Survey Report: “Assessing the Merits and Challenges of Financial Wellness"

In Assessing the Merits and Challenges of Financial Wellness, SBS evaluates whether financial wellness programs are a wise choice and welcome addition to the traditional employee benefits package.

Financial wellness is an increasingly popular topic, but there is no consensus about the value of financial wellness programs in the workplace. While clear advantages and perceived value have been identified, several obstacles remain.

SBS surveyed employers and three key themes emerged from the research:

1. There is a general lack of understanding about what financial wellness programs deliver to both employers and employees. 
2. Financial wellness programs may not be the right fit for some organizations. 
3. There’s no easy way to calculate a return on investment from financial wellness programs. 

To read more about the three key themes that emerged from the financial wellness research, download Assessing the Merits and Challenges of Financial Wellness. To begin talking to a retirement plan advisor, please get in touch by email or by calling (855) 882-9177.

James Kelley, President, Strategic Benefit Services, Joins the Retirement Advisor Council

Strategic Benefit Services (SBS) is pleased to announce the appointment of James J. Kelley, President, to the Retirement Advisor Council, effective January 1, 2018.

The Retirement Advisor Council is a national organization that advocates for successful qualified plan and participant retirement outcomes through the collaborative efforts of experienced, qualified retirement plan advisors, investment managers, and defined contribution plan service providers. To advance its mission, the Council undertakes initiatives in the areas of research, public relations and promotion, public education, regulatory positions, and practice management. The Council accomplishes this mission by:

• identifying duties, responsibilities, and attributes of the professional retirement plan advisor;
• sharing professional standards with plan sponsors who are responsible for the success of their plans; 
• providing collective thought capital to decision makers, product providers, legislators, and the public;
• giving voice to the retirement plan advisor community; and
• offering tools to evaluate advisors to ensure the quality of services provided.

Strategic Benefit Services Adds New Leadership to Retirement and Employee Benefits Portfolios

Strategic Benefit Services (SBS), an industry leader that has provided for more than 45 years trusted advisory services, retirement plan offerings, and best-in-class employee benefits products, recently hired new executives to expand its employee benefits portfolios.

“SBS is building our team with uniquely talented individuals who bring years of industry experience,” said James J. Kelley, SBS President. “SBS builds real relationships with our clients by investing in a team of professionals who use their expertise to bring successful outcomes.”

Avon M. Scherff joined SBS as the new Director of Employee Benefit Services. Laura A. Sausville joined SBS as a Sales Account Executive responsible for new business development of group employee benefits.

4 Key Benefits of a Strong Financial Wellness Program

Financial wellness is an increasingly popular topic, but there is no consensus about the value of financial wellness programs in the workplace. While clear advantages and perceived value have been identified, several obstacles remain.

In Assessing the Merits and Challenges of Financial Wellness, SBS evaluates whether financial wellness programs are a wise choice and welcome addition to the traditional employee benefits package.

To read more about the key themes that emerged from the financial wellness research, download Assessing the Merits and Challenges of Financial Wellness.

Why is Financial Wellness Important to Plan Sponsors?

When designed properly, financial wellness programs can help employers enhance their benefits packages and realize significant cost savings by helping employees retire on time, be more productive, and enjoy better health.

Can You Invest Your Way to Plan Termination?

Some interesting dynamics have been developing in the retirement industry with respect to defined benefit pension plans.  Most plan sponsors that have maintained these plan types have either suspended or frozen them.  This has been an effort to reduce/control their liabilities and funding obligations and to better respond to a younger workforce by replacing defined benefit plans with defined contribution plans.

For many sponsors, the strategy was to simply look to positive investment returns to “close the gap,” expecting that assets would grow faster than liabilities, creating a positive scenario that would reduce the cash contribution requirements and lead to eventual plan termination.  Unfortunately, this has not happened.

Taxability of Disability Benefits

Many employers provide disability benefits to their employees as part of a comprehensive employee benefits package. Disability benefits replace a percentage of pre-disability income if an employee is unable to work due to illness or injury for a specified period of time. Employers may offer short-term disability coverage, long-term disability coverage, or integrate both short- and long-term disability coverage.

Group disability benefits can be structured in a number of ways. The taxability of these benefits generally depends on how the premiums for the coverage are paid. For example, if an employer and its employees split the cost of premiums for disability coverage, and the employees’ premiums are paid on a pre-tax basis through a cafeteria plan, the disability benefits are fully taxable to employees.

This Compliance Overview answers common questions regarding the taxability of disability benefits.

Q1 Market Recap: Taxes, Tariffs, and Tech

After nine consecutive quarters of gains, the S&P 500 lost 0.76% in the first quarter of 2018. The 0.76% loss masked a spike in volatility driven by the reduction in corporate tax rates in the Tax Cut and Jobs Act, stiff tariffs on imported steel and aluminum, and the prospect of new government regulation of technology firms.

Read the Q1 Retirement Market Recap to learn more about the 1st quarter market volatility. Also included are tips on managing defined benefit plans in the feature on "Can You Invest Your Way to Plan Termination?"

If you have any questions, or would like to begin talking to a retirement plan advisor, please get in touch by calling (855) 882-9177 or e-mail us at sbs@hanys.org.