http://www.watsonwyatt.com Latest Watson Wyatt News en-us Copyright 2009 Watson Wyatt Worldwide http://backend.userland.com/rss091 1/5/2009 10:11:17 PM 20 The final report of the Alberta-British Columbia Joint Expert Panel on Pension Standards was published on November 28, 2008. The report makes over 130 recommendations, many of which will require several important legislative and regulatory changes. The importance of finding a balance between protecting the pension promise and encouraging the creation and maintenance of pension plans is highlighted throughout. [CANADA - ENGLISH]http://www.watsonwyatt.com/search/parser.asp?ID=20309According to a new survey, the number of companies implementing cost-cutting measures has increased sharply in just two months. Among the changes are moves towards layoffs, hiring and salary freezes and smaller pay raises. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20311Spouses will be able to apply to transfer a lump sum of their pension entitlement following a breakdown of their marriage, according to a proposal by Ontario’s Minister of the Attorney General on November 24, 2008. This proposal will imply a significant shift from the current system, in which division of pension income is deferred until payments start – upon the member’s termination, retirement or death. [CANADA - ENGLISH]http://www.watsonwyatt.com/search/parser.asp?ID=20312A recent benchmark study shows how Chilean firms are responding to the new APVC (collective voluntary provisional savings) system. In particular, a key finding is that there will not be an immediate widespread adoption of APVC plans, but that acceptance will be gradual. [CHILE]http://www.watsonwyatt.com/search/parser.asp?ID=20340In response to changes in life expectancy and long-term return assumptions, the Social Security committee of the Swiss parliament has approved a reduction in the minimum required conversion factor, the ratio that converts retirement savings to an annual pension. [SWITZERLAND]http://www.watsonwyatt.com/search/parser.asp?ID=20304A draft regulation to amend unlocking rules and bring the old Life Income Funds (LIF) and Locked-in Retirement Income Funds (LRIF) into line with new LIFs has been proposed by the Ontario Ministry of Finance. If approved, the regulation would allow one withdrawal from LIFs and LRIFs; modify the annual payment from these accounts to match the new LIF regulations; and move the existing Locked-in Retirement Account (LIRA) provisions to a separate, new schedule. [CANADA - ENGLISH]http://www.watsonwyatt.com/search/parser.asp?ID=20307Rules governing lump-sum disbursements in Romania’s pension system have been approved. The state pension has also been raised in changes implemented on October 1, 2008. [ROMANIA]http://www.watsonwyatt.com/search/parser.asp?ID=20308UK – December 29, 2008 - Watson Wyatt sets out what it believes will be the key challenges facing the insurance industry during 2009. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=20287Effective January 1, 2009, mandatory public health insurance and unemployment insurance contributions will change, according to the so-called “Sozialversicherungs-Rechengrößenverordnung 2009”. [GERMANY]http://www.watsonwyatt.com/search/parser.asp?ID=20298On December 23, 2008, President Bush signed the Worker, Retiree and Employer Recovery Act of 2008 into law. While the legislation, which Congress passed by unanimous consent, includes provisions to provide much-needed relief for pension plan sponsors as well as individual investors, it does not include a number of key proposals the business community is seeking. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20292Implementation clarifications for China’s Labor Contract Law have been published and are in effect as of September 18, 2008. The new regulations include provisions for the absence of employment contracts and the calculation of severance payment. [CHINA]http://www.watsonwyatt.com/search/parser.asp?ID=20291A new law approved on October 19, 2008 reduced the requisite minimum working years to retire in Uruguay. The legislation also introduces special compensation for older retirees, new requirements to obtain disability pensions and special maternity benefits. Most of the changes will become effective in February 2009. [URUGUAY]http://www.watsonwyatt.com/search/parser.asp?ID=20293Workers are much less willing to pay higher premiums in order to keep their out-of-pocket costs such as deductibles and co-pays lower and more predictable, according to a recent survey. As they take steps to lower their current costs, many of their actions could lead to much higher costs in the future. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20294Proposals announced in the 2008 Pre-Budget Report, released by the U.K. government on November 24, 2008 include increases in employer and employee National Insurance contributions. This increase is part of a move to improve the economic sustainability of public finances in the medium term, and will take effect largely in 2011 when the government expects the economy to be recovering from the current downturn. Also proposed were several measures intended to provide an immediate boost to the national economy, including a reduction in value-added tax. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=20295According to recent survey findings, many defined benefit plans (DB) in the U.K. expect employer contributions to rise following their next valuation. Also, the financial turmoil and subsequent recession is expected to drive pension plan change generally, including plans closing to new entrants, closing to future accrual for existing members or making other changes to reduce costs. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=20296Singapore, 18 December 2008 - Carl Hess, global head of investment consulting at Watson Wyatt, said: “2009 will likely herald a deepening of this recession and in turn will bring a new investment regime which will be much more conservative on average than what we''ve seen over the past 20 years. [ASIA-PACIFIC]http://www.watsonwyatt.com/search/parser.asp?ID=20275WASHINGTON, D.C., Dec. 19, 2008 — U.S. employers are stepping up their communication to workers about financial performance and solvency to help alleviate growing levels of stress and anxiety caused by the recession, according to a new survey by Watson Wyatt, a leading global consulting firm. [GLOBAL]http://www.watsonwyatt.com/search/parser.asp?ID=20279Financial services companies are stopping hiring and are implementing organisation-wide restructuring, but are not expecting to introduce widespread pay freezes in 2009, according to consultants Watson Wyatt. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=20268WASHINGTON, D.C., December 18, 2008 — The number of companies implementing cost-cutting measures, including layoffs, hiring and salary freezes and smaller pay raises, has risen sharply in just two months, according to a new survey by Watson Wyatt, a leading global consulting firm. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20269WASHINGTON, D.C., December 18, 2008 —Watson Wyatt Worldwide, a leading global consulting firm, announced today that it has acquired SMART Human Resource Vietnam Company Limited (“SMART HR”), a premier HR consulting services firm in Vietnam. [GLOBAL]http://www.watsonwyatt.com/search/parser.asp?ID=20271WASHINGTON, D.C., December 18, 2008 —Watson Wyatt Worldwide, a leading global consulting firm, announced today that it has acquired SMART Human Resource Vietnam Company Limited (“SMART HR”), a premier HR consulting services firm in Vietnam. [ASIA-PACIFIC]http://www.watsonwyatt.com/search/parser.asp?ID=20272With general uncertainty about what the economic future holds, the need for organisations to keep a tight focus on employee reward strategy will be more important in 2009 than ever before, according to Watson Wyatt. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=202622009 will likely herald a deepening of this recession and in turn will bring a new investment regime which will be much more conservative on average than what we''ve seen over the past 20 years. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=20238The Pensions Regulator (tPR) is trying to strike a difficult balance when it comes to the affordability of pension contributions, according to Watson Wyatt. Alongside its publication on recovery plans submitted during the first two years of the scheme specific funding regime, tPR has told trustees that they should not ‘over-react’ to the downturn but should be prepared to take account of ‘short-term cash flow difficulties’. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=20217With the recession showing no end in sight and the current spotlight on executive pay, many U.S. companies are cutting back on the annual bonuses and long-term incentives they pay their executives, according to a survey by Watson Wyatt, a leading global consulting firm. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20218Employee engagement in many Asia-Pacific countries - including Hong Kong, Singapore, South Korea and Taiwan - has declined over the past year, according to Watson Wyatt''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''s 2008/2009 WorkAsia(TM) study. [ASIA-PACIFIC]http://www.watsonwyatt.com/search/parser.asp?ID=20210Watson Wyatt has bolstered its settlement solutions team with the appointment of Robert Fitzsimmons as a consulting programme manager. His recruitment shows Watson Wyatt's growing focus on settlement projects. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=20211In the midst of an economic crisis, rising health costs are leading an increasing number of U.S. workers to take steps to reduce their own spending on medical care, according to a survey by Watson Wyatt, a leading global consulting firm. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20212As the global financial crisis takes a tighter grip on the economy, some Canadian employers are bracing themselves for the looming economic slump. More than four in ten companies either have made or are planning layoffs or reductions (44%) and revising merit payments (42%) over the next year. According to the survey conducted in November 2008 by Watson Wyatt, a leading global consulting firm, employers are also ramping up employee communications and halting new staffing. The survey also indicates that while many companies are considering changes, less than 20% consider such changes to be significant. [CANADA - ENGLISH]http://www.watsonwyatt.com/search/parser.asp?ID=20240La crise financière mondiale resserre sa prise sur l’economie et certains employeurs canadiens se preparent en vue d'un marasme economique imminent. Plus de quatre entreprises sur dix procederont, à moins qu’elles ne l’aient dejà fait, à des mises à pied ou à des reductions de l’effectif (44 %) et reviseront les augmentations au merite (42 %) dans l’annee à venir. D’après un sondage realise en novembre 2008 par Watson Wyatt, un chef de file mondial en matière de services-conseils, les employeurs augmentent egalement leurs communications aux employes et interrompent l’embauche de nouveau personnel. Le sondage precise que même si beaucoup d'entreprises considèrent apporter des changements, moins de 20 % d'entre elles estiment que ces changements sont significatifs. [CANADA - FRENCH]http://www.watsonwyatt.com/search/parser.asp?ID=20241Two out of three defined benefit (DB) pension schemes expect employer contributions to rise following their next valuation, according to a survey by consultants Watson Wyatt. Despite this, over 40 per cent of schemes believe that they will no longer meet their planned timetable to become fully funded. [EUROPE]http://www.watsonwyatt.com/search/parser.asp?ID=20204Leading global consulting firm Watson Wyatt has strengthened its investment consulting team with two new senior appointments. Ross Barry has been recruited as Head of Portfolio Construction and Diversity, and Anna Weickart has joined as a Manager Research Consultant, specialising in Australian equities. [AUSTRALIA]http://www.watsonwyatt.com/search/parser.asp?ID=20205The Government's decision to cut VAT and then put it up again could add around £3 billion to companies' defined benefit pension liabilities, according to Watson Wyatt. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=20196 [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20189Compensation committees at U.S. companies had been making significant adjustments to how they compensate their chief executives even prior to the recent financial crisis, according to an annual study by Watson Wyatt, a leading global consulting firm. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20176By international standards, UK senior managers receive a high proportion of their earnings in the form of bonuses and profit share. However, this pattern does not follow for middle ranking and more junior employees. [UNITED KINGDOM]http://www.watsonwyatt.com/search/parser.asp?ID=20177Watson Wyatt, a leading global consulting firm, has recommended that its clients suspend securities lending activity where possible if they are in any doubt about their lending guidelines and arrangements. The firm asserts that the risk-reward trade-off around this activity has changed and that, in some instances, it may no longer be worthwhile. However, it also warns that suspending securities lending can crystallize a loss in some cases, which should be avoided. [UNITED STATES]http://www.watsonwyatt.com/search/parser.asp?ID=20167As of January 2009, the earnings ceiling to make pension contributions under the Canada Pension Plan will increase, according to a recent announcement by the Canada Revenue Agency. Contribution rates will remain unchanged. [CANADA - ENGLISH]http://www.watsonwyatt.com/search/parser.asp?ID=20182The Swiss minimum guaranteed interest rate that pension funds must provide their active plan members has been cut. [SWITZERLAND]http://www.watsonwyatt.com/search/parser.asp?ID=20186Due to the financial crisis, many pension funds in Switzerland are suffering from poor investment performance, resulting in lower coverage ratios. [SWITZERLAND]http://www.watsonwyatt.com/search/parser.asp?ID=20187