Compliance October 16, 2012

SSA Announces COLA, New Taxable Wage Base

Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 62 million Americans will increase 1.7% in 2013, the Social Security Administration announced.
Reported by

In addition, based on the increase in average wages, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $113,700 from $110,100. Of the estimated 163 million workers who will pay Social Security taxes in 2013, nearly 10 million will pay higher taxes as a result of the increase in the taxable maximum.   

The 1.7% cost-of-living adjustment (COLA) will begin in January for Social Security beneficiaries and will begin December 31, 2012 for SSI recipients.  

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Information about Medicare changes for 2013, when announced, will be available at www.Medicare.gov. For some beneficiaries, the Social Security increase may be partially or completely offset by increases in Medicare premiums.     

The Social Security Act provides for how the COLA is calculated. To read more, visit www.socialsecurity.gov/cola. 

 

Data & Research October 16, 2012

Many Workers Passive During Enrollment

Only 56% of employees eligible to participate in the annual benefits enrollment period are confident about their decision-making, and many keep the same choices.
Reported by

MetLife’s Benefits Election Poll found that by keeping the same choices each year or failing to actively enroll, many workers potentially leave “money on the table.” Approximately one in five workers who had the opportunity to participate in a benefits enrollment last year failed to act and defaulted to either the prior year’s choices or their employer’s default choices. Men (24%) were twice as likely as women (12%) to fail to act.

The poll also found:

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

Workers keep to the status quo. More than half (51%) of respondents reported they deliberately kept their choices the same, believing their personal needs were unchanged. Forty-three percent of those who actively reviewed materials deliberately kept the same options compared with 58% who only briefly reviewed them. The research shows that because employers often change or add offerings, reading enrollment materials helps confirm whether the current selections remain the most appropriate.

Savings potential is an eye opener. Many workers are unaware of the savings potential from workplace benefits, even if paid for by the employee. Sixty-eight percent of workers reported they would spend more time reviewing enrollment materials if they could save money by buying group insurance products.

Knowledge boosts confidence. Reading benefits materials appears to boost confidence in decisionmaking. Nearly two-thirds of people who actively reviewed information last enrollment season feel very confident about making the right decisions this year. However, only half of those who did not do so feel confident.

 

(Cont’d…)

“We encourage employees to … take full advantage of the benefits employers are offering and the discounts available through group pricing,” said Todd Katz, executive vice president at MetLife. “This is a once-a-year opportunity for employees to maximize their total compensation package by selecting benefits options that meet their specific needs.”

After free or affordable medical coverage, one of the most frequently named “dream benefits” is a 401(k) retirement plan. Nearly two-thirds of workers want a wider array of voluntary benefits to choose from, even if they would have to pay for it themselves.

The MetLife Benefits Election Poll was conducted online from September 28 to September 30, 2012 and was fielded by GfK Roper Customer Research North America. The nationally representative survey polled 523 full- and part-time workers ages 18 and older.

 

«