Benefits Communications: Understanding Retiree Medical and Medicare Coverage

March 15, 2011

Over the past few weeks, I’ve been on a roadshow of workshops across the country, talking to groups of pre-retirees about health insurance coverage in retirement. These particular employees are very fortunate, since their company sponsors a group retiree medical plan, and actually still subsidizes a majority of the cost.

Even so, many of these employees still experienced sticker shock when they found out the cost of the medical coverage and had not even considered the impact on their retirement income. We also spent some time reviewing how much Medicare will cost, what it covers, and how their retiree health plan will coordinate with Medicare once they reach age 65. Continue reading “Benefits Communications: Understanding Retiree Medical and Medicare Coverage”

What HR Can Learn From American Idol: A Personal Account of the Most Brutal (and Effective) Interview Process I Ever Went Through

March 01, 2011

The other day, after a series of workshops on retiree health care for one of our clients, I decided I needed to unwind. It was time to rid my mind of HR issues completely, and enjoy some mindless entertainment. So, I’m in the hotel room flipping through the channels, when I come across the latest season of American Idol. The perfect way to unwind and get out of my own head! Or so I thought. It worked for about 10 minutes, then out of nowhere, it hit me: Continue reading “What HR Can Learn From American Idol: A Personal Account of the Most Brutal (and Effective) Interview Process I Ever Went Through”

Where Do Your Employees Stand Regarding Retirement Preparedness?

February 22, 2011

Employees are grossly unprepared for retirement, and employers are growing increasingly concerned about the cost of delayed retirement, which is estimated to be $10,000-$50,000 per year for every year an employee postpones retirement. The implications of this problem are huge, making it the second most pressing issue HR departments are facing, after health care. Continue reading “Where Do Your Employees Stand Regarding Retirement Preparedness?”

Benefits Planning: Employee Misconceptions

February 08, 2011

Over the past several months, I have observed quite a few common misconceptions that employees have voiced while we discussed their financial situation during a worksite financial coaching session. The first, and most surprising, is how unaware employees are regarding how their benefits compare to other companies, and that many think that the grass would be greener if they switched employers for a new job offer. Simply benchmarking your level of benefits to your specific industry can be a real eye-opener for your workforce and can be easily accomplished by communicating this information during open enrollment or at a benefits planning workshop. Continue reading “Benefits Planning: Employee Misconceptions”

Financial Education: Avoiding a Mega Millions Mess

January 25, 2011

Winning the lottery is every worker’s dream, but for Holly in Idaho that dream is about to become her nightmare. If you haven’t heard the story, Holly recently bought a winning lottery ticket worth $190 million. Who could be more lucky? How about her estranged husband, who heard about Holly’s jackpot from a reporter. Even though they have been legally separated for years, most attorneys are saying that the continued marriage means the husband gets half the winnings. If Holly tries to fight his claim, her winnings could be tied up in court for years and unfortunately she already quit her job 6 days after the winning numbers were announced. How could this mess have been avoided? Continue reading “Financial Education: Avoiding a Mega Millions Mess”

Workplace Financial Education: America Saves Week

January 18, 2011

America Saves Week 2011 is scheduled for February 20 to the 27^th. What have you planned to encourage your employees to take financial action through saving, debt reduction, and wealth building?

The American Savings Education Council (ASEC) first piloted America Saves Week in 2007, with the goals of:

Raising the profile of the savings issue and the need to save,
Helping and encouraging the public to assess their own savings, and
Providing concrete opportunities to save. Continue reading “Workplace Financial Education: America Saves Week”

Trends in Employee Benefits: In Plan Roth Rollovers

January 11, 2011

As if the Roth vs. pre-tax 401(k) contribution decision isn’t enough already to cause confusion for employees, now the IRS has allowed employers to offer in-plan Roth rollovers for eligible rollover distributions. As part of the Small Business Jobs Act of 2010, employees can take advantage of this opportunity for distributions made after September 27, 2010 if their employer adds the in-plan Roth rollover option through a plan amendment. Plan sponsors of a 401(k) or 403(b) were able to add the feature in late 2010, and a 457 government plan may adopt an amendment to include a designated Roth account for in-plan Roth rollovers after December 31, 2010. Continue reading “Trends in Employee Benefits: In Plan Roth Rollovers”

Financial Education in the Workplace: What a Difference a Few Years Make

January 04, 2011

I recently spent a few cold, snowy days meeting with employees in the Midwest counseling each of them regarding their retirement goals. I was surprised to hear quite a few employees were planning on early retirement, especially since we hear the trend is just the opposite because of our current economy. Continue reading “Financial Education in the Workplace: What a Difference a Few Years Make”

Financial Education in the Workplace: The 2% Decision

December 28, 2010

Now that our politicians have finally come to a decision about the new 2011 tax law, your employees have a decision of their own to make – what will they do with the 2% raise they will see in their paychecks? With the December 17th passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, employees will only pay 4.2% towards Social Security tax in 2011, instead of the traditional 6.2%. Continue reading “Financial Education in the Workplace: The 2% Decision”

Offering 529 Plans via Payroll as an Employee Benefit

December 21, 2010

Employers may be missing a tremendous opportunity to help employees save for one of the most important, and expensive, investments they will ever make – the college education for their children. We all know that one of the biggest advantages of an employer-sponsored retirement program is the automatic payroll deduction. “Out of sight, out of mind” is what I hear consistently from employees when they think about the funds that are contributed to their 401(k) plans. Continue reading “Offering 529 Plans via Payroll as an Employee Benefit”

End of Year Giving Ideas

December 14, 2010

The first frost has hit, so that’s a reminder to me to bring out my sweaters and winter attire in preparation for the cold weather ahead. I make a habit of setting aside some of my winter clothes that no longer fit or I haven’t worn for the last few years and give them to the local Goodwill, but I have to make a detour from my normal routine to get there. Continue reading “End of Year Giving Ideas”

Commit to Save and Retire Early

December 08, 2010

I just got back from a business trip where I sat down with employees to do some one-on-one financial planning. The main focus for the majority of the participants was retirement planning. I met with some employees who were just a few months out of college, and others who were a few months from retirement, so I’d like to share some of the perspective I gained during the trip. Continue reading “Commit to Save and Retire Early”

Finance as a Second Language

November 23, 2010

The ABCs of finance includes an alphabet soup of financial jargon and lingo that can be as confusing as a foreign language for some employees. Starting with abbreviations like APR, BRIC, ETFs, FSAs, HSAs, IRAs, and ending up with terminology like zero coupon bonds, it is no wonder that many employees give up on trying to figure out how to translate their benefits and investment options. It gets really confusing for employees that have a spouse that works for a government agency or a non-profit since the spouse’s 401(k) might actually be called a 403(b) or TSA. Continue reading “Finance as a Second Language”

Credit or Debit – Your Dependent Care Costs

November 16, 2010

Paper or plastic? Credit or debit? Common questions you hear at the grocery store, but do you consider what is the best way, credit or debit, when it comes to paying for dependent care? I don’t mean actually charging the cost to a credit card – what I am referring to is whether to take the tax credit at the end of the year on your tax return, or to have the funds withheld (debited) pre-tax from your payroll using the Dependent Care Expense Account. The best answer to this is based on what your marginal federal tax bracket is. Continue reading “Credit or Debit – Your Dependent Care Costs”

Core Competencies for Financial Literacy

October 19, 2010

Earning, Spending, Saving, Borrowing, and Protecting – these are the 5 core competencies that the Department of the Treasury’s Financial Literacy and Education Committee has proposed as what consumers should know and be able to do to successfully understand and make informed decisions about their personal finances. Each of these areas directly relate to your employees’ paychecks: Continue reading “Core Competencies for Financial Literacy”

Does Style Matter?

October 05, 2010

I recently experienced my 15 minutes of fame by being featured in the October issue of SmartMoney Magazine. I was so excited to pick up the edition from the newsstand and rushed to turn to the article. The writer had sat in on a retirement education workshop I had facilitated several months ago, so I was on pins and needles to see how my knowledge and overall presentation skills would be dissected. But instead of reading about my skills, the article goes on to describe in detail the outfit I wore that day, down to the paisley print of my skirt. Continue reading “Does Style Matter?”

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?”

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”