1Willis North America | June 2015

HRFocus

HR CORNERTHE NEW CALIFORNIA FAMILY RIGHTS ACT BY MARINA A. GALATRO, PHR-CA, SHRM-CP SENIOR HUMAN RESOURCES CONSULTANTWILLIS HUMAN CAPITAL PRACTICE

Effective July 1, 2015, amendments to the California Family Rights Act (CFRA) regulations are meant to clarify a number of confusing rules, improve employees’ and employers’ understanding of their rights and duties, and mirror CFRA regulations more closely to the federal FMLA. For those that have ever administered leave in California (or FMLA), this should be exciting news – it is not uncommon for employers to struggle with administering and coordinating leave laws.

Before you jump up and down with excitement and relief, let me highlight a few key changes to the new CFRA regulations.

� Requesting Leave. If an employee communicates a need for leave that would qualify under CFRA, an employer must determine whether CFRA is applicable and whether the employee seeks to take CFRA-protected leave. It is the employer’s responsibility to address situations where an employee’s request for CFRA leave is not clear.

For example, if an employee asks for vacation, paid time off, or offers to resign and informs the employer that the reason for the request is CFRA-qualifying, the employer is permitted to question the employee to determine whether CFRA leave is being sought and obtain the necessary information concerning the leave.

� Notice Requirements. Employers must respond to leave request within five business days (mirrors FMLA). Used to be 10 calendar days.

� Remote Employees. For employees who have no fixed worksite, an employee’s worksite is that which is considered his / her home base. Employers make these assignments, and therefore will have this information.

For example, if a salesperson works from home in California, but reports to and receives assignments from the corporate headquarters in New York, the New York headquarters, not employee’s home, would constitute the worksite from which there must be 50 employees within a 75-mile radius in order for the salesperson to be eligible under the CFRA.

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HR CORNERThe New California Family Rights Act �������������������������������������� 1How to Engage Employees on a Budget ������������������������������� 2Massachusetts Passes Mandatory Paid Sick Leave ����������������� 4

HEALTH OUTCOMESMaximizing Carrier Resources ������������������������������������������������� 5

LEGAL AND COMPLIANCEHIPAA Privacy Rules and Workplace Wellness Programs ��������7

IRS Announces HSA Inflation Adjustments for 2016 ������������� 9

SINCE YOU ASKEDAdjustment of 9.5% Affordability Standard �������������������������� 10

WEBCASTS �������������������������������������������������������������������� 12

CONTACTS ��������������������������������������������������������������������� 13

HUMAN CAPITAL PRACTICE

June 2015 www�willis�com

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� Reinstatement Rights. Reinstatement rights are stronger. Employees returning from CFRA leave must be reinstated to their prior position even if the employer restructured the position to accommodate the employee’s leave. In addition, if at the time of reinstatement an employee is no longer qualified for a position because of an inability to attend a course, renew a license, or satisfy another prerequisite due to his or her leave, the employee must be given “reasonable opportunity” to fulfill those conditions.

The new regulations also require the employer to determine whether an extension of leave would constitute a reasonable accommodation where the employee has a serious health condition that also constitutes a disability under the California Fair Employment and Housing Act (FEHA) and cannot return to work at the conclusion of his or her CFRA leave.

� Benefit Continuation. The new regulations expand the continuation of group health coverage during CFRA leave. The new regulations clarify that pregnant employees are entitled to the continuation of health insurance benefits for the entire duration of PDL and any CFRA-bonding time. The 12 weeks of coverage under PDL does not fulfill the benefit coverage requirement under CFRA. This means that an employee taking PDL/FMLA leave and CFRA leave for baby bonding would be entitled to 24 weeks of benefit coverage.

� Medical Documentation. The employer is not permitted to have direct access to an employee’s treating physician without written authorization. Unlike the FMLA, California employers may only contact an employee’s health care provider to authenticate or validate a medical certification.

� Changes to Forms. Certification of Health Care Provider form to include safe harbor language of the California Genetic Information Nondiscrimination Act of 2011 (CalGINA). The new regulations also revise the form provided to pregnant employees (Notice B for CFRA-covered employers).

Keep in mind that these are only a few of the changes to the new CFRA regulations. Although many of the changes simply harmonize CFRA and FMLA, employers still need to remember California’s unique leave rules. For example, FML and CFRA do not run concurrently when employee is out of work on PDL. And under the CFRA, employers many not obtain a second opinion for time off related to a covered family member’s serious health condition.

What should you do? Review the new regulations and consult with employment counsel. Employers should also review and update their CFRA policies, posters, handbooks and forms to conform to the amended regulations.

For more information on the CFRA changes, including the final text, visit the DFEH website HERE.

HOW TO ENGAGE EMPLOYEES ON A BUDGETBY LISA BEYERSENIOR COMMUNICATION CONSULTANT WILLIS HUMAN CAPITAL PRACTICE

Benefit communicators agree that even the best benefit program, when poorly communicated (or not communicated at all!), has little value. It’s true. Unfortunately, many employers spend millions on their benefit programs but fall short when it comes to educating their employees.

According to a 2014 report by Aflac1, only 9% of employees believe human resources has communicated benefit information effectively and 65% said their employers sent benefit-related information fewer than three times in a year. A survey by Benz Communications2 revealed that 64% of employers distribute information only during open enrollment.

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No wonder employees are confused, choose the same benefits year after year, and rarely take advantage of valuable benefits such as flexible spending or health savings accounts. Your employees need to be aware of the benefits you offer – and understand how to use them – to appreciate their value. A MetLife study3 reports that 50% of U.S.-based employees said benefits are the reason they will stay with their current employer.

So while it makes sense to communicate effectively and often, for some organizations, that’s easier said than done. Here are five tips to help you begin developing engaging communication materials, even if you have little time and no budget.

� Use carrier communication materials, including flyers, posters, emails and more, available on their public websites. Many have free videos available on YouTube. You can use these formatted, professionally written pieces as is or borrow content for emails and enrollment guides (attribution required) to develop your own flyers and posters. Post them in break rooms, rest rooms and entrances or consider desk drops. Email links to the videos or use them in benefit meetings.

� Don’t forget about carrier apps and cost calculators for instant access to plan and provider information and decision-making tools. iTunes and Google Play feature hundreds of free apps, including iTriage, WebMD, Health News and more.

� Access info from organizations such as the Centers for Disease Control, the American Cancer Society or the National Coalition on Business Health (which offers robust employee communication materials) to boost your benefits and wellness education.

� Take advantage of free and highly effective group and one-on-one meetings with employees. A simple PowerPoint presentation with a motivated presenter is an effective educational tool. Provide talking points to managers and supervisors so they can conduct mini-enrollment meetings with employees, if that makes more sense for your organization.

� If your employees use email at work, you’re in luck. Stick to one topic and try to condense information into two to three paragraphs. If you can invest in a graphic format for your emails, that’s even better. Educational infographics are high level, which is what employees want today, and graphically appealing which helps readers easily digest the information. (They can scroll through the information.) You’ve probably seen infographics in magazines and other

publications in the past few years – they are geared for a “sound bite” audience that doesn’t have time to read through a lot of complicated information. When sending an infographic, write active, action-oriented subject lines: Three steps you must take during open enrollment (which begins today).

PUTTING IT ALL TOGETHER Spend some time gathering information that relates to your employee population and determining key messaging you want to share, actions you want to encourage, and the results you hope to achieve. Decide how you will share information with your employees (emails, intranet, print, mail, meetings) and then determine how you will cascade your communications materials throughout the year. Communicating beyond open enrollment is more effective for motivating employees to make better choices.

It’s also important to identify your audience to understand how they might best receive your messages. We know that more mature audiences still like to hold paper in their hands and read it. However, younger people have grown up with smart phones and tablets and prefer texting to talking, and reading online instead of in a printed book or newspaper.

And it’s obvious that if you have a workforce that sits at desks and works on computers, you can use emails and videos to communicate – that’s not suitable if your employees are fabricating products, driving a truck or standing on a sales floor.

Always remember to focus on “what’s in it for me” from the employee’s perspective. They’re thinking “Why should I read that newsletter or that email? Am I getting a benefit from doing so, almost every time?” Make sure your communications deliver that benefit.

Use the right tools. If your audience likes to receive information via email, use email. If the employee’s spouse tends to make the benefit decisions, then mail materials home.

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ALWAYS REMEMBER TO FOCUS ON “WHAT’S IN IT FOR ME” FROM THE EMPLOYEE’S PER-SPECTIVE. THEY’RE THINKING “WHY SHOULD I READ THAT NEWSLETTER OR THAT EMAIL?”

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COMMUNICATION BENEFITS EMPLOYEES (AND YOU, TOO)Effective communication educates employees and promotes wellness by helping them be better health care consumers. When employees know the value of the benefits available to them, their morale and engagement increases, which serves to improve recruitment, retention or other behaviors that enhance your bottom line.

Creativity and a little planning can make a big difference in your ability to help your employees understand the complex world of benefits and how they can use them to their best advantage. The not-so-surprising bonus? Your organization benefits as well.

_______________________________________________________1 2014 Aflac Workforce Report http://workforces.aflac.com/overview.php2 Inside Benefits Communication Survey Report 20143 MetLife 2014 Employee Benefit Trends Study

MASSACHUSETTS PASSES MANDATORY PAID SICK LEAVEBY DANIEL MARGOLIS, MBA, PHR, SHRM-CP SENIOR HUMAN RESOURCES CONSULTANTWILLIS HUMAN CAPITAL PRACTICE

On November 4, 2014, Massachusetts voters approved a law that guarantees all employees the right to earn and use up to 40 hours of sick time in a calendar year, making Massachusetts the third state, (Connecticut and California are the others) to do so. The new law, effective July 1, 2015, applies to employers with 11 or more employees. Those working for employers with 10 or fewer employees also accrue and use sick leave, although it can be unpaid. Draft regulations have been issued and the attorney general of Massachusetts, Maura Healey, is hosting public hearings in May and June leading up to the effective date of the new law. Business leaders, employers and employees are encouraged to attend and participate in the hearings. What do we know for sure?

� All employees working in Massachusetts and elsewhere count towards the threshold of 11 or more employees. � Massachusetts must be considered an employee’s “primary place of employment,” meaning that they spend more

time working in Massachusetts than elsewhere, for an employee to be covered under the law. � The employer can define what it considers a “calendar year.” It just needs to be a consecutive 12 months and

consistent to all employees. � An employer is not required to provide additional sick days under the Act if it has a paid leave policy or paid time

off policy that provides paid time off for the same purpose of the Act and under the same conditions.

� Employers are required to track the accrual and use of earned sick time.

� The attorney general has granted a limited exemption for employers who currently offer at least 30 hours of job-protected paid time off. The exemption will be effective from 07/01/2015 to 12/31/2015.

� This exemption only extends through the end of the year. Effective January 1, 2016 all employers must ensure that their respective sick, PTO and/or vacation policies fully comply with all provisions of the law.

The hearings over the next few months could result in changes to the final regulations. We therefore recommend that employers keep an eye out for any changes. For a more detailed summary of the new law, including all of its requirements, please click HERE.

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HEALTH OUTCOMESMAXIMIZING CARRIER RESOURCESBY: MEGAN SOWAHEALTH OUTCOMES CONSULTANTWILLIS HUMAN CAPITAL PRACTICE

Are you aware of all the resources and services your carrier partners can offer, in most cases, free?

In the 2014 Willis Health and Productivity Survey, 53% of employers reported that their organization was very effective/effective at leveraging their health insurance carriers to drive health and productivity. The remaining respondents reported they are somewhat effective or not at all effective.1

Exhibit 1 on the next page illustrates the extent to which Willis clients are taking advantage of their medical carriers’ services. How does your company compare?

Most, if not all insurance carriers, are offering wellness tools and resources that help promote health improvement. Knowledge of carrier offerings can help you begin a workplace wellness program or supplement your existing initiatives for little to no additional cost!

Here are a few ideas to make sure you are fully aware of the tools and resources you may already have access to that can enhance your wellness initiatives:

1. Analyze and understand your medical and pharmacy utilization reports to identify your most prevalent conditions and gaps in care so you can offer appropriate programs to your organization.

2. Think beyond your medical carrier – Dental, vision, 401k and disability carriers generally have educational resources that tie into your health and wellness initiatives.

3. Remember your EAP – Employee assistance programs offer a catalog of free information and online resources for employees. Onsite hours may also be part of your contract and used for educational seminars.

4. Request and review annual utilization reports from all carriers for all services – Employers should be aware of which services are being used by employees and which are not. Those not used should be modified or discontinued, especially if you are paying for something that is not used. Reinvest the funds in other programs.

5. Schedule an annual “check in” outside of your utilization meeting so you can focus completely on your carrier’s programs and any recent updates; combining with other priorities often leaves too little time for a full overview.

Before rolling out a carrier program or resources, make sure you know how employees feel about that carrier. If employees don’t trust their insurer they may not be willing to participate in programs or pay attention to information from them. The same holds true for any program an employer offers. Assessing employee attitudes can provide valuable insight to your population and help you implement effective and engaging programs.

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Ongoing evaluation is also a key to maximizing your carrier resources. Plan how you will measure any initiative before it is implemented so you can track its effectiveness and modify as needed. Great resources to help you develop evaluations can be found on the Centers for Disease Control’s website.2 Other options include your carrier reports. Carriers can often track communication efforts, member calls and program participation (online, telephonic or in-person). Reports showing member interactions with specific carrier tools and resources can provide useful data for employers looking to expand or enhance offerings.

Exhibit 1

Source: 2014 Willis Health and Productivity Survey __________________________________________________1 2014 Willis Health and Productivity Survey2 Centers for Disease Control and Prevention: Workplace Health Promotion

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LEGAL AND COMPLIANCEHIPAA PRIVACY RULES AND WORKPLACE WELLNESS PROGRAMSRecently issued FAQs from the Department of Health and Human Services (HHS) are a helpful reminder about the application of the Health Insurance Portability and Accountability Act (HIPAA), specifically the privacy and security rules, to certain workplace wellness programs.

BACKGROUNDHIPAA’s privacy and security rules apply directly to covered entities (and to the business associates of such entities). Covered entities are defined as (a) health plans, (b) health care clearinghouses, (c) health care providers that conduct certain types of transactions in electronic form, and (d) endorsed sponsors of the Medicare prescription drug discount card. The HIPAA privacy and security rules apply to the workplace wellness program if it is a group health plan or part of a group health plan. HIPAA does not apply to the employer acting in its capacity as an employer.

For HIPAA purposes, a health plan is an individual plan or a group plan that provides (or pays the cost of ) medical care. This definition includes virtually all arrangements that pay the cost of medical care. HIPAA regulations define “group health plan” as an employee welfare benefit plan under the Employee Retirement Income Security Act (ERISA), including insured and self-insured plans, to the extent that the plan provides medical care to employees or their dependents, directly or through insurance, reimbursement, or otherwise; if the plan (a) has 50 or more participants; or (b) is administered by an entity other than the employer. See 45 CFR §160.103.

Under ERISA, an employee welfare benefit plan includes “any plan, fund or program…established or maintained by an employer…to the extent that such plan, fund or program was established or is maintained for the purpose of providing for its participants or their beneficiaries, through the purchase of insurance or otherwise…medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, [or] disability.” See 29 U.S. Code § 1002.

The definition of “medical care,” as used in the health plan and group health plan definitions, refers to Public Health Service Act §2791(a)(2), 42 U.S.C. 300gg-91(a)(2), which provides that medical care means amounts paid for:

� The diagnosis, cure, mitigation, treatment, or prevention of disease, or amounts paid for the purpose of affecting any structure or function of the body

� Transportation primarily for and essential to medical care referred to in the first bullet point

� Insurance covering medical care referred to in the first and second bullet points

As a result of this broad definition, a wide range of employee benefit plans, including medical and hospitalization plans, dental plans, vision plans, health flexible spending arrangements (health FSAs), health reimbursement arrangements (HRAs), and employee assistance plans, provide medical care and are health plans subject to HIPAA. Not all employee welfare benefit plans, however, will be covered health plans under HIPAA’s privacy and security rules. For example, some ERISA plans – such as those providing life insurance or long- or short-term disability – do not provide medical care and thus would not be health plans under the HIPAA privacy and security rules.

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RECENTLY ISSUED FAQS FROM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) ARE A HELPFUL REMINDER ABOUT THE APPLICATION OF THE HEALTH INSURANCE PORTABILITY AND ACCOUNTABILITY ACT (HIPAA)

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FAQSWorkplace wellness programs can take a variety of forms. How they are structured and what benefits they offer will determine whether they are group health plans and subject to HIPAA. For example, some employers offer incentives or rewards related to group health plan benefits, such as reductions in premiums or cost-sharing amounts, in exchange for participation in a wellness program. Other programs may be completely unrelated to the group health plan or do not offer services that would deem them group health plans. For example, a program that provides employees-only information (i.e., brochures and other materials describing the benefits of exercise, proper diet and not smoking) is not likely to be a health plan.

HHS’ first FAQ confirms that if the wellness program is offered as part of a group health plan, the individually identifiable health information (IIHI) collected from or created about participants in the wellness program is protected health information (PHI) and covered by the HIPAA privacy rules. A group health plan sponsored by the employer is a covered entity under HIPAA, and HIPAA protects the IIHI held by the group health plan (or its business associates). While the HIPAA privacy and security rules do not directly apply to the employer, they do protect PHI that is held by the employer as plan sponsor on the plan’s behalf when the plan sponsor is administering aspects of the plan, including wellness program benefits offered through the plan. The FAQ reminds employers that even if the wellness program is not part of a group health plan (and is not subject to the HIPAA rules), other federal or state laws may apply.

The second FAQ addresses the protections available to wellness program participants under the HIPAA rules in regard to employer access to health information. The FAQ states that HIPAA puts restrictions on the circumstances under which a group health plan may allow an employer as plan sponsor access to PHI without an individual’s written authorization. Often, the employer as plan sponsor will be involved in administering certain aspects of the group health plan, which may include administering wellness program benefits offered through the plan. Where this is the case, and absent written authorization from the individual to disclose the information, the group health plan may provide the employer, as plan sponsor, with access to the PHI necessary to perform its plan administration functions, but only if the employer as plan sponsor amends the plan documents for the group health plan and certifies to the group health plan that it agrees to, among other things:

� Establish adequate separation between employees who perform plan administration functions and those who do not

� Not use or disclose PHI for employment-related actions or other purposes not permitted by the privacy rule

� Where electronic PHI is involved, implement reasonable and appropriate administrative, technical, and physical safeguards to protect the information, including by ensuring that there are firewalls or other security measures in place to support the required separation between plan administration and employment functions

� Report to the group health plan any unauthorized use or disclosure, or other security incident, of which it becomes aware

See 45 CFR 164.314(b) and 164.504(f )(1)(i) and (f )(2).

Further, where a group health plan has knowledge of a breach of unsecured PHI at the plan sponsor (i.e., an unauthorized use or disclosure that compromises the privacy or security of the PHI), the group health plan, as a covered entity under the HIPAA privacy rules, must notify the affected individuals, HHS, and if applicable, the media, of the breach, in accordance with the requirements of HIPAA’s breach notification rule.

Where the employer as plan sponsor does not perform plan administration functions on behalf of the group health plan, access to PHI by the plan sponsor without the written authorization of the individual is much more restricted. In these cases, the privacy rule generally would permit the group health plan to disclose to the

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plan sponsor only: (1) information on which individuals are participating in the group health plan or enrolled in the health insurance issuer or HMO offered by the plan, and/or (2) summary health information if requested for purposes of modifying the plan or obtaining premium bids for coverage under the plan.

IRS ANNOUNCES HSA INFLATION ADJUSTMENTS FOR 2016 On May 4, 2015, the IRS announced the health savings account (HSA) inflation adjustments for 2016. By law, the IRS must publish the annual inflation adjustments relating to HSAs no later than June 1 for the following calendar year. This chart summarizes the changes for 2016.

CALENDAR YEAR 2016 CALENDAR YEAR 2015

SELF-ONLY FAMILY SELF-ONLY FAMILY

ANNUAL CONTRIBUTION LIMIT $3,350 $6,750 $3,350 $6,650

HDHP MINIMUM ANNUAL DEDUCTIBLE

$1,300 $2,600 $1,300 $2,600

HDHP MAXIMUM

OUT-OF-POCKET LIMIT $6,550 $13,100 $6,450 $12,900

CATCH-UP CONTRIBUTION $1,000 $1,000

The Annual Contribution Limit is the maximum amount of tax-favored contributions that can be made to an individual’s HSA for a calendar year. Contributions from all sources are aggregated when determining whether the limit is met. An individual may incur excise taxes on excess contributions. Catch-Up Contributions increase the Annual Contribution Limit for individuals 55 or older. The Catch-Up Contributions Limit is not inflation-adjusted. When enacted, the limit was set at $500 for 2004, with $100 annual increases. In 2009, it reached the current $1,000 maximum.

The HDHP Minimum Annual Deductible and Maximum Out-of-Pocket Limit refer to features that a health plan must have in order to qualify as an HDHP. Coverage under an HDHP is one of the conditions that an individual must meet in order to be eligible for tax-favored HSA contributions. The limits on these items are also inflation-indexed, with the potential to change each year. Employers that maintain HDHPs need to know these adjustments so they can make any changes needed for their plans to remain HDHPs.

The IRS announces the adjustments for HSAs much earlier in the year than it announces the adjustments for other types of benefit programs. (Inflation adjustments for most plans usually are announced in October or November. A chart of those limits appears in the Willis Health and Welfare Calendar, available from your Willis representative.)

The earlier timing of the announcement for HSAs is mandated by legislation that Congress passed at the end of 2006 (see Willis’s Employee Benefits Alert, Issue 91, “Health Savings Account Legislation Makes HSAs More Flexible”). The legislation revised the provisions governing HSAs so that the IRS now must publish the annual adjustments no later than June 1 for the following calendar year.

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SINCE YOU ASKEDADJUSTMENT OF 9.5% AFFORDABILITY STANDARDRecently the National Legal & Research Group (NLRG) was asked whether the IRS increase of the affordability standard from 9.5% to 9.56% applies to the affordability safe harbors under the Patient Protection and Affordability Care Act (PPACA) pay or play rules. Based on the IRS guidance to date, for now it appears that the increase to 9.56% only applies to the general household income standard and not to the safe harbors, as discussed more fully below.

BACKGROUNDIn order to avoid the Internal Revenue Code Section 4980H(b) “drop-off” penalty ($3,000 annually – $250 per month – [as indexed for 2015 and later years] for each full-time employee for whom the employer receives a certification of premium assistance or cost-sharing reduction), the PPACA statute states that employer-sponsored minimum essential coverage must be, among other things, affordable. Under that law, an employer’s health coverage is considered affordable if an employee’s required contribution does not exceed 9.5% of the employee’s “household income.” The statute defines “household income” as the modified adjusted gross income of the taxpayer and the members of the taxpayer’s family. “Modified adjusted gross income” is defined as adjusted gross income plus certain types of income that would otherwise be excluded from the taxpayer’s income (i.e., foreign-earned income and housing costs, tax exempt interest, and the excludable portion of the taxpayer’s Social Security income).

The IRS did not address the household income standard in its pay or play regulations. Instead, it established a choice of three safe harbors that employers could use to demonstrate compliance with the affordability standard, all of which limit the determination of affordability to employee self-only coverage. Those safe harbor affordability standards include the Form W-2 safe harbor (based on the employee’s W-2, Box 1 reported wages for that year), the rate of pay safe harbor (based on an employee’s hourly rate times 130 hours per calendar month), and

the federal poverty line safe harbor (based on the annual federal poverty line for a single individual divided by 12). The final pay or play regulations state that each of those standards is applied by multiplying the applicable wage amount by 9.5%. Additional information about the affordability safe harbors can be found in Willis’s Human Capital Practice Alert, June 2014, “Employer Pay or Play Mandate - Final Regulations Explained.”

ADJUSTMENT OF 9.5% FACTOR UNDER THE HOUSEHOLD INCOME STANDARDThe provision in the PPACA statute that established 9.5% of an employee’s household income as the general affordability standard also provided for indexing of that standard beginning in 2015. Indexing of that 9.5% standard is done in the same manner as for the indexing of the percentages used to calculate the amount of premium subsidy payable to a taxpayer who qualifies for a subsidy in connection with the purchase of coverage on the public health insurance exchanges.

In Revenue Procedure 2014-37 issued July 25, 2014, the IRS announced the first adjustment to the household income affordability standard by increasing 9.5% to 9.56%, effective in 2015. Subsequently on November 21, 2014, the IRS announced in Revenue Procedure 2014-62 that the household income affordability standard would increase to 9.66%, effective in 2016.

...FOR NOW IT APPEARS THAT THE INCREASE TO 9.56% ONLY APPLIES TO THE GENERAL HOUSEHOLD INCOME STANDARD AND NOT TO THE SAFE HARBORS...

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9.56%

None of the above changes is applicable to the 9.5% standard used in connection with the safe harbor affordability standards, since all of those safe harbors are established by IRS regulations, and those regulations do not provide for indexing. Because indexing is “hard-wired” into the statutory provision governing the household income standard, that original household income 9.5% factor will continue to adjust, while the safe harbor 9.5% factor remains fixed in place under the IRS regulations – at least until the IRS amends those regulations to adjust that safe harbor factor.

The continuing adjustments in the household income factor provide employers with an opportunity to consider using the household income standard to determine affordability under pay or play, since the increases provide employers with more flexibility in shifting the cost of coverage to employees. Note, however, that the IRS has not provided any guidance on how to meet the household income standard other than through one of the safe harbor standards. Moreover, the PPACA health coverage reporting forms and instructions published to date only address the three safe harbors, and it is unclear how an employer would report compliance with the pay or play affordability requirement based on the household income standard.

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Each of the above programs has been approved for 1 recertification hour toward PHR, SPHR and GPHR recertification through the Human Resource Certification Institute (HRCI). For more information about certification or recertification, please visit the HRCI homepage at www.hrci.org.

WEBCASTS

PTO STRATEGIES: HOW TO BALANCE COST AND CULTURE WITH A PAID TIME OFF POOLTUESDAY, JULY 21, 2015 2 PM EASTERN

Presented by: Marina Galatro Senior Human Resources Consultant HR Partner Consulting, Human Capital Practice

Debbi Davidson, Practice Leader HR Partner Consulting Human Capital Practice

With emphasis on work/life balance and flexibility, the use of Paid Time Off (PTO) pools has increased. PTO programs can control costs, reduce unscheduled absences and improve morale, as well as simplify administration, tracking, and communication. Despite the benefits, however, many organizations struggle to transition to a PTO program, especially when integrating multiple programs (such as traditional vacation and sick leave) into a single plan. Determining policy decisions and calculating financial implications can create headaches.

This interactive session will address common concerns and show participants how to analyze cost impact under different scenarios. We’ll consider:

� Prevalence and trends in PTO design, including a review of the types of leave typically implemented, and key advantages and disadvantages of PTO pools

� Strategic policy design considerations, such as eligibility, accrual factors and amounts, scheduling, year-end options (including carryover, caps, cash-out, etc.), and payout at termination

During this session, participants will learn how to transition to a pooled paid time off program, using:

� Modeling cost impact — A review based on key policy design features, taking into account the cost of sick leave and unscheduled absences

� Planning for communication and implementation

To RSVP, click here.

NOTE: Advance RSVP is required to participate in this call. Registration ends 1 hour prior to the call start time.

HOW TO USE DATA ANALYTICS TO GUIDE HEALTH CARE REFORM COMPLIANCETUESDAY, JUNE 16, 2015 2 PM EASTERN

Presented by: Jill Spiker Senior Consultant Reporting & Analytics Consulting Human Capital Practice

Tara Silver-Malyska, JD, MBA, FLMI Senior Principal – Employee Benefits Attorney National Legal & Research Group Willis Human Capital Practice

It’s time. After countless regulatory specifications, clarifications and delays, the PPACA (The Affordable Care Act), with all its compliance mandates, must be addressed.

Are you ready to evaluate and document the eligibility of your part-time and seasonal workers? Do you know which measurement method would benefit your organization the most? What tools will you use to ensure good faith compliance as well as operational efficiency?

If that all seems too overwhelming to contemplate, never fear — because data analytics can show you the way!

During this session participants will learn: � Which tools are available to help you comply with

PPACA — and how to make the most of them � How data analytics can help guide you toward the

best methods for defining eligibility � How to best meet the continuing impact of Health

Reform on your Human Capital strategy—and the business results it could bring

To RSVP, click here.

NOTE: Advance RSVP is required to participate in this call. Registration ends 1 hour prior to the call start time.

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NEW ENGLAND

Auburn, ME207 783 2211

Bangor, ME207 942 4671

Boston, MA617 437 6900

Burlington, VT802 264 9536

Hartford, CT860 756 7365

Manchester, NH603 627 9583

Portland, ME207 553 2131

Shelton, CT203 924 2994

NORTHEAST

Buffalo, NY716 856 1100

Morristown, NJ973 539 1923

Mt. Laurel, NJ856 914 4600

New York, NY212 915 8802

Stamford, CT203 653 2430

Radnor, PA610 254 7289

Wilmington, DE302 397 0171

ATLANTIC

Baltimore, MD410 584 7528

Knoxville, TN865 588 8101

Memphis, TN901 248 3103

Metro, DC301 581 4262

Nashville, TN615 872 3716

Norfolk, VA757 628 2303

Reston, VA703 435 7078

Richmond, VA804 527 2343

Rockville, MD301 692 3025

SOUTHEAST

Atlanta, GA404 224 5000

Birmingham, AL205 871 3300

Charlotte, NC704 344 4856

Gainesville, FL352 378 2511

Greenville, SC864 232 9999

Jacksonville, FL904 562 5552

Marietta, GA770 425 6700

Miami, FL305 421 6208

Mobile, AL251 544 0212

Orlando, FL407 562 2493

Raleigh, NC704 344 4856

Savannah, GA912 239 9047

Tallahassee, FL850 385 3636

Tampa, FL813 281 2095

Vero Beach, FL772 469 2843

MIDWEST

Appleton, WI800 236 3311

Chicago, IL312 288 7700

Cleveland, OH216 861 9100

Columbus, OH614 326 4722

Detroit, MI248 539 6600

Grand Rapids, MI616 957 2020

U.S. HUMAN CAPITAL PRACTICE OFFICE LOCATIONS

KEY CONTACTS

Willis North America | June 201514

Milwaukee, WI262 780 3476

Minneapolis, MN763 302 7131763 302 7209

Moline, IL309 764 9666

Overland Park, KS 913 339 0800

Pittsburgh, PA412 645 8506

Schaumburg, IL847 517 3469

SOUTH CENTRAL

Amarillo, TX806 376 4761

Austin, TX512 651 1660

Dallas, TX972 715 2194972 715 6272

Denver, CO303 765 1564303 773 1373

Houston, TX713 625 1017713 625 1082

McAllen, TX956 682 9423

Mills, WY307 266 6568

New Orleans, LA504 581 6151

Oklahoma City, OK 405 232 0651

San Antonio, TX210 979 7470

Wichita, KS316 263 3211

WESTERN

Fresno, CA559 256 6212

Irvine, CA949 885 1200

Las Vegas, NV602 787 6235602 787 6078

Los Angeles, CA213 607 6300

Phoenix, AZ602 787 6235602 787 6078

Portland, OR503 274 6224

Irvine, CA949 885 1200

San Diego, CA858 678 2000858 678 2132

San Francisco, CA415 291 1567

San Jose, CA408 436 7000

Seattle, WA800 456 1415

14178/06/15

The information contained in this publication is not intended to represent legal or tax advice and has been prepared solely for educational purposes. You may wish to consult your attorney or tax adviser regarding issues raised in this publication.