Featured News and Research

• Legislation to Prevent Worker Misclassification Reintroduced

  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.Continue reading...

• Rebuild America Act Would Affect Benefit and Compensation Programs

  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.Continue reading...

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

  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.Continue reading...

• Projected Finances of Social Security and Medicare Worsen Significantly in 2012

  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.Continue reading...

• The NAIC ORSA — The Evolutionary Process Continues

  This article is the latest Towers Watson's update on the National Association of Insurance Commissioner’s (NAIC’s) Own Risk and Solvency Assessment (ORSA) requirement.Continue reading...

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

  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.Continue reading...

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

  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.Continue reading...

• Towers Watson Launches Latest iPad Application

  Towers Watson announced today the launch of a new Human Capital Metrics iPad application.Continue reading...

• Global Outlook: Moderate Economic Growth, Muted Investment Returns

  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.Continue reading...

• Pension Plans Continue to Face Large Funding Obligations

  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.Continue reading...

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  Thematic Investing

  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.Continue reading...

• Towers Watson introduces updated version of Emblem pricing software

  Emblem 4.2 includes a unique innovative technique that materially enhances predictive models. The "saddle builder" detects interactions between factors that would otherwise be hard to find.Continue reading...

• American Workers Seek More Security in Retirement and Health Plans

  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.Continue reading...

• Funded Status of Fortune 1000 DB Plans Declines in 2011

  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.Continue reading...

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

  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.Continue reading...

• Insights — AG 38 Developments: Industry Responds to Draft Framework

  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.Continue reading...

• President Signs Deal to Extend Payroll Tax Holiday Through 2012

  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.Continue reading...

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

  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.Continue reading...

• Global Pension Fund Assets Hit Record High in 2011

  Global institutional pension fund assets in the 13 major markets grew by 4% during 2011 to reach a new high of US$28 trillion, up from US$26 trillion in 2010 according to Towers Watson’s Global Pension Assets Study released today. The growth is the continuation of a trend which started in 2009 when assets grew 17%, and in sharp contrast to a 21% fall during 2008 which took assets back to 2006 levels. Global pension fund assets have now grown at over 6% on average per annum (in USD) since 2001, when they were valued at US$15 trillion.Continue reading...

• Retirement Planning in a Post-Crisis Economy

  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.Continue reading...