Are there changes I can make to my budget that would allow me to increase tax-deferred savings through a flexible spending account or a health savings account. look at employees who received a W-2 and participated in the 403(b) plan. Its equally important to understand why they missed the deadline and help them avoid the same mistake in the future. In your hook, you want to get employees ready for open enrollment. Following this time frame, your open enrollment email to employees would go out in mid-September. RE: 2022 Open Enrollment communications to employees on leave of absence. Most companies operate on a calendar fiscal year. If an employee misses . Here's what to expect: Highlight apps that put savings on autopilot. Pretty good! Medicaid provides health insurance to low-income individuals, while CHIP provides health insurance to children of low-income families. Sample 3: Letter of permission for missing work due to an important matter. 4 in 10 employees who are able to save for retirement are now saving less as they continue to face financial hardships. Sushma Tripathi, vice president of strategic advisory services at ADP, an HR management software and services provider, offered the following starter questions HR can ask to engage employees during open enrollment. Start reviewing your benefit information now so youre ready when the time is right. Please enable scripts and reload this page. Here are a few ideas: Also consider other help emails that explain the process in greater detail. And there is a tool that can make that happen. Keep letters professional and to the point. The portal can also include a count-down counter to encourage employees to enroll. For that time frame, announcements would go out in the middle of September. All rights reserved. 75082. Sample 4: Formal absent excuse letter due to an emergency. There are simple steps employers can take to ensure a successful open enrollment period. Gain the intel you need now to successfully anticipate and navigate employment laws, stay compliant and mitigate legal risks. Build specialized knowledge and expand your influence by earning a SHRM Specialty Credential. If you don't have time to send a formal letter, consider sending an excuse email instead. Here's what this kind of targeted advice might look like in an email you send to your workforce. 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. 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. (Feel free to copy-pastewe won't tell.) Lets use a fall open enrollment as an example. Be sure to check your state laws. To request permission for specific items, click on the reuse permissions button on the page where you find the item. If you have questions, dont hesitate to contact your benefits specialist[insert specialist contact information or provide a link]. Russ joined FBS in 2019 after working as a valued partner for 15 years and manages our ISDs group health program. The good news is that were here for you every step of the way! Track employee time and maximize payroll accuracy. Individuals who are below the income thresholds set by the government's programs can apply for coverage any time of year. To apply for benefits and verify eligibility, individuals should complete the online screener application. Here are a few tips to make OE emails engaging and drive participation. 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. Consider implementing the following strategies: Offering adequate benefits education to your employees prior to and during the open enrollment period can help alleviate much of the confusion that they may face. Qualifying life events can be circumstances that change an employee's status for benefits, such as changing the number of individuals in the household who are covered under a benefits plan. 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. Now is the time to review your current benefits and prepare to make changes, if needed. Send them out as soon as you know that the applicant is not suitable for the role. Pointers to pass along as open enrollment gets underway. Request a consultation, so we discuss your payroll management and HR optimization needs. So, open enrollment can easily pass some by. Be sure to include these details in your letter. 401Ks, IRAs, compounding interest, employer matching its enough to make the average employees head spin. Category. Here are the key components of the email. You want to provide employees with essential information about the upcoming benefits period that is engaging. 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. 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. Insurance and benefits plans can be cost prohibitive for companies that run smaller operations and/or do not have a large workforce. As you know, open enrollment is open now and closes [DATE]. Your teams should start strategizing well before the announcement for open enrollment. Keep in mind, though, that employees must make changes to their flexible spending accounts or health savings accounts each year. Changes in employment - this can mean starting a new job, quitting, or a transition from part-time to full-time work status. 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. 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. 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. Employee satisfaction is one of the most important avenues toward greater productivity and business growth. Flex-Ed: Mistakes During Open Enrollment Can You Change Elections? Your employer is not legally obligated to allow you to make changes to your elections after the open enrollment period has ended. These are just a few quick tips. What Is a Dependent Care FSA and How Does It Work? Employees disseminate information differently, so you may need to consider other methods of engagement. A sample of the email notification from HR Leave Administration is also attached. 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.. The attachments can include: Getting essential information to employees is vital but shouldnt overwhelm the employee. 2023 FSA Store Inc. All Rights Reserved. Dave lives paycheck to paycheck and doesnt yet have an emergency fund. Offer health, dental, vision and more to recruit & retain employees. Have an upbeat message to let employees know this is a positive engagement. Whenever someone loses their job, they want to hear that their loss is validated. Mr. James started his insurance career in 1993 with American Fidelity in Lubbock, Texas and remained with them until 2000. Requiring waivers of coverage: Waiver of coverage documents verify that employees reviewed and declined benefits options during the open enrollment period. 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. 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. var currentUrl = window.location.href.toLowerCase(); 3 Open Enrollment Reminders for Employeesand HR At many organizations, the open enrollment season for 2020 benefits is underway or about to begin. 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. Why? Have questions about managing your own 401K? Remember, this is a guide to get you thinking about your message to employees. Open enrollment consumes a large amount of HR's time and energy, making it nearly impossible to forget about. And to make matters worse, employees are skittish about their retirement savings right now thanks to COVID. 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. Sample 1: Excuse letter for work absence due to family matters. In. Missing open enrollment means limited options, but here a few situations to consider: If an employee misses open enrollment, its important that HR first respond with empathy and understanding. For an employee, missing this vital deadline can mean losing coverage, or being unable to change benefits elections, which can have a significant financial impact on the employee. Mr. James holds many different licenses in the insurance industry including the Insurance Counselors License through the Texas Department of Insurance. Need help with a specific HR issue like coronavirus or FLSA? 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. "I'm sorry to hear you lost your job. Remind your employees about these resources regularly by highlighting a single resource every month. In this article, we will focus on the importance of sending an open enrollment email to employees. 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. 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 ]. SHRM Online, September 2019, 10 Questions for Employees Choosing a Health Plan, Coop Consulting Agreement If you missed open enrollment through your employer, you've probably already asked for their help but there may be nothing they can do. Her short-term financial situation is secure, so shes in a position to focus on her long-term goals. Specifically, 29 CFR 2590.701-6, and in permitted election changes for Section 125 plans ( 26 CFR 1.125-4 ). 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. Are there any changes in my life that might make another health insurance choice more valuable this year? G&A Partners offers small- and mid-sized companies access to top-quality benefits options by leveraging the buying power of thousands of client companies when negotiating with providers. You will not be subject to this penalty if you have offered appropriate coverage to employees, regardless of whether they enrolled in coverage. SHRM Employment Law & Compliance Conference, stress their importance and provide education on how to properly use them, digital apps and online portals with built-in decision support, Employers Enhance Emotional and Mental Health Benefits for 2020, Simple Open-Enrollment Tips That Can Make a Big Difference, 10 Questions for Employees Choosing a Health Plan, 3 Open Enrollment Reminders for Employeesand HR, New OSHA Guidance Clarifies Return-to-Work Expectations, Trump Suspends New H-1B Visas Through 2020, Faking COVID-19 Illness Can Have Serious Consequences, U.S. Companys Mandatory Video Surveillance Violated Dutch Rights, Leading Difficult Conversations About Layoffs. New Jersey Secure Choice Savings Program on the Horizon for Private Employers, How to Use HR Metrics to Improve Your Bottom Line. Hi team, Putting money away for your retirement is important, but how important depends on the financial . 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. 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. Still, missing open enrollment can make a bad situation worse. We also keep your employer insurance premium costs in check so that your company has protection without placing undue stress on your budget. HR teams can send additional reminders to those employees and follow up with them individually so they dont miss the deadline. Reach out to our team any time to chat! ", "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. Our benefits fair will take place [insert dates, time, locations]. If an employee misses open enrollment, its important that HR first respond with empathy and understanding. Benefits Technology As part of the open enrollment process, employers should help make employees aware of what happens if they missed open enrollment. 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. Not all plans allow for mid-year changes, but you'll find that most do. Open enrollment begins [DATE] and closes [DATE]. For you, when employees miss this deadline, it can result in additional administrative burdens and unhappy or unproductive employees. 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. 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. 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. By incorporating the mission of the university and the code of conduct, we believe strong communication will enhance understanding and foster positive work environments. We are looking forward to a successful enrollment season. 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. Purchasing Cooperatives, Speak to Consultant 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. We've got great ideas for top health purchases before the Grace Period deadline. -Serve or call a benefits coordinator in the MCC Employee Benefits Department. Please purchase a SHRM membership before saving bookmarks. if(currentUrl.indexOf("/about-shrm/pages/shrm-china.aspx") > -1) { Open Enrollment Email to Employees (Templates). var temp_style = document.createElement('style'); Deadline to enroll for insurance to start Jan 1 is Dec 15. Many employers even offer benefits education during open enrollment to help employees understand their options and make informed decisions. Emails are essential for company-wide communication because every employee gets assigned a company email when hired. 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. 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%. Jellyvision acquires Picwell to simplify the employee benefits puzzle! For [current year], we are maintaining [describe plan types] and have made the following changes: [describe plan changes]. Plus, you must consider the different ways people receive information. See attached flyer. Putting money away for your retirement is important, but how important depends on the financial boat youre in. 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. Not great for Dave! * This content is for educational purposes only, is not intended to provide specific legal advice, and should not be used as a substitute for the legal advice of a qualified attorney or other professional. Depending on your circumstances, your opportunities to enroll after the end of the annual open enrollment period may be limited. The information below covers what open enrollment is and what you may do during this time. Do I anticipate any new expenses next year that might change my current elections? You have successfully saved this page as a bookmark. Neither members nor non-members may reproduce such samples in any other way (e.g., to republish in a book or use for a commercial purpose) without SHRMs permission. But if not enough people participate in the program, the company may also not see the benefits. If your organization doesn't offer auto-enrollment, then workers who miss the window may be left out in the cold without any coverage. Its that time of year again! $("span.current-site").html("SHRM China "); Also, remember the source of information. If the employer gave proper notice to employees communicating open enrollment deadlines, there is very little that can be done legally to help the employee after the fact, so a proactive approach and providing detailed information before and during open enrollment works best. Its recommended the announcement email should go out two weeks before benefits packages are made available to all employees. . They must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. Close the email out by reminding employees of the importance of benefits enrollment. He would lose more money than hed gain if still carrying that debt. If your HR team is already overloaded during open enrollment season, trusted HR consulting services can help lighten the load and generate ideas for the best ways to support your employees through open enrollment. Careers, Terms of Use 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. Use a format that addresses the employee by name. Paychex tiene el compromiso de brindar recursos para la comunidad hispanohablante. Mistakes happen -- and it happens more than it probably should when people are choosing health insurance. Writing a Good Job Rejection Letter. Please confirm that you want to proceed with deleting bookmark. Accessibility and clarity of complex information give employees and employers a better experience and promote higher levels of participation. Welcome to Open Enrollment! It can be beneficial to ask your employees if they like the way information is being provided to them, if they would prefer information to be distributed in different ways, or if they have any questions that have yet to be answered. The UCPath communications sent to employees are attached for your reference. As a result, your employees can latch on to the situation closest to their own, and feel more confident in their choices. The open enrollment survey questions you ask largely will depend on the goals you are trying to measure. 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. 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. Remind employees they will receive a confirmation of their changes. Its their opportunity to enroll or make changes to their employee benefits. To get the ball rolling, a robust open enrollment email to employees is vital. 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. Please let us know if you have questions! At many organizations, the open enrollment season for 2020 employer-sponsored benefits is under way or about to begin. Tips for writing a professional excuse email. 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. Make it easy on you and your team by taking advantage of our action plan and timeline.