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.

Facebook Friends.
Steyer, Robert; Pensions & Investments; v38 no2 pp 1, 30 Jan 25, 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Growing numbers of companies are using social networking sites to engage employees in retirement savings. TIAA-CREF offers a dedicated conversation space and an interactive savings game on Facebook. Putnam Investments' blogs feature charts and information with links to Twitter and Facebook for further conversation. The short, real time messages of Twitter have appeal, especially for younger employees. The goal is financial literacy through enriched, multi channel communications. But some sponsors are anxious about legal and regulatory ramifications of using social media, as well as the cost and technical support required.
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The COBRA Subsidy Extension: A Brief Explanation.
Cowart, Greta E.; BNA's Pension & Benefits Reporter; v37 p 34 Jan 5, 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The Department of Defense Appropriations Act of 2010 included an amendment that extends the COBRA subsidy to allow 15 months of benefits. Those involuntarily terminated from work between September 1, 2008 and February 28, 2010, are eligible. The change requires employers to revise notices to employees. It also requires informing those eligible for assistance who stopped paying COBRA premiums before December 21, 2009, that they can be reinstated by retroactively paying the premiums. Employers should establish procedures for identifying affected employees, providing notice of the extension, calculating premiums and handling payments.
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Assistance Program for Low-Income Workers Helped Boost Employee Benefit Participation.
Hoffmire, John; Harms, Thomas; Defined Contribution Insights; v58 no1 pp 10-13 Jan-Feb 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : In 2007 the Staples Workplace Development Project helped low income employees at tax time by offering free tax service and the opportunity to be screened for and possibly enrolled in various benefit programs. The average amount of found credits or other tax advantages was $522, and the tax service itself was a $100 value. Employees screened for benefits showed a 16 percent increase in employee stock purchase plan enrollment, a 29 percent increase in 401(k) plan enrollment and a 42 percent increase in scholarship program enrollment. The clearest advantage to Staples was reduced turnover, with participating employers showing a 32 percent lower turnover rate after a year than the control group. The program saw a 30 percent increase in participation when it returned in 2008, despite the fact that the tax service now cost employees $50 instead of being free.
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COBRA and the Stimulus Act: A Sign of Things to Come?
Muldowney, Patrick M.; Compensation and Benefits Review; v42 no1 pp 24-29 Jan 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : One provision of the American Recovery and Reinvestment Act of 2009 (ARRA) requires employers to subsidize COBRA premiums for involuntarily terminated employees. The requirement is only for employees and beneficiaries of employees terminated between August 31, 2008 and January 1, 2010, and employers must pay at least 65 percent of COBRA premiums for nine months. Employers can recover the subsidy as a payroll tax reduction if they follow certain reporting requirements. Individuals who experienced a qualifying event and who were not provided with an ARRA election notice must receive a general notice on COBRA rights, including a description of the premium subsidy and forms for determining eligibility.
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Exploding the Benefits Education Myth.
Gilligan, Tom; Compensation and Benefits Review; v42 no1 pp 52-57 Jan 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Though employers might think they are doing a good job of educating employees about their benefits programs, employees still often do not understand their benefits. A LIMRA International survey found 91 percent of employers believe it is important for employees to understand and appreciate the value of their benefits, but only 21 percent feel their employees actually have such an understanding. According to a survey at the 2008 Society of Human Resource Management Conference, 90 percent of employers say one-on-one meetings would significantly improve employee understanding of their benefits, but only 58 percent of employers offer them. Despite technology making the process potentially faster, open enrollment is an ideal time to communicate with employees about benefits. In addition to the key component of individual meetings, employers can use preenrollment communications and group meetings to provide general information to employees.
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Haute Communication.
Overman, Stephenie; Employee Benefit News; v24 no1 pp 14-16 Jan 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Employee Benefit News annually gives i-COMM Awards to companies with outstanding communication efforts promoting benefits. Bebe Stores won recognition for its edgy and visual campaign, presented online and on CD-ROM, that reinforces its high style image to engage its sales associates. Humana, Inc. led up to its May enrollment with weekly topical messages, real life scenarios illustrating benefits choices and 23 supplementary guides, backed up by volunteer mentors. WebMD won for its intranet design and usability focusing on easy interactivity, and FBMC's quarterly newsletter was recognized for excellence in training its benefits administrators, distilling technical information to make it more understandable and available.
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Health Savings Accounts: Back to the Future.
Klug, Kathy; Chianese, Lois; Benefits Quarterly; v26 no1 pp 12-23 1st Qtr 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : December 8, 2009 was the sixth anniversary of the health savings account (HSA). In the six years since their creation, adoption of HSAs has been surprisingly robust, beating out medical savings accounts and 401(k) plans. HSAs offer the ability to make pretax contributions, grow assets tax free and receive tax free distributions for qualified medical expenses. Unlike other individual account plans, HSAs are true accounts owned by participants, and unlike a 401(k) account an HSA allows for tax-advantaged withdrawals. While six years is not sufficient time to declare the HSA a success, the performance of HSAs indicates they still have the potential to increase health care cost savings.
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Looking Beyond Health Reform: The Future of Consumer-Focused Health Care.
Munn, Jeff; Benefits Quarterly; v26 no1 pp 43-48 1st Qtr 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The consumer driven health plan (CDHP) model is catching on just as broad reform of health insurance is being debated. Any change must acknowledge societal and technological forces in play. Among the seven trends pushing consumer oriented health care are a growing consumer focus in finance and decision making, active promotion of health and wellness and recognition of the tie between employee health and corporate success. Employers are demanding evidence of health initiatives' effectiveness. Marketing of employee health benefits is increasingly important. Individuals will manage their own health in consultation with care providers, and care will become more personalized.
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No Good Deed Goes Unrewarded.
Himelstein, Scott; HR Magazine; v55 no1 pp 26-28 Jan 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Employee recognition programs can encourage behaviors that align with corporate values and growth traits. When Discovery Communications overhauled its recognition program, they needed to create a program that was strategic, efficient, global, memorable, inclusive, user friendly and fast. Discovery chose awards and incentives provider Globoforce because its software already addressed most of these objectives. The program included a communications strategy using the company intranet, e-mail and flyers to promote the program's use. The automated recognition program reaches a larger percentage of employees, reduces the number of approvals and delivers recognition in a more timely fashion than the original program.
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Pros Debrief Hits, Misses of Open Enrollment.
Bridgeford, Lydell C.; Employee Benefit News; v24 no1 pp 1, 50 Jan 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Following open enrollment period, two benefits professionals from Florida and North Carolina school districts both stressed the need for more effective communication about benefits choices. While online systems are efficient, the message of their availability and information resources must be repeated through the year. Online enrollment can start ahead of onsite enrollment. Scheduling onsite enrollment must accommodate employees' varying schedules, including night shifts. While enrollment and benefits information are increasingly being delivered through online portals, the personal touch remains important.
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Voluntary Army.
Shutan, Bruce; Employee Benefit News; v24 no1 pp 1, 19-20 Jan 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : A 2009 survey by International Foundation of Employee Benefit Plans and Employee Benefit News found 84 percent of 833 plans polled offer voluntary benefits and five percent are considering doing so. Respondents cite advantages of flexibility, meeting additional coverage needs and good group rate prices. Only four percent saw the main reason behind the trend as responding to cutbacks in employer-sponsored benefits. The most common offerings are term life insurance, vision care, long term health care, long term disability, accident coverage and dental plans, with many niche offerings also available. HR can promote takeup through communications well before open enrollment, focusing on personal responsibility and financial literacy.
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What's Next for Consumer-Directed Health Plans?
Iskarpatyoti, Lale; Benefits Quarterly; v26 no1 pp 39-42 1st Qtr 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Just over half of employers offer a consumer driven health plan (CDHP), but the median enrollment is 14 percent. Intended to control costs by promoting consumer education and managing demand for health care services, CDHPs have yielded a 25 percent lower cost trend for sponsors over two years with at least half their employees enrolled. But employers want more evidence, with their reluctance rising from lack of employee education, poor communications, cost concerns and unwillingness to change. Watson Wyatt shows CDHP enrollees are more likely to choose less costly treatment options, sign up for disease management programs and adopt healthier behaviors, but are also more likely to skip doctor visits and medications. Broader adoption of CDHPs will require better information resources, cost data and communications.
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Workplace Benefits Inequality.
Niu, X. Rick; Gilreath, Ivan; Broker World; v30 no1 pp 52-53, 73 Jan 2010; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : An Ariel Education Initiative/Hewitt Associates study released in July 2009 found major inequalities in how benefits plans serve multicultural employees. This and other studies show African American and Hispanic employees tend not to take full advantage of benefits such as 401(k) plans and life insurance. Brokers offering benefits to employers should be aware of which carriers provide multiculturally effective materials, multilingual enrollment materials, appropriate assumptions of financial literacy or the lack thereof and culturally aware staff. Brokers who can lead employers to carriers with these capabilities can address inequities in benefits administration and enhance the value of existing benefits programs for their clients.
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Firms Tap Online Tools to Aid Enrollment: Study.
Wojcik, Joanne; Business Insurance; v43 no44 pp 4, 29 Dec 7, 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The use of electronic benefits enrollment and communication is gaining strength as an effective cost cutting measure. In late 2009 Watson Wyatt Worldwide found 76 percent of employers used email about open enrollment season, and 88 percent made benefits materials available on the Internet or company intranet. Those sending print materials to employee homes fell from 76 percent in 2008 to 69 percent in 2009, and 22 percent intend to drop paper-based communications in 2010. IBM Corp. exemplifies companies that have maximized electronic communications and benefits information resources. Employees using comparison tools for decision making are more likely to be engaged and make informed plan changes.
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Crystal Clear.
McCullagh, David; Benefits Canada; v33 no12 pp 20-21 Dec 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The concept of total rewards has matured and revolves around recognition of a total rewards culture and using an effective communications strategy. The communication component starts with benchmarking, polling employees to identify valued benefits and programs, and then examining all parts of the rewards package. This includes compensation, benefits, work-life balance, recognition and career development opportunities. Personalized communications can be framed around each of the valued points and support overall organizational culture and goals. Measuring the effectiveness of the communications and overall program is key and must be ongoing to reinforce the value of the total rewards approach.
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Keys to Evaluating Your COBRA Administrator.
Whitney, Jennifer; Employee Benefit News; v23 no15 pp 39-40 Dec 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : With rapid changes in COBRA administration, having a good third party administrator (TPA) to rely on is increasingly important for many employers. Good TPAs keep up with regulatory changes and communicate their effects and implications quickly to employers, employees and beneficiaries. They collect and reconcile premiums, monitor and report on eligibility, keep data secure and provide timely interim reports at an employer's request. Contracts should document all responsibilities and compliance with the Health Insurance Portability and Accountability Act, reflect a fair balance of liability and specify the state for any arbitration. An honest assessment of the TPA's prospects for merger or acquisition can avoid surprises.
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The Broader HR Advisory Role of Employee Benefit Brokers.
Arnstein, Kevin; Employee Benefit Plan Review; v64 no6 pp 5-6 Dec 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Benefit brokers can become more valued consultants to HR executives and employees by going beyond their traditional role. They should actively help HR design the best health care benefits program, explore funding options, suggest vendors that meet cost and service requirements and then help negotiate prices. Their involvement should continue through monitoring claims and service, acting as an ombudsman when indicated. Standout brokers help members understand how to navigate filing claims, manage participation details, transition to COBRA and handle problems. The broker's advisory contribution extends to employee benefits communications and promoting employee satisfaction with the plan.
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Upgrade Efficiency.
Jackson, John; Benefits Canada; v33 no12 p 79 Dec 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Advances in technology offer opportunities for benefits plans to provide better service at lower cost. Real time claims processing is fast and secure and allows tracking the progress of claim settlement. Plan administrators can manage plan design details, generate reports and reveal patterns. Members can have secure online account access to simplify usage and monitor their balance. A wider range of service providers can use Web portals to electronically submit claims without having their own system. Social media is providing members and sponsors a communication channel that can build engagement in the plan. Overall, technology can support all stakeholders' interests and promote the success of the plan.
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Rising to the Benefits Challenge.
Wojcik, Joanne; Business Insurance; v43 no43 pp 9-10, 12 Nov 30, 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The Business Insurance 2009 Benefit Manager of the Year is Fran Ruderman, Leviton Manufacturing's senior director of benefits and compensation. Ruderman applies her marketing background to encourage Leviton's employees to make the most of their benefits packages, maximizing the value of employer-sponsored benefits and continuing to build retirement assets. The firm held its 2010 health cost increase to 4.3 percent, compared with the projected increase of 8.8 percent. Claims analysis revealed 25 percent of the workforce is responsible for 85 percent of health costs. Ruderman's target on drug compliance by those with chronic conditions resulted in 81 percent adherence to treatment in 2008, up from 69 percent in 2007.
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Practical Considerations for Making Global Equity Grants.
Wetzel, Susan A.; Compensation Planning Journal; v37 no11 4 pp Nov 6, 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : U.S. tax considerations for equity awards can get complicated when even one employee lives and works outside the country. The design of an equity compensation plan should start by identifying the countries where employees are based and contacting legal counsel to review the plan document for local compliance. Favorable tax treatment in the other jurisdictions must not be assumed but confirmed. Specific features of the plan, such as vesting, forfeiture rules and stockholder voting, must be locally legal and enforceable. The plan document must give the employer flexibility in handling outstanding awards and new awards. Employers must take into account language differences when communicating the details of the equity awards.
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Building a Sustainable Administrative Infrastructure for Worksite Wellness Programs.
Chapman, Larry S.; American Journal of Health Promotion; v24 no2 pp TAHP1-TAHP10 suppl. Nov-Dec 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : A successful wellness program requires awareness, motivation, skills and opportunity to yield behavior change for positive health and economic results. Research has identified 16 basic components of a strong foundation for an effective wellness initiative. These include a program brand and website, manager and staff, a strong proposal and design, a work plan and budget, clear goals and objectives, online communication and a plan for evaluating results. Large organizations need more comprehensive administrative infrastructure but can benefit from economies of scale. Programs administered by health plans are more commonly online and may be less extensive but still effective.
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Designing a 401(k) Plan That Delivers Benefits and Synergies to Your Plan's Three Key Constituents: Your Company, Management Team, and Participants.
Korabik, Jerry; Journal of Compensation and Benefits; v25 no6 pp 44-48 Nov-Dec 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : A number of elements go into creating a more ideal 401(k) plan. Optimal plan design and state-of-the-art information technology increase plan performance and participant service. Certification by The Center for Fiduciary Excellence (CEFEX) and cofiduciary protection offer improved plan governance. An ideal 401(k) plan should offer low cost, high performance asset offerings and well known, transparent investment options. The plan should aid participants with helpful plan provisions, interactive education and customized plan materials.
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Halfway There.
Van Zyl, Sean; Benefits Canada; v33 no11 pp 41, 43-44 Nov 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Canadian defined contribution (DC) plan sponsors can learn from DC strategies in the U.S. and the U.K. Canada is already following the U.S. in using the Internet and call centers as the primary vehicles for member communications. In the U.K., legislation has been introduced that would mandate automatic enrollment and compulsory employer contributions for all DC plans beginning in 2012. Experts expect member advice in Canada to follow the U.S. trend toward more personalized advice on retirement planning.
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New Perspectives.
Benefits Canada; v33 no11 pp 1-15 suppl. Nov 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : Benefits Canada has released its fourth annual survey of capital accumulation plan (CAP) members. The survey asked questions on plan member behavior, perceived plan value, investment decisions, retirement planning and consumer education. Notably, half of respondents said they did not change their spending, saving or investment behaviors in any way due to the recession of 2008 and 2009. Only 40 percent of respondents said they had an excellent or very good understanding of how much they needed to contribute to their retirement plans.
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Potentially Devastating Social Security Offsets.
McCormack, Joseph P.; Perdue, Grady; Journal of Financial Planning; v22 no11 pp 62-70 Nov 2009; journal article

Availability : International Foundation of Employee Benefit Plans
Abstract : The Government Pension Offset (GPO) and the Windfall Elimination Program (WEP) are rarely discussed elements of the Social Security system. Both offset the amount of Social Security benefits based on the recipient's other entitlements. The Social Security Advisory Board has criticized the annual Social Security statements sent to all U.S. workers, specifically citing the language describing the GPO and WEP as difficult to understand. The face that the effects of GPO and WEP are not included in the projected Social Security income on the statements can lead to retirees getting less income than they expect.
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