September 2009 Newsletter

HEATHER FRIED THE NEW NISI SERVICE REP

NISI is pleased to announce that Heather Fried has joined NISI as a service representative for western North Dakota, effective September 1.

“Heather comes to us from Blue Cross Blue Shield of North Dakota’s Member Education Department,” says NISI Manager Peg Dickleman. “She brings the relationship she has with many of you, her knowledge of the benefits we offer and the understanding of some of the challenges employers have in bringing benefits to their employees. Heather understands how important retention and recruitment are.”

“NISI has grown, and due to that growth we decided to add an NISI service representative to each half of the state to better serve our customers’ needs,” Peg adds.

Heather is from the Mandan, N.D. area and earned a bachelor of science degree in management from the University of Mary. Prior to joining NISI, she worked for Blue Cross Blue Shield of North Dakota for nine years. Her husband is a dairy farmer, and they are the parents of two children.

“I’m looking forward to developing new relationships with the employer groups,” Heather says.

You can reach Heather at 701-255-5567 or 800-575-9643.

DEBIT CARDS AFFECT ENROLLMENT

Enrollment is coming up. If your group has debit cards, your enrollment forms need to be completed 30 days prior to renewal.

VISIT NISI AT HR CONFERENCE

We hope to visit with you October 1 at the 2009 North Dakota Human Resource Conference at the Ramada Plaza Suites in Fargo. If you attend the event, please stop by our booth. We’d love to chat with you and answer any questions you have.

CANCELING PRETAX DEDUCTIONS CAN GET YOU IN TROUBLE

When employees enroll in voluntary benefits, they designate pretax deductions. If an employee cancels their pretax deductions, they may be in trouble with the IRS—unless the cancellation involves a change of status event.

Change of status events include:

  • Legal marital status changes, such as marriage, divorce, separation or the death of a spouse
  • A change in the number of dependents, such as birth, death or adoption
  • Changes in employment status of the employee, or of the employee’s spouse or dependents
  • A dependent becoming eligible or ceasing to be eligible for coverage due to age, student status or any similar circumstance
  • A change in the residence of the participant or the participant’s spouse or dependent

Employees can make changes during the open enrollment period or during a mid-year enrollment window for new hires or participants who qualify for exceptions to the irrevocability requirement.

Your company’s benefit plan could be deemed out of compliance if it does not follow IRS regulations. If your plan is audited by the IRS, non-compliance could place your plan in jeopardy. Employees who are personally audited by the IRS could face tax repercussions, according to Discovery Benefits.

VOLUNTARY PRODUCTS MAKE SENSE IN TOUGH ECONOMY

Voluntary work-site products have grown in popularity since they were introduced about 30 years ago. Employees look to the workplace for a “broad array of insurance and investment products,” according to a 2002 MetLife Study of Employee Benefits Trends. Younger employees are particularly interested in workplace purchases.

Nearly two-thirds of employees surveyed expressed interest in purchasing a variety of products at work, according to the study. Because voluntary products are paid for by the employee, voluntary products can help employers meet their top three business objectives: retain employees, reduce benefit costs and provide work/life balance.

Offering voluntary products makes sense in today’s tough economy by allowing employers to offer benefits and to save money. At the same time, employees can purchase the products they need.

HOW TO KNOW WHEN TO MARK CANCEL OR TERMINATED

Paperwork can be confusing for even the most attentive person. When an employee is no longer on your payroll, it is important to know if you should mark “Cancel” or “Terminate.”

  • USAble products. If you mark "Cancel," the employee will not receive a portability invitation letter to continue benefits. If an employee quits, HR should write "Terminated" and the employee will receive a portability letter.
  • Lincoln Mutual Life. It is the employee’s responsibility to contact Lincoln Mutual for portability. Forms are available at MyNISI.com.

DISABILITY INSURANCE HELPS EMPLOYERS AND EMPLOYEES

Most Americans do not have disability insurance, according to the Council for Disability Awareness web site. That could lead to serious consequences, especially in today’s difficult economy. Equally alarming, most Americans can’t afford not to work. The Council for Disability Awareness web site reports these statistics.

  • An illness or accident will keep one in five workers out of work for at least a year before the age of 65.
  • The average long-term disability absence lasts 2.5 years.
  • More than 100 million workers do not have private disability income insurance.
  • More than 50 percent of the workforce has no private pension coverage and a third have no retirement savings.
  • In 2007, the median income of households that include any working-age people with disabilities in the U.S. was $38,400.
  • Only 40 percent of adult Americans have separate emergency savings funds.

If an employee is unable to work due to an illness or accident, disability insurance provides a much-needed source of replacement income. Voluntary long-term disability insurance not only helps employees but also employers. Employers are not placed in the difficult position of deciding whether to continue paying a disabled employee’s salary.

WHAT’S HAPPENING IN SEPTEMBER

September is Healthy Aging Month.
One way to age well is to participate in regular physical activity. Physical activity can reduce the risk in adults of early death, coronary heart disease, stroke, high blood pressure, type 2 diabetes, colon and breast cancer, and depression. What’s more, it can improve thinking ability in older adults and the ability to engage in activities needed for daily living. Adults should aim for at least two and a half hours of moderate aerobic physical activity per week.

September is Baby Safety Month.
More children drown in bathtubs than anywhere else in the home, according to the U.S. Consumer Product Safety Commission. Most cases involved a child left unattended in the tub. Always remember to take your baby with you to answer the phone or the door, to get a towel or for any other reason.

September is International Self-Awareness Month.
Take some time for yourself.

DID YOU KNOW?

The two fastest-growing products in the workplace are long-term care, and cancer and critical illness. Long-term care product sales increased by 77 percent in 2001, and cancer and critical illness increased by 17 percent, according to Eastbridge Consulting Group. NISI offers long-term care products that are available through payroll deduction and can be offered to employees’ family members. For more information, contact Rhonda Peterson at 701-282-1595 or 866-392-4834.

Get an RSS feed of this newsletter XML Icon for the RSS feed
Learn more about RSS feeds