Puerto Rico - INSIDER highlights
This month's edition of
the Watson Wyatt "Insider" contains a couple of articles that may
be of interest to employers in Puerto Rico:
(1) The article entitled "Retirement
Act Advice Advances" discusses legislation being considered in Congress
allowing investment advisers, banks, insurance companies and other financial
firms to give investment advice to participants regarding their pre-tax savings
plan accounts. Plan sponsors would not be responsible for any advice given,
as long as the advisers had been selected prudently and had been reviewed periodically.
This latter part of the proposed legislation is quite important, since many
plan sponsors have completely steered clear of any type of investment advice
because of potential issues regarding fiduciary liability.
(2) The article entitled "Employers
Shifting More Health Care Costs to Employees" outlines what steps employers
are taking in the face of rising costs of health care provided in employer-sponsored
medical plans. As noted in the article, the average expected increase in medical
premiums across all plans is over 13%; the cost of prescription drugs is expected
to have the largest percentage increase (17%). While Puerto Rico may not experience
the same percentage increases as the U.S. over the next year, many local employers
are seeking ways to communicate to employees the cost of health care and, ultimately,
to pass more accountability for cost control to employees.
Our entire team at Watson
Wyatt Puerto Rico wishes you a safe and enjoyable holiday season.
Sincerely,
|
