http://www.watsonwyatt.com Latest Watson Wyatt Retirement Articles and News en-us Copyright 2010 Watson Wyatt Worldwide http://backend.userland.com/rss091 3/12/2010 8:23:58 AM 20 Watson Wyatt has been comparing investment rates of return in defined benefit (DB) and defined contribution (DC) plans for more than 10 years, and DB plans have been the long-term victor. This analysis updates our prior studies with investment returns for 2006 and 2007 for a large set of plans, as well as a snapshot of year-end returns for 2008 based on a small set of plan sponsors. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=22909The number of employers planning to offer annuities to participants in their 401(k) plans is expected to grow as companies look for ways to provide workers with a steady distribution of benefits during retirement, according to a survey by Watson Wyatt, a leading global consulting firm. This finding comes on the heels of an announcement by the Department of Labor in early December that it will explore steps it can take to encourage employers to offer lifetime annuities or similar lifetime distribution options in their defined contribution (DC) plans. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=22888The Affordable Health Care for America Act (H.R. 3962) approved by the House on Nov. 7 and the Patient Protection and Affordable Care Act (H.R. 3590) now under debate in the Senate would affect retiree health plans significantly. Some of the changes — such as taxing the retiree drug subsidy (RDS) provided to employers and prohibiting employers from reducing benefits after employees retire — could have a chilling effect on the sponsorship of retiree health benefits. On the other hand, a proposed reinsurance program for early retirees would (temporarily) reward sponsors of employment-based plans. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=22889Health care reform has dominated the legislative agenda for much of 2009 — especially as legislation moved through committees and floor debates during the late summer and fall sessions. But retirement issues are also receiving attention and might see some action before the 2009 session ends. Defined benefit (DB) plan sponsors are hoping for funding relief, and lawmakers may discuss legislation to address disclosure of 401(k) fees. In addition, a new bill recently introduced in the House would change the nondiscrimination rules for qualified retirement plans. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=22890A new study by Watson Wyatt 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). [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=22881UK - December 14, 2009 - The coming year will be another challenging one for UK pensions professionals, according to Watson Wyatt. The firm believes there will be five key trends during 2010. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22858UK – December 14, 2009 – Less than a week after the Chancellor announced another delay to the timetable for introducing the Government’s pension reforms, it has been reported that one of the two remaining bidders to supply administration services to the new personal accounts scheme has dropped out. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22863UK - December 13, 2009 - The Government’s estimates of future public sector pension costs assume that a substantial increase in the size of the UK population will not require any increase in the number of people employed in public services, according to Watson Wyatt. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22857UK - December 10, 2009 - The Chancellor's announcement on public sector pensions concerns savings that have already been banked and will not make an additional contribution to curbing the budget deficit, according to Watson Wyatt. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22840WASHINGTON, D.C., December 9, 2009 — U.S. employees saw the fair value of their new company stock option awards decline by nearly 10 percent last year, according to a recent analysis by Watson Wyatt, a leading global consulting firm. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=22825GLOBAL, December 7, 2009 — As the financial crisis spread over the U.S. economy, some industries absorbed the impact better than the rest. The aerospace and defense (A&D) sector has been one of the strongest in sales and employment growth during the past year, reporting record figures in a time of generalized market failure. Still, the poor performance of markets saw pension risk skyrocketing, according to the special A&D issue of Visions, a Watson Wyatt global research publication. [GLOBAL]http://www.watsonwyatt.com/search/parser.asp?ID=22810UK – December 4, 2009 – Sales of variable annuities fell significantly in the third quarter of 2009, according to research from consultants Watson Wyatt. Third quarter variable annuity sales in the UK were £143.1million compared to the second quarter total of £343.7 million. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22790Employers could inadvertently create pensions tax relief problems for employees if they bring forward bonuses into the current tax year, warns Watson Wyatt. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=22763The 2008 Form 5500 instructions direct defined benefit (DB) pension plan sponsors (or plan administrators acting on their behalf) to display actuarial information from the form on their intranets. The instruction reflects a new PPA disclosure requirement for DB plan sponsors that maintain intranet Web sites for their employees. The DOL is also currently posting scanned versions of 2008 Schedule SB filings on a Web site that may be viewed by the general public. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=22730On November 25, 2009, the Personal Accounts Delivery Authority (PADA) published its findings from the consultation on potential investment approaches for the new person accounts plan into which millions of new pension savers will be automatically enrolled after 2012. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=22805Since October 19, 2009, pension fund administrators (AFPs) have been allowed to invest a larger share of their assets in foreign instruments, following a resolution by the Peruvian Central Bank. [PERU]http://www.watsonwyatt.com/search/parser.asp?ID=22817Despite the economic turbulence of the past year and the high employer spend on benefits across the region, many organizations in Asia-Pacific still have not reviewed their benefits strategies, according to Watson Wyatt’s “2009 Asia-Pacific Benefits Trends Survey Report.” [ASIA-PACIFIC]http://www.watsonwyatt.com/search/parser.asp?ID=22807The Department for Work and Pensions (DWP) and the Personal Accounts Delivery Authority (PADA) have published their response to the public consultation on the rules governing personal accounts. Although no substantial policy changes are recommended as a result of the consultation, a few amendments have been made to make the policy intent clearer. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=22813Since November 3, 2009, sponsors of Nova Scotia-registered defined benefit pension plans have been able to amortize solvency deficits over 10 years instead of the current five, following an amendment of the Pension Benefit Regulation by the Ministry of Labor and Workforce Development. [CANADA - ENGLISH]http://www.watsonwyatt.com/search/parser.asp?ID=22808As a result of legislation that was passed by Parliament on October 24, 2009, Peruvian workers above a fixed age who have been unemployed for 12 consecutive months will be eligible for early retirement effective January 2010. [PERU]http://www.watsonwyatt.com/search/parser.asp?ID=22816