A retiree benefits option all firms can afford
Even if your firm can’t afford to offer a traditional retiree benefits package, there is something you do. And it’ll likely boost your ability to attract — and retain — top talent.
It’s a new retiree-benefits trend that’s starting to catch on among companies. Basically, instead of traditional retiree benefits, companies will contribute added funds to an Health Reimbursement Account (HRA) or a Health Savings Account (HSA).
Retirees can then use these extra funds to buy healthcare coverage on their own. A defined contribution approach also gives retirees the freedom to choose their own plan, instead of the one or two plan options employers tend to offer.
In addition to choosing between regular insurers, retirees will also have the option of purchasing health care through a state insurance exchange in 2014.
And even the smallest employers can take part in this retiree option, by making small contributions to employees’ coverage. Companies don’t have to fully fund workers’ coverage with a DC option — and even a little bit helps workers prepare for retirement.
- Share on
Free Training & Resources
Webinars
Provided by Yooz
Further Reading
While the IRS can assess penalties under the Affordable Care Act (ACA), it can’t issue the certifications required beforehand, a court ha...
Now that you have a feel for what positions at your firm should be hybrid, you might be considering giving employees the ultimate work sche...
The Department of Labor (DOL) is once again taking a neutral stance on offering a certain investment option to retirement plan participants...
As employers finalize their 2026 budgets, rising healthcare costs are forcing tougher decisions in financial planning and employee benefits...
What should you do if you mistakenly pay out too much for one of your employer-provided benefits, such as your retirement plan? Plan spo...
With open enrollment underway, now’s the perfect time for Finance to assess HSA employer contributions – not only to boost participatio...
