the landmark financial reform addresses executive compensation and corporate governance practices, including say on pay, compensation committee and advisor independence, clawback requirements, additional proxy disclosures and majority election of directors.

Executive Pay Passes “Stress Test” During the Recession

Thu, 20 May 2010 00:00:00 GMT

Executive pay programs have in large part worked as intended during the most severe downturn in nearly a century, according to Towers Watson’s analysis of 176 Fortune 500 companies’ recent proxy filings.

Italy: Sanctions Against Gender Discrimination Approved

Fri, 14 May 2010 00:00:00 GMT

Sanctions will now be enforced against employers who practice gender discrimination in terms of salary, career development, benefits or any other aspect of labor or retirement. The law, which implements a European Parliament directive to enforce the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation, became effective February 20, 2010.

The Towers Watson Recovery Readiness Survey

Fri, 14 May 2010 00:00:00 GMT

A powerful pulse survey to a random employee sample that quickly delivers key insights to senior leaders. Some key survey measures include how actions taken during the downturn have impacted the retention of critical talent, adherence to core values, support for company mission, and the company image with the public

Canada: Quebec Budget Introduces Health Care Contributions and Raises Taxes

Fri, 14 May 2010 00:00:00 GMT

The 2010 Quebec Budget, which was tabled by the Minister of Finance on March 31, 2010, introduces several new taxes on employees and on financial institutions.

China: Clarification of Tax Policy for EAPs

Mon, 10 May 2010 00:00:00 GMT

A new Circular was recently issued by the State Tax Bureau in China clarifying the individual income tax (IIT) treatment to enterprise annuity plans (EAPs).

Estonia: Retirement Age Increased

Mon, 10 May 2010 00:00:00 GMT

The retirement age will gradually increase for both men and women starting in 2017 and will reach age 65 by 2026, according to pension reform legislation approved by the Estonian Parliament in April. Retirement age is currently 63 for men and 60 for women.

Ireland: Normal Retirement Age to Increase in Ireland

Mon, 10 May 2010 00:00:00 GMT

In March, 2010, the Irish government issued a National Pensions Framework Document. The document is a broad statement of intended future policy; detailed legislation will be required to implement the policies outlined.

United Kingdom: Government Confirms Extension to Scope of Tax Restrictions for High Earners’ Pension Savings

Mon, 10 May 2010 00:00:00 GMT

An increase to the scope of tax restrictions on pension savings for high earners will go ahead as planned, despite industry protests. In its March budget, the U.K. government confirmed that the extension announced in December 2009 would proceed. Enabling legislation was included in Finance Act 2010 and rushed through before the U.K. Parliament was dissolved for the general election.

Towers Watson Responds to RFI From DOL and IRS About Income Options in Retirement Plans

Thu, 6 May 2010 00:00:00 GMT

In its response to the RFI, Towers Watson provides information and analysis, as well as suggestions for ways the government and pension plan sponsors can help retirees achieve a more financially secure retirement.

Incorporating Employee Survey Metrics in Incentive Design

Thu, 6 May 2010 00:00:00 GMT

As more organizations seek to reward managers for balanced business performance, some still find it difficult to rationalize a focus on – and investment in – the human component.

India Bancassurance Benchmarking Survey

Wed, 5 May 2010 00:00:00 GMT

This report chronicles the growth of bancassurance in India, the issues commonly faced, key challenges and opportunities and potential. The report contains extensive commentary and insights on the distribution practices, processes and approaches adopted by bancassurers.

Pension Funding Relief Moves Forward in Congress

Mon, 3 May 2010 00:00:00 GMT

Acknowledging the link between pension relief and jobs, both the House and the Senate have introduced relief bills over the last few months. As the Memorial Day recess neared, the House and Senate were hoping to approve the American Jobs and Closing Tax Loopholes Act of 2010.

Mexico: Tax on Pension Benefits Introduced

Fri, 30 Apr 2010 00:00:00 GMT

Retirees in Mexico who receive aggregate pension benefits that amount to more than nine times the minimum wage will now be taxed on those benefits, the Ministry of Finance announced in February 2010. Legislation to this effect has existed since the Income Tax Law (ITL) of 1979 was enacted (see Section 109 Fraction III), but has not been enforced until now. This will affect retirees with pension benefits over MXN 16,000, or about 2% of all retirees.

A Synthesis of Asbestos Disclosures From Form 10-Ks (2010)

Fri, 30 Apr 2010 00:00:00 GMT

A comparative analysis of asbestos disclosures from annual reports on Form 10-K submitted by public corporations that are known to have been named in asbestos personal injury litigation

Frontier Markets Equity

Fri, 30 Apr 2010 00:00:00 GMT

Frontier markets are diverse, populous and growing. In this paper we consider the role this investment strategy is currently playing in institutional investor’s equity portfolios.

IASB Proposes Changes to IAS 19 – As the Accounting for Retirement Plans Evolves

Thu, 29 Apr 2010 00:00:00 GMT

In a further step in the evolution of the accounting for retirement benefits, the International Accounting Standards Board (IASB) has issued its long-awaited Exposure Draft (ED) of proposed changes to IAS 19, Employee Benefits.

COBRA Subsidy Slated to End May 31

Tue, 27 Apr 2010 00:00:00 GMT

Two recent laws make important changes to the COBRA premium subsidy. Plan sponsors need to update their COBRA communications and reach out to COBRA vendors to ensure compliance.

2010 ERISA Compliance Calendar Available

Thu, 22 Apr 2010 00:00:00 GMT

The 2010 ERISA Expanded Reporting and Disclosure Requirements Calendar provides who-what-when-where reporting and disclosure information for single-employer pension and welfare plans under ERISA.

Survey Shows Continued Importance of Incentive Plans

Tue, 20 Apr 2010 00:00:00 GMT

Towers Watson research shows that, as economic uncertainty continues, companies need to focus on cost management yet ensure that their plans provide competitive reward opportunities and support key business goals.

What Matters in Global Markets: Quantitative Easing

Tue, 13 Apr 2010 00:00:00 GMT

Towers Watson’s Global Investment Committee explores quantitative easing – explaining what it is, how to implement it, the impact it has had on our economy and finally the outstanding risks and implications this strategy could have for investors.

From Recession to Recovery: How Far, How Fast, How Well Prepared?

Fri, 9 Apr 2010 00:00:00 GMT

According to a Towers Watson survey conducted in early January, employers’ predictions for 2010 are mixed but guardedly optimistic — with a majority of organizations planning a renewed growth focus and some judicious hiring, while over a third will continue to make targeted workforce reductions.

DOL Issues Guidance on Form 5500 Compliance for 403(b) Plans

Thu, 8 Apr 2010 00:00:00 GMT

The U.S. Department of Labor (DOL) has issued Field Assistance Bulletin (FAB) 2010-01 regarding the revised Form 5500 filing requirements for 403(b) plans.

Court Finds Retiree Health Plan Amendment Violates Anti-Cutback Rule

Thu, 8 Apr 2010 00:00:00 GMT

In Battoni v. IBEW Local Union No. 102 Employee Pension Plan, the 3rd U.S. Circuit Court of Appeals held that an amendment to a collectively bargained welfare plan illegally reduced plan participants’ pension benefits.

DOL Proposes Investment Advice Regulations for 401(k)-Type Plans

Thu, 8 Apr 2010 00:00:00 GMT

The U.S. Department of Labor (DOL) has proposed regulations that provide guidance regarding the statutory prohibited transaction exemption for investment advice added by the Pension Protection Act of 2006 (PPA).

Value at Risk for Pensions Expected to Decline for 2010, But Risks Remain High

Thu, 8 Apr 2010 00:00:00 GMT

After gradually working their way back up to full funding after some rough market conditions during portions of the last decade, pension plan sponsors are again facing an uphill funding challenge. The deteriorating economic conditions that took root in 2007have increased the funding gap for pensions and caused stock values to plummet, sharpening concerns about the risks posed by these plans.

TW Pension 100: 2009 Disclosures of Funding, Discount Rates, Asset Allocations and Contributions

Tue, 6 Apr 2010 00:00:00 GMT

During 2009, the aggregate funding ratio for the largest U.S. pension plans increased by 4 percentage points — from 78% to 82%, according to Towers Watson calculations.

EEOC Proposes Rule on Age Discrimination Defense

Tue, 6 Apr 2010 00:00:00 GMT

The Equal Employment Opportunity Commission (EEOC) has proposed a rule to provide guidance on the meaning of "reasonable factors other than age" (RFOA) under the Age Discrimination in Employment Act (ADEA).

Supreme Court Declines to Review NRA Based on Service

Tue, 6 Apr 2010 00:00:00 GMT

The U.S. Supreme Court has declined to review a federal appeals court's 2009 decision allowing pension plan sponsors to define normal retirement age (NRA) by a period of service rather than a specific age.

As you sow, so shall you reap: evidence of innovation and drug portfolio diversification from the stock market

Thu, 1 Apr 2010 00:00:00 GMT

Purpose of the study: to assess the stock market rewards to pharmaceutical companies for innovation, which the study defines as both bringing new drugs to the market and diversifying the drug portfolio.

Variable Annuity Guaranteed Minimum Withdrawal Benefit (GMWB) Features in a Challenging Market

Thu, 1 Apr 2010 00:00:00 GMT

This Bulletin article provides a broad overview of the pricing methodology used on VA living benefit riders, with particular focus on the Guaranteed Minimum Withdrawal Benefit (“GMWB”) feature.

United States: Employers Raising the Bar on Financial Incentives to Improve Worker Health

Wed, 31 Mar 2010 00:00:00 GMT

In an effort to encourage healthy behaviors, a growing number of employers are tightening their requirements for workers to receive financial incentives, according to a survey conducted by Towers Watson and the National Business Group on Health (NBGH), a nonprofit association of large U.S. employers.

Canada: Federal Budget 2010 Proposes Changes to Compensation, Retirement Systems

Wed, 31 Mar 2010 00:00:00 GMT

The 2010 Federal Budget was tabled by the Canadian Minister of Finance on March 4, 2010. Although the Budget primarily continued the federal government’s stress on economic stimulus from the 2009 budget, it also included measures relating to Employment Insurance (EI), stock-based compensation rules and information regarding upcoming consultations on Canada’s retirement system.

Switzerland: Study Finds Large Differences in Retirement Benefits Provided by Pension Plans

Wed, 31 Mar 2010 00:00:00 GMT

A recent study by Towers Watson has found that the most generous pension plans sponsored by large employers in Switzerland pay out roughly twice as much in retirement benefits than the least generous ones. The study also found that there are large disparities in pension structure, and that financial companies tend to provide the richest pension benefits on average — especially for higher-paid employees.

United States: U.S. Passes Landmark Health Care Reform Legislation With Significant Employer Implications

Wed, 31 Mar 2010 00:00:00 GMT

In March, the United States enacted comprehensive health care reform (HCR) legislation. A key objective of the new law, which will be phased in over several years beginning in 2010, is to extend health care coverage to many previously uninsured individuals. As a result, the legislation affects a variety of stakeholders in the current health care system, including providers, health insurers, employers and employees.

Guatemala: Pension Funds Contributions No Longer Tax-Deductible

Wed, 31 Mar 2010 00:00:00 GMT

Starting January 1, 2010, contributions to retirement plans offered by financial institutions are not income tax-deductible. This decision was taken by the Tax Administration Superintendence (SAT) on the grounds that the Financial Services Law does not include “pension funds” or “retirement plans” as authorized services.

Spain: Government Proposes Changes to Retirement Age, Pension Contributions

Wed, 31 Mar 2010 00:00:00 GMT

The Spanish government has proposed a number of changes to address changing demographics in the labor force. These include an increase in retirement ages, gradual reductions in Social Security benefit amounts, and reform of Social Security disability and spouses’ and orphans’ benefits. In addition, there are proposals that would affect the employer-employee relationship as a worker’s career reaches its end.

Economic Expectations 2010

Tue, 30 Mar 2010 00:00:00 GMT

Towers Watson’s 29th Annual Canadian Survey of Economic Expectations provides forecasts from Canada’s leading business economists, strategists and portfolio managers on 24 Canadian economic and financial indicators, as well as projections for pension investment strategies.

Rx for HR Service Delivery

Mon, 29 Mar 2010 00:00:00 GMT

Global pharmaceutical company Boehringer Ingelheim's new HR service center efficiently supports employees across the country, accurately captures HR data, and frees HR staff to more strategically support the company's business goals.

Study: U.S. Life Insurers to Upgrade ERM Programs

Mon, 22 Mar 2010 00:00:00 GMT

As the financial climate improves, many U.S. life insurers say they plan to enhance and upgrade essential elements of their enterprise risk management (ERM) function, according to a recent study by Towers Watson and technology service provider CSC, and conducted by the American Council of Life Insurers.

Quantifying the Effect of Target Date Fund Fees

Fri, 19 Mar 2010 00:00:00 GMT

Most employees may be losing 5-15 years — about 30% or more — of their retirement income to fees. Towers Watson research suggests fees should be an important consideration when plan sponsors evaluate and select TDFs. The analysis also indicates how the effect of high fees on retirement income can be larger than the effect of variations in glide path design.

Pharmaceutical Sales Compensation: Past, Present and Future

Fri, 19 Mar 2010 00:00:00 GMT

While pharmaceutical sales compensation plans have remained remarkably consistent, there are signs of more dramatic changes to come. Companies are beginning to change their coverage models in response to cost pressure and the different ways in which buying decisions are being made. This paper highlights key findings from 2009 research on pharmaceutical salesforces.

Americans' Confidence in Retirement Security Steadies; Preparation Continues to Decline

Wed, 17 Mar 2010 00:00:00 GMT

The 2010 Retirement Confidence Survey—the 20th annual wave of this survey—finds that the record-low confidence levels measured during the past two years of economic decline appear to have bottomed out. The percentage of workers very confident about having enough money for a comfortable retirement has stabilized at 16 percent, which is statistically equivalent to the 20-year low of 13 percent measured in 2009.

Copenhagen and beyond

Wed, 17 Mar 2010 00:00:00 GMT

For much of 2009 attention was firmly focused on economic recovery, but the year ended with all eyes on Copenhagen and the diplomatic efforts to reach a global agreement to tackle climate change.

DOL and IRS Ask for Information About Lifetime Income Options for Retirement Plan Participants and Beneficiaries

Wed, 17 Mar 2010 00:00:00 GMT

To improve the retirement security of American workers, the Department of Labor (DOL) and the Internal Revenue Service (IRS) are considering whether to promote the use of lifetime income distribution arrangements in employer retirement plans and individual retirement accounts (IRAs).

Italy: Changes in Pension and Insurance Contributions for Managers in the Manufacturing Sector

Tue, 16 Mar 2010 00:00:00 GMT

A new update of the collective agreement for Italy’s industrial managers introduces significant changes to pay, welfare provision and supplementary pension coverage. The November 2009 agreement was reached between the employers’ confederation Confindustria and the managers’ association Federmanager. Part of the agreement became effective January 1, 2010, and the remainder goes into effect in July of this year.

Global: Global Pension Funds Up by 15% in 2009

Tue, 16 Mar 2010 00:00:00 GMT

Global institutional pension fund assets in the 13 major markets (P13) increased by 15% during 2009, from US$20 trillion to over US$23 trillion, according to Towers Watson’s Global Pension Assets Study. The growth is in sharp contrast to the 21% loss in asset values in 2008, and brought assets back to 2006 levels.

Building a Safer Workplace

Thu, 11 Mar 2010 00:00:00 GMT

Towers Watson research shows that the impact of organizational culture on workplace safety is an equally significant factor in the development of a safe workplace.

Purchasing Value in Health Care

Wed, 10 Mar 2010 00:00:00 GMT

Amid heightened cost pressures brought about by the prolonged economic downturn, companies are assessing their health care programs to control costs and build healthier and more productive workforces. Despite their efforts, however, employers remain frustrated by employees’ poor health habits and the difficulty in motivating behavior change. Additionally, they are uncertain about the potential for health care reform legislation that could increase their financial and administrative burdens.

Commercial Lines Insurance Pricing Survey

Wed, 10 Mar 2010 00:00:00 GMT

Commercial insurance prices in the United States remained flat during the fourth quarter of 2009, according to Towers Watson's most recent Commercial Lines Insurance Pricing Survey (CLIPS).

2009 Strategic Compensation Survey – Brazil

Tue, 9 Mar 2010 00:00:00 GMT

Companies from different industry sectors participated in the 2009 Strategic Compensation Survey. In this document we present the updated results, based on our November 2009 survey, with information on collective and individual salary adjustments applied between June and November, as well as forecast for 2010.

Renewable Energy — Powering Tomorrow's World

Thu, 4 Mar 2010 00:00:00 GMT

Even in a soft economy, many renewable energy companies are engaged in a difficult war for talent. This paper provides a current snapshot of the industry's workforce challenge along with key findings of recent Towers Watson research on the industry.

Creating Deal Success Through People: Mastering M&A Culture and Integration Issues

Thu, 4 Mar 2010 00:00:00 GMT

Towers Watson research reconfirms that when organizations address people and culture issues early, strategically and with discipline, they improve their chances of achieving a more successful merger or acquisition deal.

Measuring and Managing Culture for Safety to Drive Improved Business Performance

Thu, 4 Mar 2010 00:00:00 GMT

Reliably measuring and benchmarking an organization’s safety culture leads to improved business performance. Towers Watson can help.

Salary Increases and Variable Pay Trends for 2010

Wed, 3 Mar 2010 00:00:00 GMT

Towers Watson interviewed 158 companies from different business sectors on salary increases and variable pay trends in Brazil and provides the key findings of the 2009 practices and the expectations for 2010. The information was collected in October and November 2009 and answered by representatives of the participating companies’ compensation areas.

DB Plans Still Face Sizable Funding Obligations Despite Market Run-Up in 2009

Mon, 1 Mar 2010 00:00:00 GMT

Towers Watson has projected aggregate regulatory funded status and minimum required contributions for single-employer defined benefit (DB) plans in a continuing series of studies.

Accounting for Employee Benefits and Stock-Based Compensation Under IFRS

Wed, 24 Feb 2010 00:00:00 GMT

This paper explores the key differences between IFRS and U.S. GAAP in accounting for employee benefits and stock-based compensation. It looks not just at the existing rules, but also at changes contemplated by the International Accounting Standards Board (IASB).

2010 Health Care Cost Survey

Tue, 23 Feb 2010 00:00:00 GMT

With health care costs continuing to climb, the effects of the current economic crisis yet to be shaken off and health reform discussions still underway, employers find themselves at a crossroads. A Towers Watson survey recently found that despite these challenges, employers have never been more interested in workforce health and well-being.

Building a More Engaged Health Care Workforce

Mon, 22 Feb 2010 00:00:00 GMT

This white paper examines the human capital challenges facing the health care industry today and how business leaders can position their organizations for success.

Capital Markets Review - as of December 31, 2009

Thu, 18 Feb 2010 00:00:00 GMT

Towers Watson’s quarterly Capital Markets Review provides a high-level summary of capital markets and economic developments.

Canada: Court Ruling in Ontario Redefines Partial Wind-Up Rules

Thu, 18 Feb 2010 00:00:00 GMT

As a result of an Ontario Court of Appeal (OCA) ruling, partial wind-ups may now be ordered in Ontario when a significant proportion of a subset of members of a pension plan is terminated. This ruling results from a case brought before the OCA involving Hydro One, which elected not to declare a partial wind-up regarding 79 terminations it had made following a restructuring.

DOL Finalizes Employee Contribution Safe Harbor Rule for Small Pension Plans

Thu, 18 Feb 2010 00:00:00 GMT

The U.S. Department of Labor (DOL) has finalized a safe harbor rule for deposits of employee contributions to pension plans (including 401(k) plans) with fewer than 100 participants. Under the safe harbor rule, employers sponsoring such plans have seven business days after the employer receives or withholds the contribution to make the deposits.

Investments Emerging From Recession:Optimism, Concerns and the Way Forward

Thu, 18 Feb 2010 00:00:00 GMT

Investment experts foresee modest economic recovery and are optimistic about investment returns in the near term. But their 10-year outlook is less hopeful. The experts project an upward trend in inflation and continued weakness in the labor market, according to the second annual Towers Watson Global Survey of Investment and Economic Expectations.

National Health Expenditure Accounts: Insights for Plan Sponsors

Tue, 16 Feb 2010 00:00:00 GMT

Health care spending growth in the United States slowed to 4.4% in 2008 — a 48-year low. And, nevertheless, the health care portion of gross domestic product (GDP) grew from 15.9% in 2007 to 16.2% in 2008 — a significant increase — as the country experienced slowing and ultimately negative economic growth.

France: New Law Increases Employer Tax on Defined Benefit Pensions

Mon, 15 Feb 2010 00:00:00 GMT

The 2010 Social Security Funding law published on December 28, 2009, effectively doubles the taxes employers pay on defined benefit (DB) pension plans. The new law also creates a 30% contribution payment that is applicable to all pensions that exceed eight times the Social Security Ceiling (SSC).

Australia: Tax Law Amendment on Employee Share Plans

Mon, 15 Feb 2010 00:00:00 GMT

A bill introducing a series of amendments to the taxation of employee share schemes (ESS) was approved by both Australian Houses on December 2, 2009, and received Royal Assent on December 14, 2009. The changes remove the option to defer tax on shares purchased under a qualifying ESS and are retroactive to July 1, 2009.

Belgium: Employer Contributions Increased for Early Retirement

Mon, 15 Feb 2010 00:00:00 GMT

Effective April 1, 2010, employer contributions to bridge pension allowances and other forms of early retirement will be standardized and increased.

2010 Global Survey of Investment and Economic Expectations

Mon, 15 Feb 2010 00:00:00 GMT

To learn more about how investors are seeking to manage their risks, optimize returns and improve their governance strategies, Towers Watson conducted a global survey of investment managers. The analysis focuses on 98 managers’ views of capital markets, national economies, investment strategies and governance.

Ireland: New Law Requires Employers to Arrange for Pension Plan Trustee Training

Fri, 12 Feb 2010 00:00:00 GMT

A section of the Social Welfare and Pension Act of 2008 has been brought into effect as of February 1, 2010, that requires employers to arrange periodic training for their pension plan trustees. As a result of this new requirement, both employers and trustees can be fined if a trustee fails to undertake appropriate training, and trustees can be subject to an on-the-spot fine.

SEC Adopts Changes to Proxy Disclosure Rules

Wed, 10 Feb 2010 00:00:00 GMT

The Securities and Exchange Commission (SEC) voted 4-1 to adopt several changes to the proxy disclosure rules that will take effect for the 2010 proxy season for companies whose fiscal year ended on or after Dec. 20, 2009.

Fundamentals of Private Pensions, Ninth Edition (U.S.)

Mon, 8 Feb 2010 00:00:00 GMT

The new edition outlines recent developments in pensions — the passage of the Pension Protection Act of 2006 (PPA), the widespread shift toward defined contribution plans, and the burgeoning research literature, especially in economics and finance, on retirement and retirement plans.

Coming Together: Capital and Risk Management

Wed, 3 Feb 2010 00:00:00 GMT

This article, part of our ongoing series on embedding ERM in insurance, analyzes the capital management function’s roles and responsibilities, including collaboration with the risk management function.

Positioning for M&A Success: Putting People Into the Equation

Tue, 2 Feb 2010 00:00:00 GMT

The findings of the fifth in a series of pulse surveys conducted in 2009, which assessed HR's role in achieving M&A success and the specific skill sets that enable HR to contribute most effectively during a merger or acquisition.

Global Pension Asset Study 2010

Mon, 1 Feb 2010 00:00:00 GMT

United Kingdom: Government Announces Changes to Auto-Enrollment Timelines, Introduces NESTs

Tue, 26 Jan 2010 00:00:00 GMT

The Department for Work and Pensions (DWP) has made some changes to how mandatory automatic enrollment of employees into work-based pension plans will operate from 2012. It also has been announced that the new national defined contribution (DC) plan that employers can use to discharge their duties (hitherto known as “Personal Accounts”) will be branded as the National Employment Savings Trust, or “NEST.”

Embedding ERM in Insurance: Making It Happen

Wed, 20 Jan 2010 00:00:00 GMT

Insurance companies remain convinced that enterprise risk management delivers rewards, but many continue to struggle with integrating ERM into their business.

Fees in Real Estate

Tue, 19 Jan 2010 00:00:00 GMT

This paper outlines some of the main fees and terms we have come across in terms of real estate investing and how we would like them to change in order to produce a fairer deal for investors. Although some of the issues identified in this paper are specific to ‘opportunity’, ‘opportunistic’ and ’value-add’ strategies, the points we raise have wider implications and are applicable to all real estate vehicles.

Emerging Wealth: Capturing the Long-Term Growth Dynamics of the Emerging Markets

Tue, 19 Jan 2010 00:00:00 GMT

There is no doubt that emerging markets continue to grow in importance in the context of a global economy, but investment solutions in this area are not simple. Over a number of years Watson Wyatt spent a considerable amount of resource examining the key economic drivers behind the emergence of the structural growth phenomenon taking place in countries such as China and India. Our findings highlighted the complexity many pension funds face when trying to address a portfolio allocation in this area.

United Kingdom: Government Publishes Timetable for Auto-Enrollment

Wed, 13 Jan 2010 00:00:00 GMT

In recently issued regulations, U.K. authorities have set timetables for when employers of different sizes must automatically enroll employees in work-based pension plans with employer contributions. The U.K. government also has said it will look again at what employers with defined contribution (DC) plans must do to comply with the new laws.

Congress Votes to Extend COBRA Subsidy

Fri, 8 Jan 2010 00:00:00 GMT

On Dec. 19, 2009, President Obama signed legislation to extend the 65 percent Consolidated Omnibus Budget Reconciliation Act (COBRA) premium subsidy enacted earlier this year. Plan sponsors should prepare for the subsidy to remain available to workers who lose their jobs by Feb. 28, 2010.

Strong Market Returns Boost Funding Levels of Fortune 1000 DB Plans for 2009

Fri, 8 Jan 2010 00:00:00 GMT

Assets in pension plans sponsored by Fortune 1000 companies regained some lost ground in 2009 and have experienced greater growth than plan liabilities. Despite lower interest rates and consequently larger liabilities, strong equity market returns are expected to boost average year-end funding status significantly — from 70% in 2008 to 78% in 2009.

Employee Benefit Trends: 2009 Asia-Pacific Benefit Trends Report

Tue, 5 Jan 2010 00:00:00 GMT

The survey of employers conducted across 12 countries in Asia-Pacific, highlights a significant gap between the value of benefits provided by the employer and their perceived value by the employees. This represents a key challenge that employers face in the design, implementation and communication of their benefits programs.

CFO Guidebook: Pensions and Corporate Financial Performance ― Intricately Linked

Wed, 30 Dec 2009 00:00:00 GMT

Helps financial executives gain insights into managing defined benefit pension plans in the context of their company's overall financial performance.

Benefits in Crisis: Weathering Economic Climate Change

Tue, 29 Dec 2009 00:00:00 GMT

Reduced head count. Increased employee cost sharing for health care. Anxiety about falling 401(k) account balances. Tighter training budgets. If you're an HR manager, you're probably wondering when it will all let up.

Engaging and Retaining Top Performers

Tue, 29 Dec 2009 00:00:00 GMT

As recessionary pressures continue to ease and organizations seek an edge to fuel their recovery, talent and performance management are retaking center stage.

Managing Talent in Tough Times: A Tipping Point for Talent Management?

Mon, 28 Dec 2009 00:00:00 GMT

Our data and our experience confirm that organizations have awakened to the importance of having skilled and engaged people at all levels delivering results.

Evolving Priorities and the Future of HR Service Delivery and Technology

Mon, 28 Dec 2009 00:00:00 GMT

Despite the economic downturn, organizations continue to take a long-term view of the HR function and see value in supporting it in order to achieve key business goals.

Extreme Risks

Thu, 24 Dec 2009 00:00:00 GMT

Fifteen extreme risks that would have a high impact on global economic growth and asset returns if they occurred. The events of the last two years have demonstrated that risk management cannot afford to stop at the 95th percentile and that ways need to be found to factor in very unlikely, but high-impact events.

Glossary of Terms

Thu, 24 Dec 2009 00:00:00 GMT

This brief glossary of terms highlights expressions plan fiduciaries are likely to encounter in the course of fulfilling their investment responsibilities.

Financial Crisis Survey #2: "It ain't over 'til it's over"

Tue, 22 Dec 2009 00:00:00 GMT

A new survey conducted in October 2009, a year after the Lehman Brothers' collapse, finds that while the worst may be over, finance executives continue to worry about crucial financing and risk management issues, as well as their ability to carry out acquisitions and other strategic plans.

Dealing with Underwater Stock Options: Some New Twists on a Timeless Quandary

Mon, 21 Dec 2009 00:00:00 GMT

The quandary posed by underwater options isn't new. Companies face it whenever stock prices tumble for a prolonged period, whether the decline cuts across the market as a whole or falls only on certain hard-hit sectors.

Employer Commitment to Retirement Plans in the United States

Mon, 21 Dec 2009 00:00:00 GMT

Against a backdrop of market bubbles and crashes, two recessions and rising health care expenses, companies have made changes to their retirement programs to mitigate risk and manage costs. Some have shifted risk to their workers by transitioning from defined benefit (DB) to defined contribution (DC) plans. Many have reduced the retirement benefits they provide. If corporate America's commitment to worker retirement plans continues to decline at the pace it has over the past decade, we could see retirement straits in the future that negatively affect employers and employees alike.

Embedding ERM: Consistent Performance Measurement

Mon, 21 Dec 2009 00:00:00 GMT

This article, part of our ongoing series on embedding ERM in insurance, describes an analytical framework that can be applied to an insurer’s internal measurement and management system to align value assessment, risk and capital management.

Looking Toward Recovery: Focusing on Talent and Rewards — 2009/2010 U.S. Strategic Rewards Report

Mon, 21 Dec 2009 00:00:00 GMT

The recession has had widespread and unprecedented impact on U.S. employers and their employees. While the worst might be over, companies need to be prepared for the effects to linger even after the economy recovers.

Assessing Sales Compensation Effectiveness

Mon, 21 Dec 2009 00:00:00 GMT

A comprehensive approach to measuring ROI.

Cutting Costs and Engaging Talent: A Challenging Workforce Agenda

Mon, 21 Dec 2009 00:00:00 GMT

With no economic recovery in sight, companies are under unrelenting pressure to curb workforce costs. At the same time, they know they need talent — skilled people who remain engaged and committed — to make it through the downturn and refocus on long-term growth.

'Turbocharging' Employee Engagement: The Power of Recognition From Managers — Part 2

Mon, 21 Dec 2009 00:00:00 GMT

Frequent recognition is like applause; it rewards the accomplishment in real time.

2009/2010 North American Staying@Work Report: The Health and Productivity Advantage

Mon, 21 Dec 2009 00:00:00 GMT

The 2009/2010 Staying@Work report details current trends and best practices in companys' health and productivity programs, including employer efforts to improve employee health, combat presenteeism and reduce lost time from work.

2010 Annual Enrollment

Mon, 21 Dec 2009 00:00:00 GMT

Employers are using decision-support tools to help employees make better choices about the health care plan they select. They are using more online communication and reducing their reliance on paper materials.

Remuneration Committee Briefing

Mon, 21 Dec 2009 00:00:00 GMT

Insight on boardroom pay and incentives in the United Kingdom.

Managing Defined Contribution Plans in the Current Environment

Mon, 21 Dec 2009 00:00:00 GMT

The significant decline in employees’ retirement savings and confidence, coupled with the relatively short history of 401(k)s, has raised questions about the future of DC plans. As companies begin the long climb to recovery and focus on managing costs and providing more effective benefits, we could see longer-term changes on the horizon.

Alternatives to the Traditional 401(k) Match Can Meet Longer-Term Objectives for Attracting and Retaining Talent

Mon, 21 Dec 2009 00:00:00 GMT

Companies looking ahead to how they will restructure their reward programs in a recovering economy will no doubt be asking some tough questions about their 401(k) plans.

2009/2010 Communication ROI Study Report: Capitalizing on Effective Communication

Mon, 21 Dec 2009 00:00:00 GMT

Companies that communicate with courage, innovation and discipline, especially during times of economic challenge and change, are more effective at engaging employees and achieving desired business results. Our research has consistently found the firms that communicate effectively with employees are also the best financial performers.

'Turbocharging' Employee Engagement: The Power of Recognition From Managers — Part 1

Sun, 20 Dec 2009 00:00:00 GMT

Companies with highly engaged employees generate more marketplace power than their competitors.

Hybrid Plans in 2010 and Beyond

Fri, 18 Dec 2009 00:00:00 GMT

A new study by Towers Watson highlights the wide-ranging variations in hybrid pension plans, reflecting the spectrum of sponsors' workforce planning, compliance and other needs and goals. It examines eligibility requirements, definitions of applicable compensation, benefit formulas, interest rates and transition methods for cash balance plans (CBPs) and pension equity plans (PEPs).

Cost-Cutting Strategies in the Downturn

Fri, 18 Dec 2009 00:00:00 GMT

Companies are struggling to balance persistent pressures to cut costs with ongoing talent management needs in response to the sour economy.

Will the "CLASS" Program Succeed? Is It Sustainable?

Wed, 16 Dec 2009 00:00:00 GMT

Both the House and Senate health care reform bills currently being debated would establish a new voluntary long-term care insurance program. Called CLASS,2 the new program would be offered to all workers through the Department of Health and Human Services (DHHS).

Staying Power

Tue, 15 Dec 2009 00:00:00 GMT

Kruger Products slashed turnover from 14 percent to only 2 percent and raised engagement levels by listening to employees -- and then taking action.

Panel Discussion: World-Class Acquirers Share M&A Practices

Tue, 15 Dec 2009 00:00:00 GMT

Tower Watson's Jim McKay, senior consultant, met recently with Liz Huldin, director of M&A and integration at Boeing, and Larry Cook, program leader of HR M&A and benefits integration at General Electric, to discuss how HR professionals can best manage this complex global process. The three covered the keys to M&A success and some potential pitfalls.

Defined Benefit vs. 401(k) Investment Returns:The 2006-2008 Update

Tue, 15 Dec 2009 00:00:00 GMT

Towers Watson has been comparing investment rates of return in defined benefit (DB) and defined contribution (DC) plans for more than 10 years,1 and DB plans have been the long-term victor. This analysis updates our prior studies with investment returns for 20062 and 2007for a large set of plans, as well as a snapshot of year-end returns for 2008 based on a small set of plan sponsors.

Pension Plans After the Meltdown

Tue, 15 Dec 2009 00:00:00 GMT

Defined benefit pension plans are caught in a period of significant volatility that requires sponsors to better understand investment and cash flow implications while rethinking plan design.

A Culture of Health

Sat, 12 Dec 2009 00:00:00 GMT

Unum developed a health care strategy that uses an integrated approach to managing health care costs through programming; employee accountability and participation; and tools, resources and education. A $5 million investment in wellness and health programming resulted in $12 million in savings.

2009 Proxy Statements Highlight the New Realities in Executive Compensation

Tue, 1 Dec 2009 00:00:00 GMT

A detailed examination of proxies filed by large corporations.

Directors and Officers Liability: 2008 Survey of Insurance Purchasing Trends

Wed, 30 Sep 2009 00:00:00 GMT

Towers Watson's Directors and Officers (D&O) Liability Survey — now our 31st — continues to track liability insurance purchasing trends, providing organizations with critical information on the structure and cost of D&O insurance programs.

10 Questions for Brian Schipper, senior vice president, global human resources, Cisco Systems

Tue, 15 Sep 2009 00:00:00 GMT

Productivity Rewards and Pay Illusions Caused by Health and Retirement Benefit Cost Increases

Sat, 15 Aug 2009 00:00:00 GMT

Authors Steven Nyce and Sylvester Schieber conclude that if we expand health insurance coverage without controlling costs, we have the potential to soak up future wage growth and crowd out retirement benefits.

A Call to Action

Thu, 30 Apr 2009 00:00:00 GMT

Towers Watson's BenefitConnect system reduced Alliance Data's costs and enhanced call-center service.

A Critical Link to Employees

Sat, 28 Feb 2009 00:00:00 GMT

Named to Forbes’ Global 2000 list of the world’s largest companies and recognized by Fortune as one of “America’s Most Admired Companies,” Avnet, Inc., generated revenues of $17.95 billion in 2008. One key driver of Avnet’s success: its global employee engagement survey.

MedStar Health: Engaging People, Improving Performance

Tue, 30 Sep 2008 00:00:00 GMT

MedStar Health’s vision is simple: Be the trusted leader in caring for people and advancing health. Realizing this vision isn’t quite as simple, thanks to constant financial pressures, escalating consumer demand and workforce shortages. Despite these challenges, MedStar Health is succeeding.