BENEFITS BEACON    D.C.-area agency devises employee benefits plans that cater to diverse workforce and compete with federal offerings Rich health benefits. An accelerated retirement plan. A 37-and-a-half-hour work week. It's not easy for private employers to compete with federal agencies, but building competitive employee benefits plans is part of the job at Early, Cassidy & Schilling, Inc., in Rockville, Maryland. The Washington, D.C., area is famous for its rich and traditional employee benefits plans, explains agency principal Andrew Cassidy. And private employers in Maryland, Virginia and the District of Columbia recruit and retain employees in a competitive environment driven by federal employment and its perks. "The federal government is a huge presence in this region," he explains. "Until employers experience it in their hiring, they don't realize that an employer's ability to attract skilled employees relates to their expectations. Everyone in the area has friends or family who work for federal agencies and compares what they are being offered with what the government provides." Click here for the complete article …

VOLUNTARY BENEFITS, FINANCIAL EDUCATION PLAY A BIGGER ROLE    HR & financial executives collaborate in an era of rising costs Who feels more insecure? Employers facing increasing health care costs and the confusion of health reform? Or their employees, facing less lucrative health plans, fewer rich retirement benefits and fewer employer-paid benefits overall? The recession of 2008 forced both employers and their employees to make difficult financial decisions-and four years later, the decisions haven't gotten easier. Employers continue to struggle with rising employee benefits costs, and employees with the erosion of their employer-paid benefits and retirement savings. Recent industry research paints a picture of increasing anxiety over benefits costs and financial security and a growing need for more flexible and voluntary benefits to fill the gaps left by cuts in employee health and retirement savings benefits. Financial education and retirement planning have also become important tools to help employees make the most of their choices. Click here for the complete article …

CONSUMER DRIVEN HEALTH CARE: IS ENGAGEMENT NECESSARY?    Lack of credible information remains the main stumbling block Employer-sponsored health care programs have been the focal point for most HR departments for the past 35 to 40 years. Today, employer-sponsored health plans are the most common form of health insurance in the U.S. In 2009, for example, about 60% of the U.S. population had benefits that were provided by employer-sponsored plans. Unfortunately, there are significant problems associated with these plans. By far the most pressing issue is the overall cost. From an expense standpoint, in the vast majority of the past 35 to 40 years, medical inflation has exceeded the overall rate of inflation, sometimes by significant amounts. As a result, employers of all types and sizes have struggled to find ways to control these escalating costs. To this point, it has been a struggle that has not been won. Hope for gaining control Many efforts at both the federal and state levels have been tried with little success. The latest of these attempts was the new federal healthcare reform legislation that was signed into law by President Obama in March 2010. The law, known as Patient Protection and Affordable Care Act (PPACA), was not the first shot at controlling runaway health care inflation. One of the earliest efforts goes back to 1978 when legislation was passed that established Section 125 cafeteria plans and flexible spending accounts. The key to the Section 125 approach, as it is with the current PPACA, is to encourage consumers to become more involved with their own health decisions and plan usage. Click here for the complete article … VOLUNTARY BENEFITS ON THE RISE    Reduced costs for employers and employees make these a win-win Smart investors diversify their portfolios. More and more, smart P&C agents are doing the same thing. They're expanding product offerings to broaden revenue streams, placing greater emphasis on account rounding to bolster client retention, and using a range of products and services-some old, some new-to open doors to new business opportunities. Today, agents are using voluntary benefits in their move to diversify. "Voluntary products have definitely seen an increase in sales in 2011," says Robert Nevers, RHU, director, worksite and voluntary marketing for Standard Life and Accident Insurance Company. "That trend should continue." Voluntary business experts say the time is right for agents to get engaged, in light of health care reform initiatives. Tom Giddens, senior vice president and director of sales for Aflac, says, "More Americans now recognize the importance of taking charge of their health care decisions and finding coverage that best fits their medical needs." He calls the outlook for voluntary benefits in 2012 very positive, with high demand coming from employees in particular. A Harris Interactive study, titled, "2011 Aflac WorkForces Report," found that 66% of employees would be willing to apply for additional insurance products to ensure coverage where employers don't provide it. Click here for the complete article … LONG-TERM DISABILITY MAY BECOME A "CLASS" ACT    Insurers are starting to produce innovative LTD products As any human resource professional can confirm, adjusting to the new health care landscape is proving to be a difficult and complex issue. However, many of the other employee benefit products also are getting more complicated by the day. While the attention on the health insurance arena has taken most of our attention, it is far from the only problem area. One example of this current market difficulty is in the long-term disability (LTD) sector. Little market penetration LTD insurance has been a staple in many employers' benefit packages, either as an employer-paid benefit or as a voluntary, employee-paid plan. As a result, some employees look to this coverage as a critical element of their overall insurance protection program. However, the majority of employees still do not take advantage of available LTD coverage options. Statistics indicate that less than 3% of all Americans have an LTD type policy. And this is despite the fact that recent studies have noted how important this coverage has become. It is estimated that seven out of 10 workers between the age of 25 and 65 will experience an accident or illness that keeps them out of work for more than three months. And nearly 60% of these occurrences will take place away from the job, thus precluding coverage under workers compensation. Click here for the complete article … TALKING RETIREMENT: ONE STYLE DOESN'T FIT ALL    Mass Mutual's targeted approach to plan participants In a well-run business organization, management considers employees in their 20s and 30s to be critical to the firm's future. The owners and HR directors place a high priority on attracting and retaining good workers in this age bracket. Of all the employee benefits tools available to serve that end, a retirement plan might seem to be the least relevant. How many young people are motivated by a product with a payoff that is decades away? Massachusetts Mutual Life Insurance Company is one retirement plan provider that is working to overcome this barrier of unrecognized need on the part of some young plan participants-a problem that can perhaps be best summed up by the Pennsylvania Dutch proverb: "We grow too soon old and too late smart." "It appears that most people start planning their retirement when it's almost too late," says Kris Gates, assistant vice president of participant and interactive marketing for Mass Mutual's Retirement Services Division. "It's not easy to get a 22-year-old with student loans to start thinking about retirement. But it's not like college anymore. You can't cram for this test. You actually need to prepare early. "By the time employees reach their early 50s and retirement starts to become a real thing to them, there's not a lot they can do at that point. They can't just get rid of all their expenses and start saving 30% of their income." Click here for the complete article …  Click here to unsubscribe This message was sent by The Rough Notes Company, Inc., 11690 Technology Drive, Carmel, Indiana, 46032 1-800-428-4384