For Employers, Vendors are Key to Strategic Absence Management

By Marjory Robertson, AVP & Senior Counsel and Abigail O’Connell, Senior Counsel, Sun Life Financial

When employees need to step away from work — whether to welcome a new child, care for a family member, or another life event — protecting their jobs and benefits, understanding their rights, knowing whether their employers will pay part or all of their absences, and meeting paperwork deadlines and other obligations is often overwhelming. If they work for an employer without a consolidated absence approach, they also will be required to contact separate entities for different benefits and entitlements. Workers may be calling their HR team to file their Family & Medical Leave Act requests, and contacting their insurance carriers to file claims for short-term disability benefits.  There is a lot to manage when it comes to employee leave, and it can be a heavy burden on employers.

Employee Absences Can Be Overwhelming for Employers

Legal requirements regarding leaves of absence (paid and unpaid) and workplace accommodations are changing at breathtaking speed. Employers’ human resources staff do not have the time, personnel, or expertise to ensure they are complying with the various requirements of the FMLA, the Americans with Disabilities Act, and the increasing variety of federal, state, and local paid and unpaid leave laws.

Further, the consequences of noncompliance for employers are very serious, ranging from government investigations by the Equal Employment Opportunity Commission or the Department of Labor to individual lawsuits by employees.

More employers are choosing to outsource their leave management to their disability provider. In fact, according to a 2017 leave management survey by the Disability Management Employers Coalition, 88 percent of employers who outsource their leave management do so with their disability insurers. They have expert legal and compliance personnel and systems who help employers ensure compliance with this myriad of changing leave and accommodation laws. Moreover, insurance companies want to partner with employers to evaluate and handle complex leave and accommodation issues and challenges. Their knowledge, skills, systems, and staff help employees receive the benefits they need quickly, and prevent FMLA and ADA abuse, including the challenging management of intermittent FMLA leave.

Vendors Can Ease the Burden of Employee Absence

To streamline the employee and employer experience, many companies select one vendor to administer paid and unpaid leave, absence, and disability benefits. A consolidated approach enables both employees and HR managers to contact one entity for information about their rights and obligations concerning multiple benefits and entitlements, like short-term disability, FMLA, and ADA/ADAAA accommodations.

In many situations, both the FMLA and the employer’s STD policy may cover an employee’s absence, enabling the disability carrier to make determinations based on a single employee claim form. Employers and managers receive consolidated reporting showing the status, dates, and timelines for employee absence to support workforce planning.

Vendor Expertise Can Help Target Plans to Boost Engagement

With one vendor, employers can incorporate and administer company paid (and unpaid) leave plans and programs alongside absence management programs and disability insurance. For example, the vendor may highlight an aspect of the employer’s employee assistance program based upon the employee’s particular absence reason, or remind the employee of a duty to report to his or her supervisor based on the employer’s usual and customary call-out requirements. More and more employers are offering paid paternal and/or family leaves. Insurers can administer these leaves along with the unpaid statutory leaves and also ensure that employer-sponsored paid leaves are coordinated with the increasing number of state paid family and medical leave laws.

Program Efficiency, a Great Benefit of Outsourcing

Through their disability insurance provider, the employer may gain efficiency by setting up a single-file feed and vendor agreement. The employer’s staff may also become more efficient by outsourcing absence administration. Additionally, using an outside administrator limits risk of exposure to employee personal health information; employees will appreciate not having to provide sensitive medical information to their manager or HR. The provider can become a trusted partner to provide collaborative and consultative guidance on a range of complex compliance and administrative issues.

Some Highlights:

  • Disability insurance carriers have decades of experience in managing absences, accommodations, and claims related to an employee’s own medical conditions, and for other leave reasons authorized by law or by an employer-sponsored leave plan.
  • Insurance carriers hire expert claims, vocational, and legal staff who can properly evaluate eligibility for leave and benefits, and administer the claims and accommodations in a seamless and integrated manner that best serves employers and employees alike.
  • Disability carriers offer client-friendly services, including timely processing of claims for leave and/or disability, integrated management of leave and disability claims, detailed reporting on leave and disability incidence rate, and timely and helpful communications with both the employer and affected employees.
  • Insurers have made – and will continue to make – substantial investments in legally-compliant claims and leave technology to meet evolving needs. They also maintain strict data privacy and cyber security standards.

Engage your disability provider for help with your absence and leave management policies. From providing support tools to navigating the nuances of leave protocols and maintaining compliance, your insurer can support you and your employees throughout their leave duration.

For more on paid leave and your paid leave strategy, tune into the CDA podcast, with Carol Harnett, Abigail O’Connell and Marjory Robertson.




Time to Invest in You: Ways to Make Your Retirement a Reality

By Rachel Barrow, AVP Marketing, Individual Markets, Guardian Life Insurance Co. of America®

Dreaming about retirement may bring to mind relaxation, travel, and leisure time. Many people find, though, that planning for it can be stressful – but it doesn’t have to be that way. If open enrollment time has you thinking about how you’ll fund your retirement, you’re not alone. A recent survey by the Employment Benefit Research Institute1 shows that retirees are less confident than they were last year that they will have enough money saved for basic expenses, health care, or long-term care.

How can you face the future with more confidence? Look for resources to help you chart this path. Turn to your current employer for help; Guardian’s 5th Annual Workplace Benefits Study,2 Small Business, Big Benefits, states that over 44 percent of small businesses are increasing employee financial education over the next five years to help employees make better benefits decisions. Or, make a plan that’s focused on what you feel will matter most to you in retirement (family, lifestyle, relationships, health, etc.), seek out the best retirement strategies and products and, most of all, invest in yourself. It can help you go a long way toward making your second act (retirement) a reality.

Plan with care

As you start considering your retirement plan, it helps to look at how certain financial products can help you reach your goals. Whether those products protect future income, help cover future care, protect your earning ability from the possibility of premature death, accidents, or long-term illness, or provide for market-related growth opportunities, having a well-rounded package of products may make a difference.

To create the best retirement strategy, you need to balance having the right products in place, while recognizing some of the issues you may encounter along the way. Keep these ideas in mind while you are planning your future:

  • Keep up with your defined contribution (DC) plan: Open enrollment is an excellent time to increase how much money you’re saving, but you can ordinarily do it anytime throughout the year (based on your plan’s provisions). Many retirement planners underestimate the amount they will need to maintain the standard of living they want. Remember to account for inflation, health care costs, and unexpected expenses you may encounter.
  • Keep a diversified investment portfolio: As you examine your investment choices during open enrollment, remember the benefits of a diversified selection of investments. Even if your investment choices get more conservative as retirement approaches, you may not want to avoid stocks entirely. After all, keeping pace with inflation can help your nest egg retain its purchasing power. See your financial advisor to discuss how you feel about risk and your retirement income goals.
  • Have realistic retirement income goals: The old rule of thumb is that you will need 80 percent of your annual pre-retirement income, because of the (assumed) reduced cost of living in retirement, including the possible elimination of mortgage payments. But when you factor in health care costs, dining out, travel, and pursuing other passions, this amount may not be enough for you. Take the time to do the math and don’t be shy to get help from a financial professional.

Explore your options and mind any gaps

After you do your calculations, if you find your projections mean you may be falling short of your retirement income goals, don’t despair. Whether you feel you’ll have a shortfall in your retirement budget or are just trying to find solid, reliable sources to pay future expenses, focusing on guaranteed monthly income can help.

Many experts agree. For instance, Robert Merton (MIT professor and co-recipient of the 1997 Nobel Memorial Prize in Economic Sciences) wrote in Harvard Business Review3 that people should focus their retirement planning on monthly income instead of trying to find a magic number of how much they’ll need in total retirement savings.

What are the sources of guaranteed income that can help you produce the monthly retirement income you’ll need? Some will be familiar to you; others may not be. But it’s worth taking a close look at guaranteed income, the products that provide it, and how they can be an essential source of monthly retirement income:

  • Social Security: Just about everyone knows about Social Security, but how much do you think you’ll receive? Visit the Social Security Administration’s Retirement Estimator4 to find out. When you see your estimated future benefit, keep in mind that Social Security generally only accounts for part of most people’s retirement income – and that your future benefits are not (at this point in time) guaranteed.
  • Company Pensions: If you’re lucky enough to work for an employer that offers a pension plan, be grateful. Once a major source of guaranteed retirement income, employer-sponsored pensions are not a common benefit offering today.
  • Bonds and CDs: These investments give predictable (if not absolutely guaranteed) returns, with possible tax advantages, and can help round out your investment portfolio. Their rates of return can be somewhat limited, however.
  • Annuities: By paying an insurance company a specified amount of money, you can receive regular payments for a set amount of time, or for life. There are many different types of annuities that can establish cash flow now (immediate annuities) or later (deferred annuities) – at fixed or variable interest rates.

Invest in yourself

Budgeting for your retirement can seem like a daunting task, but making a plan is the first step. Pause, build a checklist of tasks for yourself, and check off each one as you complete it. It also helps to consult a financial professional, who can help you identify your unique retirement vision – and the steps you can take to help yourself achieve it.

Each person’s plan will be different. The important thing is that you take the time to invest in your own future. You may find that it not only alleviates stress, but also helps you take the first step toward achieving the retirement of your dreams.

Rachel Barrow leads the Product Marketing team for Individual Markets at The Guardian Life Insurance Company of America®. She has been with Guardian since 2009 and in the insurance business for over 20 years. Her team produces educational tools and resources focused on strategies to help individuals, families and small business owners achieve financial security.

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1 Employee Benefit Research Institute (2018, April 24). 2018 Retirement Confidence Survey. Retrieved from: https://www.ebri.org/docs/default-source/rcs/1_2018rcs_report_v5mgachecked.pdf?sfvrsn=e2e9302f_2

2 5th Annual Workplace Benefits Study (2018, October 15), Small Business, Big Benefits. https://www.guardiananytime.com/gafd/wps/portal/fdhome/insights-perspectives/emerging-trends/small-business-benefits-study

3 Merton, Robert C. (2014, July-August). The Crisis in Retirement Planning. Retrieved from https://hbr.org/2014/07/the-crisis-in-retirement-planning

4 Social Security Administration. How the Retirement Estimator Works. Retrieved from https://www.ssa.gov/benefits/retirement/estimator.html




“I’ll take a 50% cut in pay, and I’m cool with downsizing my retirement” – Said No Employee, Ever

By Tom Charla, Director and Tara Reynolds, Corporate Vice President, MassMutual

Most employees have figured out that the safety nets previous generations enjoyed — job security, pensions, even Social Security – can’t be relied on the way they have been in the past. They know that when it comes to reaching their financial goals, especially the goal of a comfortable retirement, they are pretty much on their own.

At the same time though, employees are expecting, even requiring, that their employer — the same one that no longer provides much of yesterday’s safety nets – make available the benefits, financial planning and educational opportunities needed to make informed choices about their future. Your employees and colleagues are counting on you to help them understand what action they most need to take next, especially during open enrollment season.

How do employees define “financial well-being?”

As an employer, you can distinguish your company and provide peace of mind by offering benefit options that closely align with your employees’ overall financial well-being. Today, financial well-being (aka ‘financial literacy’ or ‘financial wellness’) is a bit of a buzzword, so it helps to define what it means. According to the Consumer Financial Protection Bureau, financial well-being is achieved when an employee is able to:

  • Manage day-to-day and month-to-month expenses
  • Absorb a financial shock
  • Stay on track to meet their financial goals, and
  • Make financial choices that let them enjoy life

Now vs Later… and Everything In-Between

The CFPB definition calls clear attention to both the short and long-term considerations to achieving financial well-being. At the same time, with 78 percent of all workers living paycheck-to-paycheck1, longer-term plans often fall by the wayside. Without having a long-term financial view, employees may make money mistakes with long-term consequences — such as making withdrawals from their retirement accounts — to address a short-term concern.

As hard as it is to balance priorities, it’s even more devastating for individuals and their families when they get caught short by overlooking the financial and emotional damage that a potential disability can cause when adequate disability income insurance (DI) coverage is not in place. A disability of any significant duration can result in immediate lost income, as well as the inability to continue to save for retirement.

For the employer, having an adequately protected employee can be very beneficial for the business as well, especially if that disabled employee comes back to work. A recent survey conducted by MassMutual found that business owners believed that over 40 percent of their employees would not be able to retire on time (traditional retirement age) because of inadequate savings. The inability of employees (including those who returned to work after a disability) to retire on time can have long term impacts on the business itself. Increased future payroll and benefit costs, delayed succession plan implementation, and even a potentially lower perceived value of a small business when it’s time to sell, can all be the result of employees having to work past retirement age.

 What are the chances?

For many people in the workforce, and for their employers, it’s hard to predict when and how a disability will strike. Yet with today’s 20-year olds facing a 1 in 4 chance2 of becoming too sick or hurt to work before they reach age 67, a disability that could keep them out of work for an extended period can happen at any time. As employees age, the risk of a disability naturally increases. That’s because most long term disabilities, about 90 percent, are caused by a sickness, not a catastrophic injury3. As employees age, so do their chances of a prolonged illness due to cancer, musculoskeletal or nervous system disorders.

When you review your benefits package and align it with the CFBP definition, you’ll quickly see that DI is one of only a few benefits that can have a direct impact on all four parts of an employee’s financial well-being. And it’s in this analysis that we start to uncover how devastating a disability can be, even for an employee who may have dutifully saved for retirement up until the time of their disability.

A comfortable retirement is most everyone’s long-term financial goal

When an employee becomes disabled and can’t work for an extended period of time, managing for the short-term is critical. Retirement balances can get tapped for more pressing day-to-day necessities, or to cover increased medical costs, hiring additional help, home safety accommodations, etc.

However, managing for the long-term is equally important. It’s hard enough to deliver the news to an employee that their group long term disability coverage may replace only roughly half their paycheck (after taxes) at a time when their expenses likely will skyrocket. You will have to help them understand that their ability to contribute to the employer sponsored tax-advantaged retirement savings account – including any company matches – will no longer be available to them. And this realization may occur just at the time they are tapping into their retirement balances to help make ends meet. Do you relish breaking the news of a big pay cut and a major hit to your employee’s retirement account?

Individual DI policies, such as those from MassMutual, have an option for an employee to continue saving for retirement in addition to protecting a larger portion of their income. This allows an employee whose life has been interrupted by a disability to be confident that they can continue to fund some aspect of their future retirement, especially knowing that their disability income payments cease at the end of the disability benefit period (and certainly no later than at their normal retirement date.)

DI can set you apart

You know the right benefits package can help you attract and retain the best talent for your company. So it makes sense to offer benefits that employees want. According to 2018 MassMutual Workplace Benefits study, 78 percent of employees identified DI as a benefit they would be interested in, and almost as many – 74 percent – would like to have a benefit that provides continued retirement savings protection while the employee is disabled.4

But benefits packages are more than just employee retention tools; they reflect who you are and what you believe. When you offer your employees DI, you demonstrate that you want them to be financially well for the short and long-term. This approach to benefit planning also helps you position your company as one that cares about its employees, and is actively seeking to offer tools and programs that are in the employees’ best interest. That’s a message all of us can get behind!

1Career Builder / Harris online poll conducted June 2017

2 US Social Security Administration, Fact Sheet 2018

3 The 2014 Council for Disability Awareness Long Term Disability Claims Review

4 Survey conducted for MassMutual by Greenwald & Associates in 2017




SSDI lacks rehabilitation resources

By Ted Norwood, General Counsel & Director of Representation, Integrated Benefits Inc.

SSDI has poor resources for vocational rehabilitation or job placement, and no resources at all for claimants during the wait for a decision. This makes it harder for people to recover and get back to work.

Because of the long wait, many claimants miss out on vital windows to improve their chances of recovery and return to work. By the time the SSA awards disability payments, many claims are permanent due to the effects of such a long layoff and the lack of rehabilitation resources.

Certainly, SSDI can provide income to your disabled employees, but relying on it leaves them with a long wait and long odds, making it less likely they will be able to rejoin your team or find alternative work.

SSDI is not all bad news for employers

Although SSDI does not do much for employers on its own, it is certainly better than nothing. It does eventually provide Medicare and annual cost of living adjustments (COLAs) for disabled claimants.

Those are important benefits, as many employees lose their health insurance during the wait for SSDI. Annual COLAs help people with disabilities keep up with the economy. Every bit matters once workers are on a fixed income.

Despite its problems, the SSDI program is a successful program designed to help protect American workers. Still, there is one more major advantage SSDI provides to employers.

SSDI acts like a subsidy to group long-term disability insurance, making disability policies affordable and an excellent value.

Group long-term disability policies protect employees from the disadvantages of SSDI.[1]

  • These LTD policies usually start with an own-occupation period of two years, allowing the employee to receive benefits immediately.
  • Group LTD policies can be structured to pay higher benefits than SSDI does.
  • Group LTD policies have better opportunities to provide vocational rehabilitation and return to work services.
  • Plus, most insurers will provide a lawyer for claimants to assist with their SSDI applications.

Although claimants often cannot double dip LTD and SSDI, SSDI still provides them with health insurance and cost-of-living adjustments. These benefits are the real opportunity SSDI provides for employers.

[1] https://www.consumerslife.com/EmployersCLIC/Products-for-Employers/Group-Long-Term-Disability-Insurance.aspx ; https://www.policygenius.com/disability-insurance/learn/long-term-disability-insurance-faqs/




How disability insurance can be part of your paid leave and absence management strategy

By Marjory Robertson, AVP & Senior Counsel and Abigail O’Connell, Senior Counsel, Sun Life Financial

When employees need to step away from work — whether to welcome a new child, care for a family member, or another life event — protecting their jobs and benefits, understanding their rights, knowing whether their employers will pay part or all of their absences, and meeting paperwork deadlines and other obligations is often overwhelming. If they work for an employer without a consolidated absence approach, they also will be required to contact separate entities for different benefits and entitlements. Workers may be calling their HR team to file their Family & Medical Leave Act requests, and contacting their insurance carriers to file claims for short-term disability benefits.

Absence can also be overwhelming for employers

Legal requirements regarding leaves of absence (paid and unpaid) and workplace accommodations are changing at breathtaking speed. Employers’ human resources staff do not have the time, personnel, or expertise to ensure they are complying with the various requirements of the FMLA, the Americans with Disabilities Act, and the increasing variety of federal, state, and local paid and unpaid leave laws.

Further, the consequences of noncompliance for employers are very serious, ranging from government investigations by the Equal Employment Opportunity Commission or the Department of Labor to individual lawsuits by employees.

More employers are choosing to outsource their leave management to their disability provider. In fact, according to a 2017 leave management survey by the Disability Management Employers Coalition, 88 percent of employers who outsource their leave management do so with their disability insurers. They have expert legal and compliance personnel and systems who help employers ensure compliance with this myriad of changing leave and accommodation laws. Moreover, insurance companies want to partner with employers to evaluate and handle complex leave and accommodation issues and challenges. Their knowledge, skills, systems, and staff help employees receive the benefits they need quickly, and prevent FMLA and ADA abuse, including the challenging management of intermittent FMLA leave.

Using one vendor for absence and disability can simplify absence for employees and employers

To streamline the employee and employer experience, many companies select one vendor to administer paid and unpaid leave, absence, and disability benefits. A consolidated approach enables both employees and HR managers to contact one entity for information about their rights and obligations concerning multiple benefits and entitlements, like short-term disability, FMLA, and ADA/ADAAA accommodations.

In many situations, both the FMLA and the employer’s STD policy may cover an employee’s absence, enabling the disability carrier to make determinations based on a single employee claim form. Employers and managers receive consolidated reporting showing the status, dates, and timelines for employee absence to support workforce planning.

A vendor can promote company offerings in a targeted manner to drive usage

With one vendor, employers can incorporate and administer company paid (and unpaid) leave plans and programs alongside absence management programs and disability insurance. For example, the vendor may highlight an aspect of the employer’s employee assistance program based upon the employee’s particular absence reason, or remind the employee of a duty to report to his or her supervisor based on the employer’s usual and customary call-out requirements. More and more employers are offering paid paternal and/or family leaves. Insurers can administer these leaves along with the unpaid statutory leaves and also ensure that employer-sponsored paid leaves are coordinated with the increasing number of state paid family and medical leave laws.

Consolidated administration drives efficiency

Through their disability insurance provider, the employer may gain efficiency by setting up a single-file feed and vendor agreement. The employer’s staff may also become more efficient by outsourcing absence administration. Additionally, using an outside administrator limits risk of exposure to employee personal health information Employees will appreciate not having to provide sensitive medical information to their manager or HR. The provider can become a trusted partner to provide collaborative and consultative guidance on a range of complex compliance and administrative issues.

Help is available

Disability insurance carriers have decades of experience in managing absences, accommodations, and claims related to an employee’s own medical conditions, and for other leave reasons authorized by law or by an employer-sponsored leave plan.

Insurance carriers hire expert claims, vocational, and legal staff who can properly evaluate eligibility for leave and benefits, and administer the claims and accommodations in a seamless and integrated manner that best serves employers and employees alike.

Disability carriers offer client-friendly services, including timely processing of claims for leave and/or disability, integrated management of leave and disability claims, detailed reporting on leave and disability incidence rate, and timely and helpful communications with both the employer and affected employees.

Insurers have made – and will continue to make – substantial investments in legally-compliant claims and leave technology to meet evolving needs. They also maintain strict data privacy and cyber security standards.

Engage your disability provider for help with your absence and leave management policies. From providing support tools to navigating the nuances of leave protocols and maintaining compliance, your insurer can support you and your employees throughout their leave duration.

For more on paid leave and your paid leave strategy, tune into the CDA podcast, with Carol Harnett, Abigail O’Connell and Marjory Robertson.




Beyond medical: How supplemental benefits help attract and retain talent

By Phil Bruen, Vice President, Group Life and Disability Products, MetLife

As the annual enrollment period takes place in workplaces around the United States, human resources teams and employees have benefits on their minds. During this time, it’s important for employers to educate their workforces on how the benefits they provide can help workers achieve their short- and long-term financial goals.

To do this, employees should use the information their company provides related to benefits and also seek guidance from those they trust most. Doing so, even more so than a major life event, can cause individuals to not just evaluate, but act on benefits that meet their needs.

Employers who are competing for the best talent find that providing benefits to support the financial well-being of their workforce is necessary. According to MetLife’s 16th Annual Employee Benefit Trends Study (EBTS), less than half of workers believe their employer understands their personal financial pressures.

The benefits offered to employees during their annual enrollment period go well beyond basic health insurance. Products such as dental and vision insurance, accident and critical illness coverage, and disability insurance provide additional financial support for costs beyond what medical insurance covers. Workers need to view all employee benefits as a critically important part of their health and financial wellbeing. Their benefits package is necessary to protect employees’ life goals, such as purchasing a home or sending children to college.

Why peace of mind matters

The recent MetLife study revealed that employees use their benefits to fulfill a need greater than a visit to the dentist or a more affordable way to get glasses. On the whole, today’s workforce relies on their benefits as a financial safety net—benefits give them peace of mind.

For example, 71 percent of employees say their benefits help them worry less about unexpected financial or health issues. Additionally, 65 percent say their non-medical benefits help limit their out of pocket medical expenses. Understanding these deeper advantages of benefits helps HR leaders serve employees better. It also pays off for companies as well as our research shows that benefits increase employee loyalty, engagement and even productivity.

But for many companies, the big question is how to offer more benefits without incurring outsized expenses. The answer rests in creating options for employees to customize their benefit offerings. The good news? Employees are ready to help, since 60 percent said they’d like their employer to offer a wider array of benefits that they can choose to purchase.

Getting beyond medical

When you think outside of the traditional health insurance box, some of the most important and sought after benefits fall into these three categories:

1. Disability insurance and income replacement. More than one in four adults who are currently 20-years-old can expect to be out of work for at least a year because of a disabling condition before they retire.[1] And yet less than half of Americans report they have enough savings to cover even three months of their living expenses.[2] Providing an option for short- and long-term disability insurance offers employees a simple way to keep unexpected events from turning into financial disasters.

2. Supplemental health benefits. Today’s employees want and need a solid health insurance plan. But for most individuals and families, that’s only a component of their overall healthcare. For example, 53 percent of employees consider dental insurance a “must-have,” and 37 percent say the same about vision care. Other key offerings that employers can consider include hospital indemnity, critical illness, and accident insurance, all of which supplement health plans, and provide employees with additional financial resources when they may need them most.

3. Retirement and financial wellness. Nearly three-quarters of employees report that saving for retirement is a priority—and nearly half say they’re already concerned about outliving their savings, according to the 2018 MetLife research. Traditional employer-sponsored retirement plans certainly provide the financial security and savings that employees want. But additional benefits such as lifetime income solutions, life insurance products and financial planning, and education services work to strengthen overall benefit plans and give workers additional ways to prepare for retirement.

In an increasingly competitive job market, employee benefits truly help elevate companies in the minds of their current employees—as well as the people businesses want to attract and retain. As HR executives find creative ways to build out their benefits, they also prepare their businesses and workforce for a better future.

[1] Disability Statistics, The Council for Disability Awareness, http://disabilitycanhappen.org/overview/ accessed September, 2018

[2] Chances of a Disability, Ibid, The Council for Disability Awareness, http://disabilitycanhappen.org/disability-statistic/ updated March 28, 2018

Looking for more information on supplemental benefits? Join Phil Bruen and Carol Harnett as they discuss consumer strategies this open enrollment season on the CDA’s BlogTalkRadio.




US employers doubt employees’ ability to achieve a financially secure retirement

Only 16 percent of employers are “very confident” their employees will be able to achieve a financially secure retirement. This statistic was brought to light thanks to a recently completed survey titled Striking Similarities and Disconcerting Disconnects: Employers, Workers, and Retirement Security, by nonprofit Transamerica Center for Retirement Studies (TCRS).

Given the large role employers play in this field, the statistic is alarming, yet it does correspond with the 18 percent of employees who are “very confident” they’ll be able to fully retire with a comfortable lifestyle.

The TCRS 18th Annual Retirement Survey, released August 21, 2018, looked at 1,825 employers for for-profit companies with five or more employees. The goal? To learn how these companies are helping employees prepare for retirement. The study also provided some context by comparing employer findings with TCRS’ survey of 6,372 workers.

Getting into specifics, the survey outlined a number of ways employers are out-of-sync with workers in both their perceptions and business practices. For example, many workers plan to work past age 65, but employers and employees in the like are unsure if the employer will support them.

In addition, just 20 percent of employers offer a formal phased retirement program, although 47 percent of workers surveyed envision a phased transition that includes reducing work hours or working in a different capacity that’s less demanding.

The survey also took a closer look at the current state of 401(k)s and opportunities to enhance retirement security. Catherine Collinson, CEO and president of TCRS, reiterated that 401k opportunities continue to be an effective way to facilitate long-term savings among workers.

However, “not all workers have equal access,” Collinson said. “For example, large companies typically provide more robust benefit offerings than their small business counterparts.”

The study examined the current state of 401(k)s and other benefit offerings by small (5 to 99 employees), medium (100 to 499 employees), and large companies (500+ employees).

Other key findings included that retirement plan sponsorship rates increase with company size, most non-sponsors are not planning to offer a plan, and few part-time employees are eligible to participate in these plans.

Additionally, adoption of automatic enrollment, surprisingly, is low. Although 81 percent of workers find automatic enrollment appealing, only 22 percent of plan sponsors have adopted automatic enrollment, including 28 percent of both large and medium companies.

 

 

 




7 ways to keep employee benefits top of mind

HR works hard to find the best benefits program for employees and then communicate the “benefits of the benefits,” so to speak. But sometimes, even with the best of intentions, the information falls on deaf ears – or blind eyes. In fact, one recent study found that less than half of employees know what benefits are available to them, and yet nearly the same percentage said they would consider leaving their current job because the benefits are inadequate.

That means that HR has a job to do to keep their benefit offerings fresh in employees’ minds.

Follow up shortly after onboarding.

The first day can be a whirlwind for employees who are meeting new faces and receiving a barrage of information from everyone from their manager to, yes, the HR team. But think about it – new people who don’t even yet know where the copy machine is probably aren’t paying as much attention as they should to the benefits package, especially lesser-known programs like disability insurance. Naturally there is some paperwork they have to sign right away, but after that, give them a couple of weeks to settle in and then resume the benefits discussion. They might be much more tuned in once they’ve figured out the basics of their job.

Upgrade your website.

No longer do you have to depend on explaining your benefits program via a sheaf of papers that employees stow in their desks, never to see again. Chances are good your website probably already has the information, but is it easy to access and intuitive? The interface should be easy to read so that employees can visit and find what they need without endless scrolling or clicking. Consider talking to a web designer – either in-house or a contractor – who can help you design your website with marketing best practices in mind. After all, marketing your benefits (and by extension, your company) is exactly what you’re doing.

Present information in different ways.

Some of us love to read. Some of us love in-person presentations. Younger generations like millennials are all about the visuals. So even though it might entail a little extra work, commit to creating your materials in several different formats so you are bound to reach employees in the way that works for them. This strategy even has a great name – COPE (Create Once, Publish Everywhere).

Use multi-channel options.

In addition to different formats, you’ll want to distribute the information using different channels. A short text might remind employees that open enrollment is coming up. An email can provide detailed links to a wide variety of benefits. Your social media platforms can show some of your more “fun” benefits being used, such as employees taking a noontime walk as part of your wellness initiative or a group enjoying a team-building activity. Not only will social media remind employees of what’s available, but it also paints your company positively to others who are following your channels.

Ask for feedback.

Wondering what employees think of your benefits? A survey is an ideal way to get feedback with suggestions that can help you fine-tune your offerings, and it can identify what benefits employees don’t know about yet so you can determine where more communication is needed. It also allows you to raise awareness of some lesser-known programs; employees might not even realize how many programs you offer until they read about them on the survey.

Set up a hotline.

Have a dedicated number that employees can call if they have questions (and make sure someone returns the calls diligently if they leave a message). Call attention to the number by playing a game and awarding a $5 coffee card to any employee who knows the number when you ask them.

Pay them to learn more.

What? Why would you do that? Well, because it works, found Pierre-Renaud Tremblay, director of human resources for steam cleaning products company Dupray. Dismayed by a dismal 12 percent open rate on his emails, he upped the ante by developing online quizzes covering the material from the emails, offering gift certificates for employees who scored well, Forbes reports. He found his email open rate skyrocket to up to 95 percent.

And if more information about benefits helps satisfy employees, which contributes to retention, it will be money well spent.




Relocation and your social security disability insurance: Your questions answered

Part of the American dream is being footloose and fancy free…and whether you are relocating to be nearer family, to find a place with a lower cost of living or just to see some new scenery, you probably will move at some point in your lifetime.

But in the midst of the goodbye parties, the packing and the moving, don’t neglect important tasks that are necessary for your financial well-being. And chief among them should be making sure that you have taken care of your Social Security Disability Insurance (SSDI) or SSI (Supplemental Security Income) benefits before you relocate.

Here’s everything you need to know for a smooth move.

What is the difference between SSDI and SSI?

First, it’s important to know which of these programs you use. SSDI is the program that provides payments to those who are disabled or blind who qualify due to their work history – they have worked in jobs where they have paid FICA benefits.

SSI is a need-based program that makes payments to the elderly, blind and disabled who have limited incomes.

Will I have to reapply for SSDI and SSI if I move?

The good news is that it doesn’t matter if you move across town or to another state: You won’t have to for reapply these programs, which are overseen by the federal government, rather than individual states. That makes it easy for you to carry it over even if you move across the country.

However, whether you receive SSDI or SSI, you do need to make sure that you have changed your address so they know how to reach you should there changes to your benefits or other paperwork you need to file to remain eligible.

If you receive SSI, there’s another factor to consider — there could be a change to your payment based on what state you live in. That’s because most beneficiaries (except those who live in Arizona, Mississippi, North Dakota or West Virginia) also receive a state supplement. The amount varies by state, so when you move, you then qualify for your new state’s supplement, rather than your previous one. (You can find more details here.)

Also, some states disburse their own state supplements while others are handled by the Social Security Administration. If your old state and new state are both administered by the SSA, then there should be no lapse. But if you are moving to a state that administers its own supplemental program, you’ll need to apply in that state.

There also may be changes based on your living situation; i.e. if you are moving in with additional housemates who are covering part of your food and housing, your benefits may be reduced.

When should I contact the government about my change of address?

Don’t delay…you’ll want to put this on your “to do list” right away. If you are receiving SSI, you need to report the new address within 10 days after the month the change occurs so they can adjust your state supplement. Otherwise you might receive less than you are owed or too much – in which case you will have to refund the money — and you also might be charged a penalty.

The good news is you can handle it with a simple phone call to the Social Security office at 800-772-1213 or online here.

What other disability insurance might I qualify for?

Most people find that the amount they would receive from the SSDI or SSI benefits is not adequate to cover all their financial needs. That’s why it’s important to sign up for a group or individual disability policy that will protect your income and provide financial security if you should become disabled.

While it’s not fun to think about, the truth is that disability is far more common than one might think…in fact, nearly 25 percent of those who are 20 years old today will be out of work for at least a year due to a health condition before they reach retirement age.

If you have to stop working temporarily or permanently, disability insurance will kick in – providing the paycheck protection you need to ensure that your bills remain covered.




New Parents Often Make These Financial Mistakes

New Parents Often Make These Financial Mistakes

You have made the decision: You are going to have a baby. Or maybe you did not make the decision, but you are going to have a baby nonetheless. Baby showers, potential schools, preparing the nursery, prepping for three hours of sleep, and endless discussions about the philosophy of raising your child ensue.

Everything seems to be discussed and on the way towards resolution. Oops, forgot something. Finances. Well, you have plenty of time to discuss in the future, right? Nope. Without deep, anticipatory discussions and planning you may be walking headlong into any number of common financial mistakes new parents often make.

To guide your financial discussions, we have prepared an abridged listing of financial mistakes.

These discussions may not be as pleasurable as choosing nursery colors, but they will help you avoid putting your long-term financial security at risk.

Five Common Financial Mistakes New Parents Make  

Lack of Emergency Savings

Unexpected bills pop up. The pop up even more frequently when there is a baby involved. Therefore, it is important to have three-to-six months of salary socked away. Emergency funds aren’t just for new parents, they are foundational for all people looking to be financially responsible.

Lack of Life Insurance

Few want to talk about it, but permanent life insurance for children is a responsible investment. Here are four reasons to consider it.

  • It may Keep Your Family Out of Major Debt

The average funeral costs $8,000-$10,000, not to mention nearly half of American families say they don’t have even $400 on hand for an emergency.

  • It Provides a Financial Safety Net

Permanent life insurance such as whole life accumulates cash value at a guaranteed rate while the policy is in effect.

  • Coverage for Children Will Never Be More Affordable

The younger a child is when coverage starts, the lower the rate.

  • Life Insurance Protects Insurability

Whole life coverage protects children against an unexpected accident or illness, currently and in the future.

Lack of Disability Insurance

Who is the main bread winner in the house? What would happen if this income lifeline suddenly stopped due to a long-term disability? Are you financially prepared?

Without an income, you would quickly burn through your savings. The worry over your new baby would become overwhelming.

One of the worst parts is that disability can last a long time. Over half of all personal bankruptcies and mortgage foreclosures are a consequence of disability.

Long-term disability insurance is essentially income replacement. It can help you make ends meet when you’re unable to work without needing to completely drain your savings.

Ignoring Retirement Savings

It is easy to postpone or avoid retirement savings. This is one of the worst financial mistakes new parents can make. The reason? Other expenses created by raising a child can be resolved through a loan or a scholarship.

However, retirement does not offer “other” options such as a loan. Retirement needs to be a priority even in the leanest of times. It prepares your family for a sound financial future.

Ignoring College Savings

College funding does have options such as loans and scholarships. However, new parents should still consider a college savings fund. There are tax-free savings options, although some come with conditions. You may never save enough to pay for all tuition, you would help your child avoid a mountain of debt that requires years to decades to pay off.

Planning for the Sake of Your Family

Planning can be intimidating and stressful, but your future self will be happy you planned. Parenting is challenging, but it becomes even more challenging without a financial plan.

Think beyond today for the sake of your loved ones.