The Right Message Leads to Ideal Results

We're making it easier for advisors and plan sponsors to connect with participants.

One of the latest features within our Relius participant website allows messages to be emailed using a set of rules to determine recipients. These preset and pre-developed messages provide a low maintenance communication method with a high touch feel. 

How Does it Work? 
Target retirement plan participants within a certain age range, deferring a certain amount/percent, terminated employees, those invested in particular funds, newly eligible employees or a variety of other scenarios.

·         Example: if you set up a message to go out once a month to employees over 49 encouraging them to utilize the catch up contribution ability when they turn 50, the system will ping the participants that match your selections and deploy the custom message

Possible variables used to create messages:

·         Age; (see example above)

·         Account balance; target balances < or > than a specified amount

·         Contribution amount or %; target rates < or > than specified amount

·         Investments; target by specified investment such as the default fund

·         X number of days prior to hardship suspension end to encourage them to complete a new election form and resume deferrals

How Do I Use it?

1.      If you are a retirement plan sponsor, advisor or consultant and you're interested in taking advantage of this tool, reach out to the administration team with your request to see if we can build the set of rules to meet your needs. We'll give you advice and help you set up the data points. 

2.      Once you have the rules set up, compose your message and send it to the administration team. Our team will carefully edit the message and place it in the appropriately branded email template.

3.      After we've confirmed the message is accurate and meets your needs the system will begin applying the message to the scenario you've set up. The system will flag an employee once they have received a message so they do not get the same message again.  

Message details:

·         Subject: 200 character limit

·         Message content: 4000 character limit

·         Frequency (this can be setup to be sent one time or on a frequency of your choice)

Are you ready to connect? If you have any questions on this feature or other possible ways to utilize this service, please do not hesitate to contact your dedicated administration team.

The Author: Tonia Palmer

Account Supervisor, QKA

abgncs.com

tpalmer@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.

Hang ‘Em Up with Something Left in the Tank

At Alliance Benefit Group we talk a lot about being prepared when it comes time to hang up the cleats or the apron or the welding helmet or the stethoscope. It’s our job and our passion to make sure you’re getting the most of your benefits, now and in the future. Investing in your retirement plan and your health savings account are some of the great things you can do to set yourself up for that great vacation we call retirement. Recently an award given to ABG reminded me of another important way to prepare for a happier post work life.

Alliance Benefit Group was chosen as a "Fit Friendly Worksite" by the American Heart Association, thanks in large part to the support of leadership, an active wellness committee and a health-conscious office culture. Since everyone was pretty busy this week I thought I'd take this week’s blog post and remind everyone to take a moment for yourself during your busy days and try to benefit your own health and wellness. Maybe cut back on soda, or “pop” as we like to call it here in the land of ten thousand lakes. Maybe take a walk after work or go kayaking over the weekend. Just stop and think a little bit about how putting in a little time at the gym, or the salad bar now, can result in a healthier you down the road. On top of putting yourself in a good spot with your financial and healthcare needs try to take care of your mind and body so you have enough left in the tank to enjoy yourself.

We want you to be able to enjoy your days at the beach, the cabin, trekking around Europe or chasing around grand kids when you retire. Staying active and healthy now and throughout your busy work life could be a big help in you being able to live out that retirement of your dreams. We all know things happen in regards to our health that we can't control but I know for me there are a few things I can control - like not going over and getting a second doughnut or maybe doing a few lunges at the desk here.

If you have any questions about your fitness regiment, you’ll have to consult an expert, but in the meantime if you have any questions about retirement, HSAs, FSAs, HRAs, payroll or even COBRA, give us a call.   

The Author: Cole Thompson

Marketing Specialist

abgncs.com

cthompson@abg-mn.com 

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.

3 Things to Consider to Make the Most of Your 401(k) Plan

Many of you know that your employer’s 401(k) plan is one of the best places to save for retirement. Because of this you enrolled, and you’ve been contributing, but for some reason you aren't seeing the results you had expected. What could help?

Maximizing your 401(k) plan does take some work. However, you don’t have to take on all of the work yourself. Taking full advantage of your retirement plan features and working with your plan advisor will help you to get the most out of your retirement savings. Here are 3 things you should also consider looking into:

• No investment allocation – Many 401(k) investors end up in the plan’s default investment option (target date fund, money market fund, conservative portfolio) because they have not made an investment election. If this sounds familiar, look at your plan’s investment menu and/or meet with your plan’s investment advisor to determine a selection of investments that best match your risk tolerance.

• Automatic rebalancing - Participants who choose to build their own fund lineup, will realize over time some funds will out perform others. This will result in a portfolio that can be more or less aggressive than you intended. Rebalancing corrects this very thing. Having your account set-up to auto rebalance on a regular basis keeps you from having to do this on your own.

• Maximizing your employer match - Many 401(k) plans offer an employer match to encourage employee participation. This is comparable to getting a raise without having to do anything. Unfortunately, many participants who participate in their employer sponsored 401(k) plan do not contribute enough to receive the full employer match. If you have not done so already, check if your plan offers an employer match. If they do I would encourage you to contribute enough to receive the full match.

It's always best to gain advice from your advisor. As a plan administrator, our role is to educate you on the options out there. The role of the advisor is just that, to give you advice. To learn more about Alliance Benefit Group North Central States, Inc. and the services we provide please visit abgncs.com or email info@abg-mn.com. 

The Author: Seth Holstad

Account Executive

abgncs.com/RetirementAdministration

sholstad@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. Thank you.

A Cautionary Tale on Fiduciary Responsibilities

Before you name a specific member of an organization as the fiduciary on a health plan subject to COBRA, consider this. You may want to avoid that if you don’t want that individual to become the responsible party to pay any COBRA fees should an audit occur. Here’s an example that helps illustrate why this should be a concern:

Fiduciary Acme, Inc maintains a health plan subject to COBRA. Susan, Acme, Inc’s CEO, is the named Plan Administrator and fiduciary of the plan. As required by COBRA, Acme, Inc has been extremely careful to send General COBRA Notices to employees and spouses within 90 days after they first become covered under the health plan. However, from December 1, 2012 until she learned the actual General COBRA Notice rule on March 30, 2013, Acme Inc’s new, in-house COBRA administrator failed to send General COBRA Notices to spouses within 90 days of becoming covered by the plan. One spouse became covered on December 1^st and did not receive his notice until April 1^st. Another spouse became covered on December 15^th, and again did not receive her General COBRA Notice until April 1^st. In this instance Acme Inc could be subject to a maximum of $3,000 in excise tax penalties with respect to the first spouse and a possible $1,500 in excise tax penalties with respect to the second spouse.

Under ERISA’s general fiduciary responsibility rules, Susan, in her capacity as the named fiduciary responsible for the plans’ compliance with COBRA, is personally liable for any excise tax that is actually imposed for the failure. To avoid the personal liability the HR person could have named Acme, Inc. as the fiduciary.

If you have any questions about your COBRA administration, please contact our COBRA department at (800) 761-1934.

The Author: Roger Jorgensen, RHU, REBC

Marketing - HSA/HRA/FSA & COBRA

abgncs.com/HSAFSAHRA

rjorgensen@abg-mn.com

Disclaimer: This blog is of an informative and educational nature, and should not be considered legal, financial or operational advice. Please contact the appropriate parties for those services. 

Nondiscrimination Testing for Section 125 Plans

Most employers know Section 125 “Flex” plans and their various component benefits (FSAs, Dependent Care, group insurance premiums, etc.) are subject to nondiscrimination rules.  But did you know not complying with the nondiscrimination rules could result in taxation of employees’ benefits?  Or worse, the revocation of an employer’s ability to offer this type of pre-tax plan at all?  

The 2007 Proposed Regulations clarified that, upon review, employers must be able to prove these tests were run and passed each plan year.  But running these tests is not a simple process.  It requires work, time and cost.  In order for Alliance Benefit Group North Central States, Inc. to perform Section 125 nondiscrimination testing, an employer must provide very specific and detailed information, twice.  First in the middle of the plan year and then again after the plan year has ended.  We might even ask the employer to provide that information more than twice, depending on the results of the tests.  ABGNCS also charges employers a fee to perform these tests.  

So the question is, is it worth it?  Do employers really need to have this done year after year?  Even if the results are always passing?  The answer is yes!

Remember Section 125 plans offer employees a very significant savings.  

Contributions to Section 125 plan benefits are not subject to federal, state, Social Security or Medicare taxes.  Depending on their income tax bracket, an employee could save 25% - 40%, or more!  These plans also save employers Social Security and Medicare tax, which equals 7.65% savings on all funds run through the plan. 

The ability to provide these savings is threatened if an employer doesn’t ensure their plan is following the rules, which makes nondiscrimination testing an invaluable service!     

The Author: Sadie Wuerflein, CFC

Account Executive - FSA/HRA/HSA

abgncs.com/HSAFSAHRA

swuerflein@abg-mn.com

IRS Released 2015 HSA Limits

As you may have experienced over the last year, everything seems to be a little more expensive than the year before. Our friends at the IRS have taken notice and released the 2015 Health Savings Accounts (HSAs) amounts, adjusted for inflation. The annual contribution limits, deductible limits, and out-of-pocket maximums have all been increased for 2015.

2015 Annual Contribution  Limit: 
Single coverage: $3,350 (up from $3,300 in 2014)
Family coverage: $6,650 (up from $6,550 in 2014)

2015 Minimum Deductible for HDHP:

Single coverage: $1,300 (up from $1,250 in 2014)

Family coverage: $2,600 (up from $2,500 in 2014)

2015 Maximum Out-of-pocket:

Single coverage: $6,450 (up from $6,350 in 2014)

Family coverage: $12,900 (up from $12,700 in 2014)

For more detailed information, you can review the updated Revenue Procedure communication directly from the IRS website. Contact us if you have any questions about HSAs.  

The Author: Roger Jorgensen, RHU, REBC

Marketing - HSA/HRA/FSA & COBRA

abgncs.com/HSAFSAHRA

rjorgensen@abg-mn.com

Stacking an HRA on Top of an HSA

The Birth of the Stack. 
When Health Savings Accounts (HSA) were passed into law, the legislation also created two new types of Flexible Spending Accounts (FSA) and Health Reimbursement Arrangements (HRA). You may be more familiar with one type than the other. We're now used to seeing limited-use or limited-purpose accounts for FSAs when HSAs are being offered. Limited-use FSAs cover dental, vision and preventative services and not medical expenses. The medical expenses need to be covered by the HSA.

A less familiar account is the post-deductible FSA or HRA. The deductible referred to in post-deductible is the minimum deductible required under a qualified high deductible health plan. In 2014 the minimum deductible level is $1250 for single coverage and $2500 ($1250/$2500) for other than single coverage (typically referred to as family coverage). Once an insured reaches the minimum deductible plan then a post-deductible FSA or HRA can pay expenses. In the case of a post-deductible HRA the point that an HRA begins to reimburse can be set anywhere at or above the $1250/$2500 level.

Here's an example: 
Some employers have incorporated the HSA along with the post-deductible HRA to buy higher deductibles such as $6,000 single/$12,000 family ($6000/$12000) deductible plan. The reduced premium frees up dollars to contribute to HSAs and fund expenses covered by the HRA. A typical example would be the plan deductible of $6,000/$12,000. The first $1500/$3000 could be funded by the employer to the HSA, the next $1500/$3000 could be the employee’s responsibility and the remaining $3000/$6000 could be paid by the HRA (employer money). Currently one of our groups has had a less than 20% loss ratio on the HRA portion saving thousands of dollars.

Of course whether this is an option for a group depends on the costs of the health plans and the experience of the group. Consult with your broker to determine if this is a valid consideration for your group.  

The Author: Roger Jorgensen, RHU, REBC

Marketing - HSA/HRA/FSA & COBRA

abgncs.com/HSAFSAHRA

rjorgensen@abg-mn.com