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MANAGING BENEFITS RESOURCES™ |
Dave Baker at BenefitsLink.com publishes the Retirement Plans Newsletter and the Health & Welfare Plans Newsletter. These daily updates are the best free source of links to articles, white papers, litigation reports and other timely benefits information. If one resource for Managing Benefits is indispensable, this is it! Sign up for them here.
Larry Becker of Xerox writes a blog on benefits with a fresh viewpoint --- the "Ilovebenefits's Blog". Now that's a title showing dedication to employee benefits! |
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Be sure to connect with both Donna and Pete on LinkedIn. |
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Rhodes-Joseph & Tobiason Advisors is a woman owned and managed business | |
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Greetings!
We hope your summer is going well. It certainly is an interesting time in the world of employee benefits. Here's how we see it. |
| INCREASING FOCUS ON EMPLOYEE BENEFITS |
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After this year, a year of health care reform debate and financial upheaval in retirement savings, the way employees view their benefits will never be the same.
- What does this mean for managing an employee benefit program?
- What does it mean to all the different stakeholders in employee benefits?
Answers to these questions are just now starting to emerge.
Employees are recognizing the value of their employment based benefits, leading them to look for enhanced communication of costs, risks and coverage.
Health care benefit design has already experienced a revolution as high deductible, consumer driven plan designs are rapidly spreading. And this is just a prelude to the degree of change that will come in the next few years whether or not health care reform takes hold.
Here's a "below the radar" health care trend. In response to the changes that have occurred already, voluntary workplace benefits are now seen as important tools for filling gaps in protection. Voluntary mini-med, critical illness plans and short and long term disability coverage are recognized as ways to meet these needs. (See related article below.)
401(k) investment losses and elimination of some employer contributions have changed the retirement security equation. Employees are postponing retirement. Employers and providers are increasing their focus on the distribution side with opportunities to provide guaranteed income through annuity vehicles. And target date funds, fees and invest.ment advice are the subject of Congressional and regulatory attention. Employee focus will follow, with demands for new distribution choices, clarity on funds and fees and better advice tools.
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INCREASING FOCUS ON ENFORCEMENT |
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We recently attended a DOL training conference for government contractors. There was a strongly delivered message that, using their significantly expanded resources, DOL audits and enforcement will soon increase.
Now is a good time to review your practices and processes to confirm compliance with all regulations. And for those of you with government contracts, it's especially timely.
The Service Contract Act (SCA) and the Davis Bacon Act (DBA) will have much wider application as stimulus money flows under the American Recovery and Reinvestment Act (ARRA). The DOL wants to make sure that the American worker is treated fairly and properly with regard to the payment of minimum wage and fringe benefit requirements of government contracts subject to the SCA and DBA.
Employee benefits are central to the fringe benefit determinations under the SCA and DBA. It's critical that contractors (AND their subcontractors) fully understand and correctly administer and audit these benefits.
Here's a MANAGING BENEFITS CHECKLIST™ to help you get started.
- Attend a DOL Prevailing Wage Conference. These training sessions are being held across the country; click here for more information.
- Review your current processes with your payroll and plan recordkeepers to be sure you're meeting the special requirements for tracking fringe dollars; these rules differ for in-house vs. third party administration. Be sure you know how the rules apply to you.
- Review employees' hire/anniversary dates on your records; for SCA and DBA, this may not be the same date the employee started working for your company.
- Be sure when you win a service contract, you're aware of the new requirements under Executive Order 13495 regarding the hiring of employees of the losing incumbent.
- As the fringe rate changes, identify the applicable rate change date for your company's contract(s) and plan appropriate actions and adjustments.
- Conduct a self-audit of your payroll and plan processes to be sure your organization is in compliance and is optimizing the terms of the contract.
- For sub-contracted work, the prime is responsible for compliance by their subs; implement monitoring processes.
- Identify those in your organization responsible for applying these special benefit rules under government contracts; create a cross functional working team from Contracting, Program Management, HR, Benefits and Payroll.
- Prepare for enforcement: schedule refresher SCA and DBA training for your team and your subs.
Taking Action
SCA/DBA expert resources, administrators and recordkeepers are available to assist you. We can point you in the right direction to get the resources you need. |
| VOLUNTARY BENEFITS |
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We're back from Las Vegas after a great experience speaking at a Workplace Benefits Association conference, attended by numerous brokers, advisors, consultants and providers. We gave the employer perspective on "Making Voluntary Benefits a Valued Feature of Every Employer's Benefit Program".
We suggested a process for working with employers to bring voluntary benefits to the workplace: partner with the employer, help them develop their strategic benefit plan and address their concerns related to communication, administration, enrollment and plan design. Voluntary benefits, when strategically introduced, can effectively complement existing benefits and add value to the total program.
When these plans are offered as part of an employer's overall program, they're seen as integral and valuable benefits by employees. By working with providers on effective communication and offering convenient payroll deductions, employers can round out their benefit package and deliver enhanced value to their employees at minimal direct cost.
Look for our forthcoming eBook based on our conference presentation.
Our thanks to Walt Podgurski for inviting us to present at the Workplace Benefits Association conference. Read Walt's daily publication, Insurance Newscast. | |
Thank you for your referrals - our best recommendations come from clients, colleagues and friends
Best Regards and enjoy the rest of your summer,
Donna Rhodes Joseph
203-542-7260
Pete Tobiason
203-542-7260
© Copyright 2009 Rhodes-Joseph & Tobiason Advisors, LLC
All rights reserved
DISCLAIMER: This newsletter consists of information of general interest and should be viewed and used solely for informational purposes. Rhodes-Joseph & Tobiason Advisors is an employee benefits advisory company which does not provide or engage in the practice of accounting, actuarial, brokerage, investment, legal or tax services. |
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