Tip Tuesday! 3 topics your 401(k) investment committee probably needs to revisit

by Tim Gould

Is your 401(k) investment committee doing everything it should? With the feds starting to take a more active role overseeing companies’ retirement plans, that’s a question that needs to be examined on a regular basis.  

As employers are well aware, the DOL has said a few execs acting as a plan sponsor isn’t enough to constitute an “independent review” of the plan and satisfy a plan sponsor’s fiduciary responsibilities.

Committees should be made up of a broad sample of the company. Example: A few senior execs (CFO or vice president), some department heads and HR or benefits reps.

The big 3

Here’s what a committee should be tackling on a regular basis, according to Mercer senior defined contribution consultant Bill McClain.

1. Government regs. In recent years, the feds have taken a strong interest in employers’ retirement plans. So committees must be able to understand exactly how these complex regs apply to their situations.

Because this often requires expert understanding, many committees go to a plan advisor for a simple breakdown of confusing reg issues.

Another best practice that helps with this topic: Looking at actual lawsuits and what the companies being sued could’ve done differently.

Click here for entire article.

6 add-ons any onboarding program would benefit from

by Christian Schappel

Finding talent — like really great talent — is hard. Great employees don’t come around every day. So when they do, are you 100% sure your onboarding program is making a great first impression with them? If not, you’re in trouble. 

Roughly one-third (31%) of the U.S. workforce has quit a job after less than six months, according to recent research.

One of the main culprits? Poor onboarding. Some employees were just never able to settle in — and it’s not always their fault.

Onboardia, an onboarding solutions provider, suggests some organizations are setting themselves up to fail by implementing a sub-par onboarding program — or having no such program at all (32% of surveyed employers said they have no formal onboarding program).

Some other interesting data compiled by Onboardia:

• 91% of managers said they believe their organization does not handle onboarding well
• 81% of HR administrators said the same, and
• 75% of employers admitted that too.

Solutions

So how can employers fix things? Onboardia created an inforgraphic (see below) with some helpful suggestions.

It offered up six says employers can improve how they bring new talent on board to spark comfort, loyalty and job satisfaction:

1. Make the process paperless (80%) of HR pros say the majority of new hire paperwork is completed in person (Note: By making it paperless employers can not only make filling it out easier, but also send it to employees prior to their first day — and get it out of the way early).

Click here for entire article. 

Finally: EEOC offers a wider perspective on what’s required in ADA leave

by Christian Schappel

There are several things employers want to pay close attention to in the EEOC’s latest document covering the ADA. 

Ever since the EEOC started suing employers for not providing disabled employees with leave as a reasonable accommodation under the ADA, employers have been waiting for guidance on the issue.

Finally, the EEOC has delivered … sort of.

While it stopped short of issuing “official guidance,” it did just publish a resource document entitled, “Employer-Provided Leave and the Americans with Disabilities Act.”

It’s not considered official guidance because it wasn’t voted on by the entire commission. But it does provide a lot of the info employers have been seeking on when and how leave under the ADA must be considered/granted.

Here are the topics the document covers and what employers need to know from each of those sections:

Equal access to leave under your leave policies

• If an employer receives a request for leave for reasons related to a disability, and the leave falls within the employer’s existing leave policy, it should treat the employee requesting leave the same as an employee who requests leave for reasons unrelated to a disability. (Example: If you don’t require non-disabled employees to provide a doctor’s note to support a leave request, you can’t require disabled employees to provide a doctor’s note.)
• Employers are entitled to have policies that require all employees to provide a doctor’s note or other documentation to substantiate the need for leave. But the requirement must be applied to all individuals equally.

Click here for entire article. 

DOL answers more questions on ACA: 5 highlights

by Jared Bilski

New Obamacare guidance from the agencies responsible for implementing the ACA includes a lot of important info on health plans and cost-sharing. 

The feds’ (DOL, HHS and IRS) 31st FAQ on healthcare reform answers a lot of important questions for employers about the ACA.

But it also delves into other federal laws such as the Mental Health Parity Act and the Women’s Health and Cancer Rights Act (WHCRA).

Some of the highlights employers should know from the 12-question FAQ:

Preventive services

The first few questions in the FAQ deal with the preparation for a common preventive procedure: a colonoscopy.

According to the feds, the preparation is an integral part of the actual procedure and, generally, must be covered without any cost-sharing. Specifically, the feds mentioned bowel preparation medications given before the colonoscopy.

However, when utilizing reasonable medical management techniques, plans can create a standard exception form – which can be modeled after the Medicare Part D Coverage Determination Request Form – so providers can prescribe specific services or FDA-approved items.

Click here for entire article. 

Tip Tuesday! 3 awkward conversations DOL’s new overtime rule will spark

by Christian Schappel

Are you ready for the three most difficult conversations you’ve had in a while? 

The DOL’s changes to the FLSA white collar overtime exemption regulations aren’t just going to be a financial headache for employers; they’re also going to be a managerial dilemma.

If the final rule resembles anything close to the DOL’s proposal — which would crank up the minimum salary threshold for all exempt employees to $50K (or at least $47K) — large chunks of some companies’ workforces are about to go from exempt to non-exempt.

Financial implications aside, that creates a huge management problem: The change in classification could feel like a demotion to employees.

They’ll blame the DOL, right?

If you think employees will curse the Obama Administration for what could essentially be an overnight change in their work arrangements/classifications, you’re in for disappointment.

Odds are the average worker’s going to blame you, their employer. After all, not everyone keeps up to date with what the feds are doing. So, on its face, the shift from exempt to non-exempt status may come off looking like something your company did for its own benefit — unless you’re willing to set the record straight right now.

Click here for entire article. 

Why employees are failing to use FSAs as effectively as they could be?

by Jared Bilski

Whether you offer the grace period or the rollover method, employees have to do some planning to use their FSA funds effectively. Otherwise, they could easily do what a lot of FSA account holders are doing nowadays … 

… forfeiting some hard-earned money.

Research shows most FSA account holders aren’t aware of the many ways in which they can use their funds.

In fact, just 50% of FSA account holders were able to pass a basic proficiency quiz, according to research by Alegeus Technologies. (Note: The problem’s even worse for HSA account holders.)

What they need to know

To help employees get the most out of their FSAs, here’s some info employers can share with them:

1. The latest eligibility list. Many staffers fail to take advantage of FSA tax benefits because they assume products aren’t eligible.

But from smartphone-enabled apps to lip balm, there are more than 4,000 FSA-eligible products available. Direct staff to most up-to-date FSA eligibility list, here.


2. Allowable changes. Generally, employees must commit to their FSA deductions at the start of the plan year. However, there are a number of events (marriage, divorce, birth, employment status change) where mid-year changes are allowed. Be sure employees are aware of these events.

Click here for entire article. 

Big news on DOL’s new overtime salary threshold

by Christian Schappel

When it comes to complying with the DOL’s coming changes to the white collar overtime exemption regulations, employers will take any relief they can get. As a result, employers will likely embrace this suspected change to the regs. 

It appears the agency is backing off its original proposal to raise the salary threshold to $50,440 to qualify as exempt … at least a little.

The new threshold figure being kicked around by lawmakers is $47,000, according to reports by POLITICO and CNNMoney — with POLITICO’s labor and employment reporters Brian Mahoney and Marianne Levine citing “sources familiar with the Labor Department’s deliberations.”

Given the significant amount of criticizm heaped on the DOL’s proposed changes to the overtime exemption regs by employers and business groups, the decrease isn’t likely to come as a shock to many employers — although, it’s not as low as many would’ve liked to have seen it go.

Many critics felt the $50,440 proposed threshold was too big of a jump from the current $23,660 figure and that it failed to account for the specific financial environments of different industries and regions.

Example: Former DOL administrator-turned-attorney Tammy McCutchen told the House Subcommittee on Workforce Protections that a $50K threshold would have a disproportionate impact on states with a lower cost of living. In addition, she said the proposed salary threshold would far exceed the threshold established in high-cost-of-living states like California ($37,440) and New York ($34,124).

So it appears the DOL is willing to cave, at least a little.

Why $47,000?

Click here for entire article.