Forthcoming Changes in Employee Benefits
Employees, and possibly even retirees, could be looking at higher expenses, but potentially more choices, when it comes to benefits. A CFO Research Services study of senior financial advisers found that an increasing number of employers intend to move to an “employee-choice” benefits model over the next two years.
Controlling the cost of company-provided health care benefits is the top benefits priority for 70% of the executives surveyed. Nearly two-thirds (65%) of executives said they are likely to shift a larger portion of health care costs to employees. This is despite the fact that 34% said that minimizing the increase employees incur for health care benefits was a top priority.
For the first time in the survey’s three-year history, reducing the cost of other employee benefits ranked among the top three priorities, with 33% of executives giving it importance. This is why a growing number of employers are considering or implementing “employee-choice” benefit packages. Under this model, employees are given a fixed amount of funding for choosing various benefits. In comparison, under the traditional “employer-choice” model, employers are responsible for choosing health care, retirement and group benefits.
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