Weighing the pros and cons of defined-contribution plans

07/2/2013 | Human Resource Executive

Before moving employee benefits to a defined-contribution plan, employers must consider certain factors, such as employee preferences and satisfaction, group purchasing efficiencies, employees' health literacy and health care quality, according to an Employee Benefits Research Institute brief. Switching to a defined-contribution plan through a private exchange may offer advantages such as expanded benefit offerings and an efficient administrative platform, but too many choices may confuse employees, Bloom Health's John Vlajkovic says.

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