Age Discrimination and Compliance (ADEA)

Age Discrimination and Compliance (ADEA)

The current economy and the changing roles of older family members are just a couple of reasons why older Americans are re-entering or remaining in the workforce.  Because of this, it's imperative that those who are hiring have a good understanding of age discrimination.  The Age Discrimination in Employment Act (ADEA) prohibits age discrimination in employment with respect to hiring, firing, layoff, promotion, transfers, compensation, benefits, job assignments and training of anyone age 40 or older.

Age discrimination includes:

-Hiring only younger workers.

-Providing younger workers with better employment terms or conditions.

-Younger workers are the only ones promoted or offered better job opportunities.

-New training intiatives exclude older workers.

-During layoffs or restructuring, younger workers are retained while older workers are not.

During the interview process, be aware of questions that are potentially discriminatory, such as:

-How old are you?

-What year did you graduate from high school?

-Are you a Social Security recipient?

Older workers will more than likely have more experience and/or education than their younger counterparts.  How do you address the "overqualified" during the interview process to ensure that the person would be a good hire?  Questions that are "safe" to ask may include:

“How will you be challenged in this role?” and “What are your salary expectations?”

For more information about hiring, compensation or benefits please feel free to contact Jeff Garr, CEO at HR Knowledge www.hrknowledge.com or Call 508-339-1300.

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

How do we navigate employees’ use of social media sites?

 

 

Employees should be reminded that Social Networking Sites are a public forum and that there is no entitlement of privacy. As a result, employees have a duty to always act in a way that will encourage public trust and confidence. This extends to both personal and professional activities.  They must be made aware that posting any financial, confidential, sensitive, or proprietary information about the company on any Social Networking Site is prohibited and enforced.  While on company time, employees are expected to work on company related business.  Therefore, it should be made crystal clear to employees that if they are found blogging, tweeting or posting on social networking sites on company time, they will be subject to disciplinary action up to and including termination.

All companies should adopt a Social Media Policy.  Once your Social Media Policy is in place, ensure that your employees have read it by making it mandatory that they sign a copy of the policy itself and then keep it in their personnel files.  Be sure to make your employees aware that the company may even take steps to monitor Social Networking, as employees are not anonymous when engaged in it, and as such may potentially take action if violations of the policy are identified.

For a copy of our free HR Social Media Policy, visit http://www.hrknowledge.com/free-hr-social-media-policy-/

For more comprehensive guidance, contact HR Knowledge, Inc. at Sales@hrknowledge.com or call at 508-339-1300

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Health, Disability, Life, Dental, Vision Insurance: paying too much?

Do you know if you are overpaying for your company sponsored Health, Dental, Life & Disability plans?

One question we frequently hear from potential clients is - "Is there is any way to tell if our sponsored group benefit plan rates are set correctly by the insurance companies?"  The answer is "yes".  And, there's also a way to find out how much profit your insurance company yields from your company premiums.

At HR Knowledge, we consistently reduce premiums of group benefit plans through our proprietary algorithm which can accurately determine the profitability of your group plans with the carriers.

Here are a couple of examples of companies we have helped:

A major health insurance company assessed that for the $3 million that Company A received in premiums, the insurance company had paid out $3.3 million in claims and associated expenses. The health insurer was requiring an annual

premium increase of $385,000. After running the plan financial data through our proprietary algorithm, we were able to leverage the results to secure a reduction off Company A’s renewal of $400,000, which actually resulted in a rate reduction for the client.

A major health insurance company received $1.9 million in premium and paid $2.275 million in claims, a loss of $375,000. They were requiring an increase from Company B of $271,000.  After running the group’s plan data through our proprietary algorithm, we discovered that the losses were not as high as the insurance company had represented.  The renewal increase was subsequently reduced to $100,000.

How we can help your company?

• We can review your benefit costs, provide a detailed analysis utilizing the proprietary algorithm to accurately determine the profitability of your group plans with the carriers.  Then we'll determine more equitable pricing of these benefits. 

• This analysis helps HR Knowledge negotiate your benefit group plan rates with compelling indisputable data, that the carrier underwriters clearly understand and adopt to ensure more AFFORDABLE pricing on your benefits

We impact 80% of the companies we analyze, yielding substantial savings on benefit plans.  To receive a no obligation quote or “second opinion” on your group benefit plans, contact HR Knowledge at 508-339-1300

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

Defined Benefit Pension Plans Are They Still Viable?

Defined Benefit Pension Plans Making a Comeback

 

Remember your father's pension plan?  Before the days of restrictive government regulation, many companies offered one basic variety of pension plans—the defined benefit plan.  With these plans, employers were responsible for pension plan contributions and employees could count on a fixed retirement income.

Enter the 1980s.  Government began to strangle defined benefit plans, while defined contribution plans, such as 401(k)’s, exploded onto the retirement benefits scene.  They were simpler to understand, slightly less expensive to administer and employee driven.  And, unlike with defined benefit plans, the onus on saving for retirement fell on employees' shoulders.  Defined benefit plans were terminated at a record pace.

Now, three factors are renewing interest in defined benefit plans: Less-than-expected retirement benefits, a higher tax rate structure and an increasingly older population.

Recent studies show that Americans, particularly higher income workers and business owners, may face a retirement income shortfall.  Higher taxes on Social Security benefits, more active retirement lifestyles (and resulting expenses) and a lack of savings discipline are a few of the factors that may contribute to this shortfall.

The latter may be exacerbated by defined contribution plans.  When employees lack the discipline to save or the savvy to make their investment choices pay, it is their retirement savings that suffer.  With 401(k) plans, the onus on saving can fall squarely on employees.  Contrast how this differs from defined benefit plans, using the help of a theoretical bucket.

With some defined contributions such as 401(k) plans, employees have individual buckets with their names on them.  Each employee contributes—or doesn't contribute—to his or her bucket and, depending on the performance of the investment, the employee takes from that individual bucket at retirement.

With defined benefit plans, everybody's share comes from the same bucket.  The plan has a built-in discipline and a benefit—typically 60 to 75 percent of the average of an employee's last three years' salary—that are dependable.  This bucket is filled as needed to cover retirement liabilities.  Defined benefit plans are fully paid by the employer.

While defined benefit plans may be attractive to employees who have a hard time saving on their own, they are also more attractive to employers these days.  First, contributions to the plan and administrative expenses are tax-deductible.  Secondly, defined benefit plans offer advantages for older owners and key employees.

Annual contributions to a defined contribution plan are limited by law to $49,000 (2011 limits).  Not so with defined benefit plans—you can pay what is needed for retirement.  For older owners and employees, this element is key because they've had less time to save than younger individuals.  This also is particularly effective for higher paid individuals, who can occupy an effective tax rate tier as high as 50 percent during their working years.  If these people expect a lower tax rate during retirement, today's tax-sheltered savings can equal added retirement dollars tomorrow.

Remember, defined benefit plans aren't for everyone.  Candidates typically are companies with owners at least in their 40s, with a good stable profit history and the capability of meeting plan contributions that can vary from year to year. Additionally, these plans' restrictions and regulations still exist.  Overfunding and termination of these plans present special challenges, but a retirement plan advisor can suggest flexible options in these instances—more flexible than you might think.

And, contrary to popular belief, defined benefit plans are not only for the largest companies.  When business owners need to contribute more to a pension than defined contribution plans allow, or they want another vehicle in which to lessen today's increased tax burden, defined benefit plans are an increasingly attractive alternative.

Bryan Nelson is the President of HR Knowledge’s Financial Services Division.  HR Knowledge has a strategic relationship with David Levine a Registered Representative and Investment Advisor Representative of Equity Services, Inc. Securities and Investment Advisory Services are offered solely by Equity Services, Inc.  Member FINRA/SIPC.

The views and information herein have been prepared independently of the presenting Representative and are for informational purposes only.

 

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.

HR Knowledge Recognized by Harvard Pilgrim

HR Knowledge was recently recognized as a Top Broker by Harvard Pilgrim Healthcare.  The combination of new clients and high retention, HR Knowledge was named a Gold level Broker. 

This honor is bestowed upon the top 2% of benefit brokers in the New England market.  Dan Hughes, President, Operations and HR Services was on site to accept the prestigious award.  This is the 5^th year in a row HR Knowledge has been recognized, 2010 was the first year it reached the Gold level.

Harvard Pilgrim Healthcare has been ranked the #1 Health Plan in America 7 years in a row by JD Power and Associates. 

HR Knowledge, Inc. provides a unique blend of services to businesses by providing outsourced, integrated HR/Payroll/Benefits services to their clients.  This allows for great economy of scale in handling these time consuming and tedious tasks as a business owner. 

Contact Information:  www.hrknowledge.com or call 508-339-1300

HR Knowledge is a provider of integrated HR, payroll and benefits services.  Our offices are located in the Boston, MA metro area and we service companies throughout the United States.