sample letter to employees who missed open enrollment sample letter to employees who missed open enrollment

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. Subject line: Let's get smarter about 401K savings. Writing a Good Job Rejection Letter. 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. This can happen for a variety of reasons, including a change in family status, work or information overload, or challenges in navigating the benefits enrollment process. Your teams should start strategizing well before the announcement for open enrollment. The open enrollment survey questions you ask largely will depend on the goals you are trying to measure. ", "Americans tend to miss the mark when they stick with what they were doing before without double-checking their assumptions," said Kelley Long, a member of the AICPA Consumer Financial Education Advocates panel. Copyright 2023 The Regents of the University of California. Please note that all such forms and policies should be reviewed by your legal counsel for compliance with applicable law, and should be modified to suit your organizations culture, industry, and practices. Benefits Technology In order to ensure that none of our employees in this status were missed by the cutoff date,HR Leave Administration will email an Open Enrollment reminder this week to allemployees currently on a leave of absence regardless of pay status. The information below covers what open enrollment is and what you may do during this time. Legally, no. To avoid these penalties, document that coverage has been offered by requiring employees to sign either: To help your employees make the most out of the open enrollment period and the benefits your company provides, consider implementing the following strategies: Offering benefits education to your employees prior to and during the open enrollment period can help minimize confusion and cut down on time spent addressing commonly asked questions. What Happens If an Employee Misses Open Enrollment? So offering smart 401K advice for employees is an especially important part of helping your employees recover from a challenging year. Home Pay employees your way and automate tax payments. Now What? Mr. James holds many different licenses in the insurance industry including the Insurance Counselors License through the Texas Department of Insurance. Here's our employee furlough letter sample: Dear [ employee_name ], I'm sorry to inform you that your position will be put temporarily on furlough due to urgent business conditions, from [ date] to [ date ]. Start reviewing your benefit information now so youre ready when the time is right. And How it Works, Include employees in the benefits planning process, Ensure dates and deadlines are clearly communicated, Point out any tax or investment advantages, Provide helpful resources that are easy to digest, Format emails to be colorful and easy to read, Ask for their participation with a call to action, Provide all the contact information theyll need, Plug one last reminder about taking advantage of open enrollment. A special enrollment period is a designated time outside of the standard open enrollment period for employees to change or update their insurance plan elections that are granted when the employee experiences a qualifying life event. t is the employees responsibility to sign up for benefits during open enrollment as long as the employer provides plenty of notice. 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. The date coverage starts depends on when you lose coverage and the date a plan is selected. HR processes need to be in place as a standard business practice. The open enrollment process is often confusing and time-consuming. If the open enrollment dates are Nov. 15 through Dec. 15, consider giving your employees a deadline of Dec. 5, suggests Starr Harry, client success manager at G&A. (800) 583-6908 Please log in as a SHRM member before saving bookmarks. Bonus tip: Dont just send all these links in a one-time email. (For context, the average 401K contribution in 2020 was 13.5%. 1 NOTICE TO ALL EMPLOYEES - 2020 ANNUAL OPEN ENROLLMENT PERIOD FOR OPTION CHANGES IN HEALTH AND DENTAL INSURANCE PLAN COVERAGE. Why? This is the time for you to [Instructions], Were excited to bring you [Detail plan options and info]. SAMPLE EVERGREEN OPEN ENROLLMENT NOTICE . University of California, Davis, One Shields Avenue, Davis, CA 95616 | 530-752-1011. Example #3: Greg, Whos Got a Safety Net, But Whos Saddled With Lots of High-Interest Debt. They must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. 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. Coby now serves as the Senior Vice President of FBS managing a team of sales, marketing, and client implementation personnel. Here are a few different scenarios you might find yourself in, and some advice for how to approach your 401K. Provide contact information to let employees know how they can access Q & As, learn more about their benefits, and how to contact the human resources benefits specialist. At-home diagnostic tools help you stay one step ahead. In fact, there's a good chance that the terms of your employer's benefit plan don't allow any exceptions or changes for employees who make mistakes or miss the open enrollment period altogether. Make a corrective contribution to the plan for the employees that compensates for their missed deferral opportunity. Subject Line: Tomorrow Is The Day For Open Enrollment! Tips for writing a professional excuse email. Learn how SHRM Certification can accelerate your career growth by earning a SHRM-CP or SHRM-SCP. Letter Template #1. ACA open enrollment is through Dec. 15th. document.write(new Date().getFullYear()); Theres no better time to talk about what to do with your free dollars than when an employee has just landed more free dollars, courtesy of payroll. Not great for Dave! Jellyvision acquires Picwell to simplify the employee benefits puzzle! It often brings many questions and can be stressful on both sides of the communication flow. If Dave finds himself suddenly having to pay for something unexpected (like a broken transmission or a flooded basement) and doesnt have cash saved up, his options for paying off this bill are to a) raid his existing 401K funds and pay a penalty, (b) take out a loan against his account, reducing his after-tax pay by paying back principle and interest, or (c) use a high-interest credit card. 3 Open Enrollment Reminders for Employeesand HR At many organizations, the open enrollment season for 2020 benefits is underway or about to begin. Members may download one copy of our sample forms and templates for your personal use within your organization. Use a format that addresses the employee by name. Changes in employment - this can mean starting a new job, quitting, or a transition from part-time to full-time work status. Get ready to discuss all things benefits! If youre offering new plans, however, passive enrollment isnt an option, so allow additional time and resources to communicate and follow up with employees. To prevent these issues, its important to communicate to your employeesahead of timethe consequences of missing the open enrollment deadline. What makes the email essential is that you can send it to every employee through the companys email system. Howevereven when it's for their benefit(s)your priorities are not always their priorities, and some workers may put it off, thinking they'll have more time to ask questions and get clarification later. Web here is the sample letter of the annual bonus letter to the employees. Missing open enrollment means limited options, but here a few situations to consider: If an employee misses open enrollment, its important that HR first respond with empathy and understanding. Changes in number of dependents - if you have a child, adopt a child, or if a child passes away. Deadline to enroll for insurance to start Jan 1 is Dec 15. 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. 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. Qualifying life events can be circumstances that change an employee's status for benefits, such as changing the number of individuals in the household who are covered under a benefits plan. Coop Consulting Agreement If your organization doesn't offer auto-enrollment, then workers who miss the window may be left out in the cold without any coverage. Purchasing Cooperatives, Speak to Consultant Stop the sniffles Mistakes happen -- and it happens more than it probably should when people are choosing health insurance. Effective communication to employees can sometimes be a moving target. Employee satisfaction is one of the most important avenues toward greater productivity and business growth. If you are looking to outsource Paychex can help you manage HR, payroll, benefits, and more from our industry leading all-in-one solution. By incorporating the mission of the university and the code of conduct, we believe strong communication will enhance understanding and foster positive work environments. Open Enrollment Period: October 10, 2022 - October 31, 2022 This is the annual opportunity for you to make changes to your benefits and to add or drop eligible dependents from coverage. Employees disseminate information differently, so you may need to consider other methods of engagement. ", 2. Its that time of year again! Additional education can come in the form of personal worksite consultations, one-on-one appointments with HR representatives, seminars, webinars and self-paced e-learning modules. Following this time frame, your open enrollment email to employees would go out in mid-September. * 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. Here's what to expect: There are benefit fairs, promotional material, and banners on the company website. 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. Legally, employers are not required to do anything for employees who have missed the open enrollment deadline. Keep letters professional and to the point. And missing the deadline can have serious consequences for your employeesincluding loss of coverage or the inability to change coverage options. Hopefully, we'll be able to restore your employment after this critical time. Still, missing open enrollment can make a bad situation worse. allsynx Platform Agreement You will not be subject to this penalty if you have offered appropriate coverage to employees, regardless of whether they enrolled in coverage. Sample 2: Excuse email for work absence due to sickness. Youcouldadd the examples above into your general 401K messaging and call it a day. Capture employees attention with benefits messages that stick. Include a benefits portal on your company website so employees can enroll online at their convenience. ensure a successful open enrollment period. In this second sample, look for employees who should have been excluded from participation. Put together educational materials when employees get a raise, and remind them that nows a good time to up their contribution if they can. But it will show that you have their best interests in mindwhich, when it comes to creating change, is half the battle. Its equally important to understand why they missed the deadline and help them avoid the same mistake in the future. The good news is that were here for you every step of the way! Also, remember the source of information. Track employee time and maximize payroll accuracy. Richardson, TX. Remind employees they will receive a confirmation of their changes. Open enrollment begins one month from now, beginning [DATE] until [DATE]. Dave lives paycheck to paycheck and doesnt yet have an emergency fund. Your session has expired. You want to provide employees with essential information about the upcoming benefits period that is engaging. Short-term insurance is a plan that provides health insurance for 30-364 days (depending on your state) to act as a stopgap when there is a lapse in longer health coverage. 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. All Rights Reserved. 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.. Asking for employee feedback: Employees can be a great resource for offering suggestions about the best ways to structure benefits enrollment to ensure maximum participation. 360 Degrees of Financial Literacy program by the American Institute of CPAs (AICPA) is urging employees to carefully review their family's financial situation and insurance options to pick the best coverage plan for their household. Specifically, 29 CFR 2590.701-6, and in permitted election changes for Section 125 plans ( 26 CFR 1.125-4 ). 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. What Is the Pregnant Workers Fairness Act (PWFA). I apologize for the delay in sending last month's paychecks. } Are there any changes in my life that might make another health insurance choice more valuable this year? (A version of this article appeared in Plan Sponsor magazine in February 2018.). Please log in as a SHRM member. 2023 FSA Store Inc. All Rights Reserved. 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. Here are a few tips to make OE emails engaging and drive participation. The dates give your human resources department time to process and review employee elections and send them to the benefits providers. Benefit Cooperatives Here we have provided you with a template for your open enrollment email to employees. Never miss out get the latest content delivered straight to your inbox. Russ joined FBS in 2019 after working as a valued partner for 15 years and manages our ISDs group health program. These employers must offer affordable, minimum-essential coverage to their full-time employees or potentially face the employer shared responsibility penalty. 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. Drafting an open enrollment email is not a daunting task. Client Testimonials Depending on who the healthcare plan provider is, there may be contractual agreements that do not allow for enrollment . Pointers to pass along as open enrollment gets underway. Were one day away from open enrollment! 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. Close the email out by reminding employees of the importance of benefits enrollment. In order to ensure that none of our employees in this status were missed by the cutoff date, HR Leave Administration . This e-mail is the first step of a three-part process. Get a demo of the ALEX platform and learn more about how our software can help you boost benefits engagement, drive better financial decisions, and save your team time, money, and headaches. And because theres a limited amount of time to make these important decisions, it can be a confusing (and often overwhelming) experience for employers and employees alike. 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. Communicating potential consequences to employees will encourage them to take the open enrollment deadline more seriously. All of these options would result in him losing money beyond the cost of the surprise expense. Weve got some exciting options this year so be prepared to make changes! Members can get help with HR questions via phone, chat or email. But why stop there? For you, when employees miss this deadline, it can result in additional administrative burdens and unhappy or unproductive employees. Employees are befuddled by their health care coverage. By 'setting and forgetting' a benefit plan, you not only run the risk of getting stuck in one that isn't right for you, but also one that costs you extra. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); document.getElementById( "ak_js_2" ).setAttribute( "value", ( new Date() ).getTime() ); I am aBrokerCarrierEmployerCOBRA Participant. We've got great ideas for top health purchases before the Grace Period deadline. What's New 2023 Open Enrollment Announcement Health, Dental and Vision Plan Costs PPO Saver - High Deductible Health Plan Information Open . Hire, onboard, manage, and develop productive employees. Sorry to be the bearer of bad news but no, once you make your open enrollment elections, you don't have the option to change them later in the year unless you experience a qualifying life event. Offer health, dental, vision and more to recruit & retain employees. Karen Frost, health strategy and solutions leader at Alight Solutions, a benefit administration company, offered these pointers to HR benefit managers for open enrollment and throughout the year: Employers Enhance Emotional and Mental Health Benefits for 2020, Every employee has his or her own preferences when it comes to receiving important information. ", [SHRM members-only toolkit: Benefit terms would run from January 1st to December 31st. [Insert link to benefits portal and instructions]. Here are a few ideas: Also consider other help emails that explain the process in greater detail. So, for Joan, it makes sense to fund her 401K up to the company match and beyond, as much as she can afford. } Medicaid provides health insurance to low-income individuals, while CHIP provides health insurance to children of low-income families. In some circumstances, employees may be granted a special exception that allows them to retroactively register for benefits outside the standard enrollment window when they missed health insurance enrollment. Help employees save for retirement and reduce taxable income. The better employees understand open enrollment and the benefits they receive from participating, the higher engagement employers will see from their team. If an employee misses open enrollment, its important that HR first respond with empathy and understanding. About Us Email is not the only way to reach employees. Since Greg has an emergency fund in place, it makes sense for him to fund his 401K until his employer match is reached. 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. This option is designed to provide temporary coverage in case of emergency health situations until the employee can regain permanent health insurance. If you don't have time to send a formal letter, consider sending an excuse email instead. Web spread the word about your company's open enrollment with these 30 short reminders. Paychex tiene el compromiso de brindar recursos para la comunidad hispanohablante. To apply for benefits and verify eligibility, individuals should complete the online screener application. Flex-Ed: Mistakes During Open Enrollment Can You Change Elections? SHRM Online, October 2019, Simple Open-Enrollment Tips That Can Make a Big Difference, To get the ball rolling, a robust open enrollment email to employees is vital. If the employer gave proper notice to employees communicating open enrollment deadlines, there is very little that can be done legally to help the employee after the fact, so a proactive approach and providing detailed information before and during open enrollment works best. Sample 401K Communication to Employees. Although many of these suggestions are not legal requirements, it is in your best interest to take these steps in order to protect your business and its productivity. I know how much you loved working there.".