Benefits Administration is the process and one of the important roles of the human resources department to create and manage benefits packages for employees. Benefits can be internal, such as discounts or free company goods and services, or external benefits like health insurance, house insurance, and fitness plans.
The benefits administration programs management typically encompasses the benefits included as per the employee benefits package. Under such packages, the benefits offered are such as health insurance, disability, life insurance, individual employees’ retirement account, 401 (k), Flexi spending accounts, wellness plans, vacation leave, paid time off, sick leave, parental leave, etc.
The Benefits Administrator manages benefits admin and is considered an important part of your HR department. The role of the benefits administrator in your organization is: “managing employee benefits”. In the benefits administration process, the duties of a benefits administrator are as per mentioned below, but are not limited to:
It refers to the process of identifying and handling the perks and advantages provided to workers. Workers' eligibility for benefits such as medical, disability, pension plans, holidays, paid time off, sick leave, maternity, and paternity leaves, is normally determined by the benefits administration system. Several companies use it as a strategic advantage in attracting, recruiting, and retention of talented employees, and also reducing operational expenses.
If a company provides a good package and benefits to its employees than competitors, the employees get attracted to remain with the organization and they rarely think of switching their job. Moreover, it also creates a good image of the company in the industry.
Following are the advantages of employee benefits to employees:
Following are the advantages of employee benefits to the employers:
Being an employer, you should take care of the following things for managing the benefits administration or effective benefits administration:
Your benefits administration program operating staff should know the following area domains for running the said program successfully:
Rules and regulations governing the benefits admin (Medicare, social security, retirement, etc.); to have the updated knowledge of government regulations on such programs.
R&D skills are a necessary prerequisite for such programs for knowing what is happening in the industry - where, how, why, and when… (W’s of the business world).
High-tech advancements are known for developmental purposes and usage of the software etc.
Other skills such as communication skills, negotiation abilities (with vendors like insurance, etc.); and teamwork, your employees should be well versed in the said.
Nevertheless, your employees operating the benefits administration program must have an idea of your employees’ very needs so that to possibly match the benefits accordingly. Be reminded that the benefits administration is one of the key tools for competent worker retention (say, HR Retention).
The Employee Benefits Security Administration (EBSA) was established in 1970.
[Ref. U.S. Department of Labor. "U.S. Department of Labor Restores Over $3.1 Billion to Employee Benefit Plans, Participants, and Beneficiaries, the Most Ever.]
The EBSA responsibilities include as appended below:
To wrap up, the EBSA works as the watchdog for plan managers to ensure the security of funds of the US workers’ retirement plans.
The organizational structure of the Employee Benefits Security Administration (EBSA) consists of dozens of its regional as well as district field offices across the United States.
These offices administer and manage investigations into the ERISA violations, handle the concerns of the public, and deal with the questions of pension plan administrators.
EBSA has networking of eight program offices:
The office deals in the processing of the requests for exemptions from ERISA prohibition transaction provision.
This office of EBSA administers the EBSA enforcement programs.
The office manages the provision of regulations and rules interpretation guidance about health-related plans. Moreover, it also educates and provides technical support to government agencies and the persons dealing with the health plan.
EBSA’s this office conducts EBSA regulation agenda and rules interpretation help. The office devises and carries out the analysis and ensures the implementation of pension and healthcare policy matters by the provision of assistance and technical support to the stakeholders.
This office has three works to do as its name suggests. First, it educates the plan managers and staff to provide answers to the stakeholders. Second, it supports and assists regional offices. And the third, it works on the outreach procedural code of conduct and policies.
The office of the chief accountant issues annual reports and audit requirements for the employee benefits plans. This office also deals in the issuance of the civil penalties against the plan administrators whose annual report is rejected.
This office of the EBSA: Tech and Info-service delivers computer-based services and support to EBSA staff nationwide.
The office of EBSA administers advisory and looks after the EBSA Policy. It plans, programs, manages, and evaluates the EBSA Policy. This also works upon the strategic planning, financial management, budgeting, HR, and admin programs.
We at WebHR do take care of our clientele and readers, therefore for the betterment of strategies and the recommendations for enhancing employee benefits administration, you should apply the following suggestions: