Puerto Rico - INSIDER highlights
The April 2001 edition of Watson Wyatt's "Insider"
is now online.
There are two articles this month which may be of special interest to Puerto Rico employers.
(1) The article entitled, "Changes in Treasury Bills Vex Pension Sponsors" discusses the implications for defined benefit pension plans of the declining yields on 30-year Treasury bills. The returns on these bills are used to determine the interest rate utilized in calculating minimum funding requirements. Treasury bill lower yields mean higher plan liabilities, which may increase funding requirements. In addition, other factors such as the declining stock market may also act to increase minimum funding requirements. Consequently, sponsors of defined benefit plans may well expect to see some increases in required contributions to their plans.
Read the full story.
(2) The article entitled, "Portman/Cardin Pension Reform Returns" outlines some of the changes in U.S. pension law being discussed in the House of Representatives. While many of these proposed changes would not have effect in Puerto Rico because of our separate tax code, some changes (such as the proposed acceleration in vesting on company matching contributions) may affect Puerto Rico plans.
Read the full story.
Please call us if you have any questions on the articles in this edition of the "Insider". Additional stories - spanning current HR issues such as phased retirement and HR technology are presented on our website at www.watsonwyatt.com.
Sincerely,
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