Overview: Employee benefit programs typically account for one-third of employee compensation costs. HR professionals are charged with managing this investment wisely. This includes ensuring compliance, controlling costs, having an effective communication strategy and making sure the benefits program attracts, retains and engages employees.
This is especially challenging in light of rising health care costs and an increasingly complex regulatory environment. With only so many dollars to spend on employee benefits, a key part of the strategy is to determine how much to invest so that both the needs of the employee and the employer are met. The regulatory environment has a significant impact on how employee benefit plans are designed and administered as employers ensure plans are operated in compliance with ERISA, COBRA and HIPAA.
Having a benefits strategy that is linked to business strategy can serve as a significant competitive advantage for employers. Clearly aligning the vision of employee benefit programs with the employer's business goals demonstrates how HR functions as a business partner and contributes to the bottom line. Effective benefit communications can support this vision and will ensure that both employers and employees get the most from the substantial investment in benefits.
Trends: The newer requirements of the Patient Protection and Affordable Care Act (ACA), commonly referred to as Health Care Reform or Obamacare, in addition to the repeal of section 3 of the federal Defense of Marriage Act and the legalization of same-sex marriage in numerous states, will challenge HR professionals in both the short- and the long-term as they monitor developments and adjust benefit strategies accordingly.
Author: Tracy Morley, SPHR, Legal Editor
The DOL has issued a final exemption to make it easier for employers to transfer 401(k) plan funds left behind by former workers to their new employers' plans.
Updated to include a forthcoming provision regarding the DOL final rule on association retirement plans.
Updated to reflect penalty tiers under HHS notification of enforcement discretion.
Updated to reflect a forthcoming decrease in the electronic filing threshold for quarterly reports.
Updated to reflect provisions designed to preserve ACA benefits, effective June 14, 2019.
Updated to reflect amendments to the continuation coverage and conversion law addressing preexisting conditions and other limitations, effective June 14, 2019.
XpertHR has made it easier to find key Employee Benefits resources by splitting the Employment Law Manual section formerly named Legally Required Benefits into two sections.
HR and legal considerations for employers regarding employee benefit programs. Support on following regulations and requirements on this topic.