Many employers provide disability benefits to their employees as part of a comprehensive employee benefits package. Disability benefits replace a percentage of pre-disability income if an employee is unable to work due to illness or injury for a specified period of time. Employers may offer short-term disability coverage, long-term disability coverage, or integrate both short- and long-term disability coverage. Group disability benefits can be structured in a number of ways. The taxability of these benefits generally depends on how the premiums for the coverage are paid. For example, if an employer and its employees split the cost of premiums for disability coverage, and the employees’ premiums are paid on a pre-tax basis through a cafeteria plan, the disability benefits are fully taxable to employees. This Compliance Overview answers common questions regarding the taxability of disability benefits. Are the disability benefits paid to an individual included in gross income?   ...

Many employers provide disability benefits to their employees as part of a comprehensive employee benefits package. Disability benefits replace a percentage of pre-disability income if an employee is unable to work due to illness or injury for a specified period of time. Employers may offer short-term disability coverage, long-term disability coverage, or integrate both short- and long-term disability coverage. Group disability benefits can be structured in a number of ways. The taxability of these benefits generally depends on how the premiums for the coverage are paid. For example, if an employer and its employees split the cost of premiums for disability coverage, and the employees’ premiums are paid on a pre-tax basis through a cafeteria plan, the disability benefits are fully taxable to employees. This Compliance Overview answers common questions regarding the taxability of disability benefits. Are the disability benefits paid to an individual included in gross income?   ...

After nine consecutive quarters of gains, the S&P 500 lost 0.76% in the first quarter of 2018. The 0.76% loss masked a spike in volatility driven by the reduction in corporate tax rates in the Tax Cut and Jobs Act, stiff tariffs on imported steel and aluminum, and the prospect of new government regulation of technology firms. Read the  Q1 Retirement Market Recap  to learn more about the 1st quarter market volatility. Also included are tips on managing defined benefit plans in the feature on "Can You Invest Your Way to Plan Termination?" If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (800) 388-1963 or email us at hbs@hanys.org.

Financial wellness is an increasingly popular topic, but there is no consensus about their value. Financial wellness is achieved when people can confidently manage their daily finances (budgeting and debt elimination) while successfully meeting both short- and long-term savings goals (emergency reserves, specific purchase, college savings, and retirement). While clear advantages and perceived value have been identified, several obstacles remain. In Assessing the Merits and Challenges of Financial Wellness , we evaluate whether financial wellness programs are a wise choice and welcome addition to the traditional employee benefits package. Why is Financial Wellness Important to Plan Sponsors? When designed properly, financial wellness programs can help employers enhance their benefits packages and realize significant cost savings by helping employees retire on time, be more productive, and enjoy better health. Recruitment and Retention -  Employers are constantly competing to attract...

Financial wellness is an increasingly popular topic, but there is no consensus about their value. Financial wellness is achieved when people can confidently manage their daily finances (budgeting and debt elimination) while successfully meeting both short- and long-term savings goals (emergency reserves, specific purchase, college savings, and retirement). While clear advantages and perceived value have been identified, several obstacles remain. In Assessing the Merits and Challenges of Financial Wellness , we evaluate whether financial wellness programs are a wise choice and welcome addition to the traditional employee benefits package. Why is Financial Wellness Important to Plan Sponsors? When designed properly, financial wellness programs can help employers enhance their benefits packages and realize significant cost savings by helping employees retire on time, be more productive, and enjoy better health. Recruitment and Retention -  Employers are constantly competing to attract...

Defined benefit plans were the predominant retirement plan at the time the Employee Retirement Income Security Act (ERISA) was introduced in 1974. Many hospitals and other healthcare provider organizations in New York State had defined benefit pension plans. In a defined benefit plan, the total financial obligation falls strictly on the sponsor. The amount of benefit is stipulated and the funding of that benefit is the responsibility of the sponsor. As time went on, defined benefit plans became more onerous to maintain, more difficult to sponsor, and more expensive. Join HANYS Benefit Services on Friday, April 6 at 11:00 AM to learn a number of strategies to assist in managing defined benefit plans. The Revenue Act of 1978 included a provision under which employees were not taxed on the portion of income they elect to receive as deferred compensation rather than as direct cash payments, thus making 401(k) plans possible. The emergence of defined contribution plans began a transition aw...

Defined benefit plans were the predominant retirement plan at the time the Employee Retirement Income Security Act (ERISA) was introduced in 1974. Many hospitals and other healthcare provider organizations in New York State had defined benefit pension plans. In a defined benefit plan, the total financial obligation falls strictly on the sponsor. The amount of benefit is stipulated and the funding of that benefit is the responsibility of the sponsor. As time went on, defined benefit plans became more onerous to maintain, more difficult to sponsor, and more expensive. Join HANYS Benefit Services on Friday, April 6 at 11:00 AM to learn a number of strategies to assist in managing defined benefit plans. The Revenue Act of 1978 included a provision under which employees were not taxed on the portion of income they elect to receive as deferred compensation rather than as direct cash payments, thus making 401(k) plans possible. The emergence of defined contribution plans began a transition aw...