For better or worse, a substantial number of business owners say that their employee benefits have been affected by the Affordable Care Act, according to a new poll from worldwide research organization LIMRA.
Approximately 40 percent of employers said that the ACA has impacted their retirement savings plan, the survey revealed. Additionally, 45 percent forecast that the reform law would force them to change their retirement strategy in the days to come.
LIMRA also analyzed in what way the health reform law influenced their retire savings devices. More than half – 55 percent – said they weren't paying as much, shifting some of the costs onto their workers. Approximately 42 percent indicated that they weren't paying as much attention to their framework.
Alison Salka, corporate vice president and director of the Secure Retirement Institute at LIMRA, indicated that the red tape and increased regulations that accompanied the health law have proven to be a headache for many executives.
"Employers have limited resources to use to manage their employees' comprehensive benefits package," said Salka. "The added complexity and costs of health care are definitely taking a toll on employers' ability to manage their retirement savings plan."
Employers who shifted some of the financial onus onto their workers were typically those with defined benefit plans. More than two-third of cost-shifting was done by businesses that provided both defined benefits and defined contributions.
How will the ACA affect businesses' future benefits spending? Most think they'll spend less. Approximately 6 in 10 said the health law would translate into committing less money toward their retirement savings devices.
To keep costs low, many business owners are opting to hold off on hiring. Approximately one-third of small firms said they aren't expanding because of the ACA, detailed in a recent survey performed by the National Small Business Association.
