DECISION |
HEALTH |
RETIREMENT |
No significant changes to coverage (80% covered/20% out of pocket) |
Premiums may increase on full coverage plans |
Contributions may be reduced to offset increase in health costs |
Adopt a more “consumer driven” plan (60%/40%) |
Premiums will likely be less than a traditional (80%/20%) plan |
Employees will have larger out of pocket expenses, so they may reduce their 401k contributions. Companies may consider offering larger match or adopting Safe Harbor provisions. |
No health insurance benefits will be provided by the company |
Employees will be required to purchase insurance from the exchange or be penalized. Company will pay sanctions beginning in 2015 |
Companies may shift all benefits dollars to retirement to offset loss of insurance benefits |
Company will discontinue “Cadillac” benefits for executives |
Benefit cuts may impact recruitment or retention of executives |
Companies may design a tiered profit sharing or adopt a Cash Balance plan to provide executives additional retirement benefits |
Reduce workforce to push many below 30 hours a week. Insurance only offered to those working over 30 hours |
Health costs may not change dramatically depending on the number of employees dropped due to lack of hours |
Employees who work 20 hours a week or more are included in the retirement plan. Costs for covering those employees in the plan will continue |