Do I anticipate any new expenses next year that might change my current elections? Your teams should start strategizing well before the announcement for open enrollment. Since Greg has an emergency fund in place, it makes sense for him to fund his 401K until his employer match is reached. Requiring waivers of coverage: Waiver of coverage documents verify that employees reviewed and declined benefits options during the open enrollment period. Use this opportunity to set your finances up for your best 2020. Let's use a fall open enrollment as an example. The only exception to these terms is if an employee qualifies for a special enrollment period (SEP). 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. The 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. Heres what this kind of targeted advice might look like in an email you send to your workforce. To provide managers and supervisors with the guidance they may need in times of crucial . Specifically, 29 CFR 2590.701-6, and in permitted election changes for Section 125 plans ( 26 CFR 1.125-4 ). Please confirm that you want to proceed with deleting bookmark. [Instructions or refer to additional resources]. He writes about HR, compliance, and benefits solutions. 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. Your teams need ample time for payroll processing. 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. Format for absence excuse letter. (For context, the average 401K contribution in 2020 was 13.5%. }); if($('.container-footer').length > 1){ Provide information in a wide variety of ways including: Ask your employees if they like the way information is being provided, if they would prefer information be distributed in different ways, or if they have questions that have yet to be answered. If youre offering new plans, however, passive enrollment isnt an option, so allow additional time and resources to communicate and follow up with employees. 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. At-home diagnostic tools help you stay one step ahead. ** ALL OPTION CHANGES WILL BECOME EFFECTIVE JANUARY 1, 2020** The period from DECEMBER 11, 2019 through JANUARY 10, 2020 has been designated as the Annual Open Enrollment period during which employees who desire to change their health and/or dental insurance All Rights Reserved. Coop Consulting Agreement Get benefits strategy and communication tips that will make you even better at your job. The date coverage starts depends on when you lose coverage and the date a plan is selected. 1.) If an employee misses open enrollment, its important that HR first respond with empathy and understanding. Now What? You can get your own copy here. } So, if you find yourself surprised by a premium increase come January, you won't be able to change coverage. Deadline to enroll for insurance to start Jan 1 is Dec 15. (Let employees know if plans are changing or if new plans were added). pliance is currently $0. The only exception to these terms is if an employee qualifies for a special enrollment period (SEP). 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. Drafting an open enrollment email is not a daunting task. 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. Were sharing some sample 401K communication to employees that you can use to get your message across. 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. 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. Benefit Cooperatives Benefit terms would run from January 1st to December 31st. Stop the sniffles Drafting A Sample Email Most employees receive a flood of work-related emails every single day. When the economy is unstable, employers are faced with difficult decisions around staffing, pay and benefits. 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.. Why? Be sure to include these details in your letter. Coby joined FBS in 2007 as a Benefit Consultant and then rose to Vice President of Sales in 2013. Weve got some exciting options this year so be prepared to make changes! 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. Therefore, its important employers be proactive in their approach to open enrollment. Attached is a flier with more details but please reply here and let us know if you have questions! For employer-sponsored health coverage, special enrollment period rules are in the Code of Federal Regulations. 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. We endeavor to answer all inquiries within 24 hours on business days. He currently serves as the benefit consultant for several of the FBS Benefit Co-Operatives and many standalone school districts. Plus, you must consider the different ways people receive information. Section 125 plans are used by most employers that offer health coverage, as they are the mechanism that allows . Join 22,000+ HR pros who receive monthly employee benefits insights, straight to their inbox. UCSB HR Leave Administration Open Enrollment Reminder, UCPath Leave without Pay Open Enrollment Letter, Open Enrollment Form for employees on unpaid leave of absence, ******************************************************************************************************, 3101 Student Affairs and Administrative Services Building (SAASB), 2022 Open Enrollment communications to employees on leave of absence, 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. Like Every Letter, You Need To Start By Addressing Your Staff. 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. 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. 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. Sample 1: Excuse letter for work absence due to family matters. Accessibility and clarity of complex information give employees and employers a better experience and promote higher levels of participation. SAMPLE EVERGREEN OPEN ENROLLMENT NOTICE . ACA open enrollment is through Dec. 15th. Dave lives paycheck to paycheck and doesnt yet have an emergency fund. Jellyvision acquires Picwell to simplify the employee benefits puzzle! Close the email out by reminding employees of the importance of benefits enrollment. HR teams can send additional reminders to those employees and follow up with them individually so they dont miss the deadline. Financial Services Agreement While just keeping whatever health coverage they had this year is tempting for employees, doing so may come with a substantial financial downside. Thank you for visiting theFSAstore.com Learning Center. Its that time of year again! Get ready to discuss all things benefits! Keep in mind, though, that employees must make changes to their flexible spending accounts or health savings accounts each year. Open enrollment can be an extremely stressful and overwhelming time for both you and your employees. Richardson, TX. Subject Line: Lets Talk Benefits! Not great for Dave! Changes in dependent status - children can age out of dependent status or become eligible for dependent status during the year. ensure a successful open enrollment period. HR managers should be prepared to address the common employee question "What is a special enrollment period?" 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.". 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. Learn how Jellyvision can help you solve your clients toughest challenges. 75082. 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. To get the ball rolling, a robust open enrollment email to employees is vital. We can help you tackle business challenges like these. Comprehensive coverage for your business, property, and employees. Drive more engagement in money-saving programs throughout the year. 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. The dates give your human resources department time to process and review employee elections and send them to the benefits providers. 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. 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. What Happens If an Employee Misses 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. What's New 2023 Open Enrollment Announcement Health, Dental and Vision Plan Costs PPO Saver - High Deductible Health Plan Information Open . Also, remember the source of information. Please enable scripts and reload this page. Please log in as a SHRM member. Bretton is an aPHR-certified member of the Marketing Team at Bernard Health.