Employee Benefits System Headed For Crisis, Says Report
By
Washington
The employee benefits system is headed for a crisis and employers, individuals and the government must work together to resolve it, says a new report from a business group.
In almost every area of employee benefitsincluding retirement income, health care and long term carethere are clouds on the horizon, according to the report from the American Benefit Council, Washington, an employers group that focuses on employee benefits.
"Without decisive action, our nations already seriously troubled health and retirement systems are headed for a major crisis," says James A. Klein, president of the Council.
To help resolve the crisis, he says, the Council put together a blueprint of reforms that should be achieved in the next 10 years.
Looking first at retirement income, the report says future retirement systems should have tax and other incentives that encourage employers and employees to contribute to retirement plans that will allow individuals to accumulate enough assets to maintain their living standards in retirement.
