The good news? According to a recent survey from PrudentialFinancial, a majority of plan sponsors and brokers have a positiveoutlook for 2010.

"Both plan sponsors and brokers expect their companies to bedoing better financially a year from now," said Lori High,president of Prudential's Group Insurance business.

The bad? Less than half of plan sponsors say their benefitsbudgets increased from 2008, compared with increases reported bytwo-thirds of those surveyed the prior two years.

Specifically, about one-third of companies are maintaining their2008 budget levels, while another 15 percent say their budgets havedecreased by an average of 16 percent over last year.

Additional trends shaping the employee benefits landscape,according to Prudential Financial, include:

• Companies hurt by the economy are altering their expectationsregarding benefits staffing levels. Those affected most by therecession are forecasting a downsizing of their benefits staff overthe next five years.
• Cost cutting measures are impacting strategic initiatives suchas improving employee education and advice.
• Using Internet technology to increase efficiency and controlbenefits costs will be important objectives by 2014.

Prudential's "ANew Day in Employee Benefits" report, the first in a series offive, stems from the company's broad Study of Employee Benefits:2009 and Beyond report which was fielded via the Internet duringApril and May of 2009 and consists of three distinct surveys: oneamong benefits plan sponsors, one among benefits plan participants,and one among employee benefits brokers and consultants. Thesurveys were conducted for Prudential by the Center for StrategyResearch, Inc., a Boston-based, independent, market researchfirm.