Benefits December 26, 2013

Engaged Employees Would Work After Lottery Win

December 26, 2013 (PLANSPONSOR.com) – Nearly two-thirds of engaged employees would continue working if they won the lottery.
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A recent poll from Gallup says that this mind-set is specific to those defined as “engaged,” which is to say employees that are particularly involved in and enthusiastic about their work and workplace.

Less than half of those with a lower level of engagement would keep their same job, according to poll results. The poll deemed almost half (42%) of employees as “not engaged” and finds that almost one-quarter (20%) of “actively disengaged” employees say they would continue to work in their current job upon winning $10 million in the lottery.

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According to Gallup, although winning millions through the lottery is a low-probability event, the poll results highlight the value that engaged employees place on having and keeping their good job, even when it is no longer financially necessary. In addition, says Gallup, the poll results seem to indicate that employees that are not engaged or actively disengaged are “emotionally disconnected from their workplaces and less likely to be productive,” going to work only for a paycheck.

Information for this poll was compiled through phone interviews, done between August 7 and 11, with a random sample of 1,002 adults. These respondents were age 18 and older, living in all 50 U.S. states and the District of Columbia.

Compliance December 26, 2013

Puerto Rico Governor Signs Pension Reform into Law

December 26, 2013 (PLANSPONSOR.com) – A set of proposed changes to Puerto Rico’s Teacher Pension System has now been signed into law.
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Puerto Rico Governor Alejandro Garcia Padilla approved several reform measures designed to improve the long-term financial stability of the retirement system, which include:

  • Setting a minimum pension of $1,625 for all teachers who retire after the passing of the law;
  • Increasing the minimum pension for teachers already retired from $400 to $500 per month;
  • Replacing the current defined benefit plan with a defined contribution plan and balancing an increase in contributions of 1% by providing a 10-year, $300 annual salary increase;
  • Setting a retirement age of 55, along with 30 years of service, while guaranteeing benefits accrued up to July 31, 2014; and
  • Allowing any teacher with 28 years of service to apply for a 70% credit-based pension.

The new law also keeps in place previously accrued benefits, as well as guaranteeing a Christmas bonus of $200, a $100 prescription drug bonus and a medical plan contribution of $1,200 a year.

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According to the Office of the Governor, the reforms are designed to stabilize Puerto Rico’s finances and safeguard its public school system by addressing a more than $500 million annual projected shortfall. The governor credits the success of the bill transitioning into law to cooperation between Puerto Rico’s teachers’ unions and legislators.

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