Benefits & Compensation News

Is Obamacare affecting your retirement plan? What 88% of employers said

There are only so many hours in the workday for benefits pros. So when the government tacks on a law that takes time to understand and implement, it only makes sense that it would result in less time and effort that could be devoted to other areas of your job, right? 

That appears to be the reason a lot of employers said their companies’ retirement plans have been hurt by the healthcare reform law.

In a recent survey, 43% of employers said their retirement plans had been affected by Obamacare — and not in a good way.

Of those employers who said the Affordable Care Act (ACA) has affected their plans, 42% of them said they are now spending less time evaluating their plans. And worse still, 55% said the ACA has resulted in them having to spend less money on their retirement plans, thus placing more of a burden on employees to save for their retirements. The other 3% said their plans have suffered different effects.

The survey was conducted by the LIMRA Secure Retirement Institute, an organization providing research and education to individuals and employers about the retirement industry.

Here’s what Alison Salka, corporate vice president and director of the LIMRA Secure Retirement Institute had to say about the results of the study:

Employers have limited resources to use to manage their employees’ comprehensive benefits package. The added complexity and costs of health care are definitely taking a toll on employers’ ability to manage their retirement savings plans.

Even more think ACA effects are yet to be felt

Of those employers who said the health reform law hasn’t yet affected their retirement plans, 45% felt it would in the future — and 63% of those employers believe the law will result in less money going toward workers’ retirement plans.

So for those keeping score, a whopping 88% of employers believe Obamacare has affected or will affect their retirement plans in the coming years — and the majority of them feel the impact will be negative.

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