FBS Blog So offering smart 401K advice for employees is an especially important part of helping your employees recover from a challenging year. Virtual & Washington, DC | February 26-28, 2023. (A version of this article appeared in Plan Sponsor magazine in February 2018.). Please enable scripts and reload this page. Russ joined FBS in 2019 after working as a valued partner for 15 years and manages our ISDs group health program. Letter Template #1. Stacia has been with Financial Benefit Services since 2014 bringing with her 5 years in insurance billing and accounting and a Bachelor of Science in Business Administration from UT Dallas. (For context, the average 401K contribution in 2020 was 13.5%. 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). 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 periodsuch as before the new plan year begins. 360 Degrees of Financial Literacy program by the American Institute of CPAs (AICPA) is urging employees to carefully review their family's financial situation and insurance options to pick the best coverage plan for their household. We endeavor to answer all inquiries within 24 hours on business days. Here are a few tips to make OE emails engaging and drive participation. Open Enrollment Period: October 10, 2022 - October 31, 2022 This is the annual opportunity for you to make changes to your benefits and to add or drop eligible dependents from coverage. Drive more engagement in money-saving programs throughout the year. Well, in an ideal world, youd be able to pair up every one of your employees with a savvy and charming financial guru who could look at their unique financial situation, and give tailored recommendations on how they should be spending their free dollarsi.e. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. All Rights Reserved. If an employee misses open enrollment, he or she may understandably be panicked and unhappy. Benefits Administration We are looking forward to a successful enrollment season. Employers that are applicable large employers (ALEs) under the Affordable Care Act (ACA) may have additional concerns. This will give you the ability to answer any lingering questions from employees and build in extra time for those who are apt to miss deadlines, without placing any extra burdens on your HR team.. Center for Advocacy, Resources & Education (CARE), 2022 Salary Program for Non-Represented Staff, Resources for Trans and Non-Binary Employees. Open with an engaging subject line and immediately set a positive tone. The ConnectorCare program in Massachusetts (for people who are newly eligible or who haven't enrolled before). 2023 Open Enrollment Obamacare Health Plans Find 2023 health plans. If a company operates based on the fiscal year, the ideal open enrollment time frame would be in October. Regardless of the reason, this common situation can result in added financial burden on the employee, additional missed days at work due to lack of proper health coverage, and frustration for both employee and employer. Provide instructions on how to log in. After all the time and attention that HR pros give, missing open enrollment can make a bad situation worse, An employee may be in luck if they have a, a change to an individuals circumstances, which allows them to, Short-term, or limited-duration, coverage is a health insurance plan that is meant to only last a short time, like a few months to a year. We can help you tackle business challenges like these. Legally, employers are not required to do anything for employees who have missed the open enrollment deadline. You can buy your own insurance if you want. It is in your best interest to create simple and comprehensive policies and procedures so that you are prepared in the event of a SEP. Thank you for visiting theFSAstore.com Learning Center. New Jersey Secure Choice Savings Program on the Horizon for Private Employers, How to Use HR Metrics to Improve Your Bottom Line. Depending on your circumstances, your opportunities to enroll after the end of the annual open enrollment period may be limited. Your teams need ample time for payroll processing. Reach out to our team any time to chat! Employees digest information in different ways. Here's what to tell them. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); Here are a few tips to make OE emails engaging and drive participation. Specifically, 29 CFR 2590.701-6, and in permitted election changes for Section 125 plans ( 26 CFR 1.125-4 ). Open enrollment can be an extremely stressful and overwhelming time for both you and your employees. The open enrollment survey questions you ask largely will depend on the goals you are trying to measure. Sorry to be the bearer of bad news but no, once you make your open enrollment elections, you don't have the option to change them later in the year unless you experience a qualifying life event. Utilizing as many forms of communication as possible will enable you to reach more employees. $('.container-footer').first().hide(); Subject Line: Were Two Weeks From Open Enrollment! Make Sure You're Getting the Best Deal, Jaleigh White, a member of the AICPA Financial Literacy Commission, noted that "even though the volume of an open-enrollment benefits package can seem overwhelming, employees would benefit from taking 30 minutes, at least, to read through all materials and explore the impact of any changes the company is making to their benefits, and carefully consider any changes to their personal situation that could impact their elections for the coming year.". Privacy Policy document.write(new Date().getFullYear()); Attached is a flier with more details but please reply here and let us know if you have questions! Information sessions and benefits fairs are among other steps to ensure every employee can decide their health benefits. Open Enrollment begins on Tuesday, October 15, 2019 and runs through 5 pm, Thursday, October 31, 2019You may enroll online through Employee Self. pliance is currently $0. - Workest Your Employee Missed Open Enrollment for Health Insurance. Most companies operate on a calendar fiscal year. Lets use a fall open enrollment as an example. In the same way 401(k)s use automated deposits to make retirement savings easy for employees, mobile apps likeAcorns,Robinhood,Stash,DigitsandTallyuse automation to help people build emergency savings funds, pay down credit card debt, and invest in smart, manageable, and automatic ways. In order to prevent these issues, it is important to understand what it means when an employee misses open enrollment and how it can affect your businessbefore it actually happens. ensure a successful open enrollment period. Join 22,000+ HR pros who receive monthly employee benefits insights, straight to their inbox. Make a corrective contribution to the plan for the employees that compensates for their missed deferral opportunity. If you don't have time to send a formal letter, consider sending an excuse email instead. You can purchase coverage through the marketplace, but you wouldn't be eligible for any subsidy or anything (sounds like you make too much to qualify anyway). Benefit Cooperatives But if youre looking to get started now, you can still significantly improve the usefulness of your 401K communications by highlighting a few different employee personas, and giving financial advice for each one. All you have to do to make changes to your benefits is to log into the online portal and make any changes. Despite your own best efforts to communicate important information and deadlines, you may have employees who dont successfully enroll on time. Whatever the case, if you made a mistake during open enrollment, you're probably wondering if there's a way to make changes to your elections later on in the year. 1 NOTICE TO ALL EMPLOYEES - 2020 ANNUAL OPEN ENROLLMENT PERIOD FOR OPTION CHANGES IN HEALTH AND DENTAL INSURANCE PLAN COVERAGE. Hopefully, we'll be able to restore your employment after this critical time. Provide contact information to let employees know how they can access Q & As, learn more about their benefits, and how to contact the human resources benefits specialist. 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. Have questions about managing your own 401K? Missing open enrollment can be a costly mistake for employees, so employers should take adequate steps to help their employees through the enrollment process. After open enrollment ends, you can only make changes to your elections if you've experienced a qualifying life event. Are there any changes in my life that might make another health insurance choice more valuable this year? Russ continues to support districts across the state with their risk management programs. 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. coverage qualify for a special enrollment period to enroll in a Marketplace plan outside of the annual open enrollment period and may select a plan within 60 days of losing job-based coverage (either 60 days before or 60 days after). Individuals who are below the income thresholds set by the government's programs can apply for coverage any time of year. Employers can also gather status updates during the open enrollment period to view which employees have not completed enrollment. To learn more, schedule a consultation with one of our knowledgeable business advisors. Russ holds a Life, Accident & Health insurance license and a Risk Managers license through the Texas Department of Insurance, and brings to FBS over thirty years of risk management and pool administration expertise. Copyright The Regents of the University of California, Davis campus. [Instructions or refer to additional resources]. Please let us know if you have questions by replying to this email! Has my employer made changes to its current benefits plan? Surveying your employees will help you clarify their benefits options and the open enrollment process, and it can demonstrate that you are willing to set aside time to help answer employee questionspotentially reducing the number of employees that miss open enrollment. Remind employees they will receive a confirmation of their changes. Earn FSA Perks Points, unlock member-only rewards, and speed up the checkout process. 2. What is Evidence of Insurability (EOI)? Employees disseminate information differently, so you may need to consider other methods of engagement. Requiring waivers of coverage: Waiver of coverage documents verify that employees reviewed and declined benefits options during the open enrollment period. An acknowledgement of benefits formfor those who opt in to coverage, A waiver of coverage formfor those who opt out or miss the deadline to enroll in employer-based benefits packages, One-on-one appointments with HR representatives, Seminars, webinars, and/or self-paced e-learning modules. Session Information: Many companies host open enrollment sessions to help fully explain the offerings. So, for Joan, it makes sense to fund her 401K up to the company match and beyond, as much as she can afford. Get ready to discuss all things benefits! 75082. Accessibility and clarity of complex information give employees and employers a better experience and promote higher levels of participation. If you are asking for a longer leave of absence, send this letter as early as possible. (Let employees know if plans are changing or if new plans were added). And there is a tool that can make that happen. Cathy has been in the insurance industry for 28 years. In your hook, you want to get employees ready for open enrollment. What Happens If an Employee Misses Open Enrollment? So, if you find yourself surprised by a premium increase come January, you won't be able to change coverage. Please confirm that you want to proceed with deleting bookmark. 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. Legally, no. 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. The only exception to these terms is if an employee qualifies for a special enrollment period (SEP). !.,-_*|+~#). The benefits open enrollment period is typically the only point during the year in which your employees can make changes to their benefit electionsincluding adding or dropping coverage or dependents, switching plans, or even enrolling in benefits for the first time. Changes in number of dependents - if you have a child, adopt a child, or if a child passes away. Members can get help with HR questions via phone, chat or email. He just cant beat a 100% return on his money. 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. 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 allemployees currently on a leave of absence regardless of pay status. During open enrollment, HR representatives often block off hours in their calendars to respond to employee questions about coverage, requirements, and deadlines. Did I pay out-of-pocket expenses this year that could be covered by an insurance option next year? Whenever someone loses their job, they want to hear that their loss is validated. Putting money away for your retirement is important, but how important depends on the financial boat youre in. Making changes to how open enrollment is presented and discussed with a strategic plan can alleviate much of the frustration. Copyright 2023 Financial Benefit Services: Employee Benefit Solutions. 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. We do not sell internationally. Starting the conversation about open enrollment early and providing multiple information channels throughout the open enrollment period can help ensure that employees haven't missed open enrollment at work. At Ignite HCM, we assist human resources administrators in streamlining processes. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. If you have not defined any specific goals, then start by focusing on the enrollment experience as a whole, for example what did your employees like and what do they want to be different for next year. Its their opportunity to enroll or make changes to their employee benefits. Heres what you need to do to get and early start: [Instructions]. Were hiringsee all of our open positions. Even with weeks of communication in advance, employees may report that they missed open enrollment at work. COBRA - If you lose your job and elect to continue receiving benefits from your employer. COBRA Service Agreement, Benefits Consulting Members may download one copy of our sample forms and templates for your personal use within your organization. Here we have provided you with a template for your open enrollment email to employees. You can get your own copy here. HR teams can send additional reminders to those employees and follow up with them individually so they dont miss the deadline. Careers, Terms of Use The portal can also include a count-down counter to encourage employees to enroll. All rights reserved. As a result, your employees can latch on to the situation closest to their own, and feel more confident in their choices. This can happen for a variety of reasons, including a change in family status, work or information overload, or challenges in navigating the benefits enrollment process. These are just a few quick tips. They must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. 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. To qualify, individuals must have experienced a loss in permanent coverage due to a job change, layoff, becoming a college student, or missing open enrollment. 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. She and her team will provide the district with monthly billing services. SHRM Online, September 2019, 10 Questions for Employees Choosing a Health Plan, We encourage all employees and supervisors to treat others with equality and respect. If an employee missed open enrollment at work, they are generally no longer eligible to sign up for benefits unless one of a few special exceptions applies. The deadline to make any changes will be [DATE]. Weve got some exciting options this year so be prepared to make changes! Section 125 plans are used by most employers that offer health coverage, as they are the mechanism that allows . This years enrollment period runs from [enrollment period dates]. This e-mail is the first step of a three-part process. You heard it here first! 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. She encourages employees to ask themselves the following questions to be sure they are making the best choices for themselves and their families during the year ahead: "If you answered 'yes' or you're not sure about the answers to these questions now is the perfect time to revisit your benefits. Changes in marital status - Getting married, divorced, separated, or if your spouse passes away. 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. 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. 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's what this kind of targeted advice might look like in an email you send to your workforce. t is the employees responsibility to sign up for benefits during open enrollment as long as the employer provides plenty of notice. If Dave finds himself suddenly having to pay for something unexpected (like a broken transmission or a flooded basement) and doesnt have cash saved up, his options for paying off this bill are to a) raid his existing 401K funds and pay a penalty, (b) take out a loan against his account, reducing his after-tax pay by paying back principle and interest, or (c) use a high-interest credit card. These waivers also protect an employee's ability to immediately enroll for benefits if they lose coverage from an outside health plan, such as a spouse's employer. ), Example #2: Dave, Who Has No Emergency Fund. He writes about HR, compliance, and benefits solutions. Demonstrating to your employees that their needs are important to you will instill high employee morale, and ensuring that you have done all that you were required to do in regards to ACA regulations will protect your business in the event that an employee misses the open enrollment deadline. 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. Each year host a debriefing session to understand what worked and how to improve open enrollment the following year. 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. 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. Some states, however, do have penalties for individuals without minimum essential coverage. Flex-Ed: Mistakes During Open Enrollment Can You Change Elections? All of these options would result in him losing money beyond the cost of the surprise expense. Here are a few theme ideas to get you started: Rock Enroll - Music Theme Benny & The Benefits - Music Theme For Dave, it would make more sense to set money aside for that before he puts money into his 401K, even if his company offers a match. Why? But why stop there? This is nothing new. Copyright 2023 The Regents of the University of California. Client Testimonials Were two weeks from open enrollment. 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. What Is a Dependent Care FSA and How Does It Work? Writing a Good Job Rejection Letter. Here are a few ideas: Also consider other help emails that explain the process in greater detail. Capture employees attention with benefits messages that stick. [Insert link to benefits portal and instructions]. Most employees receive a flood of work-related emails every single day. And missing the deadline can have serious consequences for your employeesincluding loss of coverage or the inability to change coverage options. In order to ensure that their businesses will not face any penalties, many ALEs should document that coverage has been offered. Have an upbeat message to let employees know this is a positive engagement. The UCPath Center mailed an Open Enrollment notice and Open Enrollment Form to employees who were on an unpaid leave of absence as of September 30, 2021. Learn how ALEX makes benefits engagement a breeze for HR teams and consultants. Welcome to Open Enrollment! 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. 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. Also, remember the source of information. Jellyvision acquires Picwell to simplify the employee benefits puzzle! Think about it your employees are a unique set of people with their own needs, life circumstances and goals. Announce your benefits portal and upcoming benefits fairs. To avoid such frustrations in the future, we are changing to a computer system that will prepare checks a week in advance for distribution on payday. Tips for writing a professional excuse email. If employees do miss open enrollment, provide opportunities for them to meet with HR or attend informational meetings that discuss their options to obtain coverage for the next year. HR processes need to be in place as a standard business practice. Karen Frost, health strategy and solutions leader at Alight Solutions, a benefit administration company, offered these pointers to HR benefit managers for open enrollment and throughout the year: Employers Enhance Emotional and Mental Health Benefits for 2020, Keep in mind, though, that employees must make changes to their flexible spending accounts or health savings accounts each year. money left over after basic living expenses are covered. In order to ensure that your employees are able to make the most out of the open enrollment period and the benefits your company provides, you should take an active role during open enrollment.
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