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Showing posts from 2020

The Biden Administration and Healthcare

The Biden administration will inherit the coronavirus pandemic, and while this remains a top priority for both the Biden administration and many Americans, the administration also hopes to address and expand health care access.  In addition to addressing COVID-19, the Biden administration's core focus is to expand the ACA incrementally. Employers should begin to consider how this administration’s platform might affect healthcare and employee benefits. This article explores the Biden administration's proposed COVID-19 response, general healthcare platform and top agenda items. For more information on healthcare and employee benefits changes, read this edition of Benefits Insights and contact HANYS Benefit Services by email or by calling (800) 388-1963. This is not intended to be exhaustive nor should any discussion or opinions be construed as professional advice. © 2020 Zywave, Inc. All rights reserved.

New York State Enacts Paid Sick Leave Law

New York state has enacted a sick leave law that, depending on their size, requires employers to provide between 40 and 56 hours of paid leave per year for reasons relating to the health and safety of the employee or the employee’s family. Employers with fewer than five employees and an annual income no greater than $1 million may satisfy the law’s leave requirement by providing unpaid leave of 40 hours annually. Employees begin accruing leave on Sept. 30, 2020, but may not use the leave until Jan. 1, 2021. Leave is accrued at the rate of one hour for every 30 hours worked; the law contains frontloading and carryover provisions. 

Q3 Market Recap: Investor Optimism Amid the Pandemic

The U.S. equity market recovery that began on March 24 continued in earnest in Q3. However, the Index performance masks significant underperformance in the industries that continue to be impacted by the pandemic. Any failure of the presidential election process to determine a clear winner will likely provide fuel for near-term volatility.  Read the Q3 Market Recap for a brief review of the market performance and chart shows the average annualized return for the S&P 500 Index under the presidential terms dating back to Franklin Roosevelt. Also included is an article describing how HANYS Benefit Services has been Staying Connected to Meet Retirement Goals in spite of the pandemic. If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by email or by calling (800) 388-1963.

Innovating through crisis: How going virtual helped us improve customer service

 Like so many companies, COVID-19 totally upended how we do business. Our education team’s calendar is usually filled with on-site client visits, allowing them to provide face-to-face guidance to employees on retirement plans.  Not so much in 2020. This year, we’ve been pushed to think outside the box, to reimagine how we provide support and education and to establish a new normal for how we do business. Moving online Shifting focus to video and phone calls is the (relatively) easy part. Scheduling and logistics of said calls – that’s where things can get tricky.

Addressing student loan debt: Trailblazing companies and possible legislation

A handful of companies have led the way when it comes to student loan debt assistance for their employees. There’s also legislation pending in Washington that could impact the issue. Watch episode #2 in our video series: For Your Benefit with HANYS Benefit Services. We’re taking a closer look at two such companies that have come up with creative, new employee benefits solutions to tackle the issue and possible legislation coming down the pike.  The trailblazers: Abbott Labs and Fidelity Abbott Labs

The Impact of COVID-19 on Open Enrollment

Employers can expect major disruptions to open enrollment this year due to the coronavirus (COVID-19) pandemic. As such, employers should stay apprised of current trends and begin preparing sooner rather than later. Trends to Watch Many organizations are expected to hold entirely virtual open enrollment due to the coronavirus. Virtual enrollment has been trending for several years, and the COVID-19 pandemic is helping to solidify its prominence. A virtual enrollment process typically includes an onlineenrollment platform for selecting benefits, hosting remote meetings between employees and HR, and downloading benefits resources. Also, many employers are meeting current employee needs through supplemental health plans with an emphasis on overall well-being. Adding optional health benefits can be a way to limit additional employer spending and provide assistance to employees who need it. Ways Employers Can Prepare Open enrollment isn’t always a clear-cut process. Employers can review the

2021 Benefits Planning and COVID-19

As the COVID-19 pandemic continues to wage on, its effects on benefits planning for next year are being felt—especially as open enrollment season approaches. According to Mercer's Global Survey #5, 20% of employers surveyed said updating benefits programs to better meet employee needs was an HR area in which companies are seeing an increased need for support. In addition to considering plan design changes, employers are having to evaluate and adjust their benefits packages for 2021. Some of the most common changes being made for the 2021 enrollment season are outlined in this article. Potential Cost Increases and Plan Designs Employers and benefits experts are bracing for cost increases headed into 2021. Health care premium costs have increased at a steady rate over the past few years, with the most recent average increase being around 6%. Actuaries at Willis Towers Watson predict up to a 7% increase in health care premiums in 2021 for both self-funded and fully insured employers.

5 Strategies for Reducing Health Benefits Costs in 2021

Health benefits costs are almost certainly going to rise in 2021. They’ve been trending upward for years—over 50% in the last decade, according to the Kaiser Family Foundation— and the current state of economic uncertainty over COVID-19 won’t slow things down. Realistically, after enduring months of business closures and managing exhausted workforces, many employers will be lucky to maintain uninterrupted operations. That’s why it’s critical for employers to think about reducing health costs right now—figure out cost-effective benefits first so money can be shuffled as needed later. Having a solid plan going into 2021 will better position organizations facing limited budgets. Here are five cost-reduction strategies employers should explore:

The impact of student loan debt

Student loan debt affects the financial lives of millions of American workers. Employers feel the burden as well, and have the opportunity to help reduce it.  The impact of student loan debt on employees According to a recent Forbes article : 44.7 million Americans have student loan debt; student loan debt is second only to mortgages in consumer debt, at a staggering $1.56 trillion; the average student debt is $32,731 with an average monthly payment of $393; 2.8 million borrowers are in forbearance; 5.5 million borrowers are in default.

Cobleskill Regional Hospital named 2020 Plan Sponsor of the Year

Congratulations to Cobleskill Regional Hospital on being named PLANSONSOR’s 2020 Plan Sponsor of the Year in the nonprofit defined contribution <$500 million category! Cobleskill's 403(b) plan focused on employees’ wellness. This goes beyond physical wellness and influences the 403(b) plan’s design and approach to educating employees. “Retirement readiness and financial wellness are woven into the fabric of our culture,” says Christine Pirri, vice president, nonclinical operations. As their plan adviser, HANYS Benefit Services meets often with Pirri and Cobleskill employees for a financial wellness check-up and to explain how a defined contribution plan gives an employee the ultimate responsibility for his own retirement outcome “Once people get that message, they’re much more interested in understanding, ‘How can I make this work?’” says Carol Idone, vice president, consulting, HBS. The Plan Sponsor of the Year annual award program recognizes retirement plan sponsors that sh

Preparing for an Unprecedented Open Enrollment Period

Open Enrollment Trends to Watch Expect major disruptions to open enrollment this year. From an operational standpoint, COVID-19 might surge in the fall and force states to reclose businesses. From a personnel standpoint, employees may not be comfortable returning if they feel unsafe in the workplace. These are two worst-case scenarios, but they exemplify the multitude of potential disruptors stemming from COVID-19 this enrollment period.

For Your Benefit video series: Episode 2-The monkey on our backs pt.2

Thank you for joining for another episode in our video series: For Your Benefit with HANYS Benefit Services. Hear from leading experts as we share insight on the employee benefit topics and trends that matter most. In episode 2, we’re expanding on the student loan debt conversation we started in part one , taking a look at some creative solutions companies are using to tackle this major issue. Tune in to each episode as we discuss regulations, investments, compliance and all things benefits. If you have any questions on content from our video or would like to begin talking to a retirement plan advisor, please get in touch by email or by calling (800) 388-1963.

Virtual Open Enrollment Fairs

Open enrollment fairs are a great way for employers and benefits providers to help employees understand and enroll in the benefits programs that meet their needs. These fairs are typically done in person, and they allow employees to learn about available benefits and discuss offerings with providers. Just as the COVID-19 pandemic may be changing what employees need for benefits, the format of open enrollment events should change, too. With open enrollment season around the corner and many organizations extending work-from-home policies, a virtual open enrollment fair may be necessary. This article explores benefits and best practices for organizations moving their open enrollment events online.

Q2 Market Recap: Extraordinary Times - Extraordinary Markets

With the majority of Americans sheltering in place at the beginning of the second quarter, what reasonable person would have forecast that the S&P 500 Index would have appreciated 20.54%, for its best quarterly performance since its inception in 1957? The extraordinary turnaround from the February-March bear market restored most of the negative returns investors suffered in Q1. Read the Q2 Market Recap for a brief review of the market performance. Also included is a summary of IRS guidance impacting retirement plan relief under the CARES Act.  If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by email or by calling (800) 388-1963.

The case for an operational review of your 403(b) plan

Why now? The plan sponsor community has been woefully unprepared to meet the increased scrutiny of 403(b) plan operations by the IRS, Department of Labor and private auditors. There has been a material spike in plan correction applications, investigations and regulatory penalties. But don’t just take our word for it. Let your fellow plan sponsors’ experiences tell the tale. Our webinar featured real life stories about sponsors just like you. Each of them had a “What, me worry?” attitude where their plan was concerned, confident that they had everything well in hand—until everything changed. Watch this webinar to learn: the pros and cons of conducting a plan operational review; when you should do it; and how much you can expect to spend. Webinar Recording FEATURED SPEAKERS: Carol Idone Vice President, Consulting HANYS Benefit Services Eric Paley Partner Nixon Peabody Claire Rowland Counsel Nixon Peabody

For Your Benefit video series: Episode 1-The monkey on our backs

Welcome to our new video series: For Your Benefit with HANYS Benefit Services. In this series, you will hear from leading HBS experts as we share insight on the employee benefit topics and trends that matter most. This episode we're talking student loan debt. How does it affect our financial health and ability to save for retirement? We also touch on what employers are doing to help. Tune in to each episode as we discuss regulations, investments, compliance and all things benefits. If you have any questions on content from our video or would like to begin talking to a retirement plan advisor, please get in touch by email or by calling (800) 388-1963.

Understanding Voluntary Benefits

You know the importance of having health care coverage and a 401(k), but are you taking advantage of all the benefits your organization offers? Voluntary benefits are additional benefit options offered through the company. Unlike traditional benefits like health coverage, employees are responsible for paying most or all of the cost of these voluntary options. What’s the Advantage? You may wonder–if you’re responsible to pay, then why elect any voluntary benefits? There are several advantages. Lower Price

IRS permits remote notarization of participant elections

The economic and societal lockdowns that have been imposed in an attempt to slow the spread of the coronavirus have presented unique challenges, including some that may not have been contemplated when the lockdowns were instituted. Congress was quick to pass the CARES Act , which gave retirement plan participants greater access to their plan balances through expanded loan and hardship distribution provisions. However, a stumbling block quickly became apparent when plan provisions required spousal consent for some distributions or loans. Spousal consent waivers for plans subject to qualified joint and survivor annuity provisions of Section 417 of the Internal Revenue Code generally must be witnessed in the physical presence of a plan representative or a notary public. Similarly, the same spousal consent and witnessing requirements apply to designate a non-spouse beneficiary for a 401(k) or ERISA-covered 403(b) plan. Physical presence can be difficult to achieve in light of stay-at-home

The DOL expands rules on e-delivery of participant notices

As described in our previous article on participant notices, plan sponsors of qualified retirement plans must routinely provide various notices to participants and beneficiaries regarding plan provisions, investment information, fees and more.  On May 21, the U.S. Department of Labor released new regulations regarding the electronic disclosure of these notices, ushering in an era of convenience for a historically arduous requirement. Electronic delivery rules have existed for years, but abiding by them has been prohibitive, particularly when delivering to employees not using a computer as an integral part of work duties. The new rules do not replace the existing ones, but instead offer a more feasible alternative to them.

Coronavirus-related distributions 100% taxable for New York state and local income tax purposes in 2020

The Coronavirus Aid, Relief and Economic Security (CARES) Act was signed into law on March 27. Under the Act, participants affected by the coronavirus may be able to take distributions in 2020 of up to $100,000 from an employer-sponsored retirement plan or an IRA. Although allowing these distributions from a qualified retirement plan is optional, we have seen that a number of employers have chosen to amend their plans to permit such distributions. The Act provides that coronavirus-related distributions will not be subject to the mandatory 20% withholding nor the 10% early withdrawal penalty (for those younger than 59½) that would otherwise apply.

Invisible

Investors are understandably concerned about the drop in value of their holdings as the first pandemic in many generations redefined our lives, seemingly overnight. HBS believes that investment processes, grounded in understanding the financial markets and the economy, provide the antidote for impulsive investment decisions. In The Wealth of Nations, a definitive examination of the practical and moral aspects of a market economy in the pre-industrial age, Scottish economist Adam Smith coined the term invisible hand as a guiding principle. Mr. Smith’s explanation of free-market economics in 18th century Great Britain centered on the belief that market participants always act in their own interest. A marketplace of sellers and buyers making voluntary transactions unleashes powerful economic forces — the invisible hand.

HBS participant education services: Timely help from a safe distance

The current pandemic environment proves how unpredictable this world can be throughout a person’s career and life. That’s why the value of HANYS Benefit Services’ participant education services cannot be overstated: Being there for our clients’ employees is of paramount importance and a key measure of our success. In addition to our plan level consulting services, we offer a dedicated team of highly trained and experienced educators to assist retirement plan participants. Our salaried team members educate employees, with no conflict of interest.

In Fed We Trust

In March, the market’s “fear gauge,” the VIX, reached 82.7, the highest close in its 30-year history. Daily moves in the S&P 500 averaged +/-5.0% and its 12.0% decline on March 16 was the worst day for the index since Black Monday in 1987. The New York Stock Exchange on March 23 closed the physical trading floor for the first time in its history and moved fully to electronic trading. As headlines focused on the equity markets, the volatility in the fixed income markets was unrivaled. As investors looked to raise cash, dealers, who typically act as shock absorbers for the bond market, were not able to match panicked sellers with willing buyers. A lack of liquidity occurred in the fixed income market and extreme price dislocations occurred.

Important considerations for retirement plan sponsors during the coronavirus pandemic

We are in unprecedented times and companies are facing a multitude of challenges in many aspects of business. Here at HANYS Benefit Services, we are committed to helping guide our clients through these times. Below are important considerations for retirement plan sponsors during the coronavirus pandemic. Eye on compliance. Remote work conditions have put distance between many collaborative human resources staff. It’s critical to keep a focus on key administrative tasks such as the timely funding of plan contributions and processing of participant requests. Keeping your retirement plan vendors apprised of any staff reductions and plan changes can help ensure smooth plan administration during this time. Working with a tighter budget

COVID-19: Retirement and Benefit Plan Resources

As the COVID-19 crisis continues to unfold, we are closely monitoring news and updates from top sources. We’ll be updating this section as new developments unfold. Here are several key articles and links to help plan sponsors and administrators navigate the COVID-19 impact to retirement and benefit plans: Retirement Plans 4 Key CARES Act Provisions for Retirement Plan Sponsors Markets React to Coronavirus   Important Considerations for Retirement Plan Sponsors during the Coronavirus Pandemic In Fed We Trust Participant Education Services: Timely Help from a Safe Distance CRDs 100% Taxable for New York State and Local Income Tax Purposes in 2020 IRS Permits Remote Notarization of Participant Elections   Employee Benefits CARES Act Expands Health Coverage Rules Understanding the Historic $2 Trillion Stimulus Package Employee Compensation and Benefits During Closures and Furloughs DOL Clarifies Exemptions to Coronavirus Paid Leave Laws Small Business Exemption to

4 key CARES Act provisions for retirement plan sponsors

On March 27, President Trump signed the Coronavirus Aid, Relief and Economic Security Act, legislation intended to provide relief to Americans amid the coronavirus pandemic. In addition to emergency provisions including financial stimulus payments to qualifying Americans, the Act provides certain relief within retirement plans to participants and plan sponsors. Specifically, the Act provides for the following: Coronavirus-related distributions. Before December 31, 2020, IRA holders and participants in defined contribution plans can withdraw up to $100,000 as a “coronavirus-related distribution.” To qualify, one must have been diagnosed with COVID-19, had a spouse or dependent diagnosed, or experienced adverse financial consequences due to virus-related work reduction. The law refers to such financial consequences as those resulting from being quarantined, furloughed or laid off or having work hours reduced due to such virus or disease, being unable to work due to lack of child care due

Markets React to Coronavirus

We have the following observations about the impact of the novel coronavirus outbreak on markets. First identified in Wuhan, China, in December 2019, cases of COVID-19 continue to climb. Though this coronavirus presents unique challenges, New York’s hospitals and health systems have extensive experience successfully managing outbreaks. In the past 20 years, they have been leaders in tackling the 2003 SARS outbreak, the 2009 influenza pandemic (“swine flu”), the 2014 Ebola outbreak and others. The vast majority of cases have been in mainland China. However, with more confirmed cases being reported across the globe this week, concerns have become more widespread, particularly after the Centers for Disease Control and Prevention cautioned about the potential impact in the United States.

FMLA Administration Outsourcing

The Family and Medical Leave Act (FMLA) is a federal law that allows eligible employees to take unpaid leave for a variety of personal circumstances. Due to the numerous regulations and complexities of the FMLA, administering FMLA leave can be a daunting task for many HR departments. In an effort to make FMLA administration more accurate and efficient, many employers have opted to outsource their leave programs to outside vendors. Why Do Companies Outsource FMLA Administration? 

Q4 Market Recap: Roaring into the 20s

U.S. equities continued to roar leading into 2020. The Federal Reserve reversed course on monetary policy in 2019, stimulating both the economy and securities markets. Read the  Q4 Market Recap  for a brief review of the 2019 stock market performance and outlook for 2020. Also included is an update on important provisions in the Setting Every Community Up for Retirement Enhancement (SECURE) Act. If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by  email  or by calling (800) 388-1963.

Fiduciary safe harbor for selection of lifetime income provider

The Setting Every Community Up for Retirement Enhancement (SECURE) Act provides a safe harbor for plan fiduciaries who select a guaranteed retirement income contract, which is defined as an annuity contract for a fixed term or providing for systematic payments guaranteed by the provider to be made over the life, life expectancy or joint lives or life expectancies of a participant and beneficiary. Retirement plan fiduciaries will be deemed to have acted prudently and will be eligible for the new safe harbor protection if they engage in and document the following process: objective, thorough and analytical search for an annuity provider; consideration of all costs, benefit features and terms of the contract; obtain written assurances from the provider of compliance with all federal and state laws and regulations governing lifetime income solutions, including state insurance laws; as a result of the analysis, the plan fiduciaries should be able to conclude that the provider has th

Don't Get Caught in the Act:

The Setting Every Community Up for Retirement Enhancement (SECURE) Act After spending most of 2019 on hold in Congress, the SECURE Act was passed and signed into law on December 20. This is the largest retirement reform act since the Pension Protection Act in 2006 and has a broad focus on improving both the reach and quality of retirement plans, as well as updating several individual tax rules. While most changes require no immediate action, it’s important for plan sponsors to be aware of changes that may soon impact them. Here is a chart with the most significant changes: