PLANSPONSOR - June/July 2019 - 6

Survey Says
Can
Voluntary
Benefits
Help With
Financial
Wellness?
M
ore employers are bolstering
benefits programs to help their
workers build a stable financial
future. We asked our readers, " What voluntary
benefits do you offer, and do you
consider these a way to help your employees
with financial wellness? "
Nearly all responding readers'
companies (94.9%) offer life insurance;
a large majority offer accidental death
and dismemberment (AD&D) insurance
(89.7%) and short- and/or long-term
disability benefits (84.6%). Less common
offerings are legal assistance (30.8%), a
discount shopping program (25.6%), longterm
care insurance (23.1%), pet insurance
(20.5%) and automobile insurance (17.9%).
Other voluntary benefits that respondents
reported their company offers
include dental and vision plans, critical
illness and hospital indemnity insurance,
identity theft protection, employee
assistance programs (EAPs) and flexible
spending accounts (FSAs).
Seven in 10 responding readers
(71.8%) consider voluntary benefits a way
to help employees with financial wellness,
while 28.2% do not.
In comments left by readers, there
was a split between those who said voluntary
benefits are a good thing and those
6 PLANSPONSOR.com June - July 2019
who disagreed. Respondents pointed
out considerations for offering voluntary
benefits that plan sponsors may have
overlooked. Some said employees would
be better off building an emergency
savings fund.
As always, all verbatim responses
reflect the opinions of individual readers
and not the stance of PLANSPONSOR or
its affiliates at Institutional Shareholder
Services (ISS).
" The higher paid the employee, the
better these programs tend to work. For [the]
lower paid, it is much more difficult. "
" Some employers offer voluntary benefits
thinking those qualify for the ERISA
[Employee Retirement Income Security Act]
safe harbor, but they also want employees to
give them credit for providing a benefit. So,
the employer ends up endorsing the voluntary
benefit, inadvertently taking themselves
outside the safe harbor. "
" Most people over-insure. Their financial
fitness would be enhanced if they diverted
money from these high-commission products
to an emergency fund and long-term savings. "
" We view our voluntary benefit plans
as added flexibility and options for our
employees to make choices for their own
needs. We view them as a part of our financial
wellness package in the sense that they
Art by Jessie Hartland
help to fulfill some financial gaps employees
may have for their current and future needs. "
" The voluntary benefits we offer-life
insurance and AD&D insurance-are 100%
paid for by our company. "
" If structured properly, employee benefit
packages can not only increase the financial
wellness but provide crucial health benefits,
as well-such as an EAP and on-call nurse. "
" It's an added bonus to our employees.
We are a very small company, and this type
of benefit helps us to offer something more. "
" Voluntary benefits are a hassle and
a waste of time. Most of these products are
available on the open market. Where is it
written that employers have to offer every
program under the sun? "
" We find that the lowest-paid employees
tend to sign up for any benefits offered, even
if they cannot afford to pay for them. "
" Most employees would not otherwise
purchase life insurance or short-term
disability on their own.
And the Editor's Choice goes to the
reader who said: " Providing employees
the tools to change their behavior and
improve their financial well-being can be
more effective. " -Rebecca Moore
You can participate by subscribing to
NewsDash at plansponsor.com/subscribe.
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PLANSPONSOR - June/July 2019

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