Communication of Benefits

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These executive summaries were compiled from EMPLOYEE BENEFITS INFOSOURCE database, a source for information on employee benefits and human resources.

A Decade of Great Change: And Great Benefits.
Vandermillen, Luke J.; Benefits Quarterly; v28 no2 pp 18-20 2nd Qtr 2012; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : A close look at the small and midsized firms recognized on The Principal's annual lists of 10 Best Companies for Employee Financial Security reveals an evolution in benefits offered and how they are managed. The focus of the outstanding companies is on helping employees become financially stable and secure, usually by stressing engagement in defined contribution pension plans. Automatic enrollment and deferral increases, matching catch-up contributions and targeted participant education are the norm. The firms demonstrate a trend toward customized benefits for employees' specific needs and a focus on physical fitness and wellness. They work with financial professionals and benefits brokers to craft benefit plans for their workforce and communicate benefits effectively. By keeping their employees' needs in mind, these organizations have been able to do the right thing for their business.
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Peer to Peer: Challenges for Trustees: Weathering the Volatile Economy in a Pension Plan.
Krieger, Michael; Benefits Magazine; v49 no4 pp 48-49 Apr 2012; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : At the 57th annual conference of the International Foundation of Employee Benefit Plans, attendees considered the challenges facing plan trustees and debated solutions. While many multiemployer plans are in better funding position, with Segal reporting 66 percent in the green zone in 2011, up from 54 percent in 2010, economic uncertainty remains. Plan trustees were advised to rebalance portfolios, recognizing strong gains by U.S. fixed income investments. Investment consultants can help recruit money managers for specific asset classes. Aon Hewitt data indicates funding and accounting projections, funding strategy reviews and investment risk management are becoming more common. Ongoing communications to participants and employers, stressing the safety of vested benefits, remain crucial.
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Severance Plans: The Promise and the Savings.
Parker, Philip; Benefits Quarterly; v28 no2 pp 21-27 2nd Qtr 2012; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Employers offering severance benefits hope to gain recruitment and retention advantages, but with fair distribution and at reasonable costs. Beyond traditional severance plans funded by general assets or a trust fund, a second type is the supplemental unemployment benefit (SUB) plan. The SUB complements state unemployment benefits and is not subject to FICA payroll taxes, but it is an ERISA plan requiring documentation, compliance with regulations and administrative details and careful communications. One Fortune 500 company that adopted an outsourced SUB plan design and administration realized significant savings on severance benefits. Redesigning a severance plan can lead to savings up to 30 percent by coordinating with unemployment benefits and eliminating FICA taxes.
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Eddy Award Winners Run From Serious to Pure Fun.
Steyer, Robert; Pensions & Investments; v40 no6 pp 3, 31 Mar 19, 2012; journal article

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Abstract : Detailed information and irreverent humor were prevalent at the 2012 Eddy Awards. Several projects won both plan sponsor and service provider awards, but only Lansing, Michigan's Municipal Employees' Retirement System won two sponsor awards, achieving first in both initial education and conversions for public plans with its clear and comprehensive communication program for its move to in house plan administration. Thomson Reuters' short video used humor and graphics to take first in ongoing investment education for corporate sponsors. NBCUniversal won first place in special projects for corporate sponsors, casting news anchor Brian Williams and comedian Jimmy Fallon to introduce a new 401(k) plan. Francis Investment Council LLC went against the trend of distancing communication themes from company business to take first place in special projects for service providers working with corporate plans of less than 1,000 employees with its free oven mitt promotion to encourage attendance at a 401(k) meeting for employees of Wisconsin Oven Corp.
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A Strategic Dose of Wellness.
Casselman, Lori; Benefits Canada; v36 no3 pp 10-11, 13-14, 16 Mar 2012; journal article

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Abstract : A Sun Life Wellness Institute survey of Canadian employers found that 97 percent of respondents agreed that employee health connects directly to corporate success, and 72 percent offer at least one wellness initiative to employees. The most common initiatives are low impact, with 70 percent offering flu vaccinations, 64 percent offering CPR training and 58 percent offering ergonomic work environments. Only 30 percent offered blood pressure screenings, and less than 20 percent offered wellness assessments. Significant results for a wellness program can be achieved with commitment from senior leadership, assessment of high priority risks for the organization, employee communication, effective incentives and continuous evaluation of the program.
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Back From the Brink.
Davis, Andrea; Employee Benefit News; v26 no3 pp 33-34 Mar 2012; journal article

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Abstract : At the global information technology firm EMC, employee perception that the 401(k) plan lacked value spurred a change. The company overhauled its financial wellness program, infusing consumerism borrowed from its health wellness program. Starting with access and education, EMC offered an employee portal called WealthLink just when the financial recession of 2008 hit. The site provides information specific to each employee as well as more general financial content, at a single convenient location for financial matters. In the first month, 15 percent of employees signed on, and the U.S. participation level is 60 percent in 2012. In 2008, seven percent of nonusers of WealthLink decreased retirement plan contributions, in contrast to zero users, and 38 percent of users increased health savings account contributions in contrast to zero percent for nonusers. EMC believes those who understood their financial benefits were more willing to commit to a long-term strategy despite the recession.
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Benefit Plan Risk: A Global Perspective.
Berk, Adam; Simmons, Terry; Benefits Magazine; v49 no3 pp 16-21 Mar 2012; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Multinational organizations' benefit plans face unpredictable risks from rising costs, volatile investments and participant longevity. Five steps significantly help in handling these risks, starting with an understanding of the employees needed to achieve strategic goals and how benefits support employee recruitment, retention and engagement. Based on this understanding of business context, organizations can define and design a global benefits strategy. This must be done in accordance with local market practices and regulations. Strong governance is key, with a cross-functional governance committee having global authority for design and implementation. Communications must address all stakeholders, providing necessary information to internal departments and administrators as well as to employees.
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Earn Less, Pay Less.
Woodward, Nancy Hatch; HR Magazine; v57 no3 pp 67-68, 70 Mar 2012; journal article

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Abstract : Health insurance premiums proportionate to salary may be on the rise. Starting in 2014 the Patient Protection and Affordable Care Act requires employers to provide affordable coverage not to exceed 9.5 percent of a family's income, or face a penalty. One in ten employers with 500 or more employees takes this approach, including Pitney Bowes and General Electric. The structure accounts for wage ranges, health plans and coverage tiers and formula calculations. The arrangement does not work in all settings, such as in an organization with mostly low-wage employers, and prohibitions against discriminating in favor of highly paid employees must be taken into consideration. For many basing premium payments on wages seems only fair, but some employees, union leaders and those at higher income levels may object to a change, making communication a key part of a transition.
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Here's the Deal.
Tobenkin, David; HR Magazine; v57 no3 pp 61-62, 64-65 Mar 2012; journal article

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Abstract : The spread and usage of employer discount programs are expanding. Some programs include discounts for an organization's own products and services but increasingly include access to third parties' offerings. Nearly six in ten organizations polled by the Society for Human Resource Management in fall 2011 had a program. Firms such as Next Jump and Working Advantage provide employee access to a range of deals on household items, electronics, travel, entertainment and local services. Some focus on specific industries, including governments. Discounters reach out to employees through independent websites linked to the employer's site, by email or through payroll stuffers and newsletters. Employers typically pay a membership fee but consider that expense a good investment when compensation budgets are tight.
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New Balance.
Burnett-Nichols, Helen; Benefits Canada; v36 no3 pp 21-22, 24 Mar 2012; journal article

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Abstract : Many midsized plan sponsors find it challenging to keep employees engaged in retirement saving. Consultants have a number of suggestions, including creating a culture of savings within the organization and linking retirement and benefits programs. All plan sizes need to ensure members are paying attention to communications and not making panicked decisions. Plans of different sizes have similar challenges, but they rely on different solutions. Larger plans can take on longevity risks that midsized and small plans must divert, and small plans cannot offer as many benefits customization options as larger plans.
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The Evolution of EAPs.
Vesely, Rebecca; Workforce Management; v91 no3 pp 26, 28, 30 Mar 2012; journal article

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Abstract : The traditional role for employee assistance programs (EAPs) was limited to helping workers deal with substance abuse, but EAPs' scope has broadened. Wellness and work life programs are strong components in the EAP service array, which covers all aspects of behavioral and mental health. EAP provider ComPsych Corp. reports 28 percent of its 2011 calls were about moving, followed by queries on child care, elder care and health care. Though work demands are taking a greater toll on employees, EAP utilization continues be low, hovering around three percent. The solution lies in more active and frequent communication.
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The Reasonable Expectations Doctrine.
Salkin, Barry L.; Journal of Pension Planning & Compliance; v38 no1 pp 26-37 Spring 2012; journal article

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Abstract : Under the reasonable expectations doctrine, contract provisions are to be interpreted as a reasonable person, not a legal specialist, would comprehend them. Points of contention may be ambiguous terminology, fine print and communications outside a written contract. The doctrine is controversial, leading to differences in courts' judgments. A leading example is Saltarelli v. Bob Baker Group Medical Trust, in which the Ninth Circuit Appeals Court found the defendant buried a critical exclusion rather than making it prominent in the plan document. Although the doctrine rose out of standard insurance contracts, a person whose benefits are covered by a self-insured plan would not expect to be treated differently. Yet the doctrine of reasonable expectations may be at odds with the ERISA federal common law of contracts, plan members' reliance on summary plan descriptions rather than full plan documents and plan administrators' discretion to interpret a plan.
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Self-Funding Key Aspect of Employer's Strategy.
Kertesz, Louise; Business Insurance; v46 no8 pp 9-10 Feb 20, 2012; journal article

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Abstract : When Vail Resorts Management Co. of Colorado redesigned its consumer driven health plan and health reimbursement arrangement, it also embarked on a strong employee communications campaign to emphasize the meaning of self-funding of health benefits. By conveying the difference between self-funding and outside insurance, the company was better able to engage employees in the value of using health benefit resources with care, both for themselves and for the organization. The employer worked with UMR, a UnitedHealthGroup Inc. subsidiary, to overhaul its plan. Being self-insured, it had the freedom to change copayments to coinsurance, modify pricing and customize benefits for the group's unusual demographics and health influences, without having to find an insurer that would support unique provisions. In the first seven months after the change, the company has already appreciated the absence of cost increases.
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Employee Benefits Communications See Technological Advances.
Pallarito, Karen; Business Insurance; v46 no7 p 11 Feb 13, 2012; journal article

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Abstract : While email and intranet communications no longer grab attention, newer messaging forms are proliferating and popping up on an expanding array of gadgets. Social media including internal Facebook-style platforms have boosted plan participation, recruitment and engagement. Blogs convey education through short informative bites, and video clips can be posted on internal platforms or YouTube. Internet games engage players while delivering information, and text messages are useful for reminders or to reinforce previous information. Smartphone apps provide a link to sites with specialized resources. Use of these channels must be customized for the company and workforce.
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Loud & Clear.
Pallarito, Karen; Business Insurance; v46 no7 pp 9-10 Feb 13, 2012; journal article

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Abstract : The information glut makes it ever more critical that employers get benefits communications through to employees. Traditional printed mailings and newsletters are giving way to email, YouTube videos and Facebook messages in efforts to reach all demographic groups. When the Employees Retirement System of Texas expanded their communication methods, they engaged more participants and reaped savings through rising use of generic drugs. A 2011 Towers Watson survey of global firms found 69 percent planning to increase use of social media tools over the following 12 months. Benefit managers should not feel overwhelmed by the unfamiliar but focus on the opportunities provided by technology tools. Though many organizations have no specific budget for employee communications, technology tools can help them do more with less money.
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Proposals Pose Communications Challenge.
Geisel, Jerry; Business Insurance; v46 no7 p 13 Feb 13, 2012; journal article

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Abstract : Proposed regulations from the Department of Treasury would give employees leaving a pension plan more distribution options. Instead of either a lump-sum payment or annuity from a defined benefit plan, participants would be able to take assets partly as cash and partly as an annuity. Defined contribution plan participants would have similar choices. Explaining the choices, details and implications would be a challenge for employers. While employers are not required to offer the proposed expanded payout features, those who do would have to explain the differences carefully.
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Targeted Message Can Bring Clarity to Benefit Changes.
Esola, Louise; Business Insurance; v46 no7 p 12 Feb 13, 2012; journal article

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Abstract : HR personnel are learning from marketers that customizing benefit messages to specific audiences works best. Robin Throckmorton of Strategic Human Resources Inc. finds those born between 1930 and 1945 prefer face-to-face communications, and baby boomers like learning in a group setting. Generation X prefers email, while generation Y is more inclined toward mobile phone text messages. Employee meetings continue to be the top way to introduce new information, complemented by an introductory message to all workers. This is best followed with in depth communications on a variety of platforms geared to demographic groups, and reinforced with personal stories.
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Getting Minorities to Buy In on Retirement.
Kujawa, Patty; Workforce Management; v91 no2 pp 28, 30 Feb 2012; journal article

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Abstract : Minorities lag behind white workers in 401(k) plan enrollment. Data from 2008 show half of white workers participated but only 41 percent of African Americans and 28 percent of Latinos. Automatic enrollment and automatic escalation of employee contributions will help significantly. In seven large funds studied by Vanguard, 94 percent of African Americans and 95 percent of Latinos participated when auto enrolled, compared with 57 percent and 67 percent, respectively, with voluntary enrollment. The gap is concealed by total participation numbers, making it crucial to analyze differences by race. Employers must also communicate to separate employee groups differently to get the message across.
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Good Influence.
Cameron, Deborah; Benefits Canada; v36 no2 pp 39-40 Feb 2012; journal article

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Abstract : Health plan sponsors can modernize benefit plans to influence and reward employees' health choices and actions. A design shift to influence behavior must start with realistic assessment of goals and options in the context of the organizational culture, legal limits and the absence of a strong financial driver. Employers implementing choice-based design can reward healthy choices by integrating rewards such as spending credits, higher reimbursement or prizes. Variable copayments can be tied to participating in specific healthy behaviors or choosing lower-cost treatment options, and an employer can deposit rewards in employee healthcare spending accounts. Consistent communication and education must reinforce the message. Borrowing from practices in the U.S., Canadian employers can turn to data mining and analysis for indications of which disease conditions, when addressed, would lead to the greatest return.
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New Federal Policy Initiatives to Boost Health Literacy Can Help the Nation Move Beyond the Cycle of Costly 'Crisis Care'.
Koh, Howard K.; Berwick, Donald M.; Clancy, Carolyn M.; Baur, Cynthia; Brach, Cindy; Harris, Linda M.; Zerhusen, Eileen G.; Health Affairs; v31 no2 pp 434-443 Feb 2012; journal article

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Abstract : A Department of Education study finds that only 12 percent of U.S. adults understand enough to effectively use health information. Studies show that providers and organizations can adapt their procedures to promote understanding by simplifying written materials, improving provider communication skills and improving patient self-management skills. The Patient Protection and Affordable Care Act of 2010 includes initiatives to include health literacy in professional training and streamline many enrollment procedures, and the National Action Plan to Improve Health Literacy provides a unified set of health literacy strategies for the nation. The combined efforts of public and private agencies can advance national health literacy to the point where Americans can improve their health and their health care.
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New Horizons in Benefits Communications: Marketing and Technology.
Beaupre, Meghan; Employee Benefit Plan Review; v67 no2 pp 9-10 Feb 2012; journal article

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Abstract : HR managers can learn much from the marketing world about designing an effective benefits communication strategy and using the best technology tools to deliver it. Understanding that the product is the benefits message and the consumer is the employee, the first step is to identify and analyze the specific target audience or consumer. That knowledge leads to tailoring the message so it will be received well, understood and will prompt action. Modern tools to convey the message include video, social networking, custom mobile applications, preloaded thumb drives and online events such as a virtual benefits fair set up like Second Life. Knowing the interests and inclinations of a target audience will clarify which technologies are most suitable.
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Overcoming Employee Objections to HSAs.
Johnson, Whitney R.; Benefits Magazine; v49 no2 pp 24-28 Feb 2012; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : A combination of a high-deductible health plan (HDHP) and a health savings account (HSA) is generally less expensive than traditional health insurance, gives employees more ownership over their health care money and allows for more cost sharing options, but many employees have objections. To those who say they cannot afford an HSA, employers should note that the HSA program is generally the least expensive option available and is often too expensive only when compared to an unrealistic or unsustainable plan. Those who do not want the responsibility of HSA management should be advised that they can control what level of services and spending they want. Objections that the tax savings of an HSA will not help an individual can be countered by explaining that payroll taxes, not just income taxes, are lowered by HSA contributions. Participants who balk at learning new rules should be aware that the benefits of an HSA plan make it worth the effort of learning the rules.
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Retiring Minds Want to Know.
Frauenheim, Ed; Workforce Management; v91 no2 pp 3-4 Feb 2012; journal article

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Abstract : Interactive online tools are helping employees and retirees become more actively engaged in their financial planning. The resources demonstrate that there are alternatives to taking the default investment route. Most large employers get access to resources through their plan vendors. BrightScope provides another route for participants to get comparative plan information, and companies can use BrightScope for detailed corporate-level benchmarking. Invest n Retire advocates a cheaper and simpler approach to retirement investing and offers software focusing on exchange traded funds rather than on mutual funds.
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The Importance of Communicating With Employees on FLMA Leave.
Dubault, Robert A.; Employee Benefit Plan Review; v67 no2 pp 13-14 Feb 2012; journal article

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Abstract : Communications to employees on leave under the Family and Medical Leave Act (FMLA) must be carefully expressed to avoid the appearance of interfering or retaliating. Three court cases illustrate the risks. In Terwilliger v. Howard Memorial Hospital, a supervisor's weekly calls could be interpreted as discouraging the employee on leave from exercising her rights. A supervisor's failure to return calls was considered evidence of antagonism in Hofferica v. St. Mary Medical Center. In Gardner v. Great Lakes Cheese Co., the supervisor's failure to provide requested updates on remaining available FMLA leave was judged to be interference. Ideally an HR manager who is aware of the legal ramifications of various questions should coordinate or directly handle FMLA communications.
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Making It Interesting: Creative Ways to Communicate Benefits.
Hogg, Sharon; Canadian HR Reporter; v25 no1 pp 11, 14 Jan 16, 2012; journal article

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Abstract : Communication and education are the keys to helping employees understand their total benefits, but it takes creativity to motivate them to fully incorporate the information. Content must be interesting, free of jargon and relatable. Personal stories are more likely to be read than annual reports. Communications should be branded for easy recognition and inspire active involvement, especially for health-related activities. Employee surveys reveal knowledge levels to shape messages. Insurance carriers and consultants may have much to offer. Seeing complete cost data for all benefits may put benefits in a new light for many. Benefit information will be remembered when conveyed in an entertaining way.
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