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1 Helping United Way Staff
United Way Retirees Association Helping United Way Staff Plan for Retirement United Way Retirees Association

2 Webinar Logistics If your computer has sound capability, are your speakers turned on and is your volume up? If “yes”, can you hear music coming from your computer? If “yes”, please help UWRA keep its webinar expenses to a minimum by hanging up your telephone and listening to the webinar through your computer. If you have trouble with the audio at any time during the webinar, you can call in on your telephone: Confirmation code: UWRA 2

3 Agenda* The Whys Behind This Webinar Goals Of This Webinar
A Few Possible Ways That United Ways Might Help Its Employees Offering a Defined Contribution Plan -- Options Offering a Retirement Planning Education Program – Local Example Offering Early Retirees Continued Group Health Insurance Coverage – Local Examples Retirement Planning Resources *Disclaimer: The content of this Webinar offers descriptions of programs/practices for consideration only and is not a substitute for professional advice. UWRA

4 Today’s Presenters/Contributors
Host/Webinar Development - Ralph Gregory, UWRA Board Member, Retired President/ CEO, United Way of Westchester and Putnam; Tricia Smith, UWRA President and CEO Defined Contribution Plans: Bob Berdelle, Senior Vice-President and Chief Financial Officer, United Way Worldwide, Alexandria VA Retirement Planning Education Program: Jane Grady, Vice President Human Resources, United Way of Massachusetts Bay and Merrimack Valley, Boston MA (Metro 1) UWRA

5 Today’s Presenters/Contributors
4. Benefit - Offering Retirees the Option of Continuing on the Group Health Plan John Roche, Director of Human Resources and Administration, United Way of the Greater Capital Region, Albany, NY (Metro 2) Tamara Calvert, Human Resources Director, United Way of Central Alabama, Birmingham, AL (Metro 1) Suzanne Bloomfield, Director Human Resources/EO, United Way of Greater Cleveland, Cleveland, OH (Metro 1) Kennethe Vaughn, Vice President, Talent Management and  Diversity, United Way of Central Indiana, Indianapolis, IN (Metro 1) UWRA

6 Poll Question - Audience
Two Polls on Audience composition - Know a little about us like to see composition of our audience Please indicate the size of your United Way where you currently work. If you are a former employee check the last category. Metro I Metro II-IV Metro V-VII Metro VII+ Retiree/Former UW staff 2. Please indicate your position: President & CEO/Executive Director Director, Finance and Administration Finance and Administration Staff Director, Human Resources Human Resources Staff Other UWRA 6 6

7 The Whys Behind This Webinar
First Webinar - Planning for Retirement in an Era of Uncertainty – Provided a beginning framework for individual retirement planning This Second Webinar focuses on the importance of helping United Way employees to plan for retirement Encourage and empower your staff to: take responsibility for planning for their retirement, and view retirement planning as a lifelong effort This slide displays the motivating factor behind our work - that staff of local United Ways of all ages and from all Metro sizes, will successfully plan for their retirement. UWRA

8 The Whys Behind This Webinar Brief Recap – Framing the Problem
Frozen/disappearing pension plans and the subsequent necessity for individuals to take increased responsibility for their retirement planning 401ks and 403bs are losing value Rising healthcare costs Longer life spans Uncertainly over Social Security, Medicare and the Affordable Care Act No system-wide retirement plan is available for United Way employees Local United Ways vary considerably in relation to retirement benefits offered – with smaller United Ways often providing no benefits at all Little best practice information is readily available from local United Ways in the area of retirement planning Would like to briefly recap what some of the issues are that have led to us to trying to raise awareness around the need for retirement planning in order to enjoy a quality retirement. UWRA

9 The Whys Behind This Webinar Brief Recap – Research Shows…
Knowledge of retirement issues is positively related to one’s attitude toward retirement Training and intervention programs designed to boost financial knowledge improve financial preparedness by triggering advance retirement planning activities Only about 1/3 of workers receive educational materials or attend retirement seminars offered by their employers Only 52% of 403b plan sponsors (nonprofits) contribute to employees’ accounts compared to 88% of 401k sponsors (for-profits) – 38% of United Ways do so (Human Capital Survey) Many nonprofit organizations offer no retirement programs for their employees Most retirement planning programs/practices are geared to those aged 50 plus (There is a need to start sooner!) This slide shows some Whys behind the Webinar. Not going to read each bullet but pull out a couple of things. One of our objectives is to provide some knowledge sharing in order to help trigger some advance planning activities. Also stressing that retirement planning needs to be a priority issue before age 50 -as organizations we need to look at ways to help staff and ourselves plan for some major retirement challenges. UWRA

10 Poll Question – Age Group
3. Poll – Next up look at age composition of UW workforce so would like to do a poll to see the age ranges in our audience today. Please indicate your age group: Age 20 to 29 Age 30 to 39 Age 40 to 49 Age 50 to 59 Age 60 to 69 Age 70 plus UWRA 10 10

11 The Whys Behind This Webinar Age Composition of United Way Workforce
The age composition of United Way workforce displays a heavier distribution of those nearing retirement age than the civilian workforce underscoring the need to make this issue a priority. UWRA

12 The Whys Behind This Webinar Pending Retirements Within UW Workforce
The age composition of the United Way workforce and those potentially nearing retirement, as seen in the charts implies that more of our colleagues may soon need some help in negotiating the retirement process. In addition, recruiting, developing and retaining new talent is a crucial part of our system’s future success. UWRA

13 The Whys Behind This Webinar Comments from Surveys of United Ways….
Young staff are not concerned about long term employment with United Way nor retirement planning beyond a 403(b) plan. Let’s encourage them to act now United Ways give a low priority to retirement planning assistance but have some interest in encouraging retirement planning , with emphasis on financial, health and quality of life matters. Let’s revise our priorities Would welcome ideas for education programs segmented by age - finding younger employees are engaged more in retirement planning than previously. Let’s start sharing more information Retirement counseling has not been offered for quite a few years - think such a program would enhance services to employees. Let’s invest in keeping staff Information on a website alone does not cause employees to plan for retirement, interested in knowing what other United Ways are doing to encourage and assist in retirement planning Let’s have a dialogue These comments shown taken from interviews with HR staff highlight a few things we want to emphasize - staff of all ages and from all Metro sizes need to think about retirement planning as a priority and as organizations we should try to be looking internally at ways to facilitate this. One of the main intents of this Webinars to start sharing information between United Ways to start a meaningful dialogue around some of these issues. UWRA

14 Goals of this Webinar 2nd in the Series
Help start the conversation and sharing of “practices” related to the retirement planning arena Provide examples of “benchmark” programs – including elements of some programs that are working and can be tailored to address local realities Provide some additional tips Which leads into the goals of the Webinar as shown on this slide. UWRA UWRA UWRA 14 14 14

15 Retirement Benefits Defined Contribution Plans
“the biggest factor in saving for your retirement is to start today!”   Bob Berdelle, Senior Vice-President and Chief Financial Officer, United Way Worldwide Let’s look at some basic definitions, United Way statistics and issues around Defined Contribution Plans Now we would like to turn it over to Bob Berdelle, Senior Vice-President and Chief Financial Officer, United Way Worldwide UWRA

16 401k and 403b Plans General Definitions
401k and 403b plans are tax-deferred savings plans. Contributions to standard 401k and 403 b plans are made on a pre-tax basis and are taxable at the time of withdrawal. The plan is administered by a financial management firm chosen by the employer (or one of several). Employees select mutual funds and annuities in which to invest their contributions, and the employer may provide a match. 403b plans are used by nonprofit organizations, religious groups, school districts, and governmental organizations – as determined by section 501(c) 3 section of the IRS code. The law exempts these organizations from certain administrative processes (hence lower administrative costs) that apply to 401k plans. It is generally beneficial to go with a 403b plan. However, a vendor may offer a great deal on a 401k plan – so the plan instituted is an individual organizational decision This slide outlines basic definitions of defined contribtuion pans. UWRA

17 United Way Statistics Human Capital Survey (charts on next slides)
65% of the United Ways that responded to the 2010 Human Capital Survey* offer a defined contribution plan 38% offer a match (47% of the Metro I-IV respondents; and 25% of the Metro V+ respondents) 27% do not offer a match (35% of the Metro I-IV respondents and 13% of the Metro V+ respondents) The United Way Employer match levels vary considerably, with the majority being in the 3 to 6% range * 2012 Human Capital Survey in Progress Look at some stats and corresponding charts from the United Way 2010 Human Capital Survey. A total of 392 of 1258 United Ways responded to the Benefits section for a 31.2% response rate overall. As shown 65% of respondents offer a defined contribution plan and 38% have a matching component. Which varies considerably as will be seen on the charts. UWRA

18 Financial Benefits Offered to Employees (All UWs)
Chart illustrates percentage of United Way respondents with defined contribution and defined benefit plans as described on the previous slide Source: United Way Human Capital Study, Part II Organizational Questionnaire, Benefits Section

19 Defined Contribution Plan (403b with Match)
Financial Benefits for All Staff Defined Contribution Plan (403b with Match) Source: United Way Human Capital Study, Part II Organizational Questionnaire, Benefits Section

20 Defined Benefit and Defined Contribution Plans without Match
Financial Benefits for All Staff Defined Benefit and Defined Contribution Plans without Match These charts display the distribution of United Way respondents with defined benefit plans and defined contribution plans without a match. Source: United Way Human Capital Study, Part II Organizational Questionnaire, Benefits Section

21 United Way Statistics Human Capital Survey
28% of the United Ways responding to the 2010 Human Capital Survey offer a defined benefit (pension) plan . However, in many cases today, organizations are freezing defined benefit plans -- new employees cannot enroll and current enrollees’ pension levels are “frozen”. Most organizations have converted to defined contribution – 401k or 403b plans. IMPLICATION: There is an increased necessity for individuals to take responsibility for planning for their retirement FACT: The 401k generation is beginning to retire, and it isn't a pretty sight... The median household headed by a person aged 60 to 62 with a 401k account has less than one-quarter of what is needed in that account to maintain its standard of living in retirement. (February 2011) Federal Reserve data analyzed by the Center for Retirement Research, Boston College for The Wall Street Journal The Human Capital survey did not ask the question in the way that you could determine if those that said they offered a defined benefit or pension plan also offered a defined contribution - but in many cases today organizations are freezing defined benefit plans for new employees. Again emphasizing the need for individuals to take responsibility for retirement planning. But unfortunately studies are showing that the defined contribution generation do not have adequate funds in their accounts as they retire. UWRA

22 United Way Statistics Some Takeaways – Defined Contribution Plans
Good news - The survey shows that some small city United Ways are offering defined contribution plans – so it is feasible to do so regardless of size Not So Good news More than 1/3 of the United Ways that responded do not offer a defined contribution plan Only 38% of the respondents are offering a match Why offer a defined contribution plan? To encourage staff to save for retirement To attract and retain talent Why offer a match? It is an additional incentive to save and a key to encouraging early career staff to participate - increasing the probability of a quality retirement This slide lists some take aways from the previous information. UWRA

23 Key Considerations for United Ways Defined Contribution Plans
One of the first decisions is whether to contract with one or more service providers and, if so, what type(s) of service provider(s) to use. Know the key questions you should be asking your defined contribution plan vendor that will help you understand the actual services and associated fees and costs. Lot of good resources on the internet. In selecting providers to administer a plan, several key areas to assess include: Administrative, record keeping and trust service capabilities Access to high quality funds Ability to insulate United Way from fiduciary responsibility Employee communications and investment education opportunities Like to talk about a few key considerations for United Ways around defined contribution plans and then also as they relate to individuals – because some of you are from small United Ways and even perhaps one person shops. UWRA

24 Key Considerations for United Ways Defined Contribution Plans
When evaluating fund options to offer – 12 to 14 options is typically an optimal number Ways to encourages participation and savings Allow employees to opt in or opt out Use auto escalating factors Convey compound net worth and tax advantages Provide a match For smaller United Ways with very limited budgets - the administrative fees can be passed on to the employees and yet can still be very advantageous UWRA

25 Key Considerations for Employees Defined Contribution Plans
Understand the fees Catch up contributions - refer to the plan rules and highlights to find out if the plan allows such contributions - and what the guidelines are concerning them. Understand the tax implications and penalties for early withdrawal It is a good idea to seek professional advice. Check with an investment professional to help choose investments that best meet one’s retirement objectives.  The next two slides list some important considerations about defined contribution plans from an individual perspective. UWRA

26 Key Considerations for Employees Defined Contribution Plans
If offered, one should make sure a sufficient amount is contributed to one’s defined contribution plan to draw down the full organization match, allowing one to take greater advantage of tax benefits If one’s United Way does not have a plan, one should ask an investment professional about other ways to start investing for retirement – such as establishing an IRA. One should avoid cashing out or borrowing against the plan – let it grow. Like to turn it back over to UWRA UWRA

27 Retirement Planning Education
Jane Grady, Vice President Human Resources United Way of Massachusetts Bay and Merrimack Valley “Non-profits should expect more from the retirement plan providers” “Our employees deserve better” Now we would like to turn it over to Jane Grady, Vice President Human Resources, United Way of Massachusetts Bay and Merrimack Valley UWRA

28 Retirement Planning Education UW of Massachusetts Bay and Merrimack Valley
ELEMENTS OF THE PROGRAM A plan sponsor of a 401k plan (the employer) has a fiduciary duty to provide adequate education so that employees can make informed decisions about investing for retirement. We take this very seriously. The main elements of the program include: Quarterly enrollment meetings. New employees are required to attend. Individual, one-to-one meetings with a certified financial advisor to discuss retirement goals, investments, portfolio models, concerns, etc. UWRA

29 Retirement Planning Education
Retirement Planning Education UW of Massachusetts Bay and Merrimack Valley ELEMENTS OF THE PROGRAM (Cont.) 3. Periodic Retirement Education programs such as: Importance of Diversification, Retirement Readiness – Ages 50+, Investing in Model Portfolios, Investing 101, Understanding Annuities, Market Volatility and others 4. All Staff Meetings: Timely topics of importance to all, presented by our plan/financial advisor or vendor representative - market conditions, changes in fund menu, tools available through the vendors website, investing in model portfolios UWRA

30 Retirement Planning Education UW of Massachusetts Bay and Merrimack Valley
HOW IT’S WORKING: Key to attracting early career employees into the 401k or 403b plan is to provide a matching contribution. PARTICIPATION: 95% of eligible staff: Over 4% deferral rate ISSUES TO CONSIDER: United Ways are not in the business of designing/offering retirement education programs. Find a vendor who is. We in HR can not and do not offer investment/planning advice. That’s the job of the retirement plan provider – let the provider educate employees UWRA

31 Retirement Planning Education UW of Massachusetts Bay and Merrimack Valley
KEY TO SUCCESS: Find a retirement plan vendor that will provide high quality, onsite education programs for your employees. LESSONS LEARNED / RECOMMENDATIONS: Be willing to change providers if you don’t get the services you need It’s a competitive market out there now. Take advantage of it. No employees deserve better retirement programs than our employees -- yet we sometimes settle for second best. UWRA

32 Health Insurance for Early Retirees The #1 Fear – US News Money February 2012
“One of my biggest worries about early retirement is health care. The cost of health care keeps increasing every year, and it is outpacing inflation by a wide margin. This is a big problem for early retirees because we won’t qualify for Medicare until age 65. If you retire before then, medical insurance can be very expensive and difficult to find.” Joe Udo, Health Insurance Options for Early Retirees, US News Money, February 2012 This fear has been reinforced by similar comments made by UWRA members in surveys. We would like to now move into the segment talking about health insurance options for early retirees (that is before Medicare eligibility) and particularly focus on the option of the organization offering early retirees the benefit of staying on the group health plan. UWRA

33 Health Insurance for Early Retirees Some Options – US News Money February 2012
COBRA. If you leave a job with a group health insurance plan, the Consolidated Omnibus Budget Reconciliation Act allows you to continue using the same health care plan for a limited amount of time if you are willing to pay the whole cost. COBRA coverage generally lasts for up to 18 months, so if you are 63 and a half, this might be the way to go until you qualify for Medicare. Retiree health insurance. Some companies offer retiree health insurance to long-tenured employees. To qualify, your age plus your years of service might need to pass a certain threshold. Some programs may subsidize a portion of your health insurance premium until Medicare kicks in. Part-time job. A part-time job might provide the health insurance you need until you are old enough to qualify for Medicare. The next two slides review health insurance Options for early retirees as presented in a US News Money blog in February of this year. UWRA

34 Health Insurance for Early Retirees Some Options – US News Money February 2012
Spouse’s insurance. If you have a working spouse whose employer offers a family health care plan, this is another way to fill in the health insurance gap. The premium is generally much less than buying insurance privately. Private insurance. This is a very costly option because you do not receive any group discounts. On demand health care. This might be a good option if you are young and relatively healthy. On demand health care clinics offer an affordable option for everyday health problems….But this may not be a good option for older people because long-term illnesses may crop up. UWRA

35 Health Insurance for Early Retirees Some Considerations – Need to Monitor Public Policy
The Affordable Care Act provides $5 billion in financial assistance to employers to help them maintain coverage for early retirees age 55 and older who are not yet eligible for Medicare. 5% of the companies approved to date have been non-profits. This temporary program is projected to end on January 1, 2014 when early retirees will be able to choose from the additional coverage options that will be available in the health insurance exchanges Uncertainty currently exists around the status of the Affordable Care Act and the implementation of the exchanges Finding affordable health care is a huge problem for early retirees, and there is no easy way to avoid the high price. Perhaps we will have more options when the health insurance exchanges become operational. Joe Udo, Health Insurance Options for Early Retirees, US News Money, February 2012 With regard to this issue there will be a need to monitor the policy and see how the Affordable Care Act plays out and evaluate the options potentially available under the planned health insurance exchanges. UWRA

36 Reasons to offer this benefit: A thank you for years of service
Health Insurance for Early Retirees Consider Including Retirees in Your Group Health Plan Benefit - Giving early retirees (i.e., retiring before Medicare eligibility) the option to continue to get their health insurance through the organization’s group plan. Reasons to offer this benefit: A thank you for years of service A way to retain competent staff We would now like to focus on benefit of giving early retirees the option to continue their health insurance through the group plan, some reasons to do this and provide some United Way examples. UWRA

37 United Ways That Provide Health Benefits to Retirees
Examples Four UWs indicated that their retiree benefits will be ending or phasing out soon. Four reported that their retiree benefits include supplemental health insurance. Three said that the retiree pays full premium but gets employee rates. Two UWs said that their retiree benefits cover 50% of the premiums. As shown on this chart very few United Ways that responded to the Human Capital survey are providing retiree benefits. Source: United Way Human Capital Study, Part II Organizational Questionnaire, Benefits Section

38 Health Insurance for Early Retirees But There is Interest in Sharing Information
UW Listserv POST: Our current personnel policy offers United Way retirees the option to continue their health insurance through our group. We are considering an added bonus of possibly paying a small percentage of their individual coverage. We appreciate input. Other comments on the post:  We do not do this but have looked at the possibility...I would be interested in seeing the details I wish ours did but we do not. This has been discussed among LUWs before on the ListServ and generally, the consensus was that most did not. The four United Ways that indicated on the Listserv that they offer this benefit have agreed to describe their programs. One of the reasons we focused on this option is that it was an item of listserv discussion last year and several United Ways indicated they would like to know more about what other groups were doing in regard to this benefit. UWRA

39 Health Insurance for Early Retirees Four United Ways Offering This Benefit
United Way of the Greater Capital Region, Albany NY (Metro 2) - Offers early retirees the option to continue to get health insurance through the group plan, with the organization paying a percentage of the individual premium. United Way of Central Alabama, Birmingham, AL (Metro 1) --Offers retiree coverage thru age 65, with a percentage of the premium paid by the organization based on tenure. United Way of Greater Cleveland, Cleveland OH (Metro 1) - Offers retiree coverage, with the retirees paying 100 percent of the premium.  United Way of Central Indiana, Indianapolis, IN (Metro 1) - Offers early retiree coverage, with the retirees paying the full cost of their coverage. These four United Ways indicated on the listserv posting that they offer some variation of this benefit so we thought we would stimulate the conversation about it by providing some information on what they offer. UWRA

40 United Way of the Greater Capital Region Albany, New York (John Roche)
WHAT IS OFFERED: Early retirees have the opportunity to participate in the organization’s group health and dental plans – UW pays 50 % of the cost (fixed at the time of retirement) of the retiree’s medical insurance – the retiree pays the full share of the dental cost. This plan was established in May 2011. ELIGIBILITY FOR BENEFIT: An employee who retires early with 20 years or more of service and is at least age 62. The retiree may participate in the plan for up to 3 years or until he/she qualifies for Medicare. UWRA

41 United Way of the Greater Capital Region Albany, New York
CURRENT NUMBER OF PARTICIPANTS: 3 (2 after May 2011 and 1 prior retiree). EVALUATION OF BENEFIT: Relatively new – seems to be working well. ISSUES TO CONSIDER: Portability - one retiree in the plan spends part of the year in another state – UW uses an outside consultant to work out this coverage issue with the retiree and provider. POTENTIAL OBSTACLES: Any added cost is a financial burden but the number receiving this benefit is low – only 3 people currently; 2 people in next 2 years and 1 in next 5 years. UWRA

42 United Way of Central Alabama Birmingham, Alabama (Tamara Calvert)
WHAT IS OFFERED: Group health insurance coverage for early retirees. 43 agencies participate in the United Way’s self insured health plan (not all cover retirees). For these agencies, UW administers the employee health insurance plan only, not any post-retirement programs. ELIGIBILITY FOR BENEFITS: One must be fifty-five (55) years of age or older. One must have at least five (5) years of continuous service with United Way of Central Alabama, Inc. and/or a member agency. Payment arrangements: Eligible participants with five (5) but less than fifteen (15) years of service will be responsible for the full premium payment. For employees who meet the age requirements and have at least fifteen years of service, United Way will pay a percentage of the premium equal to the current amount being paid for full-time, active employees . UWRA

43 United Way of Central Alabama Birmingham, Alabama
ELIGILITY FOR BENEFITS (CONT.) Benefits for spouses: A spouse who is under the age of 65 while the retiree is over age 65, may be covered until the spouse becomes Medicare eligible or for seven (7) years, whichever comes first. If the retiree dies before the age of 65 , the spouse will be eligible for COBRA for three (3) years. If the employee dies before the age of 55, the spouse will be eligible for COBRA for three (3) years. If the retiree is under 65 and the spouse is over 65, the spouse will be entitled to receive group benefits as primary coverage and Medicare as secondary coverage, as long as the retiree is receiving group health insurance coverage. UWRA

44 United Way of Central Alabama Birmingham, Alabama
CURRENT NUMBER IN PLAN: 1 (have had up to 6) EVALUATION OF BENEFIT: Great – no problems encountered ISSUES TO CONSIDER: An actuary reviews funding for post-retirement plan each year POTENTIAL OBSTACLES: It is important to make sure the plan is funded for future early retirees.  Funds need to be set aside in order to fund the benefit for those that may take early retirement as well as their spouses if written into the plan. UWRA

45 United Way of the Greater Cleveland Cleveland Ohio (Suzanne Bloomfield)
WHAT IS OFFERED: Retirees have the ability to purchase a group medical insurance plan or a supplemental health insurance plan, depending upon their age. Retirees are also offered two life insurance policies (a $1,000 policy and a policy equal to 50% of their ending salary at time of retirement) The UW administers these plans for their funded agencies and other health and human service agencies.  A total of 95 organizations are involved in the medical, dental, and vision plans. ELIGIBILITY FOR BENEFITS: If over 65, retiree can purchase supplemental health insurance plan If under 65, retirees can purchase the group medical insurance plan if they are enrolled in that plan at the time of retirement CURRENT RETIREES IN PLAN: Retiree health insurance - 6 Retiree life insurance - 48 UWRA

46 United Way of the Greater Cleveland Cleveland, Ohio
EVALUATION OF BENEFIT: The group health insurance plan for retirees is working very well.  The retirees pay 100% of the premium. Retiree life insurance policies – there is concern about maintaining these policies in the future due to the higher costs ISSUES TO CONSIDER: The 6 retirees in the group medical insurance plan are not driving premium levels since UW has a large agency group alliance with several thousand participants.  Retiree group life insurance benefits will need to be reviewed -- the ratio of active staff to retirees is becoming less balanced and driving up costs. UWRA

47 United Way of Central Indiana Indianapolis, Indiana (Kennethe Vaughn)
WHAT IS OFFERED: Early retirees have the opportunity to purchase the organization’s group health insurance coverage. ELIGIBILITY FOR BENEFIT: This early retiree health plan is available to United Way staff only (not agencies) Medical coverage only is available for retirees under age 65 but at least age 55 and have a minimum of 10 years of service with the United Way of Central Indiana. Coverage is terminated upon attainment of Medicare eligibility. Retirees pay full cost of coverage   This retiree plan is added to the eligibility section of the United Way contract with the insurer. UWRA

48 United Way of Central Indiana Indianapolis, Indiana
CURRENT RETIREES IN PLAN: 2 (others aged out) EVALUATION OF BENEFIT: Works great – not a burden – part of the group health plan. Do direct billing of retirees and have had no problems ISSUES TO CONSIDER: Limiting exposure: The UW has very few retirees but those that do not have other options take the benefit. Maximum exposure is for 10 years.  POTENTIAL OBSTACLES: We are fully insured so the risks are minimized.  If we were self insured, we would have to look at a stop-loss policy to protect us from potential catastrophic claims since they are more common in newborns and the elderly. UWRA

49 Health Insurance for Early Retirees Summary
Similarities among the examples: The benefit is offered until Medicare eligibility Relatively low impact on budget evidenced Differences among the examples: Percentage of premium paid by the United Way Eligibility criteria related to years of service and age of the retiree To summarize - two items are consistent among the examples presented – it is a benefit offered until Medicare eligibility and a relatively low impact on overall program cost as been evidenced. As your organization may look at potentially offering this benefit the differences noted on the slide are the items you will want to closely evaluate as you develop your policy around it. UWRA

50 Retirement Planning Resources United Way HR Professionals Presenting Today
Contact Information Jane Grady, Vice President Human Resources, United Way of Massachusetts Bay and Merrimack Valley, Boston MA; ; John Roche, Director of Human Resources and Administration, United Way of the Greater Capital Region, Albany; x117; Tamara Calvert, Human Resources Director, United Way of Central Alabama, Birmingham, AL; ; Suzanne Bloomfield, Director Human Resources/EO, United Way of Greater Cleveland, Cleveland, OH; ; Kennethe Vaughn, Vice President, Talent Management and  Diversity, United Way of Central Indiana, Indianapolis, IN; ; Here is the contact information for the 5 United Way HR Professionals who presented this afternoon. UWRA

51 Retirement Planning Resources (cont.)
Two UWRA booklets* – electronic version on UWRA website (www.UWRA.org) and available in hard copy by contacting the UWRA office: It’s Never too Early or Too Late to Plan for Your Retirement helpful resources are listed in the back of this publication and on the UWRA website Choosing a Financial Advisor * Booklets distributed in 2008 to over 1200 local United Ways for each of their 20,000 employees and to all UWRA members. This publication was made possible by a grant from the UWRA endowment As we wind up we want to mention that the UWRA website provides some retirement planning booklets as well as many resource links. UWRA UWRA 51

52 Retirement Planning Resources (cont.)
UWRA Website: List of helpful resources including Retirement Calculators Links to Social Security information: http://www.ssa.gov.  Such as: Retirement Benefits booklets: http://ssa.gov/pubs/10035.html.   Retirement Planner: http://www.ssa.gov/retire2/ Calculators: http://www.ssa.gov/planners/benefitcalculators.htm “Normal retirement age" (NRA)*: *To receive full social security retirement benefits one must be of ‘normal retirement age’, which varies from age 65 to age 67, based on the year of one’s birth Anything missing on our website – send us the link! The links include Retirement calculators, social security and Medicare links as well as other helpful resources we have compiled. And please – if you know of a good resource and we do not have it listed – please send it to us. UWRA UWRA 52

53 Successful Retirement Multiple Factors and Considerations
Illustration of the multiple factors and complexities involved in a successful retirement. And why we are hosting a series of Webinars on various topics. UWRA

54 To Avoid This…Tune into next Webinar on the Retirement Planning Process
UWRA

55 UWRA Webinar Series Planning for Retirement in an Era of Uncertainly!! Archived Webinar on under Retirement section Helping United Way Staff Plan for Retirement – geared to CEOs & HR professionals (this Webinar will be archived) The Retirement Planning Process, Including Estate Planning – The process, common misconceptions and personal values Transition into Retirement/Life in Retirement Financial Planning Healthcare Options Understanding Medicare & Social Security * FYI Archived Webinar by the Heritage Institute on The Elements of Heritage The archived link for our first Webinar and as well as this one when we are finished are published on our website along with the PowerPoint presentations. We hope you tune in for the next installment in early fall which will deal with the Retirement planning process. UWRA UWRA 55

56 QUESTIONS??? Questions for you…
Have ideas other than those mentioned to pass along to United Way colleagues? us: Does your United Way involve United Way staff alumni in any way? Volunteering? Gatherings? Benefits? A poll on involving alumni. Does your United Way involve United Way staff alumni/retirees in any way? Check all that apply. Volunteering Gatherings Retiree Benefits Other No UWRA

57 QUESTIONS??? Questions for us? UWRA

58 THE END – Thank You! UWRA


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