Deals and People May 25, 2007

Bradley Belt to Head Pension Consulting Firm

May 25, 2007 (PLANSPONSOR.COM) - The former director of the nation's private-sector pension insurer is apparently going into the pension advice business.
Reported by

Bradley D. Belt, executive director of the Pension Benefit Guaranty Corporation (PBGC) from 2004 to 2006 (See Head of PBGC Resigns ), has been tapped as chairman of the Palisades Capital Advisors. Palisades is being launched by the private-equity firm Reservoir Capital Group of New York, according to an Associated Press report.

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Executives with the firm said Palisades will provide pension risk management and restructuring advisory services, as well as long-term investment strategies, such as hedging pension investments.

“We are pleased to partner with someone of Brad’s expertise, character and reputation,” said Reservoir President Craig Huff. “He has a track record of accomplishment in both the public and private sectors, and is a recognized thought leader on retirement finance and policy issues.”

During his stint at the PBGC, Belt waded through some of the largest commercial pension restructurings in U.S. history, including the settlement of a $10 billion claim with United Airlines. The company decided to terminate its four major pension plans in 2005.

As the largest single shareholder in the airline’s bankruptcy case, the PBGC elected to terminate and take over United’s plans, which covered some 121,500 participants (See Bankruptcy Judge Upholds Termination of United Pilots’ Pension Plan ).

Belt stepped down from his position at the PBGC in May 2006, just as the government began discussions to resolve the agency’s $23 billion deficit (See Annual Report: PBGC Deficit Eases to $23.1B in 2005 ) — the result of growing numbers of companies defaulting on their pension plans. At the time, the PBGC had estimated $108 billion in possible pension failures.

Benefits May 24, 2007

Workers Ready to Play Role in Health Cost Containment

May 24, 2007 (PLANSPONSOR.com) - Even as health care costs continue their upward spiral, most workers say they are ready to live healthier lives to help control their treatment bills and so they can enjoy a healthier retirement.
Reported by

A Watson Wyatt news release about its survey of nearly 2,100 U.S. workers said the poll found that more than half (51%) of respondents are highly concerned that they won’t be able to pay for health care coverage when they retire.

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More than one-third (35%) of respondents are concerned that a major medical expense would lead to their financial ruin. Many workers are also worried about the impact of rising costs in the near term. Two in three (68%) believe their deductibles and copayments will increase in the next two years; more than half are worried that their employer will reduce their health benefits coverage.

According to the survey, 12% of workers have reduced contributions to their retirement savings plans because of higher health care costs, while 18% have cut back on contributions to other savings. About one in four workers also reported higher stress levels due to rising health care costs.

The majority (61%) of workers say they see a connection between maintaining a healthy lifestyle and controlling cost increases. Moreover, many employees are willing to make changes in their lifestyle to improve their current health status – 31% are in the process of doing so, and 27% are considering making a change.

The survey found that six in ten employees have tried to take better care of themselves, with 37% getting an annual physical. In addition, 42% are attempting to control health expenditures by choosing a lower-cost drug option when available.

The Watson Wyatt survey, “Employee Perspectives on Health Care: Voice of the Consumer,” was conducted in January 2007. A total of 2,099 randomly selected workers participated in the survey. All respondents were full-time U.S. employees of large, nongovernmental companies who participate in their employer-sponsored health plan.




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