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  • December 01, 2020 9:48 AM | Bill Brewer (Administrator)

    Department of Labor headquarters sign

    By Allen Smith, J.D. | November 30, 2020

    Employers are preparing for changes the U.S. Department of Labor (DOL) may make under President-elect Joe Biden's administration. From joint-employer issues to Office of Federal Contract Compliance Programs (OFCCP) and Occupational Safety and Health Administration (OSHA) action, the DOL is likely to shift direction on many fronts.

    Michael Lotito, an attorney with Littler in San Francisco and co-chair of Littler's Workplace Policy Institute, discussed likely changes at the department with SHRM Online. Lotito has testified before the U.S. House of Representatives and the U.S. Senate, as well as the National Labor Relations Board and the Equal Employment Opportunity Commission. He also co-founded the Emma Coalition, a project named in honor of his granddaughter and dedicated to preparing American businesses for displacement of employees that the rapid rise in automation and artificial intelligence is expected to bring.

    SHRM Online: Might the Biden DOL reissue joint-employer guidance and, if so, how might this be significant from a practical standpoint?

    Lotito: The DOL joint-employer rule under President Donald Trump's administration was challenged by 18 state attorneys general in a federal court in New York. The district judge held the rule to be invalid. The case is on appeal. Littler has intervened on behalf of the International Franchise Association and other associations to protect the rule. The new administration might attempt to have the Department of Justice, which is litigating the case for the DOL, change its position as to whether the rule should be upheld. The case may likely go to the U.S. Supreme Court.

    In the meantime, the DOL may attempt to pause any effectiveness of the rule while it considers its options. Doing so will risk litigation against DOL, as Administrative Procedure Act rulemaking requirements will become operative. The fight then to confirm the rule will play out in court and often over complex administrative law questions. 

    However, the field personnel of DOL may well take a much more aggressive enforcement posture against companies in applying the rule to a set of facts. This, too, will invite even more litigation.

    SHRM Online: How might a Biden DOL advance unions' interests, such as if large infrastructure projects move forward?

    Lotito: Biden proudly says he is a union man and wants to be a union president. One way of demonstrating sincerity in that regard will be through federal contractors who will bid on infrastructure projects. He is likely, through executive orders, to impose requirements on contractors similar to the previously issued and nullified "blacklisting rules." Neutralitycard check, no record of unfair labor practices, strict adherence to Davis-Bacon Act rules and more will possibly impose on contractors a huge price to pay for the privilege of working for the government.

    SHRM Online: Do you expect any significant changes at the Wage and Hour Division, and, if so, what might those be?

    Lotito: I expect the Wage and Hour Division will stop issuing opinion letters, which have been helpful to many in the regulated community during the Trump administration. A potential review of the joint-employer and upcoming independent-contractor rule will be high up on the division's agenda. Perhaps the division will revisit overtime standards and issue rules dealing with pay entitlement for off-the-clock work, like checking e-mail from home. Enforcement will be aggressive, especially against certain industries like fast food, janitorial, construction and other targets. The department will also coordinate with state DOLs to cooperate with one another as investigations progress.

    SHRM Online: What shifts in priorities will the OFCCP likely make under the Biden administration?

    Lotito: The OFCCP will have to deal with the executive order from President Trump concerning diversity training guidelines. I suspect President-elect Biden will nullify it. In any event, diversity and inclusion are enormously important issues for everyone and particularly government contractors. More rigorous enforcement efforts, including in-depth audits, will once again become the norm. Controversy over pay disparity issues will intensify.

    SHRM Online: What steps might OSHA take in the Biden administration?

    Lotito: First, the new president will move quickly to appoint and have confirmed an undersecretary of OSHA, a position that has been vacant over the past four years. That person will move swiftly to promulgate an emergency temporary standard applicable to the pandemic for all impacted stakeholders. Regular new standards will evolve as the pandemic continues and ultimately subsides. Strict enforcement will be the rule of the day. OSHA will be one of the busiest government agencies so long as the pandemic persists.

    SHRM Online: What legislative changes might a Biden DOL seek to lead?

    Lotito: Legislative changes will depend largely on the results of the Georgia Senate contests. But even if the Senate is 50/50 with Vice President-elect Kamala Harris breaking all ties in likely favor of progressives, legislative initiative may be minimal. A 50/50 Senate will not eliminate the filibuster as Sen. Joe Manchin, D-W.Va., has said recently he is not in favor of the filibuster's removal. As long as one needs 60 votes to approve legislation in the Senate, controversial matters on labor and employment like the Protecting the Right to Organize Act, paid sick leave, a new minimum wage and the like may not be front and center as Biden deals with COVID-19, taxes and infrastructure. 

    SHRM Online: How should employers prepare to respond to these possible changes?

    Lotito: First and foremost, be comfortable with uncertainty. Increase compliance focus. Stay engaged and informed. Elections have consequences. How this plays out will depend on many factors. But if the Biden Administration really wants to be remembered for workplace initiatives, it should embrace a new GI bill for upskilling the workforce of the 21st century. We are in the midst of the most transformative workplace disruption in history given the pandemic, robotics and artificial intelligence.

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    Source: Society for Human Resource Management (SHRM) 

    https://www.shrm.org/resourcesandtools/legal-and-compliance/employment-law/pages/dol-priorities-will-change.aspx

  • November 24, 2020 10:24 AM | Bill Brewer (Administrator)

    buying health insurance online

    By Stephen Miller, CEBS | November 24, 2020

    As ICHRAs approach their first birthday, vendors see continuing growth

    Individual coverage health reimbursement arrangements (ICHRAs) became available as a new employee benefit in January 2020 under IRS regulations issued by the Trump administration in June 2019. As ICHRAs approach the end of their initial year, consultants and firms that administer the accounts weighed in on the benefit's future.

    With ICHRAs, pronounced "IK'-rahs," employers subject to Affordable Care Act (ACA) coverage requirements could opt to pay for employees to purchase their own health insurance coverage on the ACA marketplace or through an insurance broker, rather than providing an employer-sponsored group health plan. Among a few ICHRA facts to keep in mind:

    • As with other health reimbursement arrangements (HRAs), employees don't pay taxes on health care spending reimbursed through an employer-funded ICHRA.
    • An ICHRA, like most other HRAs, is not portable when employment ends, although businesses subject to COBRA requirements must give eligible employees a chance to elect COBRA coverage.
    • When employers with 50 or more full-time or equivalent employees provide coverage through an ICHRA rather than a traditional group health plan, employer funding must be sufficient for employees to purchase a plan that meets the ACA's coverage and affordability requirements. For instance, in 2021, an employer's ICHRA allowance must be high enough that employees can buy the lowest-cost silver plan on an ACA marketplace exchange by combining their ICHRA funds with no more than 9.83 percent of their adjusted gross income.

    Employers Take Notice

    There is a growing interest in ICHRAs as a way for employers to keep their health care spending at a fixed dollar amount. This is according to 397 large U.S. employers that participated in HR consultancy Willis Towers Watson's 2020 Health Care Delivery Survey, conducted in August and September. The survey revealed these statistics:

    • About 15 percent of employers polled were planning to offer or were considering offering ICHRAs to at least some of their employees in 2022 or later.
    • Almost a quarter (22 percent) of wholesale and retail employers were planning to offer or were considering offering ICHRAs in 2022 or later.

    In a further sign of support for ICHRAs, one-third of chief financial officers (CFOs) are considering ICHRAs for some of their active employees, according to 54 CFOs who participated in the Willis Towers Watson 2020 Health Care CFO Survey, conducted in September and October.

    "Not surprisingly, relatively few employers adopted ICHRAs this year, as the pandemic diverted much of their attention to other critical benefit matters," said John Barkett, senior director of policy affairs, benefits delivery and administration at Willis Towers Watson. "However, we expect to see interest grow as companies learn more about ICHRAs and the market for individual health plans continues to grow more robust each year."

    As more employers adopt ICHRAs to fund health care, he added, "employees could find relief from the burden of having to change plans whenever they change jobs."

    ICHRAs, QSEHRAs and Group Plans

    Dallas-based HRA administrator Take Command Health recently posted its first ICHRA annual report. "Many business owners and brokers are evaluating their options for group benefits, searching for flexible and budget-friendly options," said Jack Hooper, the firm's CEO.

    Among the firm's clients, ranging in size from one to 151 eligible employees, 46 existing clients that previously offered a qualified small-employer HRA (QSEHRA) switched to an ICHRA to offer more generous benefits to their employees.

    QSEHRAs—pronounced "kyoo-SEHR'-ahs"—allow employers with fewer than 50 full-time employees to use pretax dollars to reimburse employees who buy nongroup health coverage. The rules for ICHRAs and QSEHRAS differ. For instance, QSEHRAs have a reimbursement cap while ICHRAs do not. QSEHRAs first became available in 2017.

    Take Command Health's client data showed increasing interest in ICHRAs:

    • California, Texas, Florida, Pennsylvania and New York lead the country in ICHRA sign-ups, thanks to their strong individual markets.
    • Professional services, nonprofits, tech companies, and health care providers and services lead in sign-ups.
    • The average reimbursement rates for 2020 ICHRAs were $749.93 for singles, $847.20 for couples and $931.95 for families.
    • Survey respondents rated budget control and flexibility at the top of their list of ICHRA benefits.

    "Despite the uncertainty that we've all faced these past few months, we've seen sign-ups for individual coverage HRAs climb steadily and double since January," Hooper said. "Carriers are returning to the individual market, and individual premium prices are stabilizing—critical factors in the success of this new HRA."

    Differences by Industry

    Marek Ciolko, CEO of Gravie, a Minneapolis-based health insurance brokerage, currently has 52 ICHRA clients, some of whom dropped group health coverage and adopted ICHRAs.

    "With the unsustainable increases in many current group plans, an ICHRA is a good option," Ciolko said. "Many want to get out of the business of administering health benefits and also prefer the simplicity and predictability of defined contributions enabled by ICHRA."

    Specifically, he noted, the firm has seen an increase in interest from companies in the home health care, restaurant, and manufacturing and delivery sectors. "Another area where we have seen interest in ICHRAs is midsized companies that find it challenging to locate or maintain health coverage at reasonable rates due to employee health status," he said.

    Reimbursements Differ

    Salt Lake City-based PeopleKeep, which provides consumer-directed health accounts, recently posted its own "first nine months" report on ICHRAs.

    "There is a vast difference in the allowance amounts offered by employers who allow reimbursement [through ICHRAs] of both insurance premiums and out-of-pocket expenses compared to those who only reimburse employees for premiums," wrote Nick Green, product marketing manager at PeopleKeep.

    Among the ICHRAs PeopleKeep administers, 37 percent were limited by employers to reimbursing plan premiums, while 63 percent could be used to reimburse both premiums and out-of-pocket costs.

     

    Employers' Average Annual ICHRA Funding Amounts

      Reimburse Plan Premiums Only Reimburse Premiums and Out-of-Pocket Costs
    Employee-only coverage $538 $1,017
    Employee plus spouse coverage $640 $1,233
    Employee, spouse and dependents coverage $723 $1,324

    Source: PeopleKeep.


    "It stands to reason that employers who are able and interested in broadening the type of expenses they reimburse would also want to make more money available to their employees for those expenses," Green wrote. "What was unexpected was the degree to which that is true."

    A Bipartisan Solution?

    ICHRAs have "proven to be a great fit for employers who want more control over their health benefits costs than a group health insurance plan can provide but want to offer more in allowances than the QSEHRA will allow," Green stated.

    Ciolko noted, "Employers don't have to worry about selecting plan options that will work for all of their employees, but rather can empower their employees to choose a plan and carrier that meets their needs."

    According to Hooper, "We think the ICHRA model could be the key to bipartisan success. It delivers more lives to the individual market, which is important to Democrats, while providing consumer choice and flexibility that Republicans insist on."

    He added, "We believe it could be one of hopefully a few bridges that help to fix the health care system from both sides."

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    Source: Society for Human Resource Management (SHRM) 

    https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/employers-interest-in-individual-coverage-hras-is-rising.aspx

  • November 19, 2020 12:22 PM | Bill Brewer (Administrator)

    Fewer Workers Will Get Pay Raises in 2021; Bonuses Gain Ground

    By Stephen Miller, CEBS | November 17, 2020

    More organizations shift from across-the-board increases to variable pay models


    The economic effects of COVID-19 have forced nearly half of organizations (45 percent) to re-evaluate salary increase plans for 2021, new survey findings show.

    Researchers collected data from 1,283 U.S. organizations during July and August for benefits advisory and brokerage firm Gallagher's 2020/2021 Salary Planning Survey report.

    At the start of 2020, two-thirds (66 percent) of surveyed employers had awarded pay raises, as organizations felt primed for growth with a robust economy and record-high employment. By the end of the first quarter, however, the reality of COVID-19 had set in, forcing many employers to put the brakes on wage hikes.

    This trend will continue into 2021, according to surveyed employers.

    Among the segment of employers that indicated COVID-19 has forced them to re-evaluate 2021 salary increase plans, half (51 percent) expect to reduce salary increases, and 45 percent plan to suspend salary increases altogether.

    According to the report:

    • For 2020, salary increase budgets will end up rising 2.5 percent, down from earlier projections of a 2.8 percent average increase.
    • For 2021, Gallagher projects average salary budget increases of 2.1 percent, with variations by employee group (see chart below) as well as by location and industry.

    Average Fiscal Year Salary Increase Budgets by Employee Group 

      2020 2021
    Executives 2.3% 2.0%
    Managers 2.6% 2.1%
    Other exempt workers 2.6% 2.1%
    Nonexempt workers 2.6% 2.2%

    Source: Gallagher's 2020/2021 Salary Planning Survey report.

    Shift Toward Variable Pay

    As an alternative to salary increases, variable pay, such as annual bonuses, "can save money and serve as an investment in future success," according to Gallagher's report.

    "Revenue streams and budgets will be unpredictable in 2021, and for these reasons, many employers are pausing across-the-board salary increases," said William F. Ziebell, CEO of Gallagher's benefits and HR consulting division. "However, the data shows more employers are leaning into variable pay models because this allows them to provide employees with a pay increase based on performance."

    The researchers found that 40 percent of respondents use variable pay for at least one employee group. In addition:

    • 57 percent don't anticipate changing their variable pay budgets for 2020 despite the pandemic.
    • 73 percent don't anticipate changing their variable pay budgets for 2021.

    The benefits of variable pay, according to the report, include increasing employee productivity by linking compensation to organizational success while avoiding long-term costs by not adjusting base-pay levels upward.

    Incentive Pay Pointers

    "Organizations can be prudent in protecting themselves from overpaying under an incentive plan during challenging economic times," said Bob Lindeman and Linda VanDeventer, managing director and co-founder and director of compensation consulting, respectively, of The Overture Group, a boutique executive compensation and search firm that specializes in privately held, small-market organizations.

    Lindeman and VanDeventer advise organizations to take the following steps:

    • Review who is participating in the plan.
      Reducing plan participants is a simple way to reduce potential cost, they noted. "Most legal plan documents and employee communications state—and if not, should state—that management reviews and selects the participants in the plan annually. Stating this fact tempers the expectations of employees, albeit it is a drastic change to implement," they noted.
    • Examine the plan's threshold, target and maximum payouts.
      Reducing a payout maximum as a percent of salary, such as from 250 percent to 150 percent, can curb excessive payouts. "Participants will likely notice such a change, but if communicated effectively, plan participants should respect that an organization does not have a bottomless checkbook, especially in the era of COVID," Lindeman and VanDeventer said.

    Similarly, raising the payout threshold percentage, for example from meeting 60 percent of a targeted goal to 80 percent, "is another effective method to modify the plan while still keeping it motivational," they suggested. Increasing the target performance required for a payout in the financial formulas can ensure "the organization will have enough profit dollars to afford the payout."

    Financial Sector Rewards

    In at least one area of the U.S. economy, the financial sector, employees may find both salary increases and annual bonuses under pressure.

    Year-end incentive payments in the U.S. financial sector are expected to be lower compared with last year, according to an analysis by Johnson Associates, a compensation consulting firm. "The pandemic is wreaking havoc on many parts of the U.S. economy this year, and the financial services industry is no exception," said Alan Johnson, managing director of the firm.

    "Unfortunately, as we look to 2021, even with an optimistic vaccine path, the pandemic will continue to negatively influence businesses, but perhaps to a lesser degree than in 2020," Johnson said. "Headcount reductions will continue in the first half as companies transform and adapt. For 2021, we expect some stabilization with early projections for modest salary increases and flat to slightly increased incentives."

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    Source: Society for Human Resource Management (SHRM) 


    https://www.shrm.org/resourcesandtools/hr-topics/compensation/pages/fewer-workers-will-get-pay-raises-in-2021-as-bonuses-gain-ground.aspx

  • November 11, 2020 10:10 AM | Bill Brewer (Administrator)

    Companies offer creative solutions to worker burnout during the pandemic | Fox Business

    By Chip Cutter

    Companies are adapting policies and rushing to roll out benefits to head off a surge of employee distress

    A few months into the pandemic, Nick Popoff let his guard down in an all-hands video call and said aloud what many had been experiencing: He felt burned out.

    Some weeks, the engineering director at ticketing company Eventbrite Inc. didn't leave his house for days, he said. Slack notifications buzzed constantly. He missed seeing friends and colleagues in person. Even a hike with his wife through northern California's redwoods, didn't leave him sufficiently recharged.

    "Work burnout is insidious. It's not just like a red light that comes on, " Mr. Popoff says. "It's something that very slowly starts to happen, and that's how it can catch people by surprise."

    After Mr. Popoff shared his experience in the meeting, colleagues came forward, saying that they, too, felt exhausted by work, and life, in a pandemic. Mr. Popoff began leading "recognizing burnout" sessions for other employees, giving staffers a forum to voice their feelings, and to hear advice from mental health professionals about how to cope.

    The effort is one of many experiments afoot in corporate America as bosses stare at a sea of faces on Zoom and worry. With no end to the pandemic in sight, managers say many remote employees report feeling depressed, fed up and wary of what's next. Companies are adapting policies and rushing to roll out benefits to head off a surge of employee distress.

    "There's this second wave upon us, where people are feeling super-anxious that this is the new normal, and how much longer can we sustain this?" says Matthew Schuyler, chief administrative officer at Hilton hotels. "I don't think we've yet come to grips with the mental impact this is having on all of us."

    In addition to expanding access to counseling and mental health services, many employers are trying other approaches, such as insisting employees disconnect or offering more training for managers. In recent months, Antonio Neri, chief executive of Hewlett Packard Enterprise Co., has been encouraging bosses at the technology company to call employees to check in on their well-being. "You've got to make the effort," he says. "Don't assume email is enough, because email is not personable."

    Jimmy Etheredge, CEO of North America at consulting firm Accenture PLC, recently asked his 27 direct reports to attend 2 1/2 hours of virtual training on how to better support colleagues facing mental-health issues. All participated. Mr. Etheredge says he regularly receives emails from employees, explaining their pandemic-related challenges. But consultants have a tendency to jump into a situation and become problem-solvers, an "occupational hazard," Mr. Etheredge says. The training stressed that, in conversations with employees, sometimes attentive listening without judgment can be most helpful.

    "Just validate that the person is being heard," Mr. Etheredge says, while directing them to additional resources, if needed.

    Solutions needn't be complicated or costly, executives say. Eventbrite recently changed leadership training during the pandemic to focus on how supervisors can manage with empathy while people are working remotely. Now, bosses are taught to begin one-on-one sessions with employees with a simple phrase meant to elicit genuine emotions, says David Hanrahan, the company's chief human resources officer. Instead of a stock "How are you?" before quickly moving on to business, managers might ask, "How are you really, really doing?" After Mr. Hanrahan poses the question, he is silent, even if the pause feels uncomfortable. With some prodding, employees may then open up about their true feelings regarding work or personal challenges. "It's a simple tactic any manager can employ," he says. "But it's about true empathy and true care."

    Other companies have taken steps to bolster morale in the Covid era. Seattle construction and engineering company McKinstry Co. LLC began issuing companywide "good news Friday" memos, pointing out, "Hey, here's eight things that happened this week that are pretty good," says Dean Allen, the company's CEO. That could be feedback from a happy customer or details about new business the company landed. Hilton's Mr. Schuyler encourages managers and teams to allow Zoom calls from parks or other outdoor venues.

    Fidelity Investments recently began a pilot program for a small portion of its workforce in which employees can opt to work 30 hours a week, with a small pay cut, while retaining their full benefits. Fidelity plans to hire more staff to pick up the work so that other colleagues aren't overwhelmed, says Bill Ackerman, head of human resources at the financial-services firm.

    As the pandemic drags, employers need to adjust their approach, Mr. Ackerman says. Benefits that may have been appreciated early on -- such as matching gifts to charities and stipends for home offices -- have shifted this fall to include access to child-care coordinators and subsidies, as parents grapple with schooling issues.

    Many bosses say even finding ways to get employees to step away from their laptops takes more thought now. Geben Communication, a public relations firm in Columbus, Ohio, began offering employees bonus "self-care days" off in recent months, to encourage them to disconnect, says Heather Whaling, the company's president. In Austin, Texas, Ryan Wuerch, chief executive of Dosh, an app that gives consumers cash back when they shop, takes another approach: impromptu three-day weekends. On some Thursdays, during all-staff meetings, Mr. Wuerch now surprises the company with the news that the following day is a "Dosh Day," when no work is allowed.

    Extra vigilance is key, managers say. To head off burnout, Eventbrite's Mr. Popoff watches for employees who seem to be plugging away after hours and follows up with them the next day, saying that such work is unnecessary.

    Some workers have adopted cues to signal they need help. At Dell Technologies Inc., Jennifer "JJ" Davis, senior vice president of corporate affairs at the technology company, says during the pandemic her team has developed a way to alert colleagues when they are "above the line" -- feeling OK, and able to lend a hand -- or "below the line" and needing assistance. The phrases allow people to convey their state of mind without necessarily divulging personal details. "Nobody asks questions. They just say: 'OK, what can I do?' " Ms. Davis says.

    Pandemic-specific peer groups also are effective. More than 1,500 Dell employees joined colleagues in virtual support groups focused on child care or pandemic isolation, for staffers living alone. "It gives you a safe place to let your guard down," Ms. Davis says.

    Ms. Davis says she helps her colleagues cope by being honest about her own challenges, such as deciding whether her three teenage sons should attend classes in-person or virtually. Sometimes, when meetings run long, Ms. Davis begins preparing dinner -- and tells her team she's multitasking. "I'm like, 'Hey guys, great meeting, I just finished a batch of brownies,' " Ms. Davis says. "If I don't tell my staff and lead by example that I'm cooking brownies while doing a meeting at the same time, then they don't know that they have permission to do the same thing."

    Taking Action

    What companies can do to curb staff burnout:

    Encourage employees to take time off. Some companies offer bonus "self care" days or end work a few hours early.

    Expand access to counseling and mental-health services. Employers have rolled out digital counseling apps or brought on coordinators to help employees access care.

    Ask managers to check in on individuals' well-being. Even simple gestures, like a phone call instead of an email, can go a long way.

    Offer training for managers on supervising with empathy. Overseeing employees in a pandemic is a new skill, so guidance on supporting colleagues' mental well-being can help.

    Foster dialogues where workers share genuine emotions. Asking "How are you?" isn't enough; probe to get a sense for people's real situation.

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    Source: Fox Business

    https://www.foxbusiness.com/lifestyle/companies-offer-creative-solutions-to-worker-burnout-during-the-pandemic

  • November 09, 2020 3:31 PM | Bill Brewer (Administrator)

    its meant to offer retirement readiness to plan participants

    by Lynn Cavanaugh | November 2, 2020

    Employers have a year to implement a new 401(k) rule, but it’ll take some preparation. The Department of Labor (DOL) is requiring firms to provide employees with lifetime income estimates to help them determine their retirement readiness.

    The DOL’s Employee Benefits Security Administration (EBSA) has announced this interim final rule. It’s meant to help workers realize how their current retirement plan might translate into lifetime monthly payments, in a similar fashion to what the Social Security Administration provides employees.

    This rule was set in motion by the Setting Every Community Up for Retirement Enhancement (SECURE) Act, passed in 2019. This Act amended the pension benefit statement requirements to show participants equivalents of their retirement savings as monthly income.

    “Our goal is to help workers and retirees understand how savings translate to retirement income,” says EBSA’s acting assistant secretary Jeanne Klinefelter Wilson.

    To help ease administrative burdens on employers, the new rule includes 11 brief model language inserts that may be used in an employer’s own plan disclosure. Firms can access the new rule online, since it’s now published in the Federal Register.

    Calculating estimates

    The DOL’s fact sheet includes an example of a plan disclosure for a 40-year-old employee, using a 10-year constant maturity Treasury rate to calculate the monthly payments. Here is the information that must be provided:

    • current account balance: $125,000
    • single life annuity: $645 per month for life, and
    • qualified joint and 100% annuity: $533 per month for an employee’s life and $533 for the life of a spouse following participant’s death.

    The DOL is allowing a 60-day comment period, giving employers until Nov. 17, 2020 to submit or mail comments (tinyurl.com/DOL614) on this new rule.

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    Source: HR Morning 

    https://www.hrmorning.com/articles/dols-new-401k-rule-firms-must-give-workers-lifetime-income-estimates/

  • November 03, 2020 7:09 AM | Bill Brewer (Administrator)

    By Marthin De Beer | October 30, 2020

    From a pandemic and the move to remote work, to natural disasters and social justice protests, 2020 has been a rollercoaster. These events are having a meaningful impact on companies as employees look to their employers for support. Many organizations have stepped up their efforts to address some of these big challenges our society is facing today, while simultaneously investing in the future of every employee — and the company as a whole.

    In the current market environment as HR and benefits leaders look ahead and plan for 2021, Diversity and Inclusion (D&I) initiatives have taken on increased importance. D&I initiatives are no longer nice-to-have, but rather vital for organizations to thrive as employees increasingly demand them. Monster.com found that 62% of job candidates would turn down a job if they didn’t feel the company valued workplace diversity. This is a notable change from recent years and a step in the right direction to address some of society’s biggest challenges where we spend the bulk of our waking life: the workplace.

    Although there are a lot of important threads to the D&I conversation, there's one element that often gets left out: financial wellness. That’s a critical oversight given the wealth gap in this country. The Federal Reserve reports that on average white families have accrued eight times the wealth of Black families and five times the wealth of Hispanic families. This is a systemic issue and provides an opportunity for companies to play their part in solving this problem by enabling people of color to increase their wealth.

    Growing up in apartheid South Africa, I saw firsthand how the depth of systemic racism permeated society. It became clear that lack of access to economic opportunity — and education to get there — was holding back generations. When I moved to the U.S. and founded BrightPlan, I made a commitment to advancing financial wellness to fuel equality. Employers have an opportunity to lead this transformation by ensuring financial wellness programs are an integral part of their D&I initiatives.

    Financial wellness is core to D&I

    Employers are working hard to expand their D&I initiatives. LinkedIn data shows there has been a 71% increase in worldwide D&I roles in the past five years. Most D&I efforts focus on representation and removing workplace bias — which is important, but not sufficient to solve the larger issue of financial inequality. Creating lasting wealth for underrepresented communities, however, can lead to change by fueling generational advances.

    That’s where financial wellness can be very valuable. Even something as simple as education can be a powerful step forward. Financial education and literacy in the U.S. is extremely low, in general, but even more so in underrepresented communities. For example, a study from Next Gen Personal Finance found that only 3.9% of students from low-income schools were required to take a personal finance class, compared to nearly 17% nationwide. Employers can help close this financial literacy gap by offering wellness benefits that provide comprehensive financial education to employees.

    But education alone isn’t enough. A successful financial wellness program should make it easy for employees to take action across their entire financial life. That means providing a complete view of all their personal finances in context of life goals, delivering clear recommendations and making it easy to monitor progress.

    Employees expect their employers to provide essential benefits like health care and 401(k)s. It’s now time to add financial wellness to that list, with companies going beyond retirement plans to offer complete financial wellness benefits. By helping underrepresented communities achieve financial wellness, employers can play an active role in bridging the wealth gap.

    Gaining a competitive advantage

    Including financial wellness as part of employer provided benefits and D&I initiatives doesn’t just benefit employees and society as a whole. It’s also good for business. We’ve seen compelling data from enterprises revealing that financial wellness as part of a broader well-being strategy, improves employee engagement and workplace happiness, while increasing retention and strengthening recruitment efforts. Moreover, data shows that diverse companies perform better financially too.

    Data from PwC shows finances are by far the top source of stress for employees. By offering financial wellness benefits, employers can help alleviate anxiety so employees can be more productive and engaged at work.

    I’ve seen firsthand that demand for financial wellness solutions is soaring as COVID-19 and D&I conversations have motivated employers to seek innovative solutions. With D&I set to be a priority for employers headed into 2021, financial wellness will be even more valuable as an actionable program that directly addresses root causes, empowering companies and employees to enact lasting change.

    Diversity pays off in many ways, and we're just starting to scratch the surface of how financial wellness can support more equitable organizations. By adding financial wellness as a key component to D&I initiatives, employers can take a leadership role in advancing equality and creating generational wealth for all employees while gaining a competitive advantage.

    ***** ***** ***** ***** ***** 

    Source: Employee Benefit News (EBN)

    https://www.benefitnews.com/opinion/why-diversity-and-inclusion-initiatives-need-financial-wellness

  • November 02, 2020 8:06 AM | Bill Brewer (Administrator)

    Published: Nov. 1, 2020 at 3:51 a.m. ET | ByAndrew Keshner

    ‘It’s not unusual for people not to be aware of the specifics they are being afforded by their employers, sadly.’

    A record number of Americans have voted early in the race between President Donald Trump and Democratic challenger Joe Biden, and many will still head to the polls on Election Day. Some companies want to make sure they have plenty of time to do so.

    Major companies including Walmart WMT, +1.04%  and Twitter TWTR, -3.32%  are trying to make it easier for workers to cast their vote on or before Nov. 3’s Election Day, often by providing paid time off.

    But many workers don’t know about the accommodations, a new survey suggests.

    While 52% of companies are offering paid time off to vote according to their human resource staffers, only 23% of workers are aware of the benefit, a survey from the Society for Human Resource Management found.

    Almost one-third (30%) of human resource officials say their companies are providing time off with no pay, and 16% of workers said they knew about such a benefit.

    “It’s not unusual for people not to be aware of the specifics they are being afforded by their employers, sadly,” said Johnny Taylor, president and CEO of the Society for Human Resource Management, a professional association.

    The survey comes during a hard-fought presidential election — and the coronavirus pandemic that’s up-ended work routines and added another layer of complexity to the voting process.

    More than 22 million people had already cast their vote as of earlier this month, according to the Associated Press. That’s 16% of all votes in the 2016 presidential election.

    The wait for early in-person voting has sometimes stretched on for an hour or more, according to media reports. A delay like that can take a real chunk out of a person’s work day.

    The findings come from two surveys, one of almost 500 human resource workers who are members of the Society for Human Resource Management. The other survey polled approximately 1,000 people. ***NORC at the University of Chicago performed the worker survey on SHRM’s behalf. ****

    Workers in one survey may not necessarily be working at the same companies as the human resource officials. Still, said Taylor, the lack of awareness might hold true even if the workers and HR poll participants worked in the same place.

    Employees are often unaware that they’re entitled to all sorts of perks, he said. “Some of it is employees during the orientation process are just overwhelmed with data,” and more focused on key questions like pay.

    Between 42% and 44% of surveyed companies offered paid time off to vote between 2017 to 2019, according to previous benefit surveys from the organization that used larger sample sizes.

    Taylor was expecting even more companies to offer time off for voting this election season. But when he asked around, some colleagues told him they weren’t doing it because the opportunity to vote has been stretched out over so many days, and workers already had flexibility in how they used their time off.

    Around 25% of companies told Mercer, the human resources consulting firm, they were changing their internal policies this year to provide more voting time. The most-cited tweak was increasing paid time off (10.5%), according to the survey released Thursday.

    As of late August, more than 700 companies had joined Time To Vote, a non-partisan coalition of businesses pledging to facilitate their staff’s ability to vote. (That’s anything between a paid day off, lighter schedules or assistance with mail-in ballots.)

    Over 200 companies joined the coalition over the summer, including Nike NKE, +2.25%, Dell Technologies DELL, 1.50%  , Visa V, +2.54%   and Bank of America BAC, +1.24%. Nike said its accommodations may include paid time off on Election Day, no meetings that day or offering resources for mail-in ballots and early voting.

    Dell already offers paid time off to vote, a spokeswoman noted. But she added that the company joined the coalition “to further amplify this message amongst team members and reinforce our commitment to civic engagement.”

    Visa expanded its paid time off policy from two to four hours and offered other resources on voting, including a virtual event with voting experts, a spokesman said. “Taken together, we hope these actions lead to an increase in employee voter participation in our country’s elections this year,” he said.

    ***** ***** ***** ***** ***** 

    Source: MarketWatch

    https://www.marketwatch.com/story/many-workers-have-no-idea-their-employers-are-offering-this-democracy-boosting-perk-survey-suggests-2020-10-23

  • October 29, 2020 8:14 AM | Bill Brewer (Administrator)

    Gartner Top Priorities for HR Leaders in 2021

    October 23, 2020 |  Contributor: Jackie Wiles

    Building critical skills and competencies continues to top the list of priorities for HR leaders in 2021. Also on the radar — organizational (re)design and change, and leadership.

    A recent survey of more than 800 HR leaders shows that although many expect their organizations to focus on growth in 2021, cost optimization features more widely than it did previously — and improving operational excellence remains paramount. To support these and other business priorities, 68% of HR leaders say they will be building critical skills and competencies, an objective that has topped the priorities of HR leaders for three consecutive years.

    Organizational design and change management also feature among the key objectives for HR leaders, as does building a bench of current and future leaders. None of these goals is new to HR leaders, but all have been made more urgent by the effects of COVID-19.

    “As organizations move from their initial pandemic response to more sustainable operations, they’re trying to build resilience into everything, from strategy to work design, so as to enable the organization, its leadership and employees to sense and respond to change, repeatedly,” says Mark Whittle, VP, Advisory, Gartner.

    Top priority No. 1: Building critical skills and competencies

    HR leaders see building critical skills as vital to driving many of their organization’s priorities — from growing the business and executing business transformation to improving operational excellence.

    One-third or more of HR leaders agree the major challenges include their lack of visibility and understanding of current skill gaps and being unable to integrate learning effectively into employee workflows.

    Use a dynamic approach for future-forward skills development

    Traditional ways of predicting needs and upskilling the workforce aren’t working in today’s highly changeable conditions, where employees need more skills for every job and many of those skills are new. Gartner TalentNeuron™ data shows that the total number of skills required for a single job is increasing by 10% year over year, and one-third of the skills present in an average 2017 job posting won’t be needed by 2021.

    Furthermore, many employees aren’t learning the right new skills — for their personal development or the benefit of the organization. 

    Gartner research shows that HR leaders need to adopt a dynamic approach to reskilling and redeploying talent, one in which all impacted stakeholders work together to sense shifting skill needs and find ways to develop skills as those new needs arise. Currently, only 21% of HR leaders say peers share accountability or partner with HR to determine future skill needs.

    Gartner research shows that when using this type of dynamic approach to reskilling, employees apply 75% of the new skills they learn — far more than with other approaches — and learning begins sooner, as needs are identified faster.

    Adopt new recruiting tactics

    HR leaders also need a more modern and out-of-the-box approach to recruiting. Traditionally, organizations sought to replace roles and individuals in the workforce by seeking a similar set of candidate profiles — from known talent pool sources and from those attracted to the existing employee value proposition (EVP).

    Instead, to ensure quality hires

    • Prioritize skills instead of hiring profiles

    • Seek to tap into the total skills market, not just known talent pools

    • Make sure the EVP evolves to deliver on changing candidate wants and needs

    Gartner research finds that 65% of candidates have cut short the hiring process because they found certain aspects of the job (e.g., work-life balance, development opportunities, company culture) unattractive.

    Gartner surveyed more than 800 HR leaders in late-2020 about their priorities for 2021. Building critical skills and competencies topped the list.

    Top priority No. 2: Organizational design and change management

    This objective is a top priority for 46% of HR leaders. And it’s key to driving many enterprise business goals, including cost optimization (which aligns costs and resources to business priorities). 

    Many organizations have experienced, in trying to respond at speed to the effects of the pandemic, that their years-long focus on efficiency has actually left them with rigid structures, workflows, role design and networks that don’t meet today’s needs or flex with fast-changing conditions.

    Work friction weighs down employees

    Gartner research shows that only 19% of HR leaders report that their workforce can effectively change direction based on changing needs or priorities. Less than 40% believe employees can effectively detect when they are working on the right things for customers.

    What is keeping employees from adapting to change? Research shows outdated work design is the cause of numerous forms of work friction. Future-forward work design is what’s needed to ensure employees can be responsive — that is, in sync with customer needs, in a position to anticipate changes in those needs, and with the ability to adapt their approach and activities accordingly.

    This work friction adds to the burden of incessant everyday change that is driving widespread change fatigue. That fatigue means employees are unable to process change at a time when organizations most need them to be responsive and adaptable.

    Unlock employee responsiveness

    HR leaders can help prevent change fatigue, and address the specific factors that contribute to work friction. Rethinking work design strategies can help to unlock responsiveness at scale across the workforce and build organizational resilience.

    Tactics include realigning work design to the way work really happens and resetting rigid permissions and signoff processes and hurdles so they don’t unnecessarily impede innovation and action.

    This type of shift from designing for efficiency to designing for flexibility is expected, according to 52% of HR leaders, to have a significant impact on their organizations into 2021. Only 8% said they expected no impact from this evolution.

    Top priority No. 3: Current and future leadership

    Strong leadership is especially important during times of great change. Gartner research recently showed that only 44% of employees say they trust their organization’s leaders and managers to navigate a crisis well.

    Lack of diversity tops the leadership concerns of HR leaders. This contributes to the lack of confidence and trust in leadership in a year when demands for equity and inclusion have, in general, become more visible and ardent from both employees and the public. 

    Gartner TalentNeuron data illustrates the lack of diversity among the leadership of U.S. companies. It shows that only 10% of senior-level corporate positions are held by a woman from a racial or ethnic minority and only 18% by a man from a minority segment.

    The barriers that impede advancement among underrepresented talent equally apply to the leadership pipeline. Potential leaders from diverse groups often face unclear career paths and steps to advancement, get too little exposure to senior leaders, and lack mentors or career support.

    Go beyond mentoring to nurture diverse leadership talent

    HR leaders know it takes more than intent to fix bias. A Gartner survey of HR leaders in early 2020 found that 88% felt their organization had not been effective at increasing diverse representation. The imperative for diversity, equity and inclusion leaders now is to assess all the systems and processes that systematically deter equal opportunity, as well as take proactive measures to build diversity on the leadership bench.

    One approach is to manufacture more intentional networking opportunities that expose high-potential diverse talent to a network of connections that are diverse in role, skills, level and experience — and directly expose that talent to senior leaders who can support their growth and advancement.

    Organizations that use diversity networking programs are 3.4 times more likely to report they are effective at increasing opportunities for talent mobility.

    ***** ***** ***** ***** ***** 

    Source: Gartner

    https://www.gartner.com/smarterwithgartner/gartner-top-3-priorities-for-hr-leaders-in-2021/

  • October 29, 2020 6:15 AM | Bill Brewer (Administrator)

    The burden is on you to stuff your retirement piggy bank.

    by: Ashlea Ebeling | Oct 26, 2020,04:59pm EDT

    How much can you save for retirement in 2021 in tax-advantaged accounts? How does $58,000 sound? The Treasury Department has announced inflation-adjusted figures for retirement account savings for 2021. 

    The basic salary deferral amount for 401(k) and similar workplace plans remains flat at $19,500; the $6,500 catch-up amount if you’re 50 or older also remains the same; but the overall limit for these plans goes up from $57,000 to $58,000 in 2021. That helps workers whose employers allow special after-tax salary deferrals, and self-employed folks who can save to the limit in solo or individual 401(k)s or SEP retirement plans. 

    For the rest of us, IRA contribution limits are flat. The amount you can contribute to an Individual Retirement Account stays the same for 2021: $6,000, with a $1,000 catch-up limit if you’re 50 or older.

    There’s a little good news for IRA savers. You can earn a little more and get to deduct your IRA contributions. Plus, the phase-out income limits for contributing to a Roth IRA are bumped up.

    And the income limits to claim the saver’s credit, an extra incentive to start and keep saving, has gone up.

    We outline the numbers below; see IRS Notice 2020-79 for technical guidance. For more on 2021 tax numbers: Forbes contributor Kelly Phillips Erb has all the details on 2021 tax brackets, standard deduction amounts and more. We have all the details on the new higher 2021 estate and gift tax limits too. 

    401(k)s. The annual contribution limit for employees who participate in 401(k), 403(b), most 457 plans and the federal government’s Thrift Savings Plan is $19,500 for 2021—for the second year in a row. Note, you can make changes to your 401(k) election at any time during the year, not just during open enrollment season when most employers send you a reminder to update your elections for the next plan year.

    The 401(k) Catch-Up. The catch-up contribution limit for employees age 50 or older in these plans also remains steady: it’s $6,500 for 2021. Even if you don’t turn 50 until December 31, 2021, you can make the additional $6,500 catch-up contribution for the year.

    SEP IRAs and Solo 401(k)s. For the self-employed and small business owners, the amount they can save in a SEP IRA or a solo 401(k) goes up from $57,000 in 2020 to $58,000 in 2021. That’s based on the amount they can contribute as an employer, as a percentage of their salary; the compensation limit used in the savings calculation also goes up from $285,000 in 2020 to $290,000 in 2021. 

    Aftertax 401(k) contributions. If your employer allows aftertax contributions to your 401(k), you also get the advantage of the new $58,000 limit for 2021. It’s an overall cap, including your $19,500 (pretax or Roth in any combination) salary deferrals plus any employer contributions (but not catch-up contributions).

    The SIMPLE. The contribution limit for SIMPLE retirement accounts is unchanged at $13,500 for 2021. The SIMPLE catch-up limit is still $3,000.

    Defined Benefit Plans. The limitation on the annual benefit of a defined benefit plan is unchanged at $230,000 for 2021. These are powerful pension plans (an individual version of the kind that used to be more common in the corporate world before 401(k)s took over) for high-earning self-employed folks.

    Individual Retirement Accounts. The limit on annual contributions to an Individual Retirement Account (pretax or Roth or a combination) remains at $6,000 for 2021. The catch-up contribution limit, which is not subject to inflation adjustments, remains at $1,000. (Remember that 2021 IRA contributions can be made until April 15, 2022.)

    Deductible IRA Phase-Outs. You can earn a little more in 2021 and get to deduct your contributions to a traditional pretax IRA. Note: Even if you earn too much to get a deduction for contributing to an IRA, you can still contribute—it’s just nondeductible.

    In 2021, the deduction for taxpayers making contributions to a traditional IRA is phased out for singles and heads of household who are covered by a workplace retirement plan and have modified adjusted gross incomes (AGI) between $66,000 and $76,000, up from $65,000 and $75,000 in 2020. For married couples filing jointly, in which the spouse who makes the IRA contribution is covered by a workplace retirement plan, the income phase-out range is $105,000 to $125,000 for 2021, up from $104,000 to $124,000.

    For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple’s income is between $198,000 and $208,000 in 2021, up from $196,000 and $206,000 in 2020.

    Roth IRA Phase-Outs. The inflation adjustment helps Roth IRA savers too. In 2021, the AGI phase-out range for taxpayers making contributions to a Roth IRA is $198,000 to $208,000 for married couples filing jointly, up from $196,000 to $206,000 in 2020. For singles and heads of household, the income phase-out range is $125,000 to $140,000, up from $124,000 to $139,000 in 2020.

    If you earn too much to open a Roth IRA, you can open a nondeductible IRA and convert it to a Roth IRA as Congress lifted any income restrictions for Roth IRA conversions. To learn more about the backdoor Roth, see Congress Blesses Roth IRAs For Everyone, Even The Well-Paid.

    Saver’s Credit. The income limit for the saver’s credit for low- and moderate-income workers is $66,000 for married couples filing jointly for 2021, up from $65,000; $49,500 for heads of household, up from $48,750; and $33,000 for singles and married filing separately, up from $32,500.

    QLACs. The dollar limit on the amount of your IRA or 401(k) you can invest in a qualified longevity annuity contract is still $135,000 for 2021.

    ***** ***** ***** ***** ***** 

    Source: Forbes

    https://www.forbes.com/sites/ashleaebeling/2020/10/26/irs-announces-2021-retirement-plan-contribution-limits-for-401ks-and-more/#22efe7b0215f

  • October 29, 2020 6:12 AM | Bill Brewer (Administrator)

    AUTHOR: Sheryl Estrada | PUBLISHED: Oct. 16, 2020

    Dive Brief:

    • In efforts to advance racial and social equity, Starbucks will link executive compensation to diversity, equity and inclusion (DEI) goals beginning in the 2021 fiscal year (FY21), the company said Oct. 14. The Seattle-based company will also launch an Inclusion and Diversity Executive Council in the first quarter of FY21. Starbucks said it's sharing workforce diversity data "in more detail than we have previously shared," as well as making its filings with the Equal Employment Opportunity Commission public. Other initiatives announced include a partnership with employee resource groups and the launch of a leadership mentoring program.  
    • Starbucks has set a goal of Black, Indigenous, and People of Color (BIPOC) representation of "at least 30% at all corporate levels and at least 40% at all retail and manufacturing roles by 2025," according to the DEI report. In corporate level positions, White individuals represent 65.2% of employees; Asian 19.2%; Hispanic or Latinx 7.4%; Black 3.7%; and employees who identify as multiracial 2.6%. Women represent 69.2% of Starbucks employees in the U.S., overall; and there are roughly 47% BIPOC employees. Starbucks has reached 100% pay equity, according to the report. 
    • A mentoring program will begin in FY21 with a group of executives in senior vice president roles or higher paired with BIPOC directors in corporate and retail roles, the company said. It plans to increase talent development opportunities for BIPOC employees as well as partner with professional organizations that specialize in facilitating development. Anti-bias content will be included in hiring, development and performance assessment toolkits, according to Starbucks. The company will also invest in recognition and development programs for its employee resource groups — Black Partner Network, Hora Del Café, India Partner Network, Indigenous Partner Network and Pan-Asian Partner Network. An Inclusion and Diversity Virtual Leadership Summit scheduled for the second quarter of FY21 will be part of the initiative.

    Dive Insight:

    Starbucks has the responsibility to lead by example and will implement transparency and accountability to meet its commitment, CEO Kevin Johnson said in a letter accompanying the announcement. 

    Executive compensation at Starbucks will now be linked to DEI goals, which is a form of accountability that supports long-term changes, according to Mercer. Starbucks will also focus on racially and ethnically diverse representation on corporate boards of directors by joining the Board Diversity Action Alliance, Johnson said. Starbucks' new initiatives are built on the guidance offered in a prior Civil Rights Assessment conducted by Covington & Burling, according to the company. One of the recommendations was to hire a global chief inclusion and diversity officer. Nzinga "Zing" Shaw was hired for the role beginning at Starbucks in December 2019 "to help establish a strategic vision for the path ahead," the company said. 

    Starbucks also said all leaders in vice president roles or higher will be required to complete a two-hour anti-bias training and "the foundational and racial bias courses from the To Be Welcoming Curriculum," according to the company. This isn't Starbucks' first time partaking in diversity training. The company closed more than 8,000 U.S. stores and its corporate office for several hours in 2018 for racial bias training following an incident in Philadelphia when a store manager racially profiled two Black customers. 

    Starbucks' push toward recognizing and developing employee-led networks is to better understand and support the experiences of BIPOC employees, the company said. The networks could also help Starbucks understand the viewpoints of its diverse customers who advocate for employees. In June, amid national protests calling for racial justice, Starbucks received backlash for banning employees from wearing Black Lives Matter T-shirts and accessories. After a #BoycottStarbucks hashtag went viral, the company designed its own Black Lives Matter T-shirt.

    ***** ***** ***** ***** ***** 

    Source: HR Dive

    https://www.hrdive.com/news/starbucks-to-link-executive-compensation-to-dei-goals/587158/

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