Aligning Your Retirement Program With Today's Workforce Realities Compensation & Benefits Management (09/01/01) Vol. 17, No. 3 p.1; Glew, Ian
Believing that plan sponsors should amend their plans to reflect the changing realities of today's marketplace, Ian Glew, senior vice president of Plan Sponsors Solutions for CIGNA Retirement & Investment Services, examines how plan integration can make benefits accessible and cost-effective for workers, and the advantages and disadvantages of cash balance plans. According to the Employee Benefit Research Institute, the key to developing an attractive benefits package is rooted in understanding the needs of employees. Glew says employers must learn to put together packages that appeal to employees irrespective of age, gender, or marital status. If done right, plan integration not only will attract the best pick of employees, but it can also make benefits more accessible and affordable for all parties and result in significant savings in time and cost for employers. Critics of cash balance plans complain they provide cost savings to employers at the expense of older workers, who might realize greater accruals in a traditional defined benefit plan, but Glew says that a well-designed cash balance plan will help align employees' interests with the interests of the company.