The company is also addressing pension costs. Effective July 1, 2003, newhires will be offered a cash-balance plan and will not be eligible for retireemedical coverage. Current employees will be offered a choice between theircurrent retirement plan and a cash-balance plan, and must meet new eligibilitycriteria for retiree medical coverage. Maytag will shave almost $1 million off2003 benefit costs with a new automated enrollment system from ProActTechnologies that went live in October 2002. Before automation, Maytagadministered enrollment with staff at 12 regional offices. Five regionalbenefits administrators now perform the same functions. "Using an onlinesystem also frees up time for the regional benefits staff to communicate to eachlocation the benefit costs for the site and a comparison to a company norm,"Sears says. "Top management was behind the changes to support the head-countreduction and also felt there was a need to automate."
Workforce, March 2003, p. 38 -- Subscribe Now!