Employment Resources

More and more businesses are offering workers quality legal services as a voluntary employee benefit, according to a nationwide survey of more than 300 human resource and benefits professionals. The study, sponsored by MetLife, found that the top reasons for the popularity of these services were improved employee satisfaction (69%) higher retention and loyalty (44%), and the ability to compete with other companies’ benefit programs (32%).

A majority of survey respondents cited these benefits of Group Legal plans:

• Helping employees achieve peace of mind when dealing with legal issues.
• Reducing employees’ levels of stress.
• Lowering the cost of legal services.
• Minimizing workplace time in dealing with personal issues.
• Providing quality legal services (57%).

More than 90% of survey respondents found that legal plans are easier, or as easy, to administer than other voluntary benefits plans. These programs also have high persistency rates for both employers and employees.

Says Bill Brooks, CEO of Hyatt Legal Plans, “This is a benefit that spans the generations and suits a diverse workforce because there’s a broad range of situations where an attorney can help.

Legal assistance at a cost of less than some attorneys may bill per hour can be an effective way to generate employee loyalty.” There’s a clear need for this coverage: According to the American Bar Association, 71% of people encounter a legal problem every year.

Will preparation and estate planning are the most frequently offered services under Group Legal plans, followed by family matters, home purchases and sales, and credit problems, among others.

If you’d like to add a comprehensive, cost-effective Group Legal plan to your voluntary Employee Benefits portfolio, please free to get in touch with the professionals at our agency. As always, we’re here to help!

Although more than three in four businesses offer their employees wellness programs, fewer than half believe that these programs provide an effective return on investment (ROI). That’s the bottom line on a recent nationwide survey by Business Insurance of more than 300 companies.

Check out these highlights from the study:

• More than nine in ten respondents (93%) describe their programs as “extremely successful,” “very successful,” or “somewhat successful.”
• More than four in five (81%) measure the success of their programs primarily by employee participation rates, while more than two in three (68%) rely on feedback from employees.
• The great majority (85% of public companies and 70% of privately held firms and nonprofits) offer employees money or other incentives linked to participation in their programs.
• Nearly three in four (59%) see improving employee health as the main objective of their program.
• Fewer than one in three (28%) focus on reducing health care costs.

Experts say that employers can improve their ROI (directly or indirectly) from wellness programs by shifting focus from broadly-based activities (on-site health screenings and immunizations, weight-loss and stop-smoking programs, etc.) to individual health care — such as personal coaching, workplace safety evaluations, wellness newsletters, and classes on stress management and nutrition.

Companies can also boost their ROI by evaluating their programs at least once a year. The Business Insurancesurvey found that nearly one in three respondents (32%) failed to measure the participation rate or effectiveness of their programs on an annual basis.

If you’d like a comprehensive review of the benefits your employee wellness program provides, just get in touch with us.

Don’t feel like the Lone Ranger. Many business owners don’t understand the fees employees are paying for their 401(k) plans.

A recent nationwide survey of 500 small businesses (with 100 or fewer employees) by ShareBuilder 401k found that employers’ inability to figure out these fees leaves them unprepared for the questions their plan participants are asking — a situation that could cost workers big bucks.

The survey found that most small business owners are unaware of what constitutes a fair percentage for 401(k) fees. Says ShareBuilder 401k president Stuart Robertson, “Everyone has a right to know the fees they’re paying for their 401(k), because, over the course of a career, paying an extra percentage point can shrink [a retiree’s] nest egg by hundreds of thousands of dollars.”

Although most survey respondents said they were aware of new rules requiring 401(k) providers to distribute documents that disclose all plan fees fully, nearly 40% did not recall receiving the new documents. Those who did get this information spent an average of only16 minutes reviewing it; and 83% of them had questions about what their company should do next. More than two in three (68%) were unprepared to answer employees’ questions about their plans.

We’d be happy to help you find the best, and most cost-effective, plan for your workers. Feel free to get in touch with us at any time.

Businesses nationwide are preparing for the financial impact of paying for their employees’ Health insurance under the Affordable Care Act (ACA) which takes effect January 1, 2014. The mandate will apply to any company with 50 or more full-time (or “full-time equivalent”) workers, under penalty of paying $2,000 a year for every worker in excess of 30 employees. A business faces other fines if Uncle Sam determines that the Health plans it offers employees (and their dependents) are unaffordable or don’t meet federal regulations. Companies with fewer than 50 full-time employees are exempt from the penalty.

What’s more, a little-known federal regulation bases the exemption from providing mandatory health insurance on the number of employees that a business has in 2013, not the number it will have next year — which means that the sooner you decide on setting the size of your workforce, the better. To help you make this decision, consider these guidelines under the ACA:

• A full-time employee is one who is employed an average of 30 hours per week, or 130 hours in any given month. This definition includes seasonal employees who meet the hourly requirements.
• To calculate the number of full-time equivalents in a given month, add all the hours worked, but not more than 120 hours of service for any employee, and divide the total by 120.

As always, our Employee Benefits professionals stand ready to offer their advice. Just give us a call at any time.

Last year, companies such as Ford, GM, and NCR Corp. gave their workers the option of converting their monthly pension benefits (annuities) into a lump-sum cash payment.

Look for more and more businesses of all sizes to follow in their footsteps, for a number of reasons.

A recent change to a federal pension funding reform law allows employers to use higher interest rates in calculating total benefit payouts, which reduces the size of the lump sum they offer. A series of IRS “private letter rulings” have permitted individual employers to convert their annuities into a lump sum within a specified period.

Lump sum payments reduce the size of the benefits obligation, as well as the financial risks of changing investment results that can make it hard for employers to predict future pension plan contributions. The smaller the plan, the smaller its assets, the lower the fees paid to investment managers. A reduction in plan assets and number of participants will also help lower overhead expenses — offsetting an increase in the annual base premium per participant from the current $35 to $48 by 2014.

On the other hand, converting from annuity payments to lump sum payouts can mean increased expenses. For example, employers will need to track down participants who have earned a benefit and left the business, but aren’t yet entitled to their annuity. What’s more, federal law requires a company pension plan to be at least 80% funded before it can offer lump sum payouts — which mean that some firms will have to pick up the cost for raising their plan funding level to this standard.

Do lump-sum pension payouts make financial sense for your business? Our benefits consultants would be glad to offer their professional advice at any time.

With the economy still tight and more and more provisions of the Affordable Care Act going into effect, state and federal regulators are warning the public about a surge in healthcare-related scams. Although it’s possible to determine whether a Health insurance company is financially sound if you do some digging, it’s more difficult to determine whether an insurer offers the best deal for you and your employees. Some carriers with strong balance sheets get there by arguing with sick policyholders over what they will and won’t cover. What should you do if you’re responsible for buying insurance for your company?

• Don’t let accelerating costs pressure you into to buying coverage that’s too cheap. Most of the scams uncovered by the government watchdog agency came about when employers and trade groups jumped in desperation at insurance that seemed less expensive than any other that they had been offered. If a deal sounds too good to be true, it probably is.
• Confirm that the company is licensed with the state insurance commissioner.
• Read the fine print carefully. Make sure all verbal commitments are in the fine print. Don’t just take the company’s word for it.
• Beware of copycats. Some phony insurers will go by a name that is similar to a trusted company. Confirm that you’re really dealing with the right company that has a good reputation.
• Instead of going for a cheap policy, raise your deductibles, or self-insured products such as Dental and Vision care. You might also buy a catastrophic policy that will cover serious illnesses and hospitalization.

For more tips on how to save on Health insurance, give us a call. We can review your options and recommend alternatives that might improve your bottom line, as well as your employees’ coverage.

News flash: An estimated half of all working caregivers identify emotional issues as their main cause of stress.

In a survey by ComPsych, 46% of respondents described dealing with emotional issues as their major cause of stress, while others cited financial and legal concerns (26%), providing day-to-day assistance (20%), and spending time on the phone or in person with a relative (8%).

“These findings show the need for offering a combination of elder care support through work-life services alongside an Employee Assistance Program,” said ComPsych Chairman Richard Chaifetz. “This integrated approach helps resolve the full array of employee issues related to elder care, from stress and relationship problems, to care referrals, to financial and legal concerns.”

Meanwhile, a survey from SeniorBridge Family, a New York-based elder care service provider, found that 30% of working caregivers believe that elder care responsibilities strain their job performance and marriage; 41% of caregivers worry six or more times per week about the well-being of the person for whom they care.

If you believe that your workforce would benefit from an EAP, let us review the choices with you and recommend a program that fits your company’s needs.

If you think adding a “company trainer” to your benefit package sounds ludicrous, think again. Recent research shows that employing certified athletic trainers (ATs) full-time in an industrial or commercial setting decreases corporate health care costs significantly.

That’s the conclusion of a new National Athletic Trainers’ Association (NATA) Occupational Athletic Trainers’ Survey. Results show that ATs provide a measurable, positive return for each dollar spent by decreasing the frequency, severity, and cost of Workers Compensation claims for musculoskeletal disorders — while increasing worker productivity through fewer lost or restricted workdays. Such programs include wellness, physical conditioning, ergonomics, education/outreach training, rehabilitation and fitness, nutrition consultation, and medical case management.

Among the survey’s highlights:

• 100% of companies report that an AT provided a positive return on investment (ROI).
• 30% earned an ROI of at least $7 per dollar invested.
• 83% said that their ROI was more than $3 per dollar invested.
• 94% found that the severity of injuries decreased by at least 25%.
• 75% indicated that the AT has helped to decrease restricted workdays and Workers Compensation claims for musculoskeletal disorders by more than 25%.

Almost half of the companies that hire ATs to provide on-site physical rehab indicate that their health care costs have decreased by more than 50%.

Is an AT right for you? Call and we can do a review.

Workers younger than 35 are now the fastest-growing segment of homebuyers. Add these mortgages to the fact that their average credit card debt is 10% above the national average, on top of average student loan balances of $26,500 — and you find a financial squeeze play that might be crushing the ability of your younger workers to enjoy the full benefit of your retirement plans. According to the Employee Benefits Research Institute (EBRI), these employees are beginning to understand the problem: Fewer than one in 10 (19%) surveyed say that they are “very confident” of having enough saved to enjoy a comfortable retirement.

What these workers need, suggests EBRI, is more knowledge about retirement planning. Unfortunately, there are few educational resources tailored to this age group. As a result, most of them rely on friends and hunches for their savings and investment ideas — not a particularly effective approach.

Younger employees need to be made more aware of the tax advantages that retirement plans provide, and the power of starting early on regular investments; while employers need to consider investment options that are more attractive to this age group.

Are your younger workers participating fully in your current plans? Do your investment methods and options make it attractive and easy for them to participate? Are educational resources available?

Our benefit and financial professionals stand ready to assist you in these areas. First, let us help you be certain you have the most effective retirement plans in place for your employees at the best cost to you. Second, we can assist you in delivering this message by providing the resources necessary to allow them to take full advantage of your offerings. Let’s talk today.

An overwhelming majority of businesses will continue to offer Health coverage to employees in 2014 when key provisions of the Affordable Care Act (ACA) kick in, according to a nationwide survey of nearly 1,000 benefit professionals.

The study of by the International Foundation of Employee Benefit Plans found that:

• More than 85% of respondents say they either definitely will or are very likely to continue coverage in 2014.
• Nearly 10% are somewhat likely to continue coverage.
• Almost 4% said that they’re somewhat unlikely or very unlikely to offer coverage.
• Only 1% will definitely not provide coverage under the ACA.

When asked their two top reasons for maintaining coverage, more than half of respondents (55%) cited retaining the loyalty of current employees, together with attracting and retaining future talent. “These employers recognize that Health insurance is an important benefit,” says International Foundation of Employee Benefit Plans CFO Michael Wilson.

Some 9% of respondents cited the retention of tax advantages as a reason for keeping coverage; Another 7% said a major reason was to avoid tax penalties (Under the ACA, starting in 2014, employers that do not offer coverage will have to pay a non-tax-deductible penalty of $2,000 per full-time employee.

Lower- and middle-income employees of companies who drop their Health care plans would be eligible for federal premium subsidies to buy coverage through state insurance exchanges.

To learn more about dealing with the ACA in your business, please get in touch with our agency’s Benefits professionals.