Mediocre portfolio returns and an 80-plus basis point decline in long corporate yields drove 2011 results. The Towers Watson Pension Index dropped to 62.3 from 70.7, down 11.9% for the year. Results for December followed the same pattern, as the index dropped 2.8%. Read More
Finance to Increase Involvement in Rewards Post-HCR
A Towers Watson–Forbes Insights survey of finance and HR executives shows they hold surprisingly similar views on their companies' plans for responding to health care reform (HCR) and its implications for the costs, design and mix of reward programs. "Joining Forces: Forging an HR/Finance Partnership to Shape Rewards for the Future" draws on the survey to illuminate the functions' perspectives on their changing roles. Read More
Smaller Golden Parachutes on the Horizon
Lucrative change-in-control (CIC) executive severance payments are on shareholders' radar. In "Golden Parachutes — Still With Us, But for How Long?" consultant Sarah Hiester discusses how companies have scaled back CIC provisions to head off say-on-pay concerns, even as golden parachutes remain fastened to two-thirds of top U.S. executives. Read More
Hospitals Eye Defined Contribution Plans for Savings
Hospitals want to make employees more responsible for their retirement. In the Viewpoints article "Hospitals and 403(b) Plans: Supporting Employee Retirement Readiness and Reducing Risk," consultants Peter Grant and Gary Kilpatrick discuss how hospitals are looking to move from defined benefit to defined contribution plans — while complying with the Employee Retirement Income Security Act and helping their workers get ready for retirement. Read More
HHS Issues Medical Loss Ratio Interpretation
The Department of Health and Human Services has issued final, amended regulations interpreting the Patient Protection and Affordable Care Act's medical loss ratio requirements. Our Health Care Reform Bulletin summarizes the implications for employers with insured health plans. Read More
Extreme risks are very rare events that have major effects — prime example: the global financial crisis. In "Extreme Risks: The 2011 Update" (Emphasis, Q4), consultants Tim Hodgson, Carole Judd and Liang Yin provide a holistic risk management framework and a revamped list of 15 risks to consider.
Copyright 2012 Towers Watson. All rights reserved.