Puerto Rico - INSIDER highlights
There are some articles which will be of special interest to Puerto Rico
employers:
(1) Both editions contain articles on measures Congress is considering
with regards to participant investments in pre-tax savings plans (March
article, April
article). Much of this discussion comes about because of the problems
Enron employees faced when the company stock lost almost all value. Much
of the discussion in Congress is oriented toward giving participants more
investment education on the virtues of diversification and giving participants
more discretion on the investment of company matching contributions. Since
some of these changes will no doubt involve changes to ERISA, the changes
may well affect Puerto Rico pre-tax savings plans.
(2) The March edition contains an article summarizing research Watson
Wyatt has completed on the link between certain human resource practices
and bottom line financial results (shown here).
This study, entitled “The Human Capital Edge”, indicates that
there are 21 key human resource practices with substantial financial effects
for the companies who have implemented them. We would be happy to review
this study in more detail with you if you would like more information.
Please feel free to call us if you have a question on any of the articles
contained in these two editions of the “Insider”.
Sincerely,
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