More employers are considering or are implementing “employee choice” benefits packages that provide employees with a fixed amount of funds for benefits and that enable employees to select benefits using these funds or their own funds, according to a new study.
Prudential Financial, Newark, N.J. published this finding in a new survey, “The future of Retirement and Employee Benefits: Finance Executives Share their Perspectives,” which examines strategies employers are pursuing to address the rising costs of benefits programs while providing employees with the best benefits possible. Conducted on behalf of Prudential by CFO Research Services, a unit of CFO Publishing LLC, New York, the study polled 108 senior finances executives.
The survey finds that nearly in one three respondents (29%) expect their companies to adopt employee choice benefits programs within the next two years. This compares with just 15% of respondents who describe their company’s current strategy as employee choice model.
According to the study, 41% of the responding executives indicate that their companies are also at least “somewhat likely” to offer guaranteed lifetime income benefits in the future. In a Prudential 2010 survey, this percentage was less than one-third of respondents (30%).