Benefits June 23, 2004

U.K. Pension Advisor: Make Retirement Age Higher than 65

June 23, 2004 (PLANSPONSOR.com) - The British government's chief independent pension advisory body has jumped into the fray over a compulsory retirement age with statements that it should be significantly higher than 65 or there shouldn't be any at all.
Reported by

Adair Turner, chairman of the government- appointed Pensions Commission, said commissioners felt that way because of a longer life expectancy and a big savings gap, which means people need to either save more or work longer to make sure their income was sufficient, the Financial Times reported. To set a default retirement age, Turner said, “would send the wrong signal to society when we should be removing barriers to longer working lives.”

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Turner told the Times that the three-member commission had written to government ministers saying: “Either there should be no default age set at all or that, if one is set, it should be significantly higher than the current male state pension age of 65. It should be 70 or something like that.” The Confederation of British Industry, which represents many employers, has come out in favor of retaining 65 as a default retirement age.

“That (proposal for no default retirement age) is attractive because more people should be going through a flexible decade of retirement where they move from full-time to part-time work, and where they mix a flow of work and retirement income,” Turner said.

Ministers are consulting on whether employers should be allowed to set a cutoff retirement date when European laws banning age discrimination take effect.

Products June 22, 2004

Principal Announces HSA Product

June 22, 2004 (PLANSPONSOR.com) - As the consumer-driven health care market continues to explode, the Principal Financial Group unveiled a combination high-deductible health plan with a health savings account (HSA).
Reported by

A Principal news release said the offering was also available for self-funded employer groups. Health savings accounts are tax advantaged trust or custodial accounts created for the benefit of an individual covered under a qualified high-deductible health plan.

Principal said the HSA is controlled by the employee and is intended to provide for “lifetime medical savings,” enabling the worker to contribute and accumulate funds tax free to provide for future qualified medical expenses. In addition, it can be used for unexpected medical expenses.

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Benefits of The Principal consumer-driven health care product include:

  • a variety of investment options for the HSA. On September 1, a Health Savings Account with debit card and check access will be available from Principal Bank while in early 2005, Principal Investors funds will be available as funding options.
  • single-source administration for employers.

The program includes hospital quality and cost information, health assessment tools, prescription drug information, disease management resources and Principal Health News – an interactive online health research library.

Further, The Principal offers member care advocacy programs to assist customers who are experiencing a health issue or emergency that requires extra care. This includes:

  • a toll-free number that connects members to professionals who can answer questions about benefits, coverages and claims, locate a network provider and more.
  • nurses who assist members in managing hospital stays by answering questions, following inpatient care to help them receive appropriate, timely and quality services, and helping coordinate any care after release.
  • nurses who help members understand and better use the health care system and their benefits when faced with a serious illness.

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