Forced meeting on company time

[wsp]

Client is complaining to us, their accountants, about their insurance broker who is stating that all employees who are eligible for the plan (not sure what type it is other than provider who shall remain nameless) are obligated to meet with her and it must be done on company time. Broker is citing "IRS Rules"....

This is new to me...forced attendance on company time? Is she right?

[Guest Pensions in Paradise]

Haha, this is a good one. I've never seen an IRS or DOL regulation which requires the company to allow employees to meet with a broker on company time. Ask the broker to provide a cite to the IRS "rule".

Sounds like the broker is trying to get creative to find a way to meet with the employees during the workday. Instead of scheduling meetings before or after work.

[QDROphile]

So what does this do to the broker's credibility on other matters?

[david rigby]

... broker's credibility...

There's a good phrase.

[GBurns]

Aside from any possible IRS or DoL rules, does it not depend on what the Employer Agreement, the PD, the Cafeteria Plan PD, the Employee Handbook and if applicable the CBA says? I also wonder about any state laws related to either health plan enrollment and/or salary deductions.

What happens if it is stated that the employee is given time or time off for such matters?

What happens if an in person selection of coverage and signing of the SRA is stated?

If being done through a section 125 cafeteria plan, How do you plan to make it avaialble for the employees to make a choice and an election?

Since the employee's SS is affected, shouldn't the employee be entitled to an explanation of the possible impact ? Even more so if if there is a 401(k) etc involved?

If a 401(k) etc is also involved, Is there any provision for explanation of rules, selection of investment etc?

How can any of these be handled without meeting with the employees?

In any case all the employer agreements that I have seen state that the employer will give adequate access to the employees by the enrollers.

In 20 years I have only seen 1 employer who objected to such meetings and that was only for 1 particular voluntary product. Even then the objection came from the subsidiary HR Director and was overridden by Corporate. What is the big deal?

The broker probably misspoke regarding "IRS rules" because she never ran into such a situation before.

[wsp]

I've never read a PD or any other documentation that dictates when and how the information would be provided to the participants. Very possible that it could be in a CBA. But everything else seems to be a "provide the information and support" or risk the fiduciary consequences of not doing so. Company doesn't disagree with the necessity of a meeting or series of meetings but requiring it to be at company expense and company time seemed to be a bit extreme.

I have one other client that doesn't allow such meetings on company time but provides the brokers with a private room and allows all participants to meet before and after their regular shifts. They also pay the provider for such meetings outside of the contract realizing that they are requiring said person to be there all day. But for them it's still cheaper than having their entire crew of people stop working for an hour or more.

[LRDG]

With respect to IRC Sec. 125 non-discrimination concerns and enrollment provisions, it wouldn't be inapporpriate for the broker to refer to 'IRS rules'.

Of more concern to me would be a client/employer/plan sponsor, who doesn't support the plan. The importance of benefit orientation and enrollment meetings should be fully explained, to the client/employer/plan sponsor and agreed to in writting via adoption agreements and contracts. The client as plan sponsor must have an understanding of the role employee participation plays in meeting enrollment and non-discrimination requirements. Handled properly, enrollments don't interrupt business operations, and alternatevily, can provide clients an opportunity to improve employee morale.

[leevena]

There is no federal law, state law, or IRS reg., that mandates employee meetings on company time. The only situation I can even think of is in a barganing agreement.

LRDG, I do not mean any disrespect, but you are wrong with your comment "it wouldn't be inapporpriate for the broker to refer to 'IRS rules'." Yes it would be. IRS does not require company time. As other responses have stated, employees need to be given information, support, etc., but never required at company expense.

[Demosthenes]

Looks like a blatant ploy by the broker to get in front of a lot of prospects in a captive audience setting. Flame away if you like but IMHO the insurance agent is trying to direct sell to the participants and make the employer foot the bill for the appointments.

[wsp]

With respect to IRC Sec. 125 non-discrimination concerns and enrollment provisions, it wouldn't be inapporpriate for the broker to refer to 'IRS rules'.

Of more concern to me would be a client/employer/plan sponsor, who doesn't support the plan. The importance of benefit orientation and enrollment meetings should be fully explained, to the client/employer/plan sponsor and agreed to in writting via adoption agreements and contracts. The client as plan sponsor must have an understanding of the role employee participation plays in meeting enrollment and non-discrimination requirements. Handled properly, enrollments don't interrupt business operations, and alternatevily, can provide clients an opportunity to improve employee morale.

Well here's the results: When asked to provide a source for this "IRS rules" comment, the broker backed down from that statement and essentially agreed to previous posts and posters. Client will be providing a room and providing employees the materials as well as opportunity to meet (on their own time) with broker. Since it's an entirely voluntary supplemental insurance product the client is not promoting it any more than providing appropriate explanation and space.

Demosthenes is pretty much spot on.

[leevena]

This may sound harsh, but if I were the client, I would give serious consideration to finding a new broker. He/she was ready to manipulate and decieve all for the advancement of his/her agenda, not the group or the employees.

[Guest Pensions in Paradise]

WHAT???? A broker who manipulates and deceives.... I am flabbergasted

[LRDG]

I'm not advocating or defending anyone manipulating the facts by implying there's a legal mandate requiring enrollment meetings on company time. That's not what i said in my post.

However, it is incumbent upon benefits professionals to accurately communicate non-discrimination requirements and enrollment provisions to their clients. I'd question an employer sponsoring a 125 plan with ER payroll tax savings, who is unwilling to promote/allow enrollment on company time, and the professionalism of any benefits professional willing to meet with employees 'off the clock'.

leevena, none taken.