Final Employer Responsibility Regulations Released
Originally posted by Melissa Duffy on https://www.the-alliance.org
The federal government has released final rules governing the Affordable Care Act's Employer Responsibility (aka Pay or Play) provisions that will take effect in 2015 for many Alliance members. Once in effect, the ACA will impose penalties on employers that do not offer "affordable" and "minimum value" coverage to certain full-time workers, currently defined as an average of 30 hours or more per week.
The IRS has posted Frequently Asked Questions to help employers understand the new guidelines and the safe harbors that were created to help employers avoid penalties. Penalties are triggered only when one or more of a company’s full-time workers accesses tax credits to purchase coverage on the public exchange.
The final regulations include some changes to the proposed regulation that were released more than a year ago. Key changes include:
- An exemption from penalties for employers in 2015 that have 50-99 workers as long as they certify that they have not reduced their workforce to fall under the 100 employee threshold. Employers of this size would be subject to penalties in 2016 if their regulations are not changed once again.
- More wiggle room for employers that do not offer all employees coverage. Under the new rules, an employer with 100 or more workers will not be subject to the "4980H(a)" penalty ($2,000 X all FT employees minus 30) as long as they offer coverage to at least 70 percent of employees in 2015. This threshold increases to 95 percent in 2016. However, employers will still be subject to "4980H(b)" penalties equaling $3,000 per year for any full-time employee that is able to access exchange tax credits or cost sharing reductions.
- A new definition for "seasonal employees" to apply to those positions for which customary annual employment is six months or less. For these individuals, the offer of coverage can wait until the end of a measurement period. This is not to be confused with the term “seasonal worker” used for the purposes of determining whether an employer is large enough to be subject to penalties.
Congress Considers Changing the Definition of Full-Time
In a related note, a Congressional committee has approved one of several bills introduced this session to modify the Employer Responsibility provisions in the Affordable Care Act. The bill, which would define full-time as 40 hours for the purposes of the ACA, passed the House Ways and Means Committee on a party-line vote with Republicans on the committee supporting the measure and Democrats opposing it. Similar bills have gained bipartisan support but are stalled in the Senate.
Click here to view testimony from the public hearing held on this issue.
Financial fears have many workers planning to delay retirement
Originally posted by Melissa A. Winn on https://ebn.benefitnews.com
Although U.S. workers on a whole are more satisfied with their current financial situation than in years past, most (58%) remain concerned about financial stability in retirement and say they plan to continue working until age 70 or later, a new Towers Watson survey shows.
With many workers expecting to fall short on their retirement savings, nearly four in 10 plan on working longer, an increase of 9% since 2009. A large majority of these employees expect to delay retirement by three or more years and 44% plan on a delay of five years or more, the Global Benefit Attitudes Survey finds.
In 2009, 31% of workers planned on retiring before 65, and 41% planned on retiring after 65. According to the 2013 survey, only 25% plan on retiring before 65 and half expect to retire after 65. One in three employees either does not expect to retire until after 70 or doesn’t plan to retire at all.
The nationwide survey of 5,070 full-time employees found that nearly half of respondents (46%) are satisfied with their current finances, a sharp increase from 26% in 2009. Still, nearly six in 10 remain worried about their financial future.
Employees’ confidence in their ability to retire has also climbed steadily since the financial crisis, with nearly a quarter (23%) very confident of their income sufficiency for the first 15 years of retirement. However, only 8% are very confident they’ll have adequate income 25 years into retirement.
“Employees might be on firmer financial footing now than they were five years ago, but many remain nervous about their finances and prospects for a secure retirement,” says Shane Bartling, senior consultant at Towers Watson. “This is especially true for older workers who are likely better positioned to assess their retirement income than workers overall. The financial crisis hit workers age 50 and above particularly hard, with the stock market fall creating a huge dent in their retirement savings and their confidence levels.”
The survey also finds that employees of all ages are especially worried about health care costs and public programs. Only two in five employees believe they can afford any medical expenses that arise in the next 12 months and more than half of all employees (53%) are concerned they will not be able to afford health care in retirement. Most employees (83%) also believe Social Security will be less valuable in the future and 88% have similar fears about Medicare.
More than half of employees (56%) say they are spending less and postponing big purchases as a way to pay down debt and start saving for retirement, the study says. Just over half (51%) of employees say they review their retirement plans frequently.
Saving for retirement is cited as the No. 1 financial priority for all employees age 40 and older, the study notes.
“Employers and employees are both facing increasing retirement pressures. Employers understand that they have a role to play in helping their workers plan and save for a secure retirement. Today’s employees are considerably more engaged, and are looking to their employers for more information about health care costs and the value of their retirement programs,” says Bartling. The increased use of tools, including mobile apps, also represents an opportunity “for employers to help their employees plan for a successful retirement.”
12 ways to beat workplace stress
Originally posted March 20, 2014 by Dan Cook on https://www.benefitspro.com
Work life today is hectic, to an extent that might have been hard to imagine just a generation ago. Stress levels are through the roof, and many workers struggle to stay engaged, let alone productive.
Author, lecturer and motivation coach Andy Core addresses these issues in his new book, “Change Your Day, Not Your Life,” offering advice on how to move from “striver” to “thriver.”
“To start reclaiming the goals that once inspired and excited you, you’ll have to change the way you approach your day,” he says. “Instead of a worker whose actions are dictated by supervisors and to-do lists, you’ll need to begin acting like the CEO of your own life.”
To get there, Core offers a 12-step Inner CEO program. (Yes, you can still drink on this 12-step path.)
1. Figure out what’s doable in a day.
To Core, it’s all about balance, not focusing in laser-like fashion on one or two goals or trying to get 50 different thing done with no focus at all. Working with a client he calls “Janet” whose life was way out of balance, he told her to start by trying to change what she set out to do one day at a time.
“Janet was disappointed when I told her that changing her life was just too hard. But I explained that turning your whole life around is too big a goal. I simply wanted her to change her day. Our whole strategy was to make small, doable changes that would, over time, create an unstoppable momentum.
“You must do the same. You must set realistic boundaries. You must create goals that can be accomplished in the space of a day. Remember, nearly all problems, challenges, and needs are best faced if they are brought down to the scale of ‘what can be done right now’ by taking on ‘one small piece’ of a difficult situation.”
2. Get big things done before 9 a.m.
Impossible, you may think. My third latte hasn’t even kicked in! But Core insists that any normal person can put several achievement notches on their gun belt before the dreaded staff meeting.
“Ever notice how your morning sets the tone for your whole day? If you get a groggy, frustrating start, you’ll probably feel sluggish and behind the eight-ball all day long. However, if you start your day with positive and productive ideas, actions, thoughts, and feelings, you’re likely to gain momentum throughout the day.”
This time he cites “Barry,” a real early bird who gets the worms. His “daily pattern involves getting up early, exercising, eating breakfast, spending time with family, and accomplishing several meetings or other work activities before 9 a.m. The point here isn’t how early Barry’s alarm rings — it’s that he makes the most of the first several hours of his day instead of snoozing and procrastinating, as so many of us do. The truth is this: What you do first matters.”
3. DO first, then KNOW (not the other way around).
Core is one of those folks who believes that, once you put on your running shorts and shoes, you will get your butt out the door at 6 a.m., regardless the weather. Thinking about how something would be good for you doesn’t help. Thinking about how good it was for you after the jog — now that’s using your noggin!
“Most people believe that the knowledge that something is important should make you want to do it,” he said. “But in reality, that’s not the case. Study after study shows that knowledge alone usually isn’t enough to impact our desires. In fact, the opposite is true. First, you must do something — like bite the bullet and put on your workout clothes! If you experience positive feelings, attitudes, and results because of your action, you will learn that whatever you just did is good, and you’ll want to do it again, and again and again. Over time, you’ll develop a new habit, and you’ll become an evolved person.
“In other words, you must do in order to know in order to be different. Remember, nothing in your life gets better until your daily patterns get better.”
4. Own up to your junk hours.
“Junk hours” are those minutes we spend doing nothing to avoid doing something, Core says. You know them: checking your stock portfolio four times a day. Reliving the big game’s highlights with your cubicle buddy. Checking out the latest fashion posts on Pinterest. And on and on.
“In order to maximize each day, you need to own up to your junk hours,” he says. “You need to identify when you’re going through the motions of work, versus when real work is being done. Don’t be ashamed that your junk hours exist, because everybody needs to take breaks and shift gears. Your task now is to exchange your low-value ‘junk’ activities for ones that build greater health and value into your workday.”
5. Instead of adding to your to-do list, build a new pattern.
Make tough, priority-driven decisions, not longer check lists. That’s what this is about. Decide what matters to you in your life today, and build steps to pursue those goals.
“To build a productive new pattern into your life, you usually won’t have to add new tasks to your day. Instead, you’ll simply do what you are already doing, or want to do, in a way that becomes habitual,” he advises. “For instance, if you want to wake up an hour earlier so that you can jump-start the day, you simply have to change the time your alarm rings and the time you go to bed. It isn’t sufficient to simply trigger the start of a new behavior. You need to make sure that you have a motivating reason to make this change, as well as the confidence and energy to sustain it so that it becomes a pattern.”
6. Start with one thing. Then add another. Then another.
Referencing the No. 1 New Year’s resolution — I’m gonna lose weight — Core explains that the reason this rarely works out for people is that the goal should not be to lose weight, but to make healthy lifestyle choices. If we eat well, get rest, exercise and engage in activities that gratify needs other than hunger, the weight will disappear.
“Don’t take on more than you can handle. Break each goal down to its smallest components, then pick one of them to tackle. Pursue this change until it becomes a habit, then move on to the next one. Start with one thing and don’t add another until you’re ready. Positive motion creates positive emotion,” he says.
7. Make a big-box checklist.
Core’s a checklist guy. He just thinks most of us go about them all wrong. Here’s his advice:
“Make an actual, on-paper checklist each afternoon for the following day or each morning. Put a box by each task — the more important that task is for you to complete that day, the bigger its box should be.
“I focus first on my big-box tasks. At the end of the day, if most of them have checkmarks, it’s generally been a good day! Yes, prioritizing my daily list by the size of the boxes on it may sound simplistic, but it has made me feel much more accomplished and satisfied with my day. It also has helped me relax in the evenings because it is easier to remember the big boxes I’ve checked off, thereby making it easier to leave work at work.”
8. Think about it so you don’t have to think about it.
This is about focusing on what slows you down so you can speed up those particular processes or activities. He uses the example of preparing a meal. If you have trouble doing it, then plan meals ahead of time, maybe several days or even a week’s worth. Get the ingredients, know how long it will take, and maybe do some prep before you leave in the morning.
“Figure out where these areas are for you and commit to learning a new pattern. Yes, learning new patterns can initially be tedious and laborious. But once they’ve taken hold — often in three weeks or less — they’ll speed up your performance, streamline your effort, and lower your stress. By putting in some thought about ‘problem areas’ now, you’ll save yourself from having to think about them later. Eventually, this method changes once-tedious tasks into automatic behaviors.”
9. Infuse meaning into your work.
Let’s get this straight from the horse’s mouth: “First, let’s get one thing straight: Doing meaningful work does not mean that you will ‘love’ every second of it. ‘Meaning’ can simply be a recognition of what you enjoy about your work. With that understanding, though, you’ll be more motivated, productive, and satisfied. I recommend completing the following exercise:
• Focus on what gives you the greatest joy and meaning at work — be able to define it.
• Reflect on how you are making a difference at work and through your work — be able to give examples.
• Reflect on the meaning of your work as it relates to your core values.
• And then … seek to increase what you enjoy!
“You’ll come to find that the ‘administrivia,’ the mundane and routine chores required of you, and the not-so-exciting aspects of your work become easier to do and get completed more quickly if you have a strong focus on what you do find exciting, rewarding, or fulfilling.”
10. Seek to serve, not shine.
This one’s a little touchy-feely. Core urges us to put aside our ambitions and egos and approach life from the viewpoint of service to others. You Type A characters may have trouble with this one, but here’s what he recommends:
“To some extent, it’s human nature to look out for Number One. We all want to rack up accomplishments, receive accolades, and garner recognition. But in many situations, the desire to shine can cause you to get in your own way.
“Ironically, the key to shining is putting others first. People who channel their efforts toward making others’ lives easier are nearly always respected, included, and considered valuable. When you help others reach their goals and become their best, you’ll usually find that the same things happen to you.”
11. Fill up your energy bank account so you can make withdrawals when you need them.
In other words, don’t expose yourself to a lot of negativity. Don’t expend a lot of emotional coinage on projects or people who drain and frustrate you. Watch more romantic comedies and attend high school basketball games where kids play for glory only.
Says Core: “Know your needs and capacities and try not to exceed them on a regular basis. In other words, get enough sleep. Eat nutritiously. Exercise when time permits. That way, when you do find yourself needing to push the limits, you’ll have a healthy margin of energy, motivation, or whatever to draw on. Manage what you can manage as often as possible in order to compensate for what you cannot manage.”
And he advises us to stay present, in the present, and stop spinning our lives into a future over which we have no control.
“The future can be an inspiring thing… but it can also be a scary and misleading one. Awfulizing, what-ifs, and doomsday thinking can plunge you into paralyzing anxiety. And making incorrect assumptions can send you down the wrong path. That’s why, aside from setting goals for yourself, you should try not to let your mind wander into future outcomes. The only thing a person truly can do is to focus on the processes of today — and live them out to the max. Enjoy the process and take great joy in the rewards!”
12. Forgive yesterday so you can work on today.
As with the future, so with the past, Core tells us. Once we decide to stop projecting into the future, don’t replace that by getting stuck in a past we cannot change. Accept it, forgive yourself and others for what needs to be forgiven, hang on to the sweet moments for sustenance, and get your mind and body back into the now.
“Treat yourself with the same compassion and generosity you’d extend to another person who’d messed up or fallen short of a goal. If it helps, follow the two-hour rule I learned from one of my past coaches: When you have a bad performance or make a mistake, you have two hours to pout, scream, cry, wallow, or do whatever you think will help you deal with the disappointment. But when 120 minutes have passed, it’s time to start moving forward again.
Remember, nobody is perfect. We all make mistakes. What sets thrivers apart is the fact that after a fall, they forgive themselves faster, get back up, and continue the journey forward.”
U.S. corporate pension plans improve financial health in 2013
Originally posted March 20, 2014 by Michael Giardina on https://ebn.benefitnews.com
A new analysis of the 100 largest corporate pension plans finds that retirement coffers bounced back in 2013, reaching record funded-status levels and cutting away at pension deficits that have plagued them since 2008’s financial collapse.
In a new Towers Watson study, the year-end analysis finds that plan sponsors for the U.S. publicly traded companies reported significant gains through rising interest rates and beneficial investment returns.
With a nearly $170 billion drop in the group’s pension deficit, the Towers Watson report states that the overall funded status increased by 13 percentage points to 91%. That is the best funding level since the end of 2007, when the average stood at 103%. Additionally, the number of plan sponsors with fully funded plans surged from five at the end of 2012 to 22 at the end of 2013. At the end of 2007, half of these 100 plans were fully funded.
The average discount rate increased by 83 basis points to 4.85% in 2013, while investment returns averaged 10.8%.
According to the analysis, companies continued to contribute relatively large amounts to their plans during 2013, with sponsors’ median contribution being 60% more than the value of benefits accruing during the year. However, the contribution levels were much lower than in prior years. For 2013, plan sponsors contributed $27.8 billion, down from $45.2 billion in 2012. That’s the smallest contribution since 2008, when companies added $16.8 billion to their plans. After many years of making large contributions, some sponsors took contribution holidays or decided to contribute significantly less in 2013. Six of the 10 largest cash contributors in 2012 pumped $11.3 billion into their plans, compared with $0.8 billion in 2013.
“Plan sponsors made great strides to shore up the financial condition of their pension plans last year,” says Dave Suchsland, senior consultant at Towers Watson. “…This is good news for employers, as stronger pension fund balance sheets will reduce required cash contributions in the near term while lower pension costs will improve corporate earnings.”
Even with these benefits, Towers Watson expects that additional pension de-risking measures will be seen among corporate pension plan sponsors as they prepare themselves for the next downturn.
“The improved funded position, combined with recent increases in Pension Benefit Guaranty Corporation premiums and a newly released Society of Actuaries mortality study, will make de-risking actions very attractive in 2014,” says Alan Glickstein, senior retirement consultant at Towers Watson.
Previously, the PBGC premium increases, along with longer living retirees, were discussed by industry pension consultants. Mercer stated that plan sponsors need to consider investment policies and liability-driven investments, purchasing annuities for some or all plan participants and offering former employees lump-sum buyouts.
According to the PBGC, premium rates jumped up by $6 per participant in 2014 and $5 per $1,000 of unfunded vested benefits for single-employer plans. The single-employer rate increase was previously laid out in the Moving Ahead for Progress in the 21st Century Act, the PBGC says.
Mercer estimates that new mortality projections point to pension liability increases between 2% and 8% over the next few years. Gordon Fletcher, a partner in Mercer’s financial strategy group, stated earlier this month that new estimates point to individuals living to 87-years-old or slightly longer in some cases.
401(k) contribution remittance: What’s an employer to do?
Originally posted March 19, 2014 by Kerri Norment on https://eba.benefitnews.com
Over the past several years the U.S. Department of Labor’s Employee Benefits Security Administration has identified delinquent employee contributions as an ongoing national policy priority. With assets in 401(k)-type plans reaching $2.8 trillion on behalf of more than 50 million active participants, protecting employee contributions has become more important for the government, particularly since employees have been forced to take more responsibility for their retirement savings.
On the other hand, employers and sponsors of 401(k) plans are responsible for ensuring plans comply with federal law. But ever-changing interpretations of government regulations have resulted in employers being out of compliance with certain rules and not even knowing it.
One particular regulation that has been a source of confusion for employers — and in some cases, has landed them in hot water with the DOL — is the timely deposit of employee contributions into 401(k) plans. The regulation states employers should remit employee contributions on the earliest date they can reasonably be segregated from the employer’s general assets, but no later than the 15th business day of the following month. While this has come to be known as the "15 day rule," the reality is that deposits — for small and large plans — are expected to be made much sooner.
In fact, the DOL issued an amendment to the regulation in January 2010 to create a safe harbor rule under which small plans — classified as plans with fewer than 100 participants — would be considered in compliance if employee contributions were deposited within seven business days. The DOL has not issued a similar safe harbor rule for large plans. However, most in the industry believe larger plans will be held to an equal, if not higher, standard, meaning deposits should be made within two to three business days.
If you are scratching your head on this one, you’re not alone. When the regulation was implemented, there were no automated payroll processing systems that allowed for contributions to be easily segregated from general assets. With advancements in technology, this process is essentially instantaneous. And because of it, the DOL has changed its expectations on remittance, despite not rewriting the rule.
So what’s an employer to do? The best advice is to be consistent. If an employer demonstrates the ability to remit contributions within one business day, the employer better make sure all remittances happen within one business day each pay period — no exceptions! The second best advice, don’t rely on safe harbor rules to protect you.
If you find your plan is not in compliance with the new interpretation of the regulation, it is recommended you self-correct the plan. The DOL website provides a guide for correcting under the Voluntary Fiduciary Correction Program that even includes a user-friendly online calculator for lost earnings.
As in most cases, knowledge is power. Whether that knowledge is obtained through the use of a reputable service provider, consultant, or HR expert, employers and plan sponsors must stay on top of changes in government regulations and rules.
Big “I” Applauds Senate Passage Of Flood Insurance Legislation
Originally posted March 19, 2014 on https://www.insurancebroadcasting.com
WASHINGTON, D.C., March 13, 2014 — The Big “I” applauds the U.S. Senate for passing H.R. 3370, the “Homeowner Flood Insurance Affordability Act of 2013,” by Sen. Bob Menendez (D-N.J.) and Rep. Michael Grimm (R-N.Y.).
The bipartisan bill would make changes to the Biggert-Waters Act of 2012 (Biggert-Waters) in order to help with the “sticker shock” some consumers are facing as a result of two provisions that create drastic premium increases in many parts of the country. The House passed H.R. 3370 on March 4, 2014 in a 306 – 91 vote.
“The Big ‘I’ would like to particularly commend Senators Menendez and Isakson and Representatives Grimm and Waters for their tireless work on fixing some of the unintended effects of Biggert-Waters,” says Robert Rusbuldt, Big “I” president & CEO. “This bill was a top priority for the Big ‘I’ as it will reduce some of the harmful effects of Biggert-Waters without undoing the numerous positive provisions within the law.”
In addition to other revisions to Biggert-Waters, the bill would repeal the entirety of Section 207 and would therefore reinstate the “grandfathering” of policies located in communities with a new or redrawn map. H.R. 3370 would also stop the elimination of subsidies for pre-FIRM properties that are bought and sold, which is an extremely problematic provision in Section 205 of Biggert-Waters.
“Today’s Senate vote represents a major victory for independent insurance agents, as Section 207 and the bought/sold provision of Section 205 were the two specific items that the Big ‘I’ has been asking Congress to revisit,” says Charles Symington, Big “I” senior vice president for external and government affairs. “The startling pace with which Congress acted in order to fix the unintended effects of these two provisions in Biggert-Waters, itself less than two years old, should be commended.”
Founded in 1896, the Big “I” is the nation’s oldest and largest national association of independent insurance agents and brokers, representing a network of more than a quarter of a million agents, brokers and their employees nationally. Its members are businesses that offer customers a choice of policies from a variety of insurance companies. Independent agents and brokers offer all lines of insurance—property, casualty, life, health, employee benefit plans and retirement products. Web address: www.independentagent.com.
3 Hidden Effects of Workplace Depression
Originally posted March 19, 2014 by Jeff Guardalabene on https://ebn.benefitnews.com
At any given time in the United States, an estimated 1 in 10 adults report symptoms that would qualify for a depression diagnosis.[1] For HR,navigating employee mental health can be tricky. Not all symptoms are noticeable, but a few hidden indicators can hinder overall productivity.
Procrastination and missed deadlines. A person’s day-to-day ability to plan, execute and complete tasks can be affected by depression. This can present itself in the workplace in the form of projects that aren’t completed, or sometimes, not even started.
Difficulties with memory and learning. Many people with depression report feeling as though they’re unable to remember things they used to recall with no problem. Job tasks and routine processes become a burden as the employee tries to do something that used to come easily. Frustrations can mount, exacerbating the problem.
Team morale. Not all depressed employees look “depressed.” Some may manage to put on a “game face” at work while experiencing lagging productivity and decreased motivation. This game face may make it more difficult for co-workers to realize an employee is suffering. Rather than see someone in need of help, co-workers instead see a co-worker who isn’t pulling his or her own weight. This can have a dramatic impact on the morale and productivity of others.
Create a preventive culture
Referring employees to available resources, such as an employee assistance program, can help some at-risk or affected employees. But in other instances, this approach may not be enough. Employers should consider ways to create a company culture that can help identify and mitigate the effects of depressed employees. Keep these considerations in mind to build a supportive culture:
Improve communication throughout your company. Encourage your HR team and managers to engage in face-to-face communication with employees. This will enhance trust and help employees not feel isolated or alone during an illness.
Invest in training. Help equip managers to handle emotionally charged conversations and ways to identify at-risk employees.
Be flexible with your intervention methods. Hopefully, your organization already has a process for assessing issues and intervening when an employee has a health problem. But remember, approaches such as fit-for-duty assessments may not work well when dealing with an emotional health issue. Be prepared to adjust as needed.
By noticing and understanding the hidden impacts of depression, and working to develop office policies that include support and early intervention for employees struggling with mental health conditions, employers can have a very noticeable impact on the overall health and productivity of their workplaces.
[1]Centers for Disease Control and Prevention. An Estimated 1 in 10 U.S. Adults Report Depression. Available at: https://www.cdc.gov/features/dsdepression/. Accessed February 19, 2014.
Retirement confidence rebounds from five-year lull
Originally posted March 18, 2014 by Michael Giardina on https://ebn.benefitnews.com
Retirement confidence among Americans regained some of the losses reported over the past five years – where approximately 18% are very confident and 37% are somewhat confident with the future financial needs – according to a new survey from the Employee Benefit Research Institute.
In its 24th installment, the EBRI annual Retirement Confidence Survey states that there was a 5% point jump in Americans workers who reported they were very confident and there was no statistical change among the population that were not at all confident at 24%.
Last year, 21% reported that they were not too confident and 28% - the highest level in the survey’s history – are not at all confident about the future needs of a comfortable retirement. 2013’s lowly sentiment also resonated with the very confident and somewhat confident, which reported 13% and 38% markers, respectively.
The Washington, D.C.-based nonpartisan, nonprofit research organization states that there was a 10% jump in worker confidence with a retirement plan who report being very confident at 24%. For the cohort without a retirement plan, the very confident level dipped down one percentage point to 9%.
“Retirement confidence is strongly related to retirement plan participation,” says Jack VanDerhi, EBRI research director and co-author of the 2014 report. “In fact, workers reporting that they or their spouse have money in a defined contribution plan or IRA or have a defined benefit plan from a current or previous employer are more than twice as likely as those without any of these plans to be very confident.”
The findings indicate that 1 in 10 of participant households currently enrolled in a retirement plan were listed as being not at all confident. At the same time, half of respondents without a retirement plan reported the same confidence level.
While 64% of workers report that they or their spouses have saved for retirement – a statistically equivalent figure to 2013 – 90% of workers currently signed up to a retirement plan list they have saved for their future income needs when they exit the workforce.
Also, retiree confidence, typically higher than worker confidence levels, continues to climb in 2014. Twenty-eight percent felt were very confidence in their financial security, a 10% jump from 2013.
Roughly half of participants state that financial hurdles such as the cost-of-living and daily expenses – as well as lingering debt – hinder worker savings.
“Just three percent of workers who describe their debt as a major problem say they are very confident about having enough money to live comfortably throughout retirement, compared with 29 percent of workers who indicate debt is not a problem,” says Matt Greenwald, of Greenwald & Associates, which conducted and co-sponsored the survey.
During America Saves Week earlier this year, Dallas L. Salisbury, president and chief executive officer of the EBRI and chairman of the American Savings Education Council, highlighted that employers can assist with the current savings epidemic. Salisbury explained that workers who conducted retirement-needs calculation were more confident to save what is needed for retirement. Complementing this goal, he says that the theme for this year’s America Saves Week is “to set a goal, to make a plan and to save automatically.”
Other findings of this year’s RCS:
- Workers acknowledge the need for savings: Approximately 22% of the sample believes that they need to save between 20-29% of their income and another 22% believe that 30% of income is warranted.
- Estimating retirement savings needs is still unpopular: Roughly 44% state that they and/or their spouse have participated in this calculation.
- Financial advice is even less popular and falls on deaf ears: one in five workers and 25% of retirees report they have sought the help of a financial adviser; Only 27% of workers and 38% of retirees say they used all of the professional’s financial advice.
HSA, HRA contributions reach record high in 2013
Originally posted March 14, 2014 by Melissa A. Winn on https://ebn.benefitnews.com
The number of employers contributing to health savings accounts or health reimbursement arrangements continues to grow, with 71% of employees reporting contributions from their employers in 2013, according to a new report by the Employee Benefit Research Institute.
That number represents the highest level of employers contributing since the 2005 inception of the EBRI/ Greenwald & Associates Consumer Engagement in Health Care Survey (CEHCS).
While the study found that the number of employers contributing to HSAs and HRAs has grown, it also found the amount of their contributions for some has declined. The percentage of employees with employee-only coverage reporting employee contributions of $1,000 or more slipped from 28% to 23% in 2013.
For employees with family coverage, employer contribution levels were mostly unchanged, however.
That trend held true for employee contributions, as well. EBRI found, on average, workers with employee-only coverage dropped their HSA contribution levels last year, but those with family coverage kept contribution levels relatively steady.
These findings come from the 2008–2013 EBRI/Greenwald & Associates Consumer Engagement in Health Care Surveys (CEHCS), and earlier EBRI surveys, that have tracked the growth of so-called consumer-driven health plans since 2007. CDHPs consist of HSAs, health reimbursement arrangements (HRAs), and high-deductible health plans designed to bring aspects of consumerism to health insurance plans.
According to the study, 11.8 million adults ages 21-64, 9.7% of the U.S. population, were enrolled in a plan with an HRA or HAS in 2013. Another 9.3 million reported they were covered by an HSA-eligible plan but had not yet opened the account. Overall, therefore, the study found about 21 million adults ages 21-64 with private insurance, representing 17.3% of that market, were either already in a CDHP or covered by an HSA-eligible plan. When their children were included, 26.1 million individuals with private insurance, representing 15% percent of the market, were either in a CDHP or an HSA-eligible plan.
The full report, “Employer and Worker Contributions to Health Reimbursement Arrangements and Health Savings Accounts, 2006–2013,” can be found online at ebri.org.
Are employees more satisfied than ever with their benefits?
Originally posted March 17, 2014 by Andy Stonehouse on https://ebn.benefitnews.com
Despite some sense of grumbling out in the working world about the shape of benefits in the midst of further ACA rollouts, one new study suggests employee satisfaction regarding their benefits is at an all-time high.
MetLife’s 12th annual U.S. Employee Benefit Trends Study, released Monday, shows what researchers suggest is a tremendous level of overall satisfaction with workplace benefits – with some of the highest numbers in more than a decade.
According to this year’s study, the overall satisfaction level hit 50%, the most solid self-evaluation of benefits in the MetLife research’s history.
And while voluntary benefits strategies also appear to be paying off, the company says that fewer employers report that voluntary benefits are at the forefront of their overall strategy.
“Employees who are very satisfied with their benefits are more than twice as likely to report being very satisfied with their jobs,” notes Todd Katz, executive vice president, Group, Voluntary and Worksite Benefits, with MetLife. “Because of this, offering a wider variety of benefits pays dividends for both employers and employees.”
Katz says the study indicates that benefits are a strong driver for employee loyalty, with 44% of respondents indicating that having benefits customized to meet their needs would be an even stronger pull to keep them happy and motivated on the job.
That ability to personalize their own benefits choices as part of a workplace package is taking on more appeal, the study finds. Some 78% of workers say they would like a greater variety of benefits to choose from and 80% say it would be valuable to have benefits customized to their individual circumstances, or their age.
Most importantly, 60% indicated that they would be willing to bear more of the cost involved in order to have more personal benefits choices.
Even with strong employee support and enthusiasm, Katz says the survey indicates that employers themselves are less supportive of voluntary benefits being a cornerstone of their benefits strategy, with numbers dropping almost 10% since the 2012 survey.
“This shift in employer focus is somewhat unexpected,” Katz says. “But rather than a change in strategy, this is likely a result of employers being consumed by health care reform and other cost control strategies.”
Katz suggests that employers continue to consider the long-term goodwill and retention benefits of offering a solid array of voluntary choices.
“The employee satisfaction numbers make it clear that voluntary benefit strategies are paying off for employers and that attention should not be shifted from existing plans. Changing course now may have negative effects on loyalty and productivity in the future.”