Posts made in May, 2012

80 Percent Unprepared to Retire

Posted by on May 25, 2012 in Retirement | 0 comments

Research shows that nearly 80 percent of Americans aren’t financially prepared to retire. Average workers need more than 10 times their final pay in order to adequately meet their financial needs for retirement. Workers who actively contribute to their defined contribution plans are expected to have financial shortfalls that are about double the amount of their pay when they reach retirement age. Since the market can change quickly, it’s important for workers to examine their long-term savings plans. They must determine whether they’re adequately prepared for retirement....

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Employers Should Consider Long-Term Care Riders

Posted by on May 18, 2012 in Retirement | 0 comments

As employers think about offering more value-added benefits to employees, it is important to also consider long-term care coverage. It is becoming more common to see people live to be 80, 90 or even 100. Since people are living longer, the likelihood of needing long-term care is also rising. Without home care, it is rare for elderly people to remain in their homes and care for themselves until they die. Whether long-term care takes place at home or in a facility, it is always expensive. Although nursing home costs vary by region, they may be as much as $95,000 per year. The average rate for...

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Can Employers Save Taxes with a Section 125 Cafeteria Plan?

Posted by on May 17, 2012 in Health | 0 comments

The short answer is “yes, generally.” But let’s take a look at what a Section 125 cafeteria plan is. A cafeteria plan is a list of voluntary fringe benefits an employee can choose from. Generally, these benefits will have premiums, or costs, associated with them. The employee then elects to have monthly premium costs deducted from his or her paycheck. The employer then forwards these premiums each month to the benefits company. The plans are named for the section of the Internal Revenue Code that allows employers to withhold these premiums from employees pay. The worker...

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Employer Open Enrollment Responsibilities

Posted by on May 4, 2012 in Employee Benefit Program, Human Resources | 0 comments

Health insurance companies offer group participants a limited amount of time each year to make changes to their group health plan. That period of time – typically one to two months per year, is called “open enrollment.” Why open enrollment? Open enrollment periods are important for helping to control an insurance industry phenomenon called “adverse selection.” This occurs when people wait until they are actually sick to purchase insurance. When this happens, it drives up premium costs for the entire group and makes group insurance plans unworkable. By limiting...

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Want Employee Loyalty? Educate Them!

Posted by on May 3, 2012 in Employee Benefit Program | 0 comments

A recent Harris Interactive Study, commissioned by prominent disability insurance carrier Unum, found that employees who receive frequent and thorough education on their available benefits are also more likely to view their employer positively, and to feel that their employer values them. The survey establishes a positive correlation between employees understanding of their benefits and productivity. Among the recommendations from the study: Give employees time to study their benefits. The study found that workers who had at least three weeks to review their benefits were much more likely to...

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