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Almost Half of Employers Say ACA Affects Their Retirement Plans

Just under half of employers in a study by the LIMRA Secure Retirement Institute say that the Affordable Care Act has affected the way they run their retirement plans and how much they spend on them. 

According to the LIMRA study, 55 percent of the employers that have made changes because of the ACA said they are spending less on their plans and shifting costs to their employees. And just over 40 percent said they are spending less time evaluating the retirement benefits they offer. LIMRA says that employers that offer both a DB plan and a DC plan were most prone to shift costs to employees. 

And it doesn’t stop there. Another 45 percent say they expect to change their retirement benefit plans in the future due to the effects of the ACA. And almost two-thirds of them believe they will spend less on their retirement plans. 

At the recent NAPA 401(k) Summit in New Orleans, the Wagner Law Group’s Marcia S. Wagner noted that the ACA is already having direct and indirect effects on retirement plans.

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John Iekel is Senior Writer and Editor for the ASPPA Net and NTSA Net web portals.