The Olympic spirit appears to be thriving among some Canadian employers, which plan to give staff the option of watching events during business hours.
A survey of 123 organizations across the country by Hewitt Associates finds that 25% of Canadian employers say they want to help their staff enjoy the Games by permitting online or television viewing of Olympic events at work.
However, employers with staff in Vancouver will face logistical problems in accessing the workplace due to traffic issues. And, as of early January, only 54% had created a business preparedness plan to address the commuting challenges presented by the influx of people to the city.
“It was very surprising that more employers hadn’t taken the advice of groups including the Vancouver Organizing Committee and established business preparedness or readiness plans,” says Laura Williams, a consultant in Hewitt’s Vancouver office. “These plans address ways to ensure ‘business as usual’ during the Games.”
Hewitt offers the following solutions to Vancouver employers:
• suggest that employees use vacation time during the Games;
• change work hours so that the workday starts and ends earlier;
• allow flexible work hours;
• implement a reduced workweek or reduced workday;
• encourage employees to use public transportation rather than their vehicles;
• facilitate carpooling for employees; and
• enable employees to work from home.
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TFSA may be better than RRSP: report
A new report by the C.D. Howe Institute suggests that tax-free savings accounts (TFSAs) may be a more tax-efficient retirement savings vehicle than RRSPs and employer-sponsored registered pension plans.
The Savers Choice: Comparing the Marginal Effective Tax Burdens on RRSPs and TFSAs report finds that many Canadians will discover that the marginal effective tax rate on their retirement income will be higher—not lower, as is often assumed—than it was on their work income.
If the 40% tax rate on earned income is higher than a 30% tax rate paid when retirement income is withdrawn, then the RRSP is superior, say the authors of the report. However, if the tax rate on earned income is 30% and lower than paying 40% tax on retirement income, then the TFSA is superior.
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U.S. healthcare costs face steep increases
Costs for the most popular types of healthcare coverage are projected to increase at double-digit rates for 2010, a new survey reveals.
Buck Consultants’ 21st National Health Care Trend survey of more than 100 U.S. health insurers and health maintenance organizations finds that costs for the most popular medical plans are projected to increase by more than 10% and are in line with the trends reported in the prior two surveys:
Type of Plan: Preferred Provider Organization (PPO)
21st Survey: 11.1%
20th Survey: 11.0%
19th Survey: 11.1%
Type of Plan: Point-of-service (POS)
21st Survey: 10.9%
20th Survey: 10.2%
19th Survey: 10.8%
Type of Plan: Health Maintenance Organization (HMO)
21st Survey: 10.3%
20th Survey: 11.0%
19th Survey: 11.1%
Type of Plan: High Deductible Consumer Driven
21st Survey: 10.3%
20th Survey: 10.4%
19th Survey: 10.7%
According to the latest survey, health insurers reported an average prescription drug trend of 10.9%, up 0.1% from the prior survey. A projected increase of 5.8% was reported for plans that supplement Medicare, excluding prescription drug coverage, down from 7.4% in the prior survey. This lower trend reflects the impact of federal controls on Medicare fees and the lower increases expected in Medicare deductibles and co-pays.
“Health insurers are concerned about higher costs due to federal mental health parity, as well as an increase in COBRA enrollment,” says Harvey Sobel, a Buck principal and consulting actuary who directed the survey. “There is also uncertainty due to healthcare reform and its impact on all sectors of the healthcare industry.”