Health benefit costs may be a tempting target for employers looking to trim expenses, but doing so amid a recession risks alienating employees and killing productivity, warns a new survey. The 12th edition of the sanofi-aventis Healthcare Survey of 2,090 health benefit plan members reveals that reducing the delivery of health benefits is likely to […]
Once regarded outmoded and unsustainable, the Book reserve model of pensions has emerged the most resilient in the face of the global financial crisis, a survey reveals. Aon Consulting’s latest European Business Leaders Survey of senior executives from 11 countries, finds pension plans under the Book reserve model in Austria and Germany “demonstrating their mettle […]
Employers are looking to lower their average healthcare cost increase in the face of a tough economic climate and all the associated costs that a recession brings. The onset of the global economic crisis has changed the healthcare spending calculus for many plan sponsors. Prior to September 2008, health benefit costs had increased by roughly […]
What does the rise of sovereign wealth funds mean for pension fund investors? In his globalization primer, The Lexus and the Olive Tree, Thomas Friedman introduced the world to the terms “electronic herd” and “golden straitjacket.” These terms describe the web of international investors moving money around the globe at unprecedented speed and the rules […]
While the H1N1 flu pandemic has yet to reach crisis proportions, plan sponsors have an operational and legal obligation to plan for the worst. According to Gisele Norris, national director of Aon Healthcare’s alternative risk practice, the potential business impact of a second wave of the H1N1 pandemic is real and must be addressed. “Disease […]
The Caisse de dépôt et placement du Québec’s chief executive officer Michael Sabia is putting his stamp on the giant pension fund manager, announcing a renewed focus on risk management and a streamlined staff. Sabia has added 24 positions to the Caisse’s risk management team—doubling its size—and appointed Susan Kudzman as chief risk officer. Elsewhere, […]
Based on the media coverage of the Canadian Auto Workers (CAW) pension fracas, the average Canadian may empathize with union workers, who have been portrayed as pawns in a game controlled by government and big business. However, the CAW bears its share of responsibility for the current mess, experts say. At a Toronto rally last […]
With nowhere to hide in the unforgiving equity and fixed income markets, institutional assets shed 42% of their worth, amounting to US$2 trillion in losses, according to a report. Callan Associates’ 2008 Style, Trend, Analysis and Research (STAR) report found that institutional outflows totalled $259 billion in 2008, compared to the losses of 2007 at […]
European pension plans are increasing their allocation to non-traditional asset classes to manage their risks more effectively, a survey reveals. Mercer’s latest European Asset Allocation survey of over 1,000 European pension funds with assets of €400 billion found that 35% of U.K. schemes and 60% of European schemes expect to try new investment strategies to […]
The U.K. Ggovernment’s announcement that beginning April 2011, the value of tax relief will be tapered away for those earning over more than £150,000, and will fall to 20% for those earning more than over £180,000 opens a host of questions, according to Watson Wyatt Worldwide. “With the government borrowing £125 billion more this year […]