Benefit Boosts Results from Tax Reform Improvements

Thanks to the changes resulting from the passage of the tax reform law, employee benefits programs are or will be improving.

Willis Towers Watson, as reported in NAPA Net, surveyed over 300 large and mid-sized employers with 66% of those surveyed indicating they will probably be improving their benefits. Many companies have already done so. The top three targets:

  • 34% are expanding their personal financial planning
  • 26% are increasing their 401(k) contributions
  • 19% are increasing or accelerating their pension plan contributions

49% of those surveyed indicated they will be making a change to at least one of these programs either this year or in 2019.
Other possible changes being considered are:

  • Increasing health care subsidies
  • Reducing or holding flat payroll deductions
  • Adding new paid family leave programs in keeping with the Family Medical and Leave Act’s tax credit available for certain employees

64% of the employers have, or are planning/considering changes to their broad-based compensation programs with the most common actions under consideration:

  • 43% are considering reviewing their compensation philosophy
  • 36% are considering pay gap situations
  • 21% are considering either doing a one-time bonus to all employees, or starting a profit-sharing payout

A full 41% of the surveyed companies either have, or are planning changes to their executive pay plans as well.

Related Posts

Sticky Post

EPCRS: More Industry Acronyms and Self Help for Retirement Plans

Fun Fact: Did you know that two, possibly three, government agencies oversee employer-sponsored retirement plans?  Furthermore, multiple committees in both...
Sticky Post

The Big Scary “F” Word: FIDUCIARY

It’s easy to misunderstand the term “fiduciary” (after all, the word has five syllables). A quick Google search will tell...