HR Technology Lacking Total Comp Information

November 15, 2005 (PLANSPONSOR.com) - A Watson Wyatt Worldwide survey found growing use of the Internet for HR transactions and widespread availability of customized information on health care and retirement benefits, but limited online access to information about total compensation for employees.

In its press release Watson Wyatt said the survey showed 55% of employers offer workers access to personalized health benefit information, and 52% provide access to retirement benefit information. Forty-six percent offer paycheck information online, but only 16% provide information on total compensation.

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The survey also found an increase in the number of Web-based HR transactions. According to the release, 39% of 401(k) savings plan transactions now take place on the Web, up from 30% in 2002. Also 24% of health and welfare benefit transactions and 16% of “life events” transactions (i.e. marriages, births and retirement) are managed online now, compared to 20% and 5%, respectively, in 2002.

Pension plan transactions showed the only decrease from 16% in 2002 to 12% in 2005.

Gary Kilzer, East Division leader of Watson Wyatt’s technology solutions practice, said in the news release, “In addition, our 2005 Human Capital Index confirms that organizations that process a higher percentage of their personal detail changes, benefits,retirement and stock option/stock plan transactions online outperform other firms financially by a significant margin.”

Copies of Watson Wyatt’s 2005 HR Technology Trends Survey can be found here .

EEOC Settles Age Bias Complaints in Minnesota

November 14, 2005 (PLANSPONSOR.com) - The Equal Employment Opportunity Commission (EEOC) has announced settlements totaling $465,727 for five age discrimination lawsuits against school districts in Minnesota.

According to the announcement, these settlements resolve the last five of eleven lawsuits against school districts brought by the EEOC in Minnesota challenging early retirement incentive plans in collective bargaining agreements.   The provisions of the agreements challenged by the EEOC allow the school districts to pay the employees less in early retirement incentive amounts as they grew older.

Settlements for the 11 suits total $1.5 million in benefits for about 150 retirees.   In addition to the payments, the school districts will not maintain such agreements in the future.

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“These lawsuits are an important reminder that the prohibition in the Age Discrimination in Employment Act applies to retirement incentive plans as well as other forms of compensation,” said Laurie Vasichek, EEOC Senior Trial Attorney in Minneapolis, in the announcement. “It is wrong for employers to put employees in the impossible position of having to lose their rights to retirement amounts because they continue to work after a certain age.”

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