Auto-enrollment and auto-escalation also surfaced as solutions, as did multi-employer pension plans. “About 50% of people in the private sector have access to workplace retirement plans,” said Swedlove. Although there are opportunities for that to increase, it’s not so easy for small or medium-size businesses, he continued.
But while all the suggestions and ideas hold merit, the voice of reason rang through. Ambachtsheer said it’s not in the collective interest to say one person’s right and everyone else is wrong. “If we’re going to move the yardstick toward something that works better…we have to find out where we agree on things and find places where we may have to make some compromises to get better outcomes.” BC
Highlights from the Benefits & Pension Summit BENEFITS He was a top employee, someone who everyone counted on—and then something changed. Everyone watched his demeanour make an about-face, but nobody questioned it. He was watched closely by HR, which escalated his neurotic behaviour, eventually leading to an incident that kept him out of the workplace for a year. When drastic changes like this happen, people should be questioning it, said both Mary Ann Baynton, director of Great-West Life’s Centre for Mental Health in the Workplace, and Karen Liberman, executive director with the Mood Disorders Association of Ontario. It’s often a sign of a mental illness. Many times, the illness stops people from recognizing they have a problem. Managers should address employees when these situations occur and advise them to see a physician. “Eighty to 90% of mental illnesses are treatable and not terminal unless we make them so,” said Liberman. “Time to treatment and access [to it] is critical.” — April Scott-Clarke DB PENSIONS Investors can expect moderation in equity returns, as firms have reached the limits of what they can gain from cost-cutting. Future profit growth will have to stem from increased earnings. “Over the next two years, I’m thinking 10% is what you should expect,” said Chhad Aul, vice-president with State Street Global Advisors, adding that people should expect the volatility we’ve seen to continue. The good news is that in Q1 2010, 85% of firms in the S&P 500 beat earnings expectations, and Aul predicted this trend to rise. Equity valuations are also supported by the sheer quantity of cash sitting on corporate balance sheets. The recession encouraged management to guard its capital, building cash reserves of more than 11.5% of total assets in Q1 2010, compared to just 8.5% in Q4 2007. “This leaves corporations in a strong position to increase dividends, share buybacks and other methods of returning capital to shareholders,” he said, noting that the market could see a return of a mergers and acquisitions premium. — Steven Lamb DC PENSIONS Communicating with plan members is simple if employers adhere to three steps: know the message, know the messenger and know the recipient, said Christopher Cartwright, vice- president with the Financial Education Institute of Canada. However, plan members’ typical response to messages can frustrate the effort, as many have been raised to be skeptics, he said. Members either assume they’ve heard the message before, don’t perceive its relevance, fear it or simply don’t believe it. As a result, credibility is a huge issue. “Who delivers your message?” he asked. “HR? If HR is the source—and they’re typically perceived as bad-news people—the message may be tainted even if it is a positive one.” |
Brooke Smith is managing editor of Benefits Canada.
brooke.smith@rci.rogers.com
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© Copyright 2010 Rogers Publishing Ltd. This article first appeared in the June 2010 edition of BENEFITS CANADA magazine.