Employers paying less for employee benefit plans

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Fewer than half of employee benefit plan sponsors say the money they pay toward workers’ benefits has increased this year.

woman-at-computerIn 2007 and 2008, two-thirds of those surveyed in the Prudential Financial study, A New Day in Employee Benefits, reported increasing their spending.

About one-third of companies are maintaining their 2008 budget levels, while another 15% say their budgets have decreased by an average of 16% over last year, according to Lori High, president of Prudential’s Group Insurance business.

“Employee benefits are especially crucial in uncertain times,” High said in a statement. “Plan sponsors need to make the most of both the company’s and the employee’s premium dollars to ensure the benefits can be maintained.”

Plan sponsors expect to cut their benefits staffing by 2014, hoping that greater efficiency from greater use of technology, including the Internet, can help control benefits costs over the next five years, the survey found.

“The good news is that a majority of plan sponsors and brokers have a positive outlook for 2010,” High said. “Both plan sponsors and brokers expect their companies to be doing better financially a year from now.”

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