WTW launches flexible benefits service to help employers boost workforce financial health

Rhea-AI Summary

WTW (NASDAQ: WTW) has launched a groundbreaking flexible benefits service that allows employees to allocate employer contributions across various financial benefits. This innovative program, following an IRS Private Letter Ruling, enables participants to direct funds to Defined Contribution (DC) plans, student loan repayments, retiree health reimbursement arrangements (HRA), and health savings accounts (HSA).

The solution addresses diverse financial concerns of employees, offering more choice and flexibility. WTW's DC Strategy team supports employers in implementing this program, focusing on feasibility, cost implications, vendor alignment, and regulatory compliance. The launch comes as WTW's 2024 Global Benefits Attitudes Survey reveals that 77% of employees with benefits choice feel their needs are met, compared to only 37% without choice.

This flexible contribution approach aims to support employee financial wellbeing, addressing concerns highlighted in the survey where 90% of workers struggle with basic living costs. The program is designed to be incorporated into existing benefits programs, offering a competitive advantage for employers in attracting and retaining talent.

Breakthrough program allows employees to address a range of financial worries

NEW YORK, Sept. 12, 2024 (GLOBE NEWSWIRE) -- WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company, today announced the launch of a groundbreaking new solution that provides employees with expanded choice and flexibility in allocating employer contributions among various financial benefits. The launch of the solution follows a recent IRS Private Letter Ruling.

Under the approved flexible contribution program, for the first time, the requesting sponsor’s Defined Contribution (DC) plan participants can direct employer DC contributions across the DC plan, non-taxable student loan repayments, retiree health reimbursement arrangements (HRA), and health savings accounts (HSA). This is one possible example of the expanding choice and flexibility that employers may be interested in providing employees.

“Many employers have been interested in providing employees with robust choice and flexibility for a long time, but the legal, compliance, tax and administrative challenges associated with an “employee choice” program have been hard to overcome, until now,” said Chris West, DC strategy leader at WTW. “This innovative program allows plan sponsors to more effectively respond to the diverse financial worries of employees by letting individuals direct employer dollars where they need them the most.”

WTW’s DC Strategy team supports employers with developing their unique approach to the flexible contribution DC design, advising on feasibility, cost implications, alignment of vendors and regulatory and compliance requirements. Importantly, they also focus on an effective delivery to employees, including communications and employee choice election administration to ensure a seamless experience.

This solution comes at a time when many employees are craving more benefits choice and flexibility. In fact, WTW’s 2024 Global Benefits Attitudes Survey found more than three in four employees who have choice in their benefits indicate the benefits program meets their needs compared with just 37% of employees who don’t have a choice in benefits.

Moreover, WTW believes this solution can help support employee financial wellbeing. According to the Global Benefits Attitudes Survey, nearly nine in 10 workers are struggling to meet basic living costs while four in 10 are not on the right track with respect to their finances. The program helps individuals and families address financial priorities by allowing employees to allocate dollars where they need them the most.

“We are excited about the value this new approach can provide to employers, employees and their families. For employers, moving away from “one size” benefits can open a competitive advantage in their ongoing battle to attract and retain talented workers. For employees, it gives options on how best to use employer dollars based on their needs and life stage, including paying down student loans. Best of all, the program can be incorporated in a plan sponsor’s existing benefits programs. It’s a win-win-win proposition,” said West.

WTW served as a strategic advisor to the company that requested the groundbreaking IRS ruling and assisted with developing the plan design, aligning the plan’s options with their employees’ needs and addressing the regulatory requirements.

About WTW

At WTW (NASDAQ: WTW), we provide data-driven, insight-led solutions in the areas of people, risk and capital. Leveraging the global view and local expertise of our colleagues serving 140 countries and markets, we help organizations sharpen their strategy, enhance organizational resilience, motivate their workforce and maximize performance.

Working shoulder to shoulder with our clients, we uncover opportunities for sustainable success—and provide perspective that moves you. Learn more at wtwco.com.

Media contacts

Ed Emerman: +1 609 240 2766
eemerman@eaglepr.com

Ileana Feoli: +1 212 309 5504
ileana.feoli@wtwco.com

FAQ

What new benefits service has WTW (WTW) launched in September 2024?

WTW has launched a flexible benefits service that allows employees to allocate employer contributions across various financial benefits, including DC plans, student loan repayments, retiree health reimbursement arrangements, and health savings accounts.

How does WTW's new flexible benefits program help employees?

The program helps employees address diverse financial concerns by allowing them to direct employer contributions to where they need them most, such as retirement savings, student loan repayments, or health-related accounts.

What percentage of employees feel their needs are met with choice in benefits, according to WTW's 2024 survey?

According to WTW's 2024 Global Benefits Attitudes Survey, more than 75% of employees who have choice in their benefits indicate that the benefits program meets their needs.

How many workers are struggling to meet basic living costs, as per WTW's 2024 survey?

WTW's 2024 Global Benefits Attitudes Survey found that nearly 90% of workers are struggling to meet basic living costs.

What role did WTW play in obtaining the IRS ruling for the flexible benefits program?

WTW served as a strategic advisor to the company that requested the IRS ruling and assisted with developing the plan design, aligning options with employee needs, and addressing regulatory requirements.