Its a good idea to create simple and comprehensive policies and procedures so youre prepared in the event of an SEP. Applicable large employers (ALEs) under the Affordable Care Act (ACA) may have additional concerns. If an employee misses . Some are closer to retirement than others, some have a larger savings safety net than others, and some have more pressing upcoming expenses than others. Short-term insurance is a plan that provides health insurance for 30-364 days (depending on your state) to act as a stopgap when there is a lapse in longer health coverage. If appropriate coverage is offered to employees (regardless of whether they enroll) these employers will not be subject to the penalty. Cathy has been in the insurance industry for 28 years. Coby joined FBS in 2007 as a Benefit Consultant and then rose to Vice President of Sales in 2013. Unless youre a financial expert or HR professional, figuring out retirement plans is no walk in the park. And if you have any questions or are uncertain about anything in the process, contact your HR department - they'll help you navigate the open enrollment steps and clarify anything you don't understand. Close the email out by reminding employees of the importance of benefits enrollment. Open enrollment consumes a large amount of HR's time and energy, making it nearly impossible to forget about. Specifically, his 401(k)-related gains7%-9% annually, on averagewould most likely be less than the losses he would take on his credit card, lets say, 13%-17%. It often brings many questions and can be stressful on both sides of the communication flow. Remind your employees about these resources regularly by highlighting a single resource every month. In fact, the terms of your benefits plans may prohibit you from making exceptions for employees who do not make benefits elections within a certain time period, such as before the new plan year begins. The point of offering healthcare employee benefits for employees is to ensure that they are properly cared for. FBS Blog When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. Its that time of year again! For exactly that reason, its important to make sure you go beyond encouraging higher and higher 401(k) contributions (which only some employees can manage) and, instead meet your entire workforce where it iswith more empathetic, targeted, holistic financial guidance. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID");
Changes in marital status - Getting married, divorced, separated, or if your spouse passes away. Para garantizar que brindemos la informacin ms actualizada y de mayor precisin, algunos contenidos de este sitio web se mostrarn en ingls y los proporcionaremos en espaol una vez que estn disponibles. RE: 2022 Open Enrollment communications to employees on leave of absence. 75082. Copyright The Regents of the University of California, Davis campus. Even with weeks of communication in advance, employees may report that they missed open enrollment at work. Here are some points you can (and should) include: Be Concise, and Swift. The information below covers what open enrollment is and what you may do during this time. As part of the open enrollment process, employers should help make employees aware of what happens if they missed open enrollment. Think about it your employees are a unique set of people with their own needs, life circumstances and goals. All rights reserved. Therefore, its important employers be proactive in their approach to open enrollment. $("span.current-site").html("SHRM MENA ");
HR processes need to be in place as a standard business practice. Pick A Theme Lose the stiff, corporate lingo and put a little fun back into open enrollment. Missing open enrollment means limited options, but here a few situations to consider: Qualifying Life Event: An employee may be in luck if they have a qualifying event coming up. The first step in achieving this is to provide as much information as possible in many different forms, such as flyers, posters, emails and videos. For Workers and Families For Employers and Advisers If you've lost your job, had your hours reduced, or experienced other qualifying events there are options available to workers and their families to maintain health coverage, including the Consolidated Omnibus Budget Reconciliation Act, or COBRA. While employers have certain responsibilities to notify employees about benefits-related deadlines, the responsibility of registering for benefits and completing any required paperwork falls on the employee. Keep it brief. You heard it here first! Web spread the word about your company's open enrollment with these 30 short reminders. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Stop the sniffles The ConnectorCare program in Massachusetts (for people who are newly eligible or who haven't enrolled before). Sample 4: Formal absent excuse letter due to an emergency. Have questions about managing your own 401K? Open enrollment is an annual window when you can enroll in health coverage, switch to a different plan, or drop your coverage (that last point is only applicable if you have an employer-sponsored plan; self-purchased individual/family plans can be dropped at any time). Make Time for Employees Who Missed Open Enrollment. Please submit questions related to Open Enrollment for your employees on leave to Service Now > Leave Administration > Other Leave Questions. "There are many factors, both in a benefits plan and in one's personal life, that can change every year. 2175 N. Glenville Drive Here's our employee furlough letter sample: Dear [ employee_name ], I'm sorry to inform you that your position will be put temporarily on furlough due to urgent business conditions, from [ date] to [ date ]. This years enrollment period runs from [enrollment period dates]. When looking into the issue, work with the employee and the health insurance broker to make sure there wasnt an administrative error. }
I apologize for the delay in sending last month's paychecks. Open enrollment is an important time of the year for employers, employees, and benefits vendors. You could have misread a question, been forced to rush through the process, or even miscalculated how much money would be coming out of your paycheck every week. Think of it as an invitation. Since Greg has an emergency fund in place, it makes sense for him to fund his 401K until his employer match is reached. (Feel free to copy-pastewe wont tell. At Ignite HCM, we assist human resources administrators in streamlining processes. The official dates are [DATE] to [DATE]. At many organizations, the open enrollment season for 2020 employer-sponsored benefits is under way or about to begin. The answer to your question may depend on whose open enrollment you missed and why. To provide managers and supervisors with the guidance they may need in times of crucial communication, Employee & Labor Relations has prepared sample letters for supervisors to deliver to employees: Please consult with your Employee Relations Consultantat UC Davis and UC Davis Health regarding any of these letters. In order to offset any decrease in morale, it is important that you provide opportunities for the employee to meet with HR or to attend informational meetings that discuss his or her options to obtain coverage for the next year. Thank them in advance for doing their part to make this a successful open enrollment. Putting money away for your retirement is important, but how important depends on the financial boat youre in. Most companies operate on a calendar fiscal year. Please enable scripts and reload this page. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) {
HR is still the caretaker of company culture, even when administering benefits. 3 Open Enrollment Reminders for Employeesand HR At many organizations, the open enrollment season for 2020 benefits is underway or about to begin. Drive more engagement in money-saving programs throughout the year. The IRS and FSA administrators understand that life changes and that you may need to make adjustments to your elections to accommodate for those changes. These employers must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. The information must get to vendors to ensure employees elections are accessible on day one of your companys benefits plan year. What Is the Pregnant Workers Fairness Act (PWFA). To get the ball rolling, a robust open enrollment email to employees is vital. As an employer, you may be faced with administrative burdens and unhappy or unproductive employees. All you have to do to make changes to your benefits is to log into the online portal and make any changes. By requiring employees to sign either an acknowledgement of benefits form for those who opt in to coverage, or a waiver of coverage form for those who opt out or miss the deadline to enroll in employer-based benefits packages, you will create a uniform policy. If you are concerned about complying with ACA in any regard, please contact us to discuss one of our many options to help. ), Example #2: Dave, Who Has No Emergency Fund. The better employees understand open enrollment and the benefits they receive from participating, the higher engagement employers will see from their team. A special enrollment period is a designated time outside of the standard open enrollment period for employees to change or update their insurance plan elections that are granted when the employee experiences a qualifying life event. Put together educational materials when employees get a raise, and remind them that nows a good time to up their contribution if they can. Relocation - Moving won't always affect your eligibility, but sometimes moving to a new home address or a new work site can, especially if it's in a new state with different regulations. Center for Advocacy, Resources & Education (CARE), 2022 Salary Program for Non-Represented Staff, Resources for Trans and Non-Binary Employees. Theres no better time to talk about what to do with your free dollars than when an employee has just landed more free dollars, courtesy of payroll. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. allsynx Platform Agreement HR reps, the AICPA advised, could share this message with employees: "By just staying the course without reviewing all the options available, you could be missing crucial opportunities to saveor worse, choose a plan that doesn't properly cover your family's health care needs. Jellyvision acquires Picwell to simplify the employee benefits puzzle! But most advisors suggest putting away 15-20% of your paycheck if you can. (800) 583-6908 As an Account Executive, she was a key team member on the TRS-ActiveCare account from its inception through the duration of the contract. Were two weeks from open enrollment. Deadline to enroll for insurance to start Jan 1 is Dec 15. Heres what you need to do to get and early start: [Instructions]. While employers have little ability to "bend the rules" for employees when they have missed open enrollment at work, there are some options that can help both employer and employee. Her past insurance experience includes roles as Marketing Supervisor, Account Management, and Account Executive at one of the largest insurance carriers of some of the largest employers in the state of Texas. If your benefits packages havent changed from the previous year, consider offering a passive enrollment, which automatically enrolls employees who dont wish to make any changes to their selections. Benefit terms would run from January 1st to December 31st. To provide managers and supervisors with the guidance they may need in times of crucial . Let's use a fall open enrollment as an example. Depending on who the healthcare plan provider is, there may be contractual agreements that do not allow for enrollment . It is typically the only time during the year in which employees can make changes to their benefits choices, such as adding or dropping coverage, adding or dropping dependents, or enrolling in benefits for the first time. Format for absence excuse letter. Accessibility and clarity of complex information give employees and employers a better experience and promote higher levels of participation. Help employees save for retirement and reduce taxable income. This can cause important ones like open enrollment to fall through the cracks or simply be skimmed so they can move on to the next thing. Home Each year host a debriefing session to understand what worked and how to improve open enrollment the following year. Here's what to expect: Other qualifying life events that would make an employee eligible for SEP can include: If an employee experiences a decrease in income, they may be eligible to apply for health coverage through the government's Medicaid and Children's Health Insurance Program (CHIP). Open enrollment begins one month from now, beginning [DATE] until [DATE]. Regularly educating employees: Providing multiple information channels during open enrollment can ensure that employees are well-informed and have the resources to make decisions about their benefits. Example #3: Greg, Whos Got a Safety Net, But Whos Saddled With Lots of High-Interest Debt. Posted on December 9, 2021 Make a corrective contribution to the plan for the employees that compensates for their missed deferral opportunity. The more visibility you give them, the more likely your employees will dig in. You want to provide employees with essential information about the upcoming benefits period that is engaging. Mr. James started his insurance career in 1993 with American Fidelity in Lubbock, Texas and remained with them until 2000. This e-mail is the first step of a three-part process. He just cant beat a 100% return on his money. Privacy Policy Employees who experience qualifying life-changing events (such as getting married, divorced or legally separated, having or adopting a child, or moving to a new residence or work location that affects benefits eligibility) are eligible to enroll in or make changes to their benefits elections outside of the open enrollment period. We are available 24 hours a day / 7 days a week. Utilizing as many forms of communication as possible will enable you to reach more employees. Partnering with a respected third-party administrator is a great way to help educate your employees on their benefits and help make sure they get the most out of the open enrollment experience. money left over after basic living expenses are covered. In order to ensure that their businesses will not face any penalties, many ALEs should document that coverage has been offered. This can cause important ones like open enrollment to fall through the cracks or simply be skimmed so they can move on to the next thing. is a benefits enrollment strategy that employers use to simplify the process and maintain benefits participation. He would lose more money than hed gain if still carrying that debt. [Instructions or refer to additional resources]. Legally, no. If you are looking for help with your current system, or think it may be time to enhance your benefits package, contact us to talk to a consultant. Heres what you need to do to get started now! Remind employees they will receive a confirmation of their changes. You can stay informed, educated, and up-to-date with open enrollment, benefits administration, and other important topics using BerniePortals comprehensive resources: Crafting and following a comprehensive onboarding checklist ensures a consistent, As the cost of living continues to rise around the country, many employeesespecially HR professionals play an indispensable role within an organization. The opening of the email starts with a bold header letting employees know its time for open enrollment. Medicaid provides health insurance to low-income individuals, while CHIP provides health insurance to children of low-income families. Learn more, Money Girls Quick and Dirty Tips for a Richer Life. Benefits Technology He currently serves as the benefit consultant for 15 of the 20 Educational Service Centers in the State of Texas. We've got great ideas for top health purchases before the Grace Period deadline. Many employers even offer benefits education during open enrollment to help employees understand their options and make informed decisions. Enrollment ends Jan 15th in most states. If you miss the open enrollment period, you won't be able to enroll in a plan unless you have a qualifying event (such as getting married, having a baby or losing employer-sponsored coverage). Despite your own best efforts to communicate important information and deadlines, you may have employees who dont successfully enroll on time. If youre truly invested in helping your employees not only plan for retirement, but also create savings and dig out of debt, offer education in the moments that matter: Reiterate your 401K messaging whenever employees get a raise, bonus, or promotion. The open enrollment announcement email should go out two weeks before your benefits packages are made available to employees. Careers, Terms of Use Emails are essential for company-wide communication because every employee gets assigned a company email when hired. Get a demo of the ALEX platform and learn more about how our software can help you boost benefits engagement, drive better financial decisions, and save your team time, money, and headaches. Email is not the only way to reach employees. ", "Americans tend to miss the mark when they stick with what they were doing before without double-checking their assumptions," said Kelley Long, a member of the AICPA Consumer Financial Education Advocates panel. Comprehensive coverage for your business, property, and employees. New Jersey Secure Choice Savings Program on the Horizon for Private Employers, How to Use HR Metrics to Improve Your Bottom Line. Open Enrollment is your annual opportunity to review your benefit plan options and make . Your Employee Missed Open Enrollment for Health Insurance. This is nothing new. }); if($('.container-footer').length > 1){
Lets use a fall open enrollment as an example. Subject line: Let's get smarter about 401K savings. Please purchase a SHRM membership before saving bookmarks. Start reviewing your benefit information now so youre ready when the time is right. Now What? 4 out of 5 can find a marketplace plan for $10 or less a month with cost assistance! [Insert link to benefits portal and instructions]. Log-in Now! Hire, onboard, manage, and develop productive employees. Specifically, 29 CFR 2590.701-6, and in permitted election changes for Section 125 plans ( 26 CFR 1.125-4 ). He is a graduate of Texas Tech University with a Degree in Education. (For context, the average 401K contribution in 2020 was 13.5%. But employees are also balancing their workload, home life, childcare, and the holidaysall while trying to stay safe and healthy during a global pandemic that's been hard to predict. Employees who experience qualifying life-changing events (such as getting married, divorced or legally separated, having or adopting a child, or moving to a new residence or work location that affects benefits eligibility) are eligible to enroll in or make changes to their benefits elections outside of the open enrollment period. But since he has high-interest credit card debt, Greg probably shouldnt contribute any more money to his 401Kbeyondthe match until his debt is repaid. Its equally important to understand why they missed the deadline and help them avoid the same mistake in the future. If youre offering new plans, however, passive enrollment isnt an option, so allow additional time and resources to communicate and follow up with employees. Your friend isn't necessarily looking to get placated when they give you the bad news, and they may not have prepared for the adversity. Client Testimonials Ready to spend? In order to ensure that none of our employees in this status were missed by the cutoff date,HR Leave Administration will email an Open Enrollment reminder this week to all. G&A Partners is a leading professional employer organization (PEO) that offers world-class HR services and a team of experts who can help you navigate employment issues, safety initiatives, and moreduring (and after) the pandemic. As the Director of Client Services at FBS, Cathy oversees the Billing, Clent Service, and Account Executive teams and is available to assist in escalated matters, if necessary. This option is designed to provide temporary coverage in case of emergency health situations until the employee can regain permanent health insurance. else if(currentUrl.indexOf("/about-shrm/pages/shrm-mena.aspx") > -1) {
Our benefits fair will take place [insert dates, time, locations]. Track employee time and maximize payroll accuracy. The only exception to these terms is if an employee qualifies for a special enrollment period (SEP). Open enrollment begins [DATE] and closes [DATE]. Here's what can happen and how HR can help. In fact, there's a good chance that the terms of your employer's benefit plan don't allow any exceptions or changes for employees who make mistakes or miss the open enrollment period altogether. What is Evidence of Insurability (EOI)? Here's what to tell them. ", 2. Asking for employee feedback: Employees can be a great resource for offering suggestions about the best ways to structure benefits enrollment to ensure maximum participation. Open Enrollment begins on Tuesday, October 15, 2019 and runs through 5 pm, Thursday, October 31, 2019You may enroll online through Employee Self. Like Every Letter, You Need To Start By Addressing Your Staff. To request permission for specific items, click on the reuse permissions button on the page where you find the item. If you experience one of these life events, you'll want to get in touch with your FSA administrator within 30 days of the event to find out if you are eligible to make changes to your plan. In this article, we will focus on the importance of sending an open enrollment email to employees. Youcouldadd the examples above into your general 401K messaging and call it a day. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Everything You Need Is Inside! Why Send an Open Enrollment Email to Employees? 401Ks, IRAs, compounding interest, employer matching its enough to make the average employees head spin. Announce your benefits portal and upcoming benefits fairs. All of these options would result in him losing money beyond the cost of the surprise expense. To learn more, schedule a consultation with one of our knowledgeable business advisors. Therefore, your open enrollment for the new year will take place in October.
Consider creating an email template. (Let employees know if plans are changing or if new plans were added). Here are a few different scenarios you might find yourself in, and some advice for how to approach your 401K. He is a graduate of Texas Tech University holds many different licenses in the insurance industry including the Insurance Counselors License through the Texas Department of Insurance. When it comes to your open enrollment elections, the best thing you can do is take your time and be thorough to minimize the chance of making mistakes. About Us document.write(new Date().getFullYear()); If the employee does not make an election in the required time frame the Plan Document calls for a default position to take effect in lieu of the election. Writing a good job rejection letter is not as hard as you think it is! Your teams should start strategizing well before the announcement for open enrollment. Include with your email any attachments related to open enrollment. I realize that you, too, need to meet your monthly obligations in a timely manner, and such delays do not help. Making changes to how open enrollment is presented and discussed with a strategic plan can alleviate much of the frustration. When employees miss open enrollment and lose health coverage, this can add financial and emotional burdens that may affect their health, well-being, and productivity at work. Coop Consulting Agreement Health Insurance Renewal Sample Letter to Employees By Mary Gormandy White, M.A., SHRM-SCP, SPHR YinYang / iStock via Getty Images If it's time for your company's group health plan to renew, it's advisable to notify your employees about the new plan options in writing. After all the time and attention that HR pros give open enrollment, it can be hard to imagine how an employee could miss the window for electing their benefits. If youre encouragingallyour employees to putas much as they caninto their 401(k), I hate to break it to you, but you may be causing more harm than good. Here are a few theme ideas to get you started: Rock Enroll - Music Theme Benny & The Benefits - Music Theme Most companies operate on a calendar fiscal year. Every employee has his or her own preferences when it comes to receiving important information. You can also take an email communication and post it to the employee portal on your website.