Benefits Breakdown Newsletter

Benefits Breakdown Newsletter - November 2022

Inflation’s Impact on 2023 Open Enrollment

Many employees are feeling financial stress because of inflation. With open enrollment fast approaching, inflation could impact employees’ benefits choices. According to The Hartford’s Future of Benefits Pulse Survey, 40% of U.S. workers reported that they will cut back on the benefits they select during 2023’s open enrollment because of inflation. As a result, this year’s open enrollment may be more challenging than usual for employers.

Employers can take steps now to help their employees better understand their benefits options and make informed decisions. Employers can assist employees this open enrollment season by:

using multiple communication channels;
employing clear language and personalized messaging;
highlighting the services that come with coverage.

By communicating effectively, employers can help employees optimize their inflation-strained resources and make the best benefits selections for themselves and their families during this period of financial difficulty.

How employers can address substance misuse

The National Safety Council found that one in 12 workers is dealing with an untreated substance use disorder. Employee alcohol and substance misuse or addiction can have serious ramifications for employers. Employees who engage in risky substance use are absent more often, have lower productivity and poor work performance, and are more susceptible to injury due to accidents.

The NSC reports that employees with an SUD have double the healthcare costs compared to employees without one. These costs can represent a significant burden to employers and can include fiscal liability if an employee’s impairment at work causes a workplace accident.

Employers can play an essential role in decreasing the social and financial burden of substance misuse and guiding the development of a healthy and productive workforce. Employers should consider developing an employee benefits program that is holistic and addresses prevention, screening and treatment options while taking deliberate steps to protect employees’ privacy.

For more information about employee benefits, our services and products, contact HANYS Benefit Services online or call 800.388.1963.

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

SECURE 2.0 Discussion Series: Session One

SECURE 2.0 provisions: What we know and what’s still up in the air The SECURE 2.0 Act, signed into law in late December 2022, has factored heavily in retirement industry discourse since the final legislation was published. As with any legislation of this depth and breadth, there’s a lot to digest and the industry takes time to adjust. Our team of experienced advisors recently met to discuss some of the more nuanced provisions of the legislation, such as changes to Roth contributions, and what they could mean for plan sponsors. Panel participants included the following HBS team members: Noah Buck, Christina Bauer-Dobias, Sean Bayne, Vincent Bocchinfuso and Kathleen Coonan. Highlights of our panel’s conversation below should serve to help guide plan sponsor thinking. On Roth employer contributions NB – In addition to deferring pre-tax or Roth, plan sponsors can now allow employer contributions to be classified as Roth, is that right? VB – Correct. This is immediately available to plan s

SECURE 2.0 Discussion Series: Session Two

The retirement industry has been buzzing since the SECURE 2.0 Act was signed into law last December. This new, comprehensive legislation has sparked a lot of discussion. As with any major reform, it will take time for the industry to fully adapt and understand all its implications. Following our April 11 webinar on the first three months of the industry’s response, our team reconvened to discuss some of what we have heard from our client and vendor partners and to respond to some of the great questions we heard from attendees. Panel participants included the following HBS team members: Noah Buck, Christina Bauer-Dobias, Sean Bayne, Vincent Bocchinfuso and Kathleen Coonan. The Discussion SB – Throughout the webinar, I wanted to stress two things: 1) confusion about where to start and what is expected from plan sponsors is normal; and 2) even more than three months in, this is a developing situation and people should expect changes as time goes on. With those in mind, engagement through

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