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The average 401(k) account balance at the end of 2012 was 8.4 percent higher than the year before, but increased assets weren’t typical for all defined contribution plan participants studied, according to a December 2013 brief by the Employee Benefit Research Institute. While equity investments through stock mutual funds comprised the bulk of 401(k) assets […]
Wellness benefits have exploded in the past decade because they purportedly make employees healthier and save employers money, but they have found a detractor in at least one labor union. John Borsos, secretary-treasurer of the National Union of Healthcare Workers, told reporters in Washington, D.C., Dec. 17, that wellness programs are a $6 billion industry […]
Employers whose employees use their own vehicles business can now adjust their reimbursement forms and procedures for 2014, since the IRS released the standard mileage rates for the year in Notice 2013-80 on Dec. 6. The IRS also adjusted the reimbursement rate for miles driven for medical purposes or a relocation, also by half a […]
Employers now have the option of allowing plan participants to roll over up to $500 in unused FSA funds at the end of each plan year, under a new regulatory interpretation on health flexible spending accounts, the U.S. Treasury Department and IRS announced Oct. 31. Employers are free to change their plan designs accordingly for […]
Unless Congress acts soon, employees will once again have less to use for mass transit expenses under qualified transportation fringe benefit plans, and employers will once again have to lower the limits they allow under QTFBs at the end of the year. The mass transit component of QTFBs, which covers expenses incurred in commuting to […]
Bicycle share expenses — incurred, for example, when one dips a credit card into a pay kiosk on the street in order to rent a bicycle from a public bike rack — do not qualify as payment for transportation on “mass transit facilities,” as some have argued, nor do they constitute a “qualified bicycle commuting […]
Some employee benefits such as child care and transportation benefits are soon to be offered to the same-sex domestic partners of military members, U.S. Department of Defense recently announced. Outgoing Secretary of Defense Leon Panetta indicated in Feb. 11 memo that the move was a step toward conferring benefits to same-sex partners that currently are only […]
As defined benefit plan sponsors look harder for ways to cut expenses and lower exposure to market forces that challenge keeping their pension obligations funded, an obvious cost to evaluate is their commitment to lifetime retirement benefits for participants. Nearly 40 percent of U.S. employers with DB plans told Aon Hewitt in its recent 2013 […]
A private company that provides paper transit vouchers to parts of the federal government for use in its qualified transportation fringe benefits has claimed that the U.S. Department of Transportation is implementing an electronic payment system that does not comply with IRS guidelines in a program that is intended to replace paper transit fare vouchers […]
Even as the IRS announces it plans to issue guidance on the use of smartcards with qualified transportation fringe benefits, public comments on such guidance include allegations of impropriety from one vendor. The IRS asked for input on whether it should issue such guidelines (see related story) last May. Thompson Information Services requested copies of […]