Break from the Grind October 31, 2017

Worker Excuses for Being Late Can Sound Incredible

Seven percent of workers surveyed admitted they are tardy every day.
Reported by

Only one in 10 chief financial officers (CFOs) surveyed by Accountemps said they are OK with tardiness only if productivity doesn’t suffer.

Never miss a story — sign up for PLANSPONSOR newsletters to keep up on the latest retirement plan benefits news.

Forty-seven percent of respondents said coming in late on occasion isn’t a problem unless it becomes a pattern. The rest (43%) believe workers should arrive on time so others can rely on them during set hours.

A separate survey of office workers found 58% said they are occasionally late to work, and 7% admitted they are tardy every day. Fifty-four percent of workers ages 55 and older are never late to work, compared to 36% of those ages 35 to 54 and 23% of respondents ages 18 to 34. Forty-three percent of employees said their productivity has suffered because a colleague arrived late to work.

Employee excuses for being late can sound incredible. CFOs cited the following excuses they’ve been given by workers for being tardy:

  • “I drove to my old job out of habit.”
  • “I thought I was still on vacation.”
  • “I had nothing to wear.”
  • “I thought it was Saturday.”
  • “My hair got caught in a fan.”
  • “I super-glued my eye thinking it was contact solution.”
  • “Geese chased me on my way to the car.”
  • “My cat delivered its litter of kittens.”
  • “Someone spilled their coffee all over me on the way to work.”
  • “I was stuck in an elevator with a kid that pushed the buttons for all of the floors.”
  • “A truck full of fish flipped over on the highway.”
  • “My dog ate my car keys.”
  • “I got locked in the gas station restroom and had to wait for someone to get me out.”
The surveys included responses from more than 2,200 CFOs from a stratified random sample of companies in more than 20 of the largest U.S. metropolitan areas, and more than 1,000 workers ages 18 and older who work in an office environment in the U.S.
Compliance October 31, 2017

IRS Letter May Open Door for Auto Enrollment in More Governmental 457 Plans

In response to a private letter ruling from the IRS, ICMA-RC will provide its public-sector clients with a model 457(b) plan document incorporating auto enrollment based on the plan approved by the IRS.

Reported by

A recent Internal Revenue Service (IRS) private letter ruling (PLR) could broadly expand the use of automatic enrollment in 457(b) retirement plans sponsored by public-sector employers. Auto enrollment in 457(b) plans has been allowed by the IRS, but governmental plan sponsors have been reluctant to use it due to state laws and administrative concerns.

In the PLR describing the plan features, the IRS says, “Maintaining an EACA [eligible automatic enrollment arrangement] (within the meaning of Section 414(w)(3)) through the Plan, under which the participant is treated as having elected to have the employer make contributions in an amount equal to a uniform percentage of compensation provided under the Plan until the participant specifically elects not to have contributions made (or specifically elects to have contributions made at a different percentage), does not cause the Plan to fail to satisfy Section 457(b)(4) and Section 1.457-4(b).”

Get more!  Sign up for PLANSPONSOR newsletters.

ICMA-RC [ICMA Retirement Corp.] says the IRS favorable letter ruling is the first to adapt the Pension Protection Act (PPA)’s auto-enrollment rules to a governmental 457(b) plan. While private letter rulings are not considered formal precedent, they do provide insight into the IRS’ views. ICMA-RC expects that its model 457(b) plan will encourage governmental plan sponsors to adopt auto-enrollment in their 457(b) retirement plans in states that allow the practice.

As some states forbid deferrals to be deducted from employee’s paychecks without the person’s consent, public-sector employers should be mindful of their particular state’s law.

«