More Companies Including Financial Wellness in Well-Being Programs

They are also increasing incentives and expanding the use of ergonomic workstations as part of their physical well-being programs.

A growing percentage of companies are expanding their well-being programs to include employee financial security, according to the eighth annual survey on corporate health and well-being from Fidelity Investments and the National Business Group on Health.

The survey reveals 84% of companies now have financial security programs, such as access to debt management tools or student loan counseling, in their well-being strategies, an increase from 76% last year. Financial security programs are the third most-popular offering, following physical well-being programs (95%) and emotional health programs (87%).

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The most popular financial security programs are seminars and “lunch-n-learn” programs, with 82% of employers expected to offer these in 2017. Nearly three-fourths (74%) will offer access to tools to support key financial decisions including mortgages, wills and income protection. Another 71% expect to offer tools and resources to support emergency savings, debt management and budgeting. One-quarter of employers plan to offer student loan counseling or repayment assistance.

“As these programs evolve, employers are embracing a broader definition of well-being to increase participation and engagement among their workforce,” says Adam Stavisky, senior vice president, Fidelity Benefits Consulting. “Today’s programs take more of a ‘health meets wealth’ approach and reflect a blend of financial, physical, and social/emotional programs to provide maximum support for members.”

“The well-being market is still evolving—in general, employers are looking to their advisers to help them design and measure programs that are implemented by their well-being providers and/or recordkeepers,” Robert Kennedy, senior vice president, Fidelity Benefits Consulting, tells PLANSPONSOR.

NEXT: Expansion of physical well-being programs

The most popular physical well-being programs continue to be smoking cessation (91%), physical activities/challenges (86%) and weight management (79%).

This year’s survey indicates that employee incentives continue to be a critical part of corporate well-being programs. Nearly three-quarters of employers (74%) include employee incentives, with the average employee incentive amount increasing to $742, up from $651 in 2016 and $521 in 2013. Employers are also increasing incentives for spouses and domestic partners, with the average annual spouse/domestic partner incentive at $694, a 47% increase over the 2016 average of $471.

Currently, 55% of companies offer a “sit-to-stand” ergonomic desk or treadmill workstation, an increase from 43% last year. Employers also recognize the impact of fitness wearables on employee health—30% will offer subsidies or discounts in 2017. Companies are also focusing on healthy on-site food options for their workforce—48% have policies regarding healthy food options in their cafeteria, vending machines and catering. In addition, 28% of organizations offer discounts or price differentials on healthy food options in the cafeteria.

The percentage of employers encouraging community involvement and charitable activities is increasing. The percentage of well-being plans that include team-building volunteer programs increased from 67% to 79%, while the percentage of employers offering a charitable match giving program increased from 65% to 71%. Employers are also adding cause-based collection drives, with the percentage of companies offering these programs increasing to 88% from 77% last year.

The survey includes responses from 141 large and mid-sized organizations and was fielded online during November and December 2016 among National Business Group on Health members and clients of Fidelity Investments.

(b)lines Ask the Experts – Rolling From a Governmental 457(b) to a 403(b)

We are a private tax-exempt health care organization that sponsors a 403(b) plan. One of our new physicians used to work for the state, and has a 457(b) plan balance. Can this physician roll her 457(b) balance into the 403(b) plan?”

David Levine and David Powell, with Groom Law Group, and Michael A. Webb, vice president, Retirement Plan Services, Cammack Retirement Group, answer: 

Yes, but there is a potential disadvantage about which the physician should be aware. Rollovers from governmental 457(b) plans are permitted to a 403(b) plan (as opposed to 457(b) plans of private tax-exempts, which are NOT eligible for rollover). However the physician should be made aware that 457(b) plans are NOT subject to the 10% premature distribution penalty that is generally applicable to distributions taken prior to age 59 1/2. That tax advantage is lost if the funds are rolled over into a 403(b) plan. Thus, if the physician wishes to retire early, she would lose access to a penalty-free distribution from the 457(b) plan if she rolled such funds into a 403(b). Any distribution taken would indeed be subject to the 10% penalty.

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NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice.  

Do YOU have a question for the Experts? If so, we would love to hear from you! Simply forward your question to Rebecca.Moore@strategic-i.com with Subject: Ask the Experts, and the Experts will do their best to answer your question in a future Ask the Experts column.

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