Is workplace compliance on your radar?   The workplace compliance landscape is constantly evolving, and 2024 brings several significant changes that HR managers need to understand. With the implementation of the SECURE 2.0 Act, mastering these changes is crucial for maintaining compliance and maximizing benefits for your employees.  5 Key changes to watch  1. No RMD for Roth Accounts  One of the most impactful changes is the elimination of required minimum distributions (RMDs) for Roth accounts. This adjustment means participants may need to revisit and modify their withdrawal strategies.  2. Super catch-up contribution limits  Beginning in 2025, employees ages 60-63 will be given the opportunity to save more in catch-up contribution limits, saving the greater of $10,000 or 150% of the current limit. For example, using the current 2024 catch-up limit of $7,500, someone aged 60 will be permitted to contribute $11,250.  3. Student loan payments matc...

There is a significant gap between employees and employers regarding financial wellness programs, according to the Harvard Business Review . “80% of employees report being financially stressed. Only 28% of employers offer financial wellness programs,” the article states.   Similarly, Forbes highlights a 2023 Transamerican Institute study showing that 77% of workers consider financial wellness programs an important benefit.  With so much research on the need for these programs, what should employers do?  The first way employers can bridge this gap is to learn what financial wellness is and how it can improve an employee’s overall being. In this short Q&A, we introduce the topic and offer some essential tips to get started.  Q1: What is financial wellness?  A: Financial wellness refers to the sense of security a person feels about their financial situation in all aspects of their life. It means having control over day-to-day finances, being prepared for ...

Fiduciary liability extends beyond employee benefits  Employers and program administrators commonly ask, “What is fiduciary liability?”  IRMI defines fiduciary liability as “the responsibility on trustees, employers, fiduciaries, professional administrators, and the plan itself with respect to errors and omissions (E&O) in the administration of employee benefit programs as imposed by the Employee Retirement Income Security Act (ERISA).”  However, fiduciary liability extends beyond employee benefit programs. The importance of fiduciary responsibility in retirement programs is often overlooked.   In this blog post, we fill the educational gap, providing essential information on retirement plans and the liability responsibility of trustees, employers, program administrators and fiduciaries.  Understanding fiduciary responsibility in retirement programs  Retirement programs play a crucial role in ensuring the financial well-being of participants and b...

Employer-sponsored retirement plans are a cornerstone of financial security for many employees. They provide a structured way to save for the future and offer significant benefits, including tax advantages, employer contributions and automated savings mechanisms.   This post will delve into the various types of employer-sponsored retirement plans, their benefits and how they are managed to ensure compliance and effectiveness.  What is an employer-sponsored retirement plan?  An employer-sponsored retirement plan is a financial arrangement created by employers to help their employees save for retirement. These plans offer a variety of investment options and often include contributions from the employer, making them a valuable tool for employees' financial security. They provide tax benefits, automated savings and the potential for employer contributions, which can significantly boost retirement savings.    What makes these plans especially beneficial is thei...

Offering voluntary benefits is a great way to enhance your benefits package, differentiate from competitors and increase employee satisfaction — all with little impact on your budget.   However, while employers may choose to offer convenient and valuable voluntary benefits, many employees do not understand the advantages or are unclear about how they work. Educate your employees on the advantages of these voluntary benefits so that you both reap the rewards.  Demonstrate the value of voluntary benefits  When compared to employer-sponsored benefits, many employees may fail to see the value of voluntary benefits that they must personally finance.  For example, research shows that employees might not be aware that purchasing insurance through their employer group is often cheaper than buying individually.   When promoting your voluntary benefit options , discuss the advantages of having insurance coverage and the risks of going without and emphasize the conve...