I realize that you, too, need to meet your monthly obligations in a timely manner, and such delays do not help. Benefits Technology Kyle was hired by FBS as one of our first benefit consultants in 2001 and became the President of the company in 2005. Virtual & Washington, DC | February 26-28, 2023. Writing a Good Job Rejection Letter. 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. Have questions about managing your own 401K? In this article, we will focus on the importance of sending an open enrollment email to employees. (For context, the average 401K contribution in 2020 was 13.5%. By checking out as a Returning Customer or Guest, you agree that you have read, understand and agree to the, Aura Revive Heated Deep Muscle Pain Relief Device, Caring Mill by Aura Full Body Analysis Scale, Caring Mill by Aura: Ease Migraine and Eye Reliever with Compression and Heat, American Red Cross Deluxe Family First Aid Kit, Sharper Image Calming Heat Massaging Weighted Heating Pad, 12 x 24, 4 lbs, Aura Revroll Vibrating + Heat Foam Roller, dpl IIa Professional Acne Treatment Light Therapy, Aura Sleek Callus, Corn and Ingrown Toe Nail Remover, Sharper Image Calming Heat XXL-Wide Massaging Weighted Heating Pad, 12 Setting, 5lbs, FSA Perks Official Rules, Terms & Conditions. For [current year], we are maintaining [describe plan types] and have made the following changes: [describe plan changes]. Get ready to discuss all things benefits! 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. Hire, onboard, manage, and develop productive employees. Open enrollment is an annual window when you can enroll in health coverage, switch to a different plan, or drop your coverage (that last point is only applicable if you have an employer-sponsored plan; self-purchased individual/family plans can be dropped at any time). Web here is the sample letter of the annual bonus letter to the employees. If you missed open enrollment through your employer, you've probably already asked for their help but there may be nothing they can do. Personalized enrollment support, available virtually 24/7, Save time while supporting employees with Chat, Smart Tips, and Reminders. Join 22,000+ HR pros who receive monthly employee benefits insights, straight to their inbox. By requiring employees to sign either an acknowledgement of benefits form for those who opt in to coverage, or a waiver of coverage form for those who opt out or miss the deadline to enroll in employer-based benefits packages, you will create a uniform policy. Financial Services Agreement var temp_style = document.createElement('style'); Her past insurance experience includes roles as Marketing Supervisor, Account Management, and Account Executive at one of the largest insurance carriers of some of the largest employers in the state of Texas. 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. An announcement is made via email to ensure employees are informed about open enrollment dates and benefits being offered. Other qualifying life events that would make an employee eligible for SEP can include: If an employee experiences a decrease in income, they may be eligible to apply for health coverage through the government's Medicaid and Children's Health Insurance Program (CHIP). (Let employees know if plans are changing or if new plans were added). Drive more engagement in money-saving programs throughout the year. Section 125 plans are used by most employers that offer health coverage, as they are the mechanism that allows . Writing a good job rejection letter is not as hard as you think it is! Please let us know if you have questions by replying to this email! Sample 3: Letter of permission for missing work due to an important matter. Employers that are applicable large employers (ALEs) under the Affordable Care Act (ACA) may have additional concerns. You can get your own copy here. In order to ensure that their businesses will not face any penalties, many ALEs should document that coverage has been offered. Provide instructions on how to log in. Starting the conversation about open enrollment early and providing multiple information channels throughout the open enrollment period can help ensure that employees haven't missed open enrollment at work. This is the time for you to [Instructions], Were excited to bring you [Detail plan options and info]. When looking into the issue, work with the employee and the health insurance broker to make sure there wasnt an administrative error. 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. 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. For employer-sponsored health coverage, special enrollment period rules are in the Code of Federal Regulations. If you have questions please send to [email] or attend the upcoming Q&A [Date, time location]. Subject Line: Lets Talk Benefits! Keep in mind, though, that employees must make changes to their flexible spending accounts or health savings accounts each 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. allsynx Platform Agreement Offer health, dental, vision and more to recruit & retain employees. Deadline to enroll for insurance to start Jan 1 is Dec 15. Remote employment has become popular in the past few years, with more employers opting for this new way of doing things. Hi team, Putting money away for your retirement is important, but how important depends on the financial . document.write(new Date().getFullYear()); In this second sample, look for employees who should have been excluded from participation. The better employees understand open enrollment and the benefits they receive from participating, the higher engagement employers will see from their team. Open Enrollment begins on Tuesday, October 15, 2019 and runs through 5 pm, Thursday, October 31, 2019You may enroll online through Employee Self. As HR representatives address open enrollment meetings, speak with employees one-on-one and send out enrollment reminders, they can use these pointers to help employees make smart decisions. Were sharing some sample 401K communication to employees that you can use to get your message across. The point of offering healthcare employee benefits for employees is to ensure that they are properly cared for. Putting money away for your retirement is important, but how important depends on the financial boat youre in. And there is a tool that can make that happen. 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. Pay employees your way and automate tax payments. 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. To get the ball rolling, a robust open enrollment email to employees is vital. Between having multiple options, confusing plan descriptions, debating voluntary benefits and tight open enrollment deadlines, it's pretty easy to see how things might get confused. Most employees receive a flood of work-related emails every single day. 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. The UCPath communications sent to employees are attached for your reference. Drafting an open enrollment email is not a daunting task. The official dates are [DATE] to [DATE]. Information sessions and benefits fairs are among other steps to ensure every employee can decide their health benefits. 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. 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. 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. 401Ks, IRAs, compounding interest, employer matching its enough to make the average employees head spin. Include a benefits portal on your company website so employees can enroll online at their convenience. Copyright The Regents of the University of California, Davis campus. Dear Employee, The School District's Health Insurance open enrollment period for the INSERT year will begin on INSERT DATE. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Think about it your employees are a unique set of people with their own needs, life circumstances and goals. 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. Open Enrollment is your annual opportunity to review your benefit plan options and make . Legally, employers are not required to do anything for employees who have missed the open enrollment deadline. * 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. Did the employee miss open enrollment because of. Written by If you are looking for help with your current system, or think it may be time to enhance your benefits package, contact us to talk to a consultant. But how do you make sure your benefits communication strategy is up to par? All rights reserved. In. Plans like, short-term coverage and critical illness allow year-round enrollment but are not regulated by the. TO: Department Benefit Representatives (DBR's), FR:Tami Schmittgen, HR Leave Administration, Supervisor, RE: 2022 Open Enrollment communications to employees on leave of absence. To avoid such frustrations in the future, we are changing to a computer system that will prepare checks a week in advance for distribution on payday. Make it easy on you and your team by taking advantage of our action plan and timeline. Short-term coverage is typically cheaper than traditional health plans, but only relatively healthy individuals will qualify. Remember, this is a guide to get you thinking about your message to employees. To help employees meet open enrollment deadlines, consider implementing internal company deadlines that build in a safety net. Cathy has been in the insurance industry for 28 years. 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. 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. 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. The open enrollment process is often confusing and time-consuming. What Is the Pregnant Workers Fairness Act (PWFA). Heres what this kind of targeted advice might look like in an email you send to your workforce. Did I pay out-of-pocket expenses this year that could be covered by an insurance option next year? Heres what you need to do to get started now! As you know, open enrollment is open now and closes [DATE]. ** 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 Your Employee Missed Open Enrollment for Health Insurance. As an employer, you may be faced with administrative burdens and unhappy or unproductive employees. He currently serves as the benefit consultant for several of the FBS Benefit Co-Operatives and many standalone school districts. What makes the email essential is that you can send it to every employee through the companys email system. SHRM's HR Knowledge Advisors offer guidance and resources to assist members with their HR inquiries. As a result, your employees can latch on to the situation closest to their own, and feel more confident in their choices. Legally, no. These are just a few quick tips. These employers must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. At many organizations, the open enrollment season for 2020 employer-sponsored benefits is under way or about to begin. He currently serves as the benefit consultant for 15 of the 20 Educational Service Centers in the State of Texas. 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. $("span.current-site").html("SHRM China "); While employers have little ability to "bend the rules" for employees when they have missed open enrollment at work, there are some options that can help both employer and employee. var currentLocation = getCookie("SHRM_Core_CurrentUser_LocationID"); 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. . 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. Open with an engaging subject line and immediately set a positive tone. SHRM Online, October 2019, Simple Open-Enrollment Tips That Can Make a Big Difference, Hopefully, we'll be able to restore your employment after this critical time. 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. Please review the information . pliance is currently $0. Our benefits fair will take place [insert dates, time, locations]. Center for Advocacy, Resources & Education (CARE), 2022 Salary Program for Non-Represented Staff, Resources for Trans and Non-Binary Employees. Reach out to our team any time to chat! 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. Home Email is not the only way to reach employees. Client Testimonials ", 2. - Workest Your Employee Missed Open Enrollment for Health Insurance. 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. Not all plans allow for mid-year changes, but you'll find that most do. 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. 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. ACA open enrollment is through Dec. 15th. Changes in dependent status - children can age out of dependent status or become eligible for dependent status during the year. 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. Sending out the open enrollment email to employees is just the first step. Richardson, TX. Share links to reputable personal finance blogs and podcasts. It's possible the employee had actually selected benefits but failed to confirm their election for some reason. Include with your email any attachments related to open enrollment. 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. If appropriate coverage is offered to employees (regardless of whether they enroll) these employers will not be subject to the penalty. Please log in as a SHRM member before saving bookmarks. 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. The dates give your human resources department time to process and review employee elections and send them to the benefits providers. You want to provide employees with essential information about the upcoming benefits period that is engaging. Effective communication to employees can sometimes be a moving target. Managing Organizational Communication]. Why? Please enable scripts and reload this page. ), Example #2: Dave, Who Has No Emergency Fund. "There are many factors, both in a benefits plan and in one's personal life, that can change every year. Bretton Chatham The more visibility you give them, the more likely your employees will dig in. While employers have certain responsibilities to notify employees about benefits-related deadlines, the responsibility of registering for benefits and completing any required paperwork falls on the employee. The only exception to these terms is if an employee qualifies for a special enrollment period (SEP). After open enrollment ends, you can only make changes to your elections if you've experienced a qualifying life event. So offering smart 401K advice for employees is an especially important part of helping your employees recover from a challenging year. *All Shipping prices displayed are for the lower 48 states only. !.,-_*|+~#). The most common option for employees who missed the 30-day enrollment period is simply to wait until the next enrollment period to register for benefits. 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. 1. While just keeping whatever health coverage they had this year is tempting for employees, doing so may come with a substantial financial downside. Sample 401K Communication to Employees. The good news is that were here for you every step of the way! The Covered Connecticut program allows eligible applicants to enroll anytime. In reviewing the following information, you are taking the first step toward securing your. The open enrollment announcement email should go out two weeks before your benefits packages are made available to employees. Consider creating an email template. Pretty good! 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. 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. Its equally important to understand why they missed the deadline and help them avoid the same mistake in the future. 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. Never miss out get the latest content delivered straight to your inbox. If your benefits packages havent changed from the previous year, consider offering a passive enrollment, which automatically enrolls employees who dont wish to make any changes to their selections. Still, missing open enrollment can make a bad situation worse. Thank them in advance for doing their part to make this a successful open enrollment. The email is simply an introduction. Be sure to check your state laws. $(document).ready(function () { 4 out of 5 can find a marketplace plan for $10 or less a month with cost assistance! Weve got some exciting options this year so be prepared to make changes! 4 in 10 employees who are able to save for retirement are now saving less as they continue to face financial hardships. 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. 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. About Us Everything You Need Is Inside! These include: Since there is little wiggle room with open enrollment deadlines, employers should focus on preventing employees from missing the annual deadline. Since Greg has an emergency fund in place, it makes sense for him to fund his 401K until his employer match is reached. 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. If you are concerned about complying with ACA in any regard, please contact us to discuss one of our many options to help. 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;}'; 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). 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. And to make matters worse, employees are skittish about their retirement savings right now thanks to COVID. This site is protected by reCAPTCHA and Google, Minimum of 1 special character ($%/()[]{}=? He just cant beat a 100% return on his money. [Instructions or refer to additional resources]. Open enrollment consumes a large amount of HR's time and energy, making it nearly impossible to forget about. Subject line: Let's get smarter about 401K savings. If you don't have time to send a formal letter, consider sending an excuse email instead. Employees digest information in different ways. 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. Don't leave your elections for the last minute as that can make you rush the process and leave you more susceptible to mistakes. Benefit Cooperatives And missing the deadline can have serious consequences for your employeesincluding loss of coverage or the inability to change coverage options. How Can HR Help an Employee Who Misses Open Enrollment? 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.. Purchasing Cooperatives, Speak to Consultant Format for absence excuse letter. But most advisors suggest putting away 15-20% of your paycheck if you can. All of these options would result in him losing money beyond the cost of the surprise expense. 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. As HR representatives address open. 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. Not great for Dave! Close the email out by reminding employees of the importance of benefits enrollment. Subject Line: Were Two Weeks From Open Enrollment! Most companies operate on a calendar fiscal year. Coby now serves as the Senior Vice President of FBS managing a team of sales, marketing, and client implementation personnel. Mistakes happen -- and it happens more than it probably should when people are choosing health insurance. For you, when employees miss this deadline, it can result in additional administrative burdens and unhappy or unproductive employees. Remind employees they will receive a confirmation of their changes. Open Enrollment Email to Employees (Templates). Russ continues to support districts across the state with their risk management programs. SHRM Online, September 2019, 10 Questions for Employees Choosing a Health Plan, Changes made at open enrollment are effective January 1, 2023. 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. Many employers even offer benefits education during open enrollment to help employees understand their options and make informed decisions. 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. Example #3: Greg, Whos Got a Safety Net, But Whos Saddled With Lots of High-Interest Debt. The date coverage starts depends on when you lose coverage and the date a plan is selected. To prevent these issues, its important to communicate to your employeesahead of timethe consequences of missing the open enrollment deadline. Start reviewing your benefit information now so youre ready when the time is right. Here's what can happen and how HR can help. Subject Line: Tomorrow Is The Day For Open Enrollment! 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. At Ignite HCM, we assist human resources administrators in streamlining processes. Here are a few ideas: Also consider other help emails that explain the process in greater detail. But why stop there? Here's what to tell them. 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%. "I'm sorry to hear you lost your job. 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. It starts valuable dialog on whats being offered and how to take advantage of it. Log-in Now! What Happens If an Employee Misses Open Enrollment? The ConnectorCare program in Massachusetts (for people who are newly eligible or who haven't enrolled before). RE: 2022 Open Enrollment communications to employees on leave of absence. Why? 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.