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
White Papers
Provided by UJET
Webinars
Provided by Yooz
Further Reading
Here’s a common rollover scenario: An individual leaves one employer for another. The previous employer offered a 401(k) plan. The...
Instant payouts are replacing traditional paychecks for millions of workers, according to a new PYMENTS Intelligence Report titled “Insta...
EBSA FY 2025 Enforcement Snapshot $1.4B recovered for workers and plans 878 civil investigations closed 253 criminal investigatio...
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...
There’s no need to panic if you or one of your staffers discover they’ve made mistakes with your company’s 401(k) plan.&nb...
With benefits costs climbing and new laws like SECURE 2.0 adding complexity, viewing employee benefits as a simple fixed cost is an outdate...
