Aon Consulting's clients in the health care industry benefit from our professionals who take the time to study, plan and act. A large, regional health care organization was interested in developing an actionable employee study that would enable the team to identify key drivers of employee commitment. The client wanted...
The U.S. health care industry has been in an escalating state of crisis. The cause of this negative and costly situation is a culmination of increased litigation, lack of affordable medical malpractice insurance and a deficiency in consumer understanding of the medical process. However, many steps have been taken by...
IRS issued proposed regulations for nonqualified deferred compensation NQDC plans subject to §409A of the Internal Revenue Code. Although the regulations extend some transition relief provided in earlier guidance, employers with NQDC plans will have to take action before 2006. For example, before the end of 2005 deferral elections for...
This article reports that noting a new trend in employee benefits financing several large companies have recently reinsured their employee benefits plans through domestic captives or domestic branches of offshore captives. These companies have been seeking cost savings on their employee benefits programs, as well as risk diversification for their...
What should a company do in the future? What funding strategy would best meet its objectives and those of the pension plan? This article addresses these issues and depicts that the existence of a funding policy would have enabled decision-makers to understand the situation and, consequently, avoid this predicament. The...
Replacement income ratios, which place financial needs at retirement in context with pre-retirement income, have helped employees understand and target how much money they will need for retirement. Aon Consulting has applied the methodology behind replacement ratios to hundreds of thousands of individuals and found that of the employees in...
At first glance the Roth 401k or 403b plans had little attraction for plan participants as personal savings vehicles and seemed to be a lot of hassle for sponsors and record keepers. The Roth 401k and 403b appear to be worth the effort for both plan sponsors and employees. This...
In order to compete in today's economy; most organizations invest significant effort in identifying the best sales makers. Unfortunately, these efforts often lack the scientific rigor necessary to hire the very best people. Although organizations demand that those who are their public face must provide great service, they are now...
The latest results from Aon Consulting's Radford Surveys show the size of pay increase budgets trending upward for technology companies globally. In the U.S., increase budgets are moving up moderately this year, compared to last year, with overall budgets averaging 4.2 percent for combined merit, promotion, and adjustment increases. This...
Employers providing prescription drug coverage to employees or retirees covered by Medicare Part A or Part B must provide them with a "creditable coverage" notice before November 15, 2005. The notice must inform the Medicare beneficiaries whether the employer's drug coverage is "as good as" the new Medicare Part D...
A key component in the strategy to improve the overall health of employees is the prescription drug benefit, since those drugs are important in the prevention and treatment of many diseases. With this in mind, some employers are promoting appropriate prescription drug use by basing their prescription drug benefit plan...
Although successful American companies have relied upon data-driven decision-making as a core function for business needs, it is surprising how many have failed to exploit data analytics to gain control of one of the most expensive purchases - medical plan costs for employees and dependents. This cost crisis demands data-driven...
This article presents the results of Lloyd's Market Association LMA and the International Underwriting Association IUA work with Aon towards the new market slip. It reviews why banks and insurers need a clear protocol for security on lending. It takes a look at the impact of Germany's renewal season. The...
During the same period of fundamental changes in health care coverage, other significant forces have created and/or enhanced a number of other voluntary benefits that are now important components of many employers' benefits strategies. Chief among those forces has been the work/life balance trend. In recent years, the variety of...
The IRS Large and Mid-Size Business Division is rolling out an executive compensation "package audit" program that becomes a part of the routine audits of large and mid-sized employers, according to the IRS Executive Compensation Branch Chief during a recent speech. The package audit program is based on the executive...
True business success, however measured, is difficult to achieve in any circumstance and even more complicated with the emerging global economy. Every enterprise has a business plan that describes where the company is going and how it plans to get there. The company puts necessary strategies, systems, and structures into...
The governance of company-sponsored 401k plans has become an area of concern and consternation among those who work with such plans. Many companies and executives are questioning the best structure and means to manage their fiduciary responsibilities, while acting in plan participants' best interests and mitigating their own personal liability...
How much is human capital worth to your organization? Many experts, including human resources HR professionals and financial and market analysts, agree that as much as 80% of a company's worth is tied to its workforce. Highly successful companies understand this critical differentiator and take the necessary steps to make...
Over the past few years, corporate directors have been under increased pressure to improve corporate governance. This pressure has come through a variety of sources including: Sarbanes-Oxley requirements; SEC rule changes; revised stock exchange listing standards; and shareholder concerns. And, these market changes have resulted in increased responsibilities and time...
The paper informs that at the end of 2004 underwriting year, the insurance industry continued to report growth in writings and declared its first underwriting profit in more than 25 years. The industry continued to contend with an uncooperative investment marketplace and pressure to increase prior year loss reserves. Given...
