WASHINGTON, May 11, 2006 - The combination of increases in pension plan freezes and the number of employees nearing retirement is causing companies to struggle with pension plan administration. Employers can ease their burdens significantly by implementing Web-based systems, according to pension administration experts at Watson Wyatt Worldwide, a global human capital and investment consulting firm.
"As the baby boomers begin to retire, companies are increasingly swamped with requests for pension payout estimates. Such demands will only increase in the coming decades," said Tony DeNucci, national leader of pension administration systems for Watson Wyatt. "To deal with this challenge, more and more companies are putting in place Web-based systems which give employees easy access to pension information while streamlining plan administration for employers."
DeNucci added that Watson Wyatt´s pension experts have seen Web-based systems reduce the number of pension-related calls that human resources departments receive by as much as 75 percent. Furthermore, a significant number of employers are outsourcing the administrative duties associated with pension plans.
Web-based systems also benefit companies that are freezing or closing their pension plans. With the exception of a handful in bankruptcy, these companies will continue to provide pensions to retirees and most current employees. As a result, many will be administering pension plans for decades to come.
"Pension obligations do not go away just because a company decides to freeze or close its plan," DeNucci said. "Companies opting to freeze or limit access to their defined benefit plans need to consider how long that process will take and need to weigh the costs and benefits carefully. Regardless of their decision, well-designed Web-based systems can go a long way to easing the administrative burdens they face."
Information on PensionPath ®, Watson Wyatt´s Web-based pension administration system, is available at www.watsonwyatt.com/pensionpath.
About Watson Wyatt Worldwide
Watson Wyatt (NYSE: WW) is a leading global human capital and financial management consulting firm. The firm specializes in employee benefits, human capital strategies, technology solutions, investment consulting, and insurance and financial services. Watson Wyatt has 6,000 associates in 30 countries and is located on the Web at www.watsonwyatt.com.
Media contact:
Ed Emerman
Eagle Public Relations
609-452-5967
eemerman[at]eaglepr.com