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. Legally, employers are not required to do anything for employees who have missed the open enrollment deadline. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up-to-date. Subject Line: Were Two Weeks From Open Enrollment! Some states, however, do have penalties for individuals without minimum essential coverage. ", [SHRM members-only toolkit:
Still, missing open enrollment can make a bad situation worse. Here are a few ideas: Also consider other help emails that explain the process in greater detail. 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. Although many of these suggestions are not legal requirements, it is in your best interest to take these steps in order to protect your business and its productivity. Coby now serves as the Senior Vice President of FBS managing a team of sales, marketing, and client implementation personnel. 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. Thank them in advance for doing their part to make this a successful open enrollment. 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. 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 ]. Make it easy on you and your team by taking advantage of our action plan and timeline. However, most have an actively at work or similar provision, and wording regarding the inability to make an election because of extentuating circumstances. 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. Deadline to enroll for insurance to start Jan 1 is Dec 15. is a benefits enrollment strategy that employers use to simplify the process and maintain benefits participation. 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. Her short-term financial situation is secure, so shes in a position to focus on her long-term goals. - Workest Your Employee Missed Open Enrollment for Health Insurance. Putting money away for your retirement is important, but how important depends on the financial boat youre in. Make Time for Employees Who Missed Open Enrollment. ), Subject line: Lets get smarter about 401K savings. Did I pay out-of-pocket expenses this year that could be covered by an insurance option next year? What is Evidence of Insurability (EOI)? money left over after basic living expenses are covered. 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. Dear Employee, The School District's Health Insurance open enrollment period for the INSERT year will begin on INSERT DATE. Purchasing Cooperatives, Speak to Consultant We've got great ideas for top health purchases before the Grace Period deadline. 4 in 10 employees who are able to save for retirement are now saving less as they continue to face financial hardships. If you're married, discuss your elections with your spouse to ensure that the whole family is on the same page for the upcoming benefit year. Remember, this is a guide to get you thinking about your message to employees. 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,
He currently serves as the benefit consultant for 15 of the 20 Educational Service Centers in the State of Texas. Despite your own best efforts to communicate important information and deadlines, you may have employees who dont successfully enroll on time. Making changes to how open enrollment is presented and discussed with a strategic plan can alleviate much of the frustration. You can get your own copy here. Insurance and benefits plans can be cost prohibitive for companies that run smaller operations and/or do not have a large workforce. Now What? How Can HR Help an Employee Who Misses Open Enrollment? 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. 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. Financial Services Agreement As part of the open enrollment process, employers should help make employees aware of what happens if they missed open enrollment. 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. For employer-sponsored health coverage, special enrollment period rules are in the Code of Federal Regulations. Copyright The Regents of the University of California, Davis campus. As a top 1% graduate of the 2011 UT Arlington class, Brian emphasizes excellence and ingenuity, leading FBS to the forefront of benefit education and enrollment. Drive more engagement in money-saving programs throughout the year. Paychex tiene el compromiso de brindar recursos para la comunidad hispanohablante. The information must get to vendors to ensure employees elections are accessible on day one of your companys benefits plan year. Subject Line: Heads Up: Open Enrollment Details Coming Your Way. 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. 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. (Let employees know if plans are changing or if new plans were added). When looking into the issue, work with the employee and the health insurance broker to make sure there wasnt an administrative error. The only exception to these terms is if an employee qualifies for a special enrollment period (SEP). Now is the time to review your current benefits and prepare to make changes, if needed. 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. Hire, onboard, manage, and develop productive employees. 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. You heard it here first! Specifically, 29 CFR 2590.701-6, and in permitted election changes for Section 125 plans ( 26 CFR 1.125-4 ). The open enrollment survey questions you ask largely will depend on the goals you are trying to measure. Format for absence excuse letter. He would lose more money than hed gain if still carrying that debt. We endeavor to answer all inquiries within 24 hours on business days. Example #3: Greg, Whos Got a Safety Net, But Whos Saddled With Lots of High-Interest Debt. The email is simply an introduction. 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. 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. Here are some points you can (and should) include: Be Concise, and Swift. Standalone Consulting Agreement When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. *All Shipping prices displayed are for the lower 48 states only. 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. 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. Get the cold and allergy relief you deserve. The open enrollment announcement email should go out two weeks before your benefits packages are made available to employees. See attached flyer. temp_style.textContent = '.ms-rtestate-field > p:first-child.is-empty.d-none, .ms-rtestate-field > .fltter .is-empty.d-none, .ZWSC-cleaned.is-empty.d-none {display:block !important;}';
Need help with a specific HR issue like coronavirus or FLSA? Be sure to include these details in your letter. If youre offering new plans, however, passive enrollment isnt an option, so allow additional time and resources to communicate and follow up with employees. If appropriate coverage is offered to employees (regardless of whether they enroll) these employers will not be subject to the penalty. Keep letters professional and to the point. Surveying your employees will help you clarify benefits options and the open enrollment process, demonstrate your willingness to set aside time to help answer their questions, and potentially reduce the number of employees that miss open enrollment. Offer health, dental, vision and more to recruit & retain employees. 1. To learn more, schedule a consultation with one of our knowledgeable business advisors. Subject line: Let's get smarter about 401K savings. Here's what can happen and how HR can help. Why Send an Open Enrollment Email to Employees? Ingenious Ways to Keep Remote Employees Engaged, What Youre Not Doing (But Should Be) to Improve Employee Satisfaction, A Guide to Workers Compensation When Working From Home, Employee benefits specialist contact info. They must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. Posted on December 9, 2021 The IRS states that a qualifying event must have an impact on your insurance needs or change what health insurance plans that you qualify for. To apply for benefits and verify eligibility, individuals should complete the online screener application. When open enrollment ends, we know you'll receive an influx of employee questions about their options to sign up for healthcare. However, this may not be practical, especially for employees with growing families. 4 out of 5 can find a marketplace plan for $10 or less a month with cost assistance! Many employers even offer benefits education during open enrollment to help employees understand their options and make informed decisions. 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. 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. University of California, Davis, One Shields Avenue, Davis, CA 95616 | 530-752-1011. pliance is currently $0. All Rights Reserved. Changes made at open enrollment are effective January 1, 2023. HR teams in larger companies may even conduct special meetings or hold benefits fairs, all designed to help employees understand their benefits options so they can make informed decisions. Hopefully, we'll be able to restore your employment after this critical time. Learn how ALEX makes benefits engagement a breeze for HR teams and consultants. Employers can also gather status updates during the open enrollment period to view which employees have not completed enrollment. Depending on who the healthcare plan provider is, there may be contractual agreements that do not allow for enrollment . This is the time for you to [Instructions], Were excited to bring you [Detail plan options and info].
If the open enrollment dates are Nov. 15 through Dec. 15, consider giving your employees a deadline of Dec. 5, suggests Starr Harry, client success manager at G&A. Its recommended the announcement email should go out two weeks before benefits packages are made available to all employees. 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. Log-in Now! , G&A Partners. So, if you find yourself surprised by a premium increase come January, you won't be able to change coverage. The ConnectorCare program in Massachusetts (for people who are newly eligible or who haven't enrolled before). Close the email out by reminding employees of the importance of benefits enrollment. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. Here are a few different scenarios you might find yourself in, and some advice for how to approach your 401K. At-home diagnostic tools help you stay one step ahead. Employee satisfaction is one of the most important avenues toward greater productivity and business growth. Open enrollment can be an extremely stressful and overwhelming time for both you and your employees. The Covered Connecticut program allows eligible applicants to enroll anytime. Writing a good job rejection letter is not as hard as you think it is! $("span.current-site").html("SHRM China ");
New Jersey Secure Choice Savings Program on the Horizon for Private Employers, How to Use HR Metrics to Improve Your Bottom Line. HR teams can send additional reminders to those employees and follow up with them individually so they dont miss the deadline. Contractually, employers may not be able to accommodate employees who miss open enrollment, unless they qualify for a special enrollment period. Keep it brief. The opening of the email starts with a bold header letting employees know its time for open enrollment. Accessibility and clarity of complex information give employees and employers a better experience and promote higher levels of participation. 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. $('.container-footer').first().hide();
These employers must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. document.head.append(temp_style); You may be trying to access this site from a secured browser on the server. Individuals who are below the income thresholds set by the government's programs can apply for coverage any time of year. Please purchase a SHRM membership before saving bookmarks. SAMPLE EVERGREEN OPEN ENROLLMENT NOTICE . Learn more, Money Girls Quick and Dirty Tips for a Richer Life. SHRM Online, October 2019, Simple Open-Enrollment Tips That Can Make a Big Difference,
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. 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. ), Example #2: Dave, Who Has No Emergency Fund. 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. 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. About Us Subject Line: Tomorrow Is The Day For Open Enrollment! Center for Advocacy, Resources & Education (CARE), 2022 Salary Program for Non-Represented Staff, Resources for Trans and Non-Binary Employees. She and her team will provide the district with monthly billing services. We are looking forward to a successful enrollment season. If your organization doesn't offer auto-enrollment, then workers who miss the window may be left out in the cold without any coverage. Missing open enrollment can be a costly mistake for employees, so employers should take adequate steps to help their employees through the enrollment process. And there is a tool that can make that happen. Think about it your employees are a unique set of people with their own needs, life circumstances and goals. In this article, we will focus on the importance of sending an open enrollment email to employees. 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%. 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. Most employees receive a flood of work-related emails every single day. Your session has expired. 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. In either case, the qualifying life event would trigger a special enrollment period that would make you eligible to select a new individual insurance policy through the state marketplace. 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. In this second sample, look for employees who should have been excluded from participation. Flex-Ed: Mistakes During Open Enrollment Can You Change Elections? The only exception to these terms is if an employee qualifies for a special enrollment period (SEP). 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.. Therefore, its important employers be proactive in their approach to open enrollment. The most beneficial ways in which you can help the employee is by offering additional opportunities for education and by asking for feedback regarding the process so that you can work to prevent this from happening again in the future. 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. Copyright 2023 The Regents of the University of California. Business Associate Agreement And How it Works, Include employees in the benefits planning process, Ensure dates and deadlines are clearly communicated, Point out any tax or investment advantages, Provide helpful resources that are easy to digest, Format emails to be colorful and easy to read, Ask for their participation with a call to action, Provide all the contact information theyll need, Plug one last reminder about taking advantage of open enrollment. var temp_style = document.createElement('style');
You want to give your employer time to reassign any of your tasks. Benefit terms would run from January 1st to December 31st. a global pandemic that's been hard to predict, improve or enhance open enrollment communication. 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. Open enrollment is an important time of the year for employers, employees, and benefits vendors. Let's use a fall open enrollment as an example. (For context, the average 401K contribution in 2020 was 13.5%. 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. 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. 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).
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