Thursday, June 10, 2010

Active employees are checking their defined benefit pension calculations much more often than in the past

The “Outfront” column in Workforce Management Magazine has an article on p. 8 of the June 2010 issue by Andrew Yerre of Mercer Consulting, indicating that the number of employees requesting calculation of their defined-benefit pensions rose sharply in 2009, after a law was passed in 2006 requiring Pension Plans to send employees and retirees Plan funding reports. In my own experience as a retiree (ING), those reports are sent one year after the plan year has been evaluated. Mercer says it received 80000 such requests in 2009, up 40% in one year; the company handles defined-benefit plans for 73 corporate clients, many with multiple plans.

The article is not yet available online.

Larger insurance companies are likely to do their own pensions, and have dedicated people in HR to handle requests from associates for computations, which often are done off-line. Over time, in the past few years, companies have been placing more retirement information on corporate servers, but sometimes only for current employees, not retirees, who often must use call centers or who can often see only more limited information. Hewitt is another major company in administering corporate pension benefits.

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