Employment Resources

Although most workers accept responsibility for financing their retirement and rely primarily on their 401(k) plans to get them there, many workers aren’t sure that they can manage the 401 k plans effectively, according to a Schwab Retirement Plan Services nationwide survey with more than 1,000 participants. Nearly nine in ten participants (89%) believe they’ll be responsible for funding their “golden years” through a 401(k). The anticipated use of these plans fuels this self-reliance:

• 61% report that the 401(k) is their only or largest source of savings
• 55% have increased their savings rate in the past two years
• 70% say their plan is in better shape than ever

However, that savings in a 401(k) is not enough to instill confidence for many participants:

• 52% find their investment explanations are even more confusing than those of their health benefits
• 57% would like an easier way to determine the best investments
• 34% feel stress over allocating their plan dollars correctly

Of the workers surveyed, 61% want personalized investment advice on everything from asset allocation to risk tolerance and retirement income planning. Investment confidence nearly doubled when workers have the help of a financial professional. More than two in three respondents (61%) expressed confidence in making the right choices with professional advice, compared with one in three (32%) who relied on only their own abilities.

“Getting more workers engaged in professional 401(k) advice should be a top priority for employers,” says Steve Anderson, head of Schwab Retirement Plan Services. “At Schwab Retirement Plan Services, Inc., participants who used third-party, professional 401(k) advice tended to increase their savings rate, were better diversified, and stayed the course in their investing decisions.”

Sounds like sound advice.

A recent expansion of nondiscrimination rules for workplace wellness programs could curb the ability of businesses to use incentives for improving employee health care outcomes.

May 2013, the Department of Health and Human Services (HHS) set final regulations under the Patient Protection and Affordable Care act that broaden protections for employees who are medically or otherwise incapable of completing activity-based or outcome-based objectives to earn rewards or avoid penalties under worker wellness programs.

Under the new rules, beginning in 2014, employers must provide a “reasonable alternative standard” through which workers can still earn an activity-based wellness incentive if a medical condition prevents them from completing the activity. Employers will also be required to provide reasonable alternative standards for employees who can’t meet a health outcome plan target— such as a percentage reduction or benchmark in their body mass index, cholesterol, or weight.

There’s no way to tell how many employees will use these broader alternative standards, and/or if the reasonable alternative programs can work as well as the initial programs in terms of health outcomes. The additional discrimination protections tied to outcome-based incentives could make it harder for employers to use rewards as a way to drive engagement in health management, or gauge how well the programs are working if significant percentages of employees use alternative methods to obtain these rewards.

Says one employment law expert, “It’s very difficult to design a reward for the outcome that you want your employees to achieve if anyone who doesn’t meet that standard, regardless of whether they’re capable of doing so, is given an alternative means of getting that reward.”

To learn more about implementing the new HHS regulations in your workplace, just give us a call.

The financial well-being of your employees affects their health, their productivity and your bottom line!

A recent nationwide survey by Purchasing Power, Inc. found that:

• A high percentage of employees suffer significant financial stress. More than one in four workers surveyed (28%) find it hard to meet monthly household expenses and nearly half (44%) have less than $2,000 in emergency savings.
• They bring these concerns to the job. More than four in ten (44%) worry about personal finances during work hours.
• This stress leaves them less engaged at work and reduces productivity. Nearly three in ten employees (29%) deal with personal finances during work hours and almost half of these (46%) average two to three hours a week on money issues.

Purchasing Power Chief Revenue Officer Elizabeth Halkos offers some recommendations to help your workers maintain their engagement and productivity at the office:

1. Help them reduce debt by offering education, either in groups (through webinars or with a live speaker) or individually so that workers can learn about topics such as budgeting, intelligent use of credit and savings programs. A referral to a qualified credit counseling agency can provide a useful follow-up.
2. Give them access to responsible budgeting tools. Offering non-traditional voluntary benefits, such as employee purchase programs ( which allow workers to acquire high-ticket items and educational services on a “forced saving” basis through payroll deduction) can help reduce their financial stress significantly.
3. Encourage employees to participate in retirement programs such as a 401(k) plan. However, before workers do this, advise them to deal with debt and budgeting issues and tuck away a nest egg.

Our Benefits experts stand ready to help you ensure financial peace of mind for your workers. Just give us a call.

Life insurance makes sense for you because it gives your surviving family members financial peace of mind if you were to die. However, do your kids need life insurance, too? November is National Adoption Month and a good time to consider this insurance option for your children.

Receive Lifetime Coverage

Pay the monthly premiums, and your children gain insurance for life. In many cases, they won’t even need a health exam when they’re older unless they want a death benefit increase.

Enjoy Low Rates

Most life insurance policies use age to determine premiums. You’ll pay less to insure your young children, and permanent policies lock in the premiums for the life of the policy.

Eliminate Health Exams

Most life insurance policies don’t require kids to undergo a complete medical exam. Since kids are usually healthier than adults, they typically won’t be denied coverage. This benefit is especially important if a serious medical condition like diabetes or heart disease runs in your child’s family.

Gain Cash Value

The premiums you pay for permanent life insurance cover the policy and build cash value. That cash could grow at a variable or fixed interest rate. By the time your kids turn 18, they could have a healthy accumulation of cash to pay for college, buy a house or save until they retire.

Cover Final Expenses

Parents don’t expect their children to die young, but accidents happen. Life insurance covers final expenses and protects your family’s finances.

Evaluate Your Budget

Despite the benefits; your budget may not stretch enough to include life insurance for your kids. After you ensure you’re adequately insured, weigh the benefits of life insurance for your children and discuss your needs with your insurance agent. He or she can work with you to find a policy that’s right for you.

Consider Alternative Saving Tools

Roth IRAs and 529 Plans assist parents in saving money for their children’s futures. Investigate these saving options as you choose the best way to provide for your children.

Whether or not you plan to adopt a child during National Adoption Month, November’s a good time to consider life insurance. Your agent can discuss your options with you as you adequately care for your children.

If you’re looking for a low-cost, high-value benefits product that can help you attract and retain employees, consider offering Group Life insurance coverage.

Here’s how these plans work: Because the overall risk of death among a group – defined as 10 employees or more – is far lower than that of an individual Life policyholder, the insurance company can offer you a far lower premium rate (the overall rate for your company depends on the group’s size and distribution by gender and age, together with the number of claims filed). You’ll pay a fixed premium for every $1,000 in coverage. Because Group Life is usually bundled with other benefits, such as health plans, your administrative costs will be minimal.

What’s more, unlike individual Life policies, coverage is written on a “guaranteed issue” basis, with no need for plan participants to pass a physical exam.

Group Life policies usually pay the beneficiary the employee’s salary for a full year. This provides a valuable short-term financial cushion for the loss of a breadwinner’s income. Some insurance companies offer extended coverage, with a death benefit of two or three years’ salary (and such add-ons as Accidental Death & Dismemberment and/or Travel insurance) to participants – usually managers or supervisors – who pick up part of the premium. This option also includes a portability feature that allows employees to keep their coverage when they change jobs or retire.

If you offer Group Life benefits, your insurance company will review the rates and terms every five years. It makes sense to re-evaluate your program whenever you’re planning significant changes in your workforce (hiring more employees, raising salaries, and so forth). You might well be able to enjoy improved coverage at lower costs.

As employee benefits professionals, we’d be happy to offer our advice on selecting a comprehensive, cost-effective Group Life plan.

According to the forth-quarter 2010 Principal Financial Well-Being Index, 43% of American workers cite the achievement of better overall health as the number one reason they would or do participate in a wellness benefit program. In second place, with 33%, was the reduction of personal health care costs. In third place, with 31%, was the increased chance of living a healthier and extended life.

The Principal Financial Well-Being Index is released by the financial services provider, Principal Financial Group. This is a quarterly survey of American workers from American businesses with between 10 and 1,000 employees. The findings of the fourth-quarter 2010 survey involved data from 528 retirees and 1,159 employees.

Some key points from the survey included:

• When offered by an employer, blood sugar screenings had an 84% utilization rate. This was an 18 point increase from 2009 statistics.
• When offered by an employer, weight management programs were utilized by 53% of employees. This was a 25 point increase from 2009 statistics.
• When offered by an employer, personalized action plans for conditions considered high-risk were utilized by 68% of employees. This was a 21 point increase from 2009 statistics.

Some credit rising health care costs and more public awareness about diseases such as heart disease and diabetes with American workers being more ready to take action toward their own health. None the less, as evidenced by the substantial increase in how many workers are taking advantage of wellness benefits, there is clear indication that there’s a growing element of employees taking more personal responsibility for their health.

Employers Can Benefit From Wellness Programs Too
Personal responsibility might drive employee participation in wellness programs, but employees have much to gain from offering wellness and encouraging its usage. During the index, workers said the following occurred as a direct result of the wellness program offered by their employer:

• Forty-three percent felt they were motivated to perform better and work harder.
• Twenty-eight percent said they were absent fewer days from work.
• Thirty-eight percent said they experienced improved productivity and energy while at work.
• Forty-eight percent said that the offering of wellness benefits encouraged them to remain with their current employer.

In closing, this research is echoed by countless other studies showing employers that invest in the wellness of their employees by offering them the means and the educational resources they need to control their own wellness not only gain physically healthier employees, but also productivity and cost-saving increases.

Of the possible group benefits offered by employers, employees often say Dental insurance is one of the most desirable benefits. And, for employers looking into adding to their benefit offerings, the predictable and relatively low premiums associated with Dental insurance makes it an excellent option. Employers should comparison shop for a carrier offering a Dental insurance plan that’s applicable to the needs of their workforce and a good value. Whether planning to pay a portion of the cost of the coverage for employees or provide the coverage as 100% employee-paid, employers should know the answer to some questions before making a plan decision.

1.  What dental service providers will be allowed?

The employer should find out if the plan has a preferred network of dental providers and how the network affects coverage. For example, if the dental care is received outside the preferred network, some plans will pay nothing; some will pay a reduced benefit; and others will pay regardless of the provider, but have discounted network providers available. Plans that have a preferred network should also be scrutinized carefully to make sure they provide the desired amount of provider choice. Employers should know what the turnover rate is for the network provider dentists; if the network includes specialty services, such as pediatric dentistry, orthodontics, periodontistry, and endodontics; and if any network restrictions apply to dental specialty services.

2.  What are the covered and excluded services under the plan?

The employer will want to pay attention to what specific areas of service the plan will cover. For example, some preventive services pay for a teeth cleaning, but exclude fluoride treatments or sealants. If orthodontic services are covered, they might exclude coverage for services that are for cosmetic purposes or adults in general.

3.  Will the plan provide coverage for pre-existing conditions and extended treatments that began before the effective date of the coverage?

4.  What percentage of the cost of the premium goes toward administrative fees and what percentage goes toward the payment of benefits?

5.  Exactly how will service coverage be paid?

Employers definitely need to know what rate services will be covered at. Take a plan that says it pays 100% on dental cleanings as an example. The employer will want to clarify if that means the plan pays 100% of what is charged by the serving dentist or 100% of what the insurance company determines is the usual, customary, and reasonable (UCR) allowance fee. Comparing the UCR allowance fee can make a big difference in the quality of dental coverage, as it often varies per insurance company.

6.  Are communication materials, IVR enrollment, online enrollment, and other forms of enrollment support offered by the Dental insurance provider?

7.  Will the plan require a specific amount or percentage of employees to enroll if the plan is offered as a 100% employee-paid benefit?

With careful consideration, employers can pick a dental plan that meets both employee and company needs. One of our insurance brokers can also be beneficial in helping to come up with a checklist of considerations when comparing dental plans and carriers.

Dental health affects your workplace productivity in several ways. Understand the links as you prioritize your health and your job performance.

Lower Your Heart Disease Risk

Doctors, dentists and scientists have found that gum disease is linked to a variety of cardiovascular ailments. While your oral health won’t cause heart disease, stroke or blood vessel blockage, it can contribute to these health problems.

Reduce Infection and Inflammation Risks

Researchers confirm that gum disease and rheumatoid arthritis both destroy connective tissue. While dental hygiene may not prevent RA, professionals recommend a balanced diet, regular dental checkups, daily flossing and twice daily tooth brushing as you reduce infection and inflammation risks.

Stabilize Your Blood Sugar

Uncontrolled diabetes and gum disease often go hand in hand because people with diabetes often cannot fight gum and other infections. Invest in your oral health as you stabilize your blood sugar and diabetes.

Preserve Your Memory 

The Journal of Neurology, Neurosurgery and Psychiatry reports that adults with healthy gums do better on verbal recall and subtraction tests. By brushing your teeth and rinsing with mouthwash regularly, you prevent gingivitis and can preserve your memory.

Maintain Focus

Working through oral pain is impossible. If your tooth, gum or jaw pain doesn’t respond to pain medication, visit your dentist. Getting a diagnosis and resolution helps you maintain focus and can improve your attitude, motivation, concentration and enthusiasm as you work.

Boost Your Confidence 

No matter where you work, your smile and breath make an impression on customers and coworkers. That’s why you need regular dental cleanings and exams that remove stains and tartar buildup, repair cavities and ensure your mouth is clean and healthy. You can also talk to your dentist about whitening treatments, braces and other smile-straightening methods that boost your confidence.

Because oral health and your overall health are so intricately linked, use your dental insurance coverage and prioritize oral health and hygiene. If you’re not sure what dental benefits your employer provides, talk to your HR manager or insurance agent today. Regular checkups are an investment in your health and also your job performance.

Safety committees play an important role in many workplaces. Not only do they write safety policies, but they also lead training’s, resolve conflicts and implement new ideas. If you’re part of the safety committee at your workplace, consider these mistakes you’ll want to avoid.

1. Fill the committee with only management. The most unbiased and fair safety committees include people from all levels and departments.

2. Allow a passive person to lead the group. Because safety can save lives and deeply affect a company, a safety committee’s leader must be willing to take a stand, lead discussions, make tough decisions, engage each member and ensure participation.

3. Refuse to write a mission statement. Even if the state or insurance company mandated your safety committee, you still need a mission statement that defines each member’s role and ensures committee efficiency.

4. Don’t offer training. Your safety committee will only be effective if it’s staffed with members who understand health issues, safety analysis and accident investigation.

5. Meet sporadically and don’t require members to attend. The most effective safety committees meet regularly, and each member prioritizes attendance.

6. Don’t record meeting minutes. By publishing the minutes, you summarize the issues you discuss, ensure accountability and jump-start the next meeting’s agenda.

7. Don’t set goals. Measurable and achievable short term and long term goals ensure safety precautions are put into place.

8. Complain. There’s a time and a place to complain about general problems with your employer. Safety committee meetings are designed to discuss legitimate safety issues only.

9. Forget to follow through. If your committee makes goals or assigns a task to someone, follow through and make sure that task gets done.

10. Start one committee for all locations. Individual locations may require unique safety guidelines, so each site should have its own safety committee or contribute to the discussions.

A safety committee plays a crucial role at your workplace. If you’re part of it, refuse to make these 10 mistakes to ensure it operates smoothly and efficiently.