Changes In FSAs; Employee Perceptions Hurt 401K Usage; Managing Generational Transition Vexing;
While the employee benefits community awaits the IRS announcement of 2014 402(g) contribution limits, it might not matter much to 401(k) participants in terms of their own retirement savings behaviors. According to the soon to be released Mercer Workplace Survey™ 2013 results, the average participant believes that the tax deferral limit is only $8,532, just under HALF the actual 2013 limit of $17,500. Looking at intended savings rates, most appear close to the PERCEIVED limit, but are still far off the actual (see chart below). For those nearing retirement (50+), the perception gap is even bigger.
Generational changes vexing HR leader but survey shows some trends. (www.managingyourhr.com/generational-challenges-persist. Mercer Consultants.
Small business employment is either up or down. It depends on the survey you read. ADP says 120,000 jobs were added by businesses across the country. Intuit reports a net loss of 10,000 jobs. The National Federation of Independent Businesses says companies were delaying hiring plans.
The spread to employees of the confusion, anger and frustration apparent as Obamacare kicks in is complicating end-of-year corporate enrollment efforts. One survey of HR leaders indicated higher than usual interest in healthcare benefit programs. Many employees felt the sting of increased co-pays, deductibles and limiting of doctor access. This last change seems the one eliciting the most pushback from employees, according to the survey.
In a significant change for Flexible Savings Accounts, employees will be able to roll-over $500 of unused monies starting this year.
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