http://www.watsonwyatt.com Latest Watson Wyatt HR Finance Alert Articles en-us Copyright 2005 Watson Wyatt Worldwide http://backend.userland.com/rss091 2/7/2012 1:52:19 AM 20 Despite signs of economic recovery, most U.S. companies are not planning to restore executive pay cuts or freezes made during the economic crisis in the next six months. http://www.watsonwyatt.com/search/parser.asp?ID=22578A survey by Watson Wyatt found that the number of companies that use target-date or lifecycle funds as their default investment option has increased sharply in the last few years, from 38 percent in 2006* to 62 percent today.http://www.watsonwyatt.com/search/parser.asp?ID=22579A vast majority of employers anticipate that health care reform, if enacted, will lead to higher health care costs and weaken their role in providing coverage to workers.http://www.watsonwyatt.com/search/parser.asp?ID=22580Total assets of the world’s largest 300 pension funds fell by 13 percent in 2008 to $10.4 trillion, down from $11.9 trillion last year, according to Pensions & Investments and Watson Wyatt research.http://www.watsonwyatt.com/search/parser.asp?ID=22581Despite recent increases in asset values and regulatory relief from the Internal Revenue Service (IRS), U.S. employers will be required to contribute $89 billion into their defined benefit (DB) plans in 2010 and more than $146 billion in 2011 unless they receive funding relief from the federal government.http://www.watsonwyatt.com/search/parser.asp?ID=22582Corporate pension funds have been making numerous changes to their investment programs in response to the economic crisis, including significantly reducing their target equity allocations and shaking up their fund manager lineup. http://www.watsonwyatt.com/search/parser.asp?ID=22583With some employers feeling optimistic about the prospect of improved business results, the number of employers planning to reverse salary cuts and freezes has increased in the past two months.http://www.watsonwyatt.com/search/parser.asp?ID=22047Many elements of corporate executive pay programs believed to cause excessive risk taking actually encourage executives to reduce risk, according to experts at Watson Wyatt.http://www.watsonwyatt.com/search/parser.asp?ID=22049In today’s unpredictable market environment, even the “safest” investments such as stable value funds carry considerable risks for plan sponsors and participants. http://www.watsonwyatt.com/search/parser.asp?ID=22050Pay raises for U.S. workers are expected to rebound in 2010, following a year in which many companies slashed raises in the wake of the recession. http://www.watsonwyatt.com/search/parser.asp?ID=22051The number of Fortune 1000 firms that have a frozen pension plan increased again this year as companies continue to look for ways to control their retirement benefit expenses. http://www.watsonwyatt.com/search/parser.asp?ID=22052A Watson Wyatt analysis has found that freezing pensions does not have a positive effect on companies’ market value. http://www.watsonwyatt.com/search/parser.asp?ID=22053With signs that an economic recovery may be nearing, a majority of U.S. employers plan to reinstate some, but not all, of the changes they’ve been making to their pay, benefits and other HR programs.http://www.watsonwyatt.com/search/parser.asp?ID=21631Workers with defined benefit plans are much more positive about their retirement prospects than those who participate only in a defined contribution plan.http://www.watsonwyatt.com/search/parser.asp?ID=21632For the first time, the majority of Fortune 100 companies now offer new salaried employees only a defined contribution plan, such as a 401(k). http://www.watsonwyatt.com/search/parser.asp?ID=21633Chief executive officers at many of the nation’s largest corporations saw portions of their financial fortunes drop sharply last year as the financial crisis and slumping stock market resulted in smaller annual bonus payouts, diminished ownership values and reduced value for equity holdings.http://www.watsonwyatt.com/search/parser.asp?ID=21634A majority of directors who serve on corporate boards believe that the executive pay programs of U.S. companies need to change as a result of the financial crisis.http://www.watsonwyatt.com/search/parser.asp?ID=21635With Congress scrutinizing target-date funds (TDFs), the time is right for fund managers to take a closer look at the risks inherent in their funds and help employers communicate these risks to their employees. http://www.watsonwyatt.com/search/parser.asp?ID=21636U.S. employers' efforts to battle the recession through cost-cutting actions such as layoffs, hiring freezes and salary freezes may have finally peaked, according to a Watson Wyatt survey of 141 large U.S. employers conducted in April 2009.http://www.watsonwyatt.com/search/parser.asp?ID=21258At the end of 2008 pension plan funding levels at large U.S. companies reached historically low levels. 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