Healthcare Costs Rise as Retirement Dollars Decline. Employee benefits have changed dramatically since the early 2000s, and they continue to evolve. Recent research from Willis Towers Watson indicates that evolution is expected to continue as employers revise their benefits offerings to attract and retain key talent while addressing the diverse desires and priorities of today's workforce. How Benefits Dollars are Being Spent Willis Towers Watsons' analysis considered employer costs as a percentage of average pay for defined benefit (DB), defined contribution (DC), post-retirement medical (PRM) and active healthcare plans from 2001 to 2015. Overall benefits expenses relative to pay increased by 3.5 percentage points over the period. However, pay raises have not kept up with the rising cost of benefits. Not surprisingly, healthcare costs rise for employers and employees. Employers' active health care costs doubled, growing from 5.7% to 11.5% of pay.