7 4 2 3 6 5 ? ? Paul Fronsti Retirem Septem January throug ent Confidence Sur h their ber 2009 2 n, 010 director of own job, Notes Notes article, compared with 58 EBRI’s Healt article, vey “Em “Trends in Satisfaction and Confiden ploy hee Tenure, Research and Education Program: percent of no 2008” —Data on em nunion worke ce in Health Care, by r ploy s. Union wor ee tenure—the am kers are Insurance m ou ont of re New Developments President’s Report th —Dallas L. Salisbury This likely year to mabe em rked the 20 ployed in the public sector, manufact anniversary of the Retirement Confidenc uring industry e Survey (RCS). The 2010 RCS was , blue-collar occupations, and in ? EBRI Blogspot Dec. 10, 200 time an indivi and Health Status: Findings fro 9, “Findin dual has been with his or h gs from the 2009 m the 2009 EBRI/MGA Health Confidence Survey EBRI/MGA er current emplo Consumer Engagem yer—show that career jobs never ex ent in Health Care Surve ” —This article isted for y,” Spring 2010 fielded in January full-time jobs. Union work and released on Tuesday ers have high , March 9, er annual earnings than 2010. The surve nonunio y had n31 worke underwriters. The full rs. The EBRI-ERF policy forum m exam EBRI blog ost workers, and still do ines public opinio is online at n http://ebri b , Washington, y not. The m insurance status a org.blogspot.com/ edian tenur DC. nd health e of and will provide periodic workers—the m status, using data fro idpoint of m postings to the 2009 wage and salary supplem ent report and fact sheets are ? workers’ EBRI/Mathe September 2009 length of em w Greenw Issue Brief aployment in their current v aailable on the ld Associat , “Sources of Health Insura es H 2010 RCS ealth Confidence job—was virtually Web site nce and ch Survey. It . ara unchanged o finds that the cteristics of the Uninsured: ve uninsured ar r the past 25 e ym ears: ore ? the Institute’s Nov. 10, 2009, “Tax Treatment of Healt regular publications, and to provide co h Care and Em mment on questions that the ployment-Based Health Benefits,” Mi Institute gets fro lbank m news reporters, pol 5.1 likel Analy yy ears at the sa than i sis of t icyn m h dividuals wit e March 200 akers, an me job in 2008, com d others. h 9 Current Po insurance coverage to ppulation S ared with 5.0 ube rv dissatisfied ey years in 1983. ” —This Issue Brief with the quali provides historic data ty of health care Memorial Fund, New York, NY. Media Coverage of the 2010 RCS received and they are less through 2008 on the number and percentage of none confident in various aspects ld of health care. Si erly individuals with and milar difference without healt s in h ? Oct. 1, 2009, “The Latest Word on Health Reform and Implications for the Future of Employment- ® From satisfaction and confi insurance. Ba March 9, 20 sed on EBRI esti 10, to d M ence are found b arch 22, 20 mates fro 10, partia ym health status. the l tracking fou U.S. Census Bureau nd the 2010 ’s March 200 RCS mentioned in 9 Current Po 127 pulation Retirement Confidence Survey, 2010: American Savings Education Council and Choose to Save Based Health Benefits,” ICG HR Meeting, Boston, MA. th ® newspapers, 25 periodicals, 11 news wires, and 22 blogs. In addition, 167 Web-based outlets (such as This Surve year y m (CPS) arks the 20 , it reflects 2008 data. It also discusses anniversary of the Retirement Confidence trends in cover Surve age fo y (RCS). The RCS was rel r the 1994–2008 period and eased ? For an up Sept. 30, date on the activit 2009, “Deciphering the Current Legisla ies of ASEC and Choose ttive Landscape an o Save, please sed Im e the plication Spring 2 s010 AS for Consumer EC MarketWatch, CNNMoney) posted headlines and links on their Web sites. CBS and CNN featured Consumerism on March 9, highlights characte 2010 in Health Care . See below for furthe ristics t hat typically r details on th indicate whether an individ e 2010 RCS. ual is insured. 2010’s first quarter was marked by release of the 2010 Retirement Confidence Survey, release of new Chair Choice,” Annual Consum man’s Report. er Health Care Congress, Alexandria, VA. taped interviews with EBRI Research Director Jack VanDerhei. PLANSPONSOR.com featured a ? ? February Further infor 201m 0 ation on he Notes articl alth insurance pa e, “Choice of Health Plan: Findin rticipation by the nonelderly gs from the 2009 EBRI/MGA Consum is in Chapter 26 of the er investment advice regulations by the Department of Labor, launch of the new EBRI Center for Research ? Sept. 30, 2009, “A Deep Dive into Health Care Reform,” Annual Consumer Health Care Congress, podcast titled “Talking Points: Retirement Confidence” with Jack VanDerhei. The 2010 EBRI Lillywhite Award: Engagement in Health Care Surve Databook and by workers in Chapter 27 y”— The 2009 of the Data EBRI/MGA Consumer Engagement in Health Care book. on Health Benefits Innovat ion, and enactment of comprehensive health reform. The former underlined Alexandria, VA. Keith A Surve my ba finds chtsheer, director of the Rotman Interna that individuals with a choice of health plan are not on tional Centre for Pension M ly those who anagem tend to work ent (ICPM) at the for a the ongoing growth in individual responsibility for, and understanding of, the need to save and the ? Sept. 29, 2009, “Lessons from 401(k) Retirement Plans for Increased Consumerism in Health Care,” Usage by Social Security Administration Retiree Health University large fir of mToronto , but also individuals with higher inco Care , was chosen as recipient of thmes and hi e 2010 EBRI Lil gher edu lyw cation. Indivi hite Award. The h duals with a choice onor potential need for many to work longer than their par ### ents. The latter highlig hted ongoing efforts to Aetna Client Conference, Arlington, VA. ASEC developed several “factoids” based on data from the 2009 RCS for one of the Social Security recognizes outstanding lifetime contributions to Americans’ economic security. ? April 201 of health plan 0 Notes are article, more likely than t “The Use of Health Savings Account hose without a choice to be satisfied with their health plan s for Health Care in Retirement”and — expand health coverage and to figure out what can be done to slow the pace of health cost inflation. ? Sept. 23, 2009, “The Latest Word on Health Reform,” CQ Roll Call Monthly Breakfast Series, Administration’s (SSA) America Saves Week 2010 efforts. These factoids were displayed on television Press rel health care along a n ease announcing 2010 Lill umber of dim ywhit ensions. However, e award recipient. controlli ng for choice of plan did not change the Health savings accounts (HSAs) are often touted as a vehicle for funding future retiree health care Washington, DC. screens in SSA waiting rooms in all of their field offices across the country during the 2010 Week. difference in satisfaction rates between individuals with traditional coverage and those enrolled in The pages that follow highlight all of costs. However, statutory contribut our recen ion limits t work, with links directly mean that they are unlikely to the reports. to play mor e than a minor December 2009 Policy Forum: consumer-driven health pl part in savings for health care costs in re ans and high-deductible he tirement. alth plans, when differences in satisfaction Research—Retirement th Social Security Reform The presentat existed. ions from EBRI’s 65 policy forum, “Employers, Workers and the Future of Employment- We launched a blog on the Web this quarter to allow us to easily contribute in a short form to the growing ? January 2010 Notes article, “Retiree Health Benefit Trends Among the Medicare-Eligible Population” 401(k) Plans: ? Based H Septem ealth ber 2009, Benefits” Notes , are now available on-line. article, “Social Security Refor The February 2 m: How Differ 010 Issue Brief ent Options Might Affect Future summarizes the ? blog December 2009 —In 2008 dialogue on savings, r , 26 percent of 6 Notes article, etirement, and health issues. 5–69- “What Do We Know About Enr year-olds had retiree health benefits, down fro ollment in Consumer Driven Health m 32 percent in 1994, Since September of 2009, EBRI has released the following publications on 401(k) topics: presentations from Funding”— This article e the policy forum xamines wor . kers’ decisions to a take a lump-sum distribution—a one-time Plans?” —This article summarizes the literature on consumer-driven health plan (CDHP) offer rates and the numbers are lower for older retirees. It is possible that the decline in coverage would have ? April 2010 Issue Brief, “The Impact of Automatic Enrollment in 401(k) Plans on Future Retirement payment—from an employment-based retirement plan when changing jobs, while remaining in the Our unique and enrollm 401(k) and IRA databases continue t ent. The percentage of employers o o gr ffering CDHPs has gone from ow, and requests from multiple constituent real virtually none in 20 ms 00 for been even larger had it not been for changes in the work status of individuals eligible for Medicare. In Accumulations: A Simulation Study Based on Plan Design Modifications of Large Plan Sponsors”— labor force. It builds on earlier, top-line data from the 2004 Survey of Income and Program Presentations by EBRI Staff special analy to 12 1995, 59 percent in 2009. Based on the various sources percent of indi ses are growing apace. We viduals ages 65–69 considered b usage and downloads are at high levels, for both of data on enrollment in health reim themselves retired, and that fell to 53.6 www.ebri.org bursement percent This EBRI study updates the EBRI/ERF RSPM model used for the 2008 policy forum to analyze the Participation (SIPP). The study provides estimates of the percentage of workers changing jobs and and The following are presentations and testi arrangem www.choosetosave.org ents (HRAs) and HSA-eligible plans, it mony by EBRI staff since appears that 15–19 m September 2009: illion people were enro lled in in 2008, while those saying they were working increased from 28 percent in 1995 to 35 percent in likely impact of automatic enrollment and auto-escalation on 401(k) participants’ account balances at leaving their assets in their former employers’ plan, compares the standard of living of individuals these plans in 2009, representing 9–11 percent of the privately insured market. 2008. retirement. However, the 2008 model was constructed so soon after PPA that there was no way of age 55 or older with that of their early 50s, and assesses how the current near-elderly and elderly have Dallas Salisbury: Mem ? December 2009 bership has remained strong, b Issue Brief, “Findings fr ut the ongoi omng pa the 2009 ce ofEBRI/MGA mergers and consolid Consumer Engagem ations means ent in Health we have to ? January 2010 Issue Brief, “Implications of Health Reform for Retiree Health Benefits” —This Issue telling how most 401(k) sponsors who changed to automatic enrollment would modify their plan fared after making a lump-sum decision. grow the base. Your assistance with adding new members or new grant givers is always welcome! ? Mar. 31, 2010, “Health and Financial Security Care Survey” —This Issue Brief presents findings from for You, Your Pare the 2009 EBRI/MGA Consum nts, Grandparents in the Decades er Engagement Brief examines how the health reform legislation then being debated in Congress would impact the design in terms of matching contributions and other employer contributions. The new model has Ahead – Every Fam in Health Car future of retiree health benefits. In general, the e Survey, which provides nationall ily Is in This Together,” University of Arizona, Tucson, AZ. prop y representative dat osals’ provisions a would have regarding the growth of a mixed impact on added actual plan design parameters from more than 1,000 large 401(k) plan sponsors in 2005 and Retirement Plan Participant Demographics On behalf of consumer-driven health pl myself and the team ans (CDHPs) and hig at EBRI, I extend h m -ded y grateful appreciation to uctible health plans (HDH our Mem Ps), and the im bers and other pact of ? Mar. 18, 2010, Financial Services Roundtable retiree health benefits: In the short term, the rein , Counc surance provisions il on Asset Managem would help s ent, New York, NY. hore up early retiree 2009 to provide a distribution of plan generosity differentials. ? November 2009, Issue Brief, “Employment-Based Retirement Plan Participation: Geographic funders, whose moral and financial commitment to our mission and vision continues to make all our work these plans and consumer engagement more generally on the behavior and attitudes of adults with ? Mar. 9, 20 coverage and Medicare Part D cove 10, Keynote speech at the Pensions & Investm rage would become m eo nt DC East 2010 Co re valuable to retirees. In the longe nference, Miami, FL. r term , ? December 2009 Notes article, “Investment Behavior of Target-Date Fund Users Having Other Funds Difference and Trends, 2008”— About 56 percent of all working-age (21–64) wage and salary possible. Your dedication and support are vital to our ability to continue to “tell it like it is” with “just the private health insurance coverage. Findi insurance reform combined with new subsidies ngs from for i this survey ndividuals enrolling f are compared with four earlier annual or coverage through ? Feb. 25, 2010, Stakeholders/Association panel for the PBGC Investment Policy Review, Washington, in 401(k) Plan Accounts”— This study shows that some mixed target-date fund (TDF) investors employees work for an employer or union that sponsors a retirement plan. Among full-time, full-year facts.” And I thank the m surveys. any others with whom we work. insurance exchanges, the maintenance-of-effort provision affecting early retiree benefits, increases to DC. apparently fail to understand either the purpose or the benefit of a TDF designed as an “all-in-one” wage and salary workers ages 21–64 (those with the strongest connection to the work force), just ? Novem the cost of providing drug ber 2009 Notes article, benefits to retirees, a “Availability, Contri nd enhanced Medica butions, Accountre Part Balances, and Rollovers i D coverage would all n ? Feb. 11, 2010, Orange County Employee Benefits Council, Costa Mesa, CA. portfolio solution. However, holding TDFs with other funds could lead to an unexpected result of under 63 percent worked for an employer or union that sponsors a plan. create Account-Based Health Plans, 200 significant incentives for em 6-20 ploy 09 er ”s to drop coverage for earl —The share of the adult pop y retirees and drug coverage for ulation with private health ? Jan. 26, 2010, Putnam Investments Seminar, “Addressing America’s Retirement Challenge,” New ending up with a potentially inferior portfolio in terms of risk/return tradeoff from more assets ? November 2009, Notes article, “Retirement Plan Participation and Asset Allocation, 2007” —This Medicare- insurance enrolled in account-based eligible retirees. health plans (so-called "consumer-driven" health plans, or York, NY. allocated to some sectors than the designers of the TDFs had planned. study utilizes the Federal Reserve Board’s Survey of Consumer Finance to report participation and ? Further infor CDHPs) remains sm mation on sources of health in all but continues to grow. In 2 surance for the elderl 009, 4 percent of the adult p y population is oin pulation with Chapter 36 of the private ? Dec. 15, 2009, Prudential Group Insurance Leadership Meeting, Newark, NJ. ? October 2009 Issue Brief, “401(k) Plan Asset Allocation, Account Balances, and Loan Activity in asset allocation data in employment-based plans and individual retirement accounts for years 1992- health insurance was enrolled in an health reimbursement arrangement (HRA) or had a high- Databook. Chapter 37 serves as a guide to EBRI rese arch on employment-based retiree health ? Nov. 5, Oct. 2008” —Because 401(k) balances 29, and Oct. 15, 2009, NRECA re can fluctuate with mark gional meetings, “What Will Drive the Future et returns from year to year, meanin of gful Dallas Salisbur 2007. y deductible plan with an health savings account (HSA), up 1 percentage point from the previous year. insurance. Chapters 39–41 of the Databook provide further information on Medicare. Em analy ploy sis of 4 ee Benefits?” 01(k) plans must examine how participants’ accounts have performed over the long term. President & CEO ? Further details are available in Chapter 10 of EBRI’s Databook on Employee Benefits. An additional 4.9 percent were eligible for an HSA but did not have such an account. Overall, 8.9 ? Oct. 26, 2009, featured luncheon speaker at Looking at consistent participants in the EBRI Greenwi /ICI 401(k) database over the five ch Associates Competitive Challenges -year period from EBRI percent of adults with private insurance were either in a CDHP or were in a high-deductible plan that Research—Labor Force 2003 to 2008 (which included one of the worst bear markets for stocks since the Great Depression), Conference, San Diego, CA. Research—Health Care was eligible for an HSA, but had not opened an account. ? March 2010 Notes article, “Employment Status of Workers Age 55 or Older, 1987–2008”—A the study found: ? Oct. 16, 2009, Stable Value Investment Association, Fall Forum, Washington, DC. Health Confidence Survey growing percentage of older Americans is in the labor force: The percentage of those ages 55 or older o After rising in 2003 and for the next four consecutive years, the average 401(k) retirement ? Oct. 8, 2009, National Economist Club, Washington, DC. _____________________________________________________________________________________ Health Care Plan Participant Demographics Planning for the HCS 2010 is under way. The first meeting of the advisory board was March 16, 2010. in the labor force increased from 29.4 percent in 1993 to 39.4 percent in 2008. For those ages 65–69, account fell 24.3 percent in 2008. The survey will be fielded in mid-May through mid-June 2010. If you would like to see the results of the ? March 2010 Notes article, “Tracking Health Insurance Coverage by Month: Trends in Employment- the percentage increased from 18.4 percent in 1985 to 30.7 percent in 2006. These trends mark a o The average 401(k) account balance moved up and down with stock market performance, but Jack VanDerhei, EBRI Research Director: EBRI Policy Forum #66, May 13, 2010, will be at the Kaiser Family Foundation, on the topic “Retirement 2009 HCS, pl Based Coverage Am ease visit the ong Workers, and Acces 2009 HCS Web site. s to Coverage Among Uninsured Workers” —This significant change in the behavior of individuals in these age groups, and are likely driven by their over the entire five-year time period increased at an average annual growth rate of 7.2 percent, ? Income Nov. 6, Adequac 2009, Falling Stoc y: How Big Is the ks: What Gap a Will Happen to R nd How Might the Mar etirees' ket Inco Resp mes? ond?” The Worker Perspecti For more information, e-ma ve, “The il analysis examines employment-based health benefit coverage rates on a monthly basis from need to obtain affordable employment-based health insurance and to accumulate retirement savings. attaining $86,513 at year-end 2008. willis@ebri.org Economic Crisis of 2008: What Will Happen to Retirees’ Incomes?” Thirty-First Annual APPAM Media Coverage of the 20 December 1995 to March 09 HCS 2009, to allo w for more accurate identification of changes in trends, and to ? February 2010 Notes article, “Labor Force Participation Rates: The Population Age 55 or Older, o The median (mid-point) 401(k) account balance increased at an average annual growth rate of Research Conference. more clearly show the effects of recessions and unemployment on changes in coverage. From June 11, 2009, to April 9, 2010, partial tracking found the 2009 HCS mentioned in 91 Web- 2008” —The labor-force participation rate is increasing for those age 55 and older. The percentage of 11.4 percent over the 2003–2008 period to $43,700 at year-end 2008. ? September 17, 2009, An Evaluation of the Adequacy and Structure of Current U.S. Voluntary ? based outlets (such as October 2009 Notes article, MarketWatch “The Relatio , MSN Money nship Between Union St ) posted headlines and links on their Web sites. In atus and Employment-Based Health civilian noninstitutionalized Americans age 55 or older who were in the labor force declined from ? Chapter 13 of EBRI’s Databook on Employee Benefits functions as a guide to additional EBRI Retirement Plans, With Special Emphasis on 401(k) Plans, “Approaches for Retirement Security in addition, one Benefits” —U newsweekly nion workers are , 13 periodicals, and 12 much more likely to newspapers wrote articles utilizing the 2009 have employment-based health benefits than HCS. 34.6 percent 1975 to 29.4 percent in 1993. However, since 1993, the labor-force participation rate has research on 401(k) plans. the U.S.” U.S. Department of Labor, Advisory Council on Employee Welfare and Pension Benefit nonunion workers. In September 2007, 83 percent of union workers were covered by health benefits steadily increased, reaching 39.4 percent in 2008—the highest level over the 1975–2008 period. Plans.