Basic Benefits Become Voluntary (and Fee Based) as Employers Deal with the Financial Crisis
by Ron E. Peck, Esq.
As you can imagine, some optional benefits are being eliminated and other benefits – once thought of as concrete – are being made voluntary. That means beneficiaries must choose whether to go without a benefit, or pay for it themselves.
As posted by Louise Esola on insurancenewsnet.com, (http://www.insurancenewsnet.com/article.asp?n=1&innID=926466439), “While laying off workers and freezing salaries is a common way that businesses facing a tough economy are trying to control costs, they also are critically evaluating the voluntary benefits they offer, experts say.” “Many companies are shifting core benefits to voluntary status… as a way for employers to eliminate or scale back their ERISA-type benefits.”
Comments