Employment Resources

As you assess the impact of health issues – such as smoking, nutrition, and stress – on your workforce and your benefit programs and costs, don’t overlook the fact that most people covered under your programs might not be your employees. Family members (spouses, children, and other dependents) are also receiving benefits and creating losses. What risk management programs have you put in place to address them?

More and more businesses are looking for ways of reaching out to these groups with education about health risks. For example, studies have shown the Internet provides a particularly effective method for reaching teenagers. Acting on this conclusion, Kaiser Permanente created a Website called TeenSucceed that features health information, educational tools, and resources on a variety of teen issues, including peer pressure, depression, weight management, and general safety. By asking a teen a series of questions, the program can create a unique health web site for them.

Our benefits professionals can offer you many ways to expand your risk management programs beyond your employees. From supporting health education in local schools, to health fairs open to employees and their families, to reimbursement for health clubs, adding prevention education for dependents to your benefit programs might be the healthiest move (for your employees and your benefits) that you’ve made in years!

For more information, feel free to get in touch with us.

Combine concern about the performance of the marketplace with an increasing number of options under 401(k) plans and the importance of employee education about these plans becomes obvious.

An increasing number of employers see the best way to provide such education is through one-on-one counseling, according to the latest Annual Survey of Profit Sharing and 401(k) Plans, released by the Profit Sharing/401(k) Council of America.

Although holding seminars and using Web sites to offer information and access to frequently asked questions remain popular, the survey found that employees – particularly at smaller companies – were more likely to take advantage of and learn more from one-on-one interaction. For smaller employers (fewer than 49 plan participants), 56.6% obtain advice. For employers with 50-199 participants, only 27.5% sought advice. The number for larger employers (more than 200) dropped to a measly 13.5%.

One advantage that smaller employers enjoy is the ability to offer one-on-one counseling more efficiently. Obviously, an advisor or team of advisors can meet with employees at one or two locations more easily than at dozens or hundreds of job sites. What’s more, the fewer employees and advisors, the more confident the employer can be that the advice offered is consistent.

To make it more convenient for employees to get information about your 401(k) plans, why not let our retirement planning professionals help by providing one-on-one counseling at your workplace? You’ve provided the opportunity; let us help your employees create the reality.

Workers, shaken by the woes impacting the economy, have adjusted their visions of retirement according to a recent nationwide study.

The 13th Annual Transamerica Retirement Survey, based on responses from 3,600 American workers, found that the majority of respondents (56%) plan to work past age 65 and to continue working after they retire, (54%) despite workers’ demonstrated commitment to saving, fewer than two in five (39%) believe that they’re building a secure nest egg – thus reinforcing the need to redefine “retirement readiness” in a way that reflects financial reality.

According to the survey, although more than half of workers polled (57%) have a retirement strategy, only 12% have put their plan on paper. Of those with any form of strategy, fewer than one in six (15%) have factored in contingency plans for retiring sooner than expected and/or a shortfall in savings. What’s more when, asked how they estimated their savings needs for retirement, nearly half of respondents (47%) admitted to guessing.

Many workers (44%) expect to rely on savings from 401(k) or similar plans as their primary source of retirement income An overwhelming 90% cited an employee self-funded plan as important; more than half (53%) would be likely to leave their current employer for a similar job that provided better retirement benefits.

More than three in five respondents (62%) wanted information and guidance about retirement planning from their company. When asked what would motivate them to learn more about saving for retirement a majority (52%) cited a good starting point or educational materials that are “easier to understand.”

We’d be happy to help you provide your employees with effective financial planning guidelines for their retirement – just give us a call.

Guess what? 401(k) plans that supply more money and a larger number of participants to a vendor receive certain benefits that smaller programs don’t enjoy. These might be extra services or fewer basis points in administrative costs. However, if you’re using a smaller plan, don’t fret: What you signed on for initially isn’t necessarily what you must live with forever.

A growing plan should be alert for any discounts and services for which it might be eligible once it reaches certain thresholds. Experts say that when companies get to about an average account balance of $30,000 they should start negotiating for a better deal or tell the plan provider that they’re looking for another vendor. Investment companies don’t want to lose their business.

Most providers designate certain products for specific plans. Some look at the number of participants; others consider the size of the plan portfolio. Still others use average account balance as a gauge. For example, one major fund company divides its clients into five groups based on size and offers different services for each classification, ranging from electronic 401(k) plans for the smallest group to defined benefit administration and consulting services for the largest. Another offers similar services for both small and medium-sized 401(k) plans, but charges different prices to each. As assets rise, an automatic adjustment feature decreases the charge.

The moral: Stay on top of your company’s plan and follow up with your provider once the assets reach a certain level. When negotiating for a new or updated contract, make sure that you understand the thresholds and try to have new product enhancements kick in automatically.

If the assets of your company’s plan have appreciated over time, call us for a review of the details. We’re here to help.

What are the biggest employee-related mistakes businesses are making these days? How can you defuse these potential time bombs before they explode into costly disputes? Here’s an overview of the top five employer mistakes and how to avoid them.

1. Failing to establish an effective sexual harassment policy. Recent Supreme Court decisions have held employers liable for their supervisors’ actions unless complaining employees fail to take advantage of company complaint procedures. In light of these rulings, it’s more important than ever to implement policies and procedures for dealing with sexual harassment.
2. Failing to pay overtime to nonexempt employees. All too many businesses pay employees a salary regardless of the number of hours they work and whether or not they’re subject to wage and hour laws. Unless employees are exempt as administrative, executive, or professional workers, you must pay them time-and-a-half their regular hourly pay for all hours worked in excess of 40 per week.
3. Failing to complete I-9 forms for new employees. Some employers photocopy employee-produced documents without filling out the parts of the forms that describe the documents. This can be a costly mistake if you face an audit from the U.S. Citizenship and Immigration Services (USCIS).
4. Failing to take and document disciplinary actions. Employees who have been discharged for poor performance often have glowing evaluations in their files. This can expose the employer to lawsuits.
5. Failing to discharge poor performers quickly. If you’ve retained employees for many years despite poor attendance records, multiple infractions, and even several “final” warnings in their files, you’re asking for trouble. These employees are the most likely to sue when they’re finally discharged.

It makes sense to implement these policies — and to supplement them by carrying Employment Practices Liability Insurance. Our employee benefits professionals would be happy to offer you their advice. Just give us a call.

Although many Baby Boomers have entered retirement, millions remain in the workforce and continue to be a valuable employee base that you’ll want to attract and keep. To make your benefits package appealing to this ubiquitous generation, consider these tips from a recent trade press report:

• Ask the boomers in your company what benefits they desire. Generally speaking, boomers tend to have different wants and needs than other demographic groups. Don’t assume that what works at a rival or neighbor company will work in your case; individual businesses are as different as snowflakes.
• Provide comprehensive Health insurance. Limited-benefit medical plans probably won’t appeal to boomers, because they’re generally skilled and educated workers who you’ll want to retain.
• Up the stakes on Dental plans. The boomers smiled and grooved all through the 1960s, but now they have aging teeth that they need to protect. In other words, they’ll want a dental plan with a higher maximum, even if that means paying the entire cost of coverage themselves.
• Include vision care. Yes, most boomers could see the stage perfectly from their lawn seats at the Crosby, Stills, Nash & Young concert in ’70 — but now they’ll most likely need contacts and glasses.
• Think about including Health Savings Accounts or Health Reimbursement Arrangements. HSAs and HRAs give healthy employees monetary incentive to steer away from doctors. Personal health accounts also give boomers with health problems increased control over spending on daily medical expenses.

To learn more about how to customize your benefits program for the needs of boomers, feel free to get in touch with one of our specialists.

When you’re facing budget cutbacks, do educational benefits stand out as a prime target? If it’s hard to measure the value of a single employee’s value to the business, how much more difficult is it to determine the impact of improving this employee’s educational level?

However, many workers — especially those who businesses consider highly valuable — consistently rank educational and professional development opportunities as one of the most important programs an employer can offer. Networking with peers, exposure to new techniques and ideas, and improving motivation are among the benefits that employees cite. Employers benefit from improved retention and higher productivity.

In today’s technology-driven world, businesses need workers with knowledge and skills honed by continuing professional education (especially in science, technology, engineering, and math) to stay ahead of the competition, both here and abroad.

Uncle Sam is helping the cause through Section 127 of the Internal Revenue Code, which allows an employee to deduct up to $5,250 a year in contributions from their employer for college or graduate education. According to one nationwide survey, more than a million Americans are taking advantage of this tax-free employee benefit.

It makes sense for you to help your valued employees join them.

Attracting and keeping good staff is essential to the longevity of your business. Understandably, the availability of retirement benefits ranks high on the list of employee concerns. Creating a pension plan that’s guaranteed by the federal government adds credibility to your retirement offerings and helps protects your employees.

Under “defined benefit plans,” the employer pays the retired employee a fixed amount for a given period. The amount varies, depending on the employee’s length of service, income earned, and age. Because employers fund these plans by contributing to investment funds controlled by money managers, it’s essential to choose highly qualified and reputable fund managers.

Under the increasingly common “defined-contribution plans,” employees contribute to their own retirement accounts, assuming part of the investment risk. In some cases — ideal for employees — employers also contribute to the plan by matching the employee’s contribution up to a certain percentage. The most common type of defined-contribution plan is a 401(k). Even though employees take an active investment role in defined-contribution plans, your company’s advisors and the money managers you use are still fiduciaries with significant liability risk.

Both types of plan are “qualified” pension plans backed by the federal Pension Benefit Guaranty Corporation (PBGC).

For more information about qualified pension plans and how to insure them and their fiduciaries, call our service team today.

Although Group Health Plans often don’t offer Dental coverage, employees might consider this a valuable coverage and an incentive when comparing job options.

Group Dental plans, as with Group Health insurance, provide services to individuals while offering the premium savings and insurability advantages of group coverage. Group dental plans are usually preventative in nature, focusing on minor procedures and routine visits. However, plans might offer more expensive procedures (such as oral surgery) at a reduced cost to members of the group.

These plans usually include a calendar-year deductible and calendar-year maximum. The plan might provide such additional services as orthodontics, periodontics, or endodontics, with separate deductibles, limits, or policy provisions.

To learn more about a Group Dental plans that’s right for your company, just contact our service team.

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.