Open Enrollment – A Month or a Minute?

September 28, 2010

As we head into fall, employees will face major decisions during open enrollment:  which health plan to pick, adding supplemental life coverage, dental, and how much to set aside in next year’s FSA or HSA.  As an HR rep, you have probably devoted a substantial amount of time to put together your benefits communications and evaluating next year’s options.  But how much time do your employees dedicate to making their open enrollment decisions? Continue reading “Open Enrollment – A Month or a Minute?”

ESPPs: A Sale to Pass On?

September 21, 2010

I recently sat down with an employee to create a financial plan as part of a financial coaching benefit that his employer offered as part of their overall wellness program.  As we began discussing how he has his paycheck allocated, he told me about his 6% 401k deferral, his $50 HSA contribution, and his $50 a pay towards the employee stock purchase plan.  His last option caught my attention because it didn’t quite fall in line with his 2 primary financial goals – retirement and saving for his son’s college costs.  When I asked him why he had signed up for the ESPP, he said, “I’m buying them on sale!” since his employer gives a 5% discount to the stock price and no trading fees. Continue reading “ESPPs: A Sale to Pass On?”

Benchmarking: How Does Your Company Stack Up?

September 14, 2010

As our economy gradually starts to recover, employees may start to get the itch to see if the “grass is greener on the other side” and test the waters of the employment pool.  For the past few years, employees have understood why there were no pay raises, the rationale behind freezing the retirement plan match, and sometimes even a cut in hours – many have been grateful just to continue to get their paychecks.  But now, is there an increase in the grumbling and are employees starting to resent what they perceive as “taking one on the chin” for their employer? Continue reading “Benchmarking: How Does Your Company Stack Up?”

C U at the CEBS Forum?

September 07, 2010

I’ve just finished filling out the application to attend the 2010 CEBS Forum, will I see you there?  This year’s forum promises 3 days filled with timely and interesting topics, with healthcare reform high on the list.  I will be arriving on Sunday, so that I can participate with other recent CEBS graduates at the graduation ceremony.

Continue reading “C U at the CEBS Forum?”

Give Your Employees TLC by Spreading the Word on LTC

August 31, 2010

Most employees know every year to expect to make key decisions about their health insurance coverage, usually each fall.  But, are they aware that there are other critical decisions regarding voluntary benefits that may not even be subject to an open enrollment timeframe?

I recently facilitated a Retirement Readiness workshop for a group of pre-retirees in Chicago, where the biggest buzz centered around the group LTC policy available.  I try to encourage open dialogue during my financial education workshops, so when I began to talk about some of the risks in retirement, Continue reading “Give Your Employees TLC by Spreading the Word on LTC”

FSAs: Not so Flexible Anymore

August 24, 2010

Effective as early as next year, the IRS will begin to limit the advantages of the Flexible Spending Account (FSA) on two fronts.  First, a cap of $2,500 will be imposed for 2013 and later FSA contributions which will reduce the pre-tax savings for those who had previously contributed higher amounts.   Second,  over- the- counter (OTC) drugs and medications will no longer be eligible for reimbursement in 2011 unless accompanied by a doctor’s prescription or letter of medical necessity.  So items such as cough syrup, acne cream, pain relievers, diaper rash ointment, and other common OTC medications now need a doctor’s stamp of approval.  Continue reading “FSAs: Not so Flexible Anymore”

Retirement Lifestyle Issues: How to Fill the Days Ahead

August 17, 2010

From a retirement plan perspective, your employees may have a good understanding of their pension, 401k, and eligibility for retiree health insurance from your plan communication initiative.  Perhaps you even sit down with each pre-retiree to help them through the exit process.  But do you also discuss lifestyle issues with them?  Continue reading “Retirement Lifestyle Issues: How to Fill the Days Ahead”

Can You be the Hero?

August 10, 2010

All of us want to feel special.  Whether it’s helping the team score the winning goal, or simply helping someone with their groceries, it makes us feel good when we come to someone else’s aid.  But what if you could come to the aid of many people all at once?

Many companies offer great benefits that will help their employees, but many employees do not understand how to use these benefits to their fullest extent.  Continue reading “Can You be the Hero?”

Spouses – They Should Have a Voice too, Regarding Benefits

August 03, 2010

Flash back to last fall, the typical time for open enrollment at work and my husband is handing me his un-opened benefits packet for me to pick for him.  Sound familiar?  As with many couples, there is one who cares a lot about making these choices, and sometimes there is one who has no clue about the importance of this annual event.  I recently was counseling an employee regarding her retirement goals, and, as I normally do, I started asking about her husband’s retirement plan, how much he has saved so far, how much he defers, etc.  She got upset because she was not able to answer any of my questions! Continue reading “Spouses – They Should Have a Voice too, Regarding Benefits”

Health Savings Accounts for Health and Wealth

July 27, 2010

Can the Health Savings Account double as a retirement account?  In some ways it can and no one is talking about it.  Why?  We tend to look at things from our own perspective.  It is natural for employers to look at it through a health benefits angle and financial advisors who manage money tend to look at it from an investment point of view.  As financial educators, we look at benefits from the financial planning point of view.  We are looking at how employees can maximize all of their benefits not just ones we manage (because we don’t manage any).

Here is an example of how the HSA can serve two purposes:

I recently sat down with a 38 year old woman who was worried she wasn’t saving enough for retirement.  After running a retirement projection together based on her salary deferral to her 401(k), I unfortunately had to confirm her concern.  She needed to save about 5% more than her current 6% to get her to where she needed to be.

We started talking about where she could come up with the extra savings and she then mentioned she was maxing out her Health Savings Account (HSA), but was thinking about lowering her deferral Continue reading “Health Savings Accounts for Health and Wealth”

Are Target Date Funds a Good Idea?

July 20, 2010
Image courtesy of theilr/Flickr

There’s an awkward moment in virtually every conversation I have with HR executives about retirement plan education when they ask the question they’ve been waiting all meeting to ask:

“What do you think of target funds?”

(Translation: “We have target date funds in our plan, we used to think they were a great idea, but they’ve performed terribly and employees don’t seem to understand them. Now I’m wondering if we made a big mistake.”)

Continue reading “Are Target Date Funds a Good Idea?”

Does Your Wellness Program Include a Wealth Factor?

July 13, 2010

I just got off the phone today with an employee who remembered a quote I had made during a recent Retirement Readiness workshop he had attended where I talked about the 3 ingredients to a secure retirement – Health, Wealth, and Happiness. I was so amazed he remembered it, but he said he had never thought about how his health could impact his retirement, and it had really struck a chord with him. Our health is very important, since all the money in the world can’t buy back our physical well-being. However, our finances DO have an impact: money problems are the number one cause of stress and stress-related illness.

Continue reading “Does Your Wellness Program Include a Wealth Factor?”