Blog Archive • Pierce Group Benefits

Managing Holiday Stress with Employee Assistance Programs (EAPs)

The holiday season is often portrayed as a time of joy, celebration, and togetherness. However, for many employees, it can also bring financial strain, family pressures, and the challenge of balancing work with personal commitments. These factors can lead to increased stress. That’s where Employee Assistance Programs (EAPs) can help.

Why Holiday Stress Happens

Financial Pressure: Gift-giving, travel, and holiday events can strain budgets.
Time Management: Balancing work deadlines with family gatherings is tough.
Emotional Challenges: Loneliness, grief, or strained relationships often surface during the holidays.

How EAPs Can Help

EAPs are designed to support employees’ mental, emotional, and practical well-being. Here’s how they can make a difference during the holidays:

Confidential Counseling Services
- Professional counselors can help employees manage stress, anxiety, and family conflicts.
- Virtual sessions make it easy to access support from anywhere.
Financial Guidance
- Many EAPs offer financial counseling to ease holiday-related money worries.
Work-Life Balance Resources
- Tips for time management and prioritization help employees stay productive without sacrificing personal time.

The holidays should be a time of joy, not stress. By leveraging EAP resources, employees can navigate challenges with greater peace of mind.

Partnering with Pierce Group Benefits

Partnering with Pierce Group Benefits (PGB) provides access to comprehensive EAPs designed to support employees’ mental health. If you’re an employee with an EAP, you can locate your provider by visiting your custom microsite. For employers seeking more information about EAPs, contact your Pierce Group Benefits (PGB) Account Executive or reach out to a PGB representative at partnership@piercegroupbenefits.com.

IRS Announces 2026 Limits for Health FSAs and Transportation Benefits

The IRS has released its annual inflation adjustments for 2026, impacting key employee benefits such as Health Flexible Spending Accounts (FSAs) and Qualified Transportation Fringe Benefits. These updates, outlined in Revenue Procedure 2025-32, reflect increases designed to keep pace with inflation.

Health FSA Updates

For plan years beginning in 2026:

Employee Contribution Limit: Increased to $3,400, up from $3,300 in 2025.
Carryover Limit: Raised to $680 from $660, this limit lets employees roll over unused FSA funds if their plan allows it.

These limits apply to pre-tax salary reductions under the Affordable Care Act. Employers may set lower limits but cannot exceed the IRS maximum.

Qualified Transportation Fringe Benefits

Employees can now receive up to:

$340/month for commuter transit or vanpooling expenses.
$340/month for qualified parking expenses.

Both figures are up from $325/month in 2025, offering more flexibility for commuting costs.

Partnering with Pierce Group Benefits

If you have any questions about the 2026 limits for Health FSAs and Transportation Benefits, please contact your PGB Account Executive or email a PGB Representative at partnership@piercegroupbenefits.com.

HR Conversations About Benefits and Qualifying Life Events

Employees often turn to their human resources department first when they have questions about benefits, especially during major life transitions. These questions go beyond policy details; they’re connected to deeply personal moments that don’t always align with the open enrollment calendar, which is why significant events like marriage, divorce, or retirement are considered qualifying life events (QLEs). These events allow employees to make changes to their benefits outside of the official enrollment period.

QLE Benefit Conversations

If an employee asks about their benefit options due to a QLE, consider tailoring your tone and response to what’s happening in their life. These moments are often emotionally significant, and a thoughtful approach can help employees feel supported and confident as they make informed decisions that meet both their current and future benefit needs.

Here are some examples to guide those conversations:

Joyful Milestones (e.g., marriage)

“Congratulations! I know you’re excited for the big day. When planning to add a spouse to your benefits, I recommend sitting down together to review the plans and ensure you’re both receiving the right amount of coverage. Once you’re officially married, you’ll have 30 days to enroll your spouse in your available benefits. You can also use this time to update your beneficiaries, if needed, and change your address if you’re moving.”

Challenging Transitions (e.g., divorce)

“I’m sorry you’re facing this right now. Let me reassure you that you’ve got options when it comes to coverage, and you don’t have to figure it all out at once. You’ll have 30 days from the date of your divorce to explore your benefit options and choose the plans that best support your needs moving forward.”

New Chapters (e.g., retirement)

“Retirement is such an exciting milestone, and you deserve to enjoy every moment of it. As you prepare for this next chapter, it’s a great time to review your benefits and plan ahead. Start by looking at which employer-sponsored coverages will end and what new options, such as Medicare, might be available. Many voluntary benefits are portable and can move with you into retirement. These can be transitioned from payroll deduction to direct billing or bank draft to help you maintain coverage seamlessly.”

Navigating benefits during major life events can be overwhelming, but HR professionals have a unique opportunity to offer clarity and compassion when it matters most.

Partnering with Pierce Group Benefits

Pierce Group Benefits (PGB) supports HR departments and benefits personnel in navigating the complexities of benefits management. We have licensed insurance professionals available year-round to support both employers and employees by answering benefits questions and providing expert guidance during open enrollment. To learn more about our teams and services, contact a PGB Representative at partnership@piercegroupbenefits.com.

Dependent Care FSA Guide

This guide will provide a comprehensive overview of a Dependent Care Flexible Spending Account (DCFSA), detailing its functionality.

What is a Dependent Care FSA?

A Dependent Care FSA is a tax-advantaged account that allows you to save pre-tax dollars specifically for dependent care expenses. These funds can generally be used to care for qualifying children under the age of 13, as well as your spouse or relatives who live with you and are physically or mentally incapable of self-care. For a comprehensive list of qualifying persons, please visit the IRS website.

Contribution Limits

For the 2025 tax year, you can contribute up to $5,000 per household ($2,500 if married and filing separately). In 2026, the limit will increase to $7,500 per household ($3,750 if married and filing separately).

Eligible Expenses

You can use Dependent Care FSA funds for:

Daycare and preschool fees
Before and after-school programs
Summer day camps
Adult daycare services

How to Enroll

You can enroll in a Dependent Care FSA during your employer’s open enrollment period, or if your employer allows, due to a Qualifying Life Event (QLE). Decide how much to contribute for the year and fill out the necessary forms.

Accessing Your Dependent Care FSA Funds

First, you pay for the dependent care services out of your own pocket. This could be for daycare, preschool, summer camps, or adult daycare services.
After you’ve paid for the services, you submit a claim to your FSA administrator. This usually involves filling out a claim form and providing proof of the expense, such as receipts or invoices.
Once your claim is approved, you will be reimbursed from your Dependent Care FSA. The reimbursement can be deposited directly into your bank account or sent to you as a check, depending on your plan’s options.

Tips for Reimbursement

Always keep copies of your receipts and claim forms for your records.
Submit your claims as soon as possible after incurring the expense to ensure timely reimbursement.
Be aware of any deadlines or specific requirements your plan may have for submitting claims.

A Dependent Care FSA can help you manage the costs of dependent care. By understanding how it works and planning your contributions, you can make the most of this benefit.

Partnering with Pierce Group Benefits

This benefit not only helps reduce the financial burden of dependent care but also supports employees in balancing their work and family responsibilities. For more information on Dependent Care FSAs, speak with your PGB Account Executive or get in touch with a PGB Representative at partnership@piercegroupbenefits.com.

IRS Announces Updated HSA and HDHP Limits for 2026

On May 1, 2025, the Internal Revenue Service (IRS) released its annual procedure outlining the adjusted limits for health savings accounts (HSAs) and high deductible health plans (HDHPS). Revenue Procedure 2015-19 introduces significant changes that will take effect on January 1, 2026, influencing healthcare expenses and benefits.

Maximum HSA Contributions Limit

The maximum HSA contribution limit will rise in 2026 to $4,400 for individuals with self-only HDHP coverage, compared to the current limit of $4,300. For those with family coverage under an HDHP, the maximum HSA contribution will increase to $8,750, up from $8,550. This adjustment allows individuals and families to allocate more funds into their HSAs, enabling them to better manage and cover their healthcare expenses.

Minimum Deductible Amount for HDHPs

In 2026, the minimum deductible amount for HDHPs will undergo adjustments, with an increase from $1,650 to $1,700 for individuals and from $3,300 to $3,400 for families. This change emphasizes the high-deductible nature of HDHPs, requiring individuals to meet these thresholds before their insurance company covers any claim.

Maximum Out-of-Pocket Expense Limit for HDHPs

Alongside the minimum deductible, the maximum out-of-pocket expense limit for HDHPs will also increase. For self-only HDHP coverage, the maximum amount that individuals are required to pay out-of-pocket will increase from $8,300 to $8,500, while family coverage will rise from $16,600 to $17,000. Once the total out-of-pocket expenses reach this limit, the insurance plan typically covers 100% of the remaining eligible medical costs for the rest of the year, effectively serving as a cap on the financial responsibility individuals or families may incur for healthcare services under their HDHP.

HSA Contribution Limits for Individuals Age 55+

There will be no changes to the HSA catch-up limit rules for individuals aged 55 and above. The annual catch-up contribution remains at $1,000, allowing individuals closer to retirement the ability to save additional funds in their HSAs.

HRA Inflation Adjustments

Revenue Procedure 2015-19 also addresses excepted benefit health reimbursement arrangements (HRAs) by setting the maximum amount at $2,200 in 2026, an increase from $2,150. The adjustment allows participating employers to provide their employees with a higher level of reimbursement for eligible healthcare expenses.

Contribution & Out-of-Pocket Limits for HSAs and HDHPs

	2026	2025	Change
HSA Contribution Limit	Self-Only: $4,400 Family: $8,750	Self-Only: $4,300 Family: $8,550	Self-Only: +$100 Family: +$200
HSA Catch-Up Contributions (Age 55+)	$1,000	$1,000	No Change
HDHP Minimum Deductibles	Self-Only: $1,700 Family: $3,400	Self-Only: $1,650 Family: $3,300	Self-Only: +$50 Family: +$100
HDHP Maximum Out-of-Pocket Amounts	Self-Only: $8,500 Family: $17,000	Self-Only: $8,300 Family: $16,600	Self-Only: +$200 Family: +$400

Recommended Actions for Employers

To understand how these changes might impact your HDHP/HSA offerings, please reach out to your Account Executive or contact a PGB Representative at partnership@piercegroupbenefits.com. They can provide detailed guidance and help you navigate these updates effectively.

5 Ways to Improve Open Enrollment at Your Organization

Human resources and benefits personnel can significantly influence employees’ mindset and experience during open enrollment. Here are five methods organizations can implement to improve employee engagement during open enrollment:

1. Post Information to Your Organization’s Intranet:

Utilize your organization’s intranet to post important information about open enrollment. This can include deadlines, resources, and links to the PGB custom microsite. Regularly updating the intranet ensures that employees have easy access to all necessary information and can stay informed throughout the enrollment period.

2. Set Up Email Reminders for Open Enrollment:

Select dates to send email reminders to employees about open enrollment and provide links to resources like the PGB custom microsite, which can be found by clicking “Find Your Benefits.” You can use our customizable email templates to provide detailed information, highlight important changes, and send deadline reminders.

3. Provide Practical Examples of How to Use Benefits:

Real-life examples make it easier to understand how to use benefits. For instance, a list of items that can be purchased with Health Savings Accounts (HSA) or Flexible Spending Accounts (FSA) includes prescription medications, medical equipment, and sunscreen. Websites like the online FSA and HSA Stores can simplify shopping.

4. Simplify Benefits Language:

Complex benefit terms can be confusing. Simplify them by focusing on the main impact of each benefit using brief descriptions. If more information is needed, provide links to detailed resources, such as the PGB digital benefits guide, which offers comprehensive explanations.

5. Frame Open Enrollment as a Strategic Decision-Making Period:

Open enrollment is a strategic decision-making period for health and finances. Here are some steps to plan:

Assess Health Needs: Evaluate health needs for the upcoming year, including planned medical procedures, ongoing treatments, or changes in family health dynamics. Understanding these needs helps in selecting benefits that address specific medical conditions.
Estimate Costs: Estimate potential healthcare expenses to choose the most suitable plans. This involves calculating expected costs for doctor visits, medications, and other healthcare services. Accurate estimates aid in financial preparedness and ensure adequate coverage.

Through clear communication, accessible resources, and strategic guidance, HR and benefits personnel will be seen as key influencers, ensuring employees are well-informed, supported, and empowered during open enrollment.

Partnering with Pierce Group Benefits

With over 50 years as an industry leader in employee benefits, Pierce Group Benefits (PGB) supports HR professionals and benefits personnel and their employees throughout the open enrollment period and beyond. PGB clients receive enrollment resources like a digital benefits guide, custom microsite and custom explainer videos, as tools to assist with enrollment. Feel free to utilize these resources in your communications with employees. For any questions, you are welcome to contact your PGB Account Executive or email a PGB Representative at partnership@piercegroupbenefits.com.

Email Templates to Enhance Employee Benefits Communication

Communicating employee benefits effectively is crucial for HR and benefits personnel. Clear and concise emails, complete with important dates, benefit descriptions and helpful links, ensure employees understand their options and deadlines. We’ve created employee benefits email templates designed to help streamline communication and deliver essential information and resources.

Employee Benefits Email Templates

Email remains one of the most effective ways to reach employees and employers can use email campaigns to provide detailed information, highlight important changes, and send deadline reminders. Click to download the customizable email templates:

Additional Resources for PGB Clients

Enhance your benefits email by including resources available to PGB clients:

Incorporate Direct Links to Custom Microsites: Provide direct links to custom microsites where employees can find detailed information about their benefits. Click on “Find Your Benefits” and type the name of your organization to access your custom microsite.
Include Custom Benefit Videos: The dashboard of your microsite contains custom benefit explainer videos that can be included in your emails to visually explain complex benefits information.
Descriptions of Employee Benefits: For additional descriptions of employee benefits, consider linking online resources from the website, including specific blogs.

Partnering with Pierce Group Benefits

PGB provides our clients’ employees with benefit guides, custom microsites, and benefit explainer videos, along with other resources, helping them make informed decisions about their benefit options. With PGB, you can ensure your employees are well-informed and supported throughout the enrollment process. To learn more about our services, contact a PGB Representative at partnership@piercegroupbenefits.com.

Understanding Self-Funded Health Plans in the Public Sector

In today’s rapidly evolving healthcare landscape, public sector organizations are constantly seeking ways to manage costs while providing quality health benefits to their employees. One approach is the self-funded health plan. But what exactly does it mean to have a self-funded health plan, and how does it differ from traditional health insurance?

What is a Self-Funded Health Plan?

A self-funded (or self-insured) health plan is a type of health insurance where the employer assumes the financial risk for providing healthcare benefits to its employees. Instead of paying fixed premiums to an insurance carrier, the employer pays for medical claims out-of-pocket as they are incurred.

Key Features of Self-Funded Health Plans

Cost Control and Flexibility:
- Public sector employers have greater control over the plan design and can tailor benefits to meet the specific needs of their workforce.
- Self-funded plans are often subject to fewer regulations compared to fully insured plans, allowing for more customization.
Financial Savings:
- Any unused funds at the end of the year can be retained by the employer.
Risk Management:
- Public sector employees can purchase stop-loss insurance to protect against unexpectantly high claims. This coverage kicks in when claims exceed a certain threshold, limiting the employer’s financial exposure.

How Self-Funded Plans Work

In a self-funded plan, the employer sets aside funds to cover anticipated healthcare costs. These funds are used to pay for employees’ medical claims directly. Employers can contract with a third-party administrator (TPA) to handle administrative tasks such as claims processing and provider network management.

Regulatory Environment

Self-funded plans in the public sector are primarily regulated at the federal level under the Employee Retirement Income Security Act (ERISA) and the Public Health Service Act (PHS Act). This means they are not subject to state insurance laws, which can provide additional flexibility but also requires adherence to federal standards.

Is a Self-Funded Plan Right for Your Public Sector Organization?

While self-funded plans offer many benefits, they are not without risks. Smaller public sector organizations may find it challenging to manage the financial volatility associated with high-cost claims. However, with the right risk management strategies, such as stop-loss insurance, even smaller employers can consider self-funding.

Partnering with Pierce Group Benefits

Self-funded health plans can be a powerful tool for public sector organizations looking to control healthcare costs and customize benefits. By understanding the mechanics and regulatory environment of self-funded plans, public sector employers can make informed decisions that best suit their organizational needs. To learn more about self-funded health plans, contact your dedicated Pierce Group Benefits Account Executive or reach out to a PGB Representative at partnership@piercegroupbenefits.com for further information.

New Rules for 1095-B and 1095-C: Forms Available Upon Request

Navigating the complexities of health insurance reporting can be daunting, especially with recent changes to the Affordable Care Act (ACA) requirements. One significant update is the option for employers to furnish Forms 1095-B and 1095-C to individuals only upon request.

What Are Forms 1095-B and 1095-C?

Forms 1095-B and 1095-C are essential documents related to health insurance coverage:

Form 1095-B: This form is issued by health insurance providers, including employers who sponsor self-insured health plans, to individuals covered under their plans.
Form 1095-C: This form is provided by Applicable Large Employers (ALEs) to their full-time employees, detailing the health insurance coverage offered.

What Is an Applicable Large Employer (ALE)?

An Applicable Large Employer (ALE) is an employer that had at least 50 full-time employees, including full-time equivalent employees, on average during the prior year. ALEs are subject to the employer shared responsibility provisions and the employer information reporting provisions under the ACA.

Furnished Upon Request

Recent legislation, including the Paperwork Burden Reduction Act and the Employer Reporting Improvement Act, has introduced a significant change: starting with the 2024 calendar year, employers are no longer required to automatically mail these forms to employees. Instead, they can provide them upon request.

How It Works

To comply with the new rules, employers must:

Provide Notice: Employers must inform employees that Forms 1095-Band 1095-C are available upon request. This notice should be clear, conspicuous, and accessible.
Respond to Requests: Upon receiving a request, employers must furnish the requested form within 30 days or by January 31 of the following year, whichever is later.
File with the IRS: Despite the change in distribution to employees, employers must still file these forms with the IRS along with the corresponding transmittal forms (1094-B and 1094-C).

Key Deadlines for 2025

February 28, 2025: Deadline for filing paper Forms 1094-C and 1095-C with the IRS.
March 3, 2025: Deadline for furnishing Forms 1095-B and 1095-C to employees.
March 31, 2025: Deadline for electronic filing of Forms 1094-C and 1095-C with the IRS.

Steps for Employers

Prepare Notices: Draft and distribute notices to employees about the availability of Forms 1095-B and 1095-C upon request.
Set Up a Request System: Implement a system to manage and respond to employee requests for these forms efficiently.
Ensure Compliance: Continue to prepare and submit the required forms to the IRS by the specified deadlines.

Staying informed about these changes ensures both employers and employees can navigate the ACA reporting requirements effectively.

Partnering with Pierce Group Benefits

At PGB, our team stays up to date on new regulations and their impact on our clients’ employee benefits. To understand how these changes affect your organization, contact your dedicated Pierce Group Benefits Account Executive or reach out to a PGB Representative at partnership@piercegroupbenefits.com for further information.

Federal Hurricane Relief: Extension of Timeframes for Employee Benefits in NC, VA, and SC

In the wake of Hurricane Helene and Tropical Storm Helene, the federal government has announced relief measures to support affected individuals and organizations in North Carolina, Virginia, and South Carolina. This relief includes the extension of certain timeframes for employee benefits, ensuring that those impacted by these natural disasters have the necessary time to manage their benefits without additional stress.

Understanding the Relief Measures

The Employee Benefits Security Administration (EBSA), in coordination with the Internal Revenue Service (IRS) and the Department of the Treasury, has extended specific deadlines under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code. This extension applies to group health plans, disability and other welfare plans, pension plans, and their participants, beneficiaries, and claimants. Learn more about the relief measures.

Key Extensions and Their Impact

COBRA Continuation Coverage: Affected individuals now have additional time to elect COBRA continuation coverage, which allows them to maintain their health insurance after losing their job or experiencing a reduction in work hours. Find out more about COBRA coverage.
Special Enrollment Periods: The relief extends the timeframe for special enrollment periods, enabling individuals to enroll in health plans outside the usual enrollment periods due to life events such as marriage, birth, or adoption. Discover more about special enrollment periods.
Claims and Appeals: Participants and beneficiaries have more time to file claims for benefits, appeal denied claims, and request external reviews of certain claims. Learn more about claims and appeals.
Plan Notifications: Employers and plan administrators also benefit from extended deadlines to provide required notifications and disclosures to participants and beneficiaries. Read more about plan notifications.

Finding Out If You Are in a Disaster Area

To determine if you are in a disaster area, you can use resources provided by the Federal Emergency Management Agency (FEMA). FEMA’s website allows you to search your location to find active and past disaster declarations, as well as helpful resources specific to your area. Check if you are in a disaster area.

Relief Period and Coverage

The relief period begins on the first day of the incident period for each affected area and ends on May 1, 2025. For North Carolina, South Carolina, and Virginia, the incident period for Hurricane Helene and Tropical Storm Helene began on September 25, 2024. Get details on the relief period and coverage.

How to Access Relief

Individuals and organizations in the affected areas should contact their plan administrators or the EBSA for guidance on how to take advantage of these extensions. The EBSA has also provided a comprehensive FAQ document to help participants and beneficiaries understand their rights and the relief available to them. Access the FAQ document.

Partnering with Pierce Group Benefits

The extension of timeframes for employee benefits is a vital step in ensuring that those affected by Hurricane Helene and Tropical Storm Helene can focus on recovery without worrying about missing critical deadlines. For more information, contact your dedicated Pierce Group Benefits Account Executive or reach out to a PGB Representative at partnership@piercegroupbenefits.com.

Pre-Deductible Telehealth Exemption Ends for HDHPs with HSAs

On December 31, 2024, the telehealth services safe harbor, also known as the telehealth coverage exemption, which allowed High Deductible Health Plans (HDHPs) with Health Savings Accounts (HSAs) to cover telehealth benefits on a pre-deductible basis, expired. For HDHPs with plan years beginning on or after January 1, 2025, this telehealth exemption no longer applies. However, sponsors of HDHPs with HSAs that have plan years starting before January 1, 2025, are able to cover telehealth services before the deductible for the rest of that plan year.

Understanding the Telehealth Exemption

The telehealth exemption was introduced as part of the CARES Act during the COVID-19 pandemic. It allowed HDHPs to cover telehealth services without requiring participants to meet their health insurance plan deductible first. This provision was designed to encourage the use of telehealth plans and reduce in-person visits, providing a valuable benefit during a time of heightened health concerns.

Telehealth Exemption Impact on Health Savings Plans

With the expiration of the telehealth exemption, HDHPs can no longer offer first-dollar coverage for telehealth services. This means that participants now need to meet their deductible before telehealth benefits are covered. For those with an HSA, this change impacts their ability to make or receive HSA contributions if their HDHP does not conform to the standard rules.

Why This Matters

The expiration of the telehealth exemption is significant because it affects the ability of participants to make HSA contributions. To be eligible for HSA contributions, participants must be covered under a qualifying HDHP that adheres to the standard rules. Without the exemption, any contributions made while ineligible would need to be included in the participant’s taxable income and could be subject to a 10% excise tax.

What Plan Sponsors Need to Do

Plan sponsors of HDHPs with HSAs need to ensure compliance with the new regulations. Here are the key steps:

Review and Amend Plan Design: Work with your insurer or third-party administrator (TPA) to update the plan design, removing pre-deductible coverage for telehealth services.
Communicate Changes to Participants: Clearly inform participants about the changes to their telehealth benefits and how it affects their HSA eligibility.
Update Compliance Materials: Ensure that all plan documents, including Summary Plan Descriptions (SPDs), reflect the updated plan design.

Partnering with Pierce Group Benefits

For those with an HDHP and HSA, understanding these changes and reviewing their plans is crucial. By staying informed and making necessary adjustments, plan sponsors can ensure compliance and help participants manage their healthcare expenses effectively. For more information, contact your dedicated Pierce Group Benefits Account Executive or reach out to a PGB Representative at partnership@piercegroupbenefits.com.

Five Employee Benefit Trends in 2025

As we start 2025, the landscape of employee benefits continues to evolve, driven by changing workforce demographics, technological advancements, and a greater emphasis on holistic well-being. Here are five key employee benefit trends to watch this year:

1. Long-Term Care Planning

As the population ages, long-term care insurance is becoming an essential benefit. Employers are offering long-term care insurance to help employees plan for future medical and personal care needs. This insurance provides coverage for services such as nursing home care, home health care, and personal or adult daycare. By including long-term care insurance in their benefits packages, organizations are helping employees secure their financial future and reduce the stress associated with potential long-term care expenses.

2. Mental Health Resources

The focus on mental health has never been more prominent. Employers are expanding their Employee Assistance Programs (EAPs) to provide comprehensive mental health resources. These programs often include access to therapy, counseling services, and stress management programs. This trend reflects a growing recognition of the importance of mental well-being in overall employee productivity and satisfaction.

3. Financial Wellness Programs

Financial stress is a significant concern for many employees. In response, employers are providing financial wellness programs that include budgeting tools, debt management resources, student loan repayment assistance, and retirement planning assistance. These programs aim to help employees achieve greater financial stability and reduce stress.

4. Fitness Incentives

The integration of technology into health and wellness programs is on the rise. Health apps that include online workouts and discounts on gym memberships are being incorporated into employee wellness initiatives, providing convenient and engaging ways for employees to stay healthy.

5. Sustainable Initiatives

Employees are increasingly valuing organizations that prioritize sustainability. Benefits that support these values, such as volunteer time off, green commuting incentives, and sustainable office practices, are becoming more common.

The trends in employee benefits for 2025 reflect a broader shift towards a more personalized, holistic, and flexible approach to supporting employees. By staying ahead of these trends, organizations can attract and retain top talent, foster a positive work environment, and enhance overall employee well-being.

Partnering with Pierce Group Benefits

Reach out to your Account Executive or email partnership@piercegroupbenefits.com to explore how your organization can leverage these trending benefits and other innovative solutions to maximize employee satisfaction. Our team is dedicated to helping you create a workplace that attracts and retains top talent while fostering a culture of well-being and success.

Term Life vs Whole Life Insurance

When it comes to life insurance, choosing the right type can be a daunting task. Two of the most common options are term life insurance and whole life insurance. Each has its own set of benefits and understanding these can help you make an informed decision. Let’s dive into the key benefits of term life and whole life insurance.

What is Term Life Insurance?

Term life insurance provides coverage for a specific period, or “term,” such as 10, 20, or 30 years. If the policyholder passes away during this term, the beneficiaries receive a death benefit.

Benefits of Term Life Insurance:

Affordability: Term life policies are generally more affordable than whole life policies, making them accessible for many people.
Simplicity: These policies are straightforward, with no investment component or cash value accumulation.
Flexibility: You can choose the term length that best fits your needs, such as covering the years until your children are grown or your mortgage is paid off.

What is Whole Life Insurance?

Whole life insurance provides coverage for the policyholder’s entire life, as long as premiums are paid. It also includes an investment component, accumulating cash value over time.

Benefits of Whole Life Insurance:

Lifetime Coverage: Whole life insurance covers you for your entire life, ensuring that your beneficiaries will receive a death benefit no matter when you pass away.
Cash Value: Part of your premium goes into a savings component, which grows over time and can be borrowed against or withdrawn.
Fixed Premiums: Your premiums remain the same throughout the life of the policy, providing predictability in your financial planning.
Tax Benefits: The cash value growth is tax-deferred, and the death benefit is generally tax-free to your beneficiaries.

The Benefits of Enrolling in Both

When it comes to life insurance, you don’t have to choose just one type. By enrolling in both term life and whole life insurance, you can enjoy a range of benefits that cater to both your immediate and long-term needs.

Comprehensive Coverage: By enrolling in both types, you can cover immediate needs with term life insurance and long-term needs with whole life insurance.
Cost Management: Use term life insurance for high coverage at a lower cost during critical periods (e.g., raising children, paying off a mortgage) and whole life insurance for lifelong coverage and cash value accumulation.
Flexibility: This approach allows you to adjust your coverage as your financial situation and needs change over time.
Financial Security: The combination provides a balance of affordability, coverage, and investment, ensuring both short-term and long-term financial security for your family.

By leveraging the strengths of both term life and whole life insurance, you can create a robust and flexible life insurance strategy that adapts to your evolving needs and financial goals.

Partnering with Pierce Group Benefits

Employers who partner with us to provide both term life and whole life insurance options demonstrate a commitment to their employees’ financial well-being and security. Offering a comprehensive benefits package helps attract and retain top talent, fostering a loyal and motivated workforce. Employees benefit from having access to tailored life insurance solutions that meet their diverse needs, providing peace of mind and financial stability for their families. Together, we can ensure that your team is well-protected and financially prepared for the future. Contact your Pierce Group Benefits Account Executive or email partnership@piercegroupbenefits.com to learn more.

Maximizing Employee Benefits Before Year-End

As the end of the calendar year approaches, it’s essential to take full advantage of the employee benefits that may reset on January 1. Whether it’s your flexible spending account (FSA), dependent care flexible spending account (DCFSA), dental insurance, or vision insurance, now is the time to ensure you’re making the most of what’s available to you. Here’s how to utilize these benefits effectively before the year ends.

Flexible Spending Account (FSA)

An FSA allows you to set aside pre-tax dollars for eligible medical expenses. Since these funds typically don’t roll over into the next calendar year, it’s crucial to spend them wisely. Here are some tips:

Schedule Appointments: If you have outstanding medical needs, be sure to schedule your appointments before the year ends. This may include routine check-ups or any necessary procedures. Remember, your FSA can help cover eligible expenses, such as copays and prescription medications, making it easier to manage your healthcare costs.
Stock Up on Supplies: Purchase eligible items through the FSA Store, such as first-aid supplies, contact lens solution, or even sunscreen, to use your remaining balance.

Note: While a flexible spending account (FSA) allows you to set aside pre-tax dollars for eligible medical expenses, it’s important to note that funds typically do not roll over into the next plan year. Therefore, any unused funds at the end of the plan year may be forfeited. Some FSAs may offer a grace period of up to two and a half months after the end of the plan year, allowing you to incur eligible expenses during that time. Alternatively, some FSAs may include a rollover provision, which allows you to carry over a certain amount of unused funds to the next plan year, subject to the maximum limit set by the Internal Revenue Service (IRS). However, these options are not guaranteed and varies by employer. Review your specific FSA plan for details to understand your options.

Dependent Care Flexible Spending Account (DCFSA)

If you have children or dependents, a DCFSA can help you save on childcare costs. Similar to an FSA, funds in a DCFSA typically do not roll over to the next calendar year, so consider the following:

Plan for Childcare Expenses: Review your childcare expenses for the year and ensure you’re submitting claims for any eligible costs incurred.
Utilize Care Services: If you have unused funds, consider enrolling your child in a holiday camp or after-school program to maximize your benefits.

Note: The rollover option does not typically apply to dependent care flexible spending accounts (DCFSA). Unused funds in a DCFSA are generally forfeited at the end of the plan year. However, some DCFSA plans do offer a grace period of up to two and a half months after the plan year ends, during which you can incur eligible expenses and use any remaining funds from the previous year. Review your specific DCFSA plan for details to understand your options.

Dental Insurance

Dental insurance often operates on a calendar year with an annual limit. To make the most of your coverage, be sure to utilize your benefits before they reset:

Schedule Routine Cleanings: If you haven’t had your biannual cleaning yet, now’s the time to book an appointment. Preventive care is usually fully covered, so take advantage of it!
Address Any Dental Issues: If you’ve been putting off dental work, such as fillings or crowns, consider scheduling these procedures before the year ends to utilize your benefits. You might also think about splitting up non-emergency treatments between the end of this calendar year and the beginning of the next. This way, you can maximize your coverage and ensure you don’t miss out on any benefits before they reset. Please consult with your dentist to determine the best approach for your specific needs.

Vision Insurance

Like dental insurance, vision benefits often reset at the end of the calendar year. Here’s how to maximize your vision coverage:

Get an Eye Exam: If you haven’t had an eye exam this year, schedule one soon. Many plans cover the cost of an annual exam.
Update Your Eyewear: If you need new glasses or contacts, use your vision benefits to purchase them before the year ends. Check if your plan offers discounts on frames or lenses.

Note: Please check your policy’s effective dates for the end of the plan year, as some dental and vision plans do not operate on a calendar year.

As the calendar year ends, take the time to review your benefits and make the most of what’s available. By utilizing your FSA, DCFSA, dental, and vision insurance, you can save money and ensure you’re taking care of your health and well-being.

Partnering with Pierce Group Benefits

At PGB, our dedicated team is committed to empowering clients’ employees to effectively utilize their employee benefits. If you have questions about how the end of the calendar year affects your benefits, contact your dedicated Pierce Group Benefits Account Executive or reach out to a PGB Representative at partnership@piercegroupbenefits.com for further information.

IRS Increases Contribution Limits for FSAs, HSAs, and Other Pre-Tax Benefits

The Internal Revenue Service (IRS) has recently announced an increase in the contribution limits for various pre-tax benefits, including Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). These changes provide both employers and employees with enhanced opportunities to save money on healthcare, family planning, and transportation costs. Let’s break down the key updates and what they mean for you.

Flexible Spending Accounts (FSAs)

Starting in 2025, the contribution limit for FSAs will rise from $3,200 to $3,300. Here are some important points to consider:

What is an FSA? FSAs allow employees to set aside pre-tax money for anticipated healthcare expenses. This can include a variety of eligible items, which you can view here.
Use It or Lose It: The funds in an FSA must be used within the plan year, so it’s crucial to estimate your healthcare expenses accurately.
Rollover Options: Employers may offer a rollover option or a two-and-a-half-month extension to use leftover funds. For 2024, the rollover amount is $640, which will increase to $660 in 2025.

Contribution Limits:

2024: $3,200 per year ($640 rollover if offered)
2025: $3,300 per year ($660 rollover if offered)

Note: Employers are not required to match the IRS maximums, so check with your plan provider for specific limits.

Health Savings Accounts (HSAs)

HSAs are another valuable tool for managing healthcare costs. Here’s what you need to know:

Year-to-Year Savings: Unlike FSAs, the money in an HSA rolls over from year to year. However, you cannot contribute to both an HSA and an FSA.
Eligibility: HSAs are typically offered alongside High Deductible Health Plans (HDHPs).

Contribution Limits:

2024: $4,150 (self-only); $8,300 (family)
2025: $4,300 (self-only); $8,550 (family)

High Deductible Health Plans (HDHPs)

HDHPs are health insurance plans characterized by higher deductibles and lower premiums compared to traditional plans. The minimum deductibles and maximum out-of-pocket limits for HDHPs will change from 2024 to 2025, reflecting adjustments made by the IRS.

HDHP (Self-Only Coverage)

2024: Minimum Deductible: $1,600; Maximum Out-of-Pocket Limit: $8,050
2025: Minimum Deductible: $1,650; Maximum Out-of-Pocket Limit: $8,300

HDHP (Family Coverage)

2024: Minimum Deductible: $3,200; Maximum Out-of-Pocket Limit: $16,100
2025: Minimum Deductible: $3,300; Maximum Out-of-Pocket Limit: $16,600

Qualified Small Employer Health Reimbursement Arrangement (QSEHRA)

For small businesses that don’t offer group health plans, QSEHRA provides a way to reimburse employees for their healthcare costs:

Contribution Limits:

2024: $6,150 (self-only); $12,450 (family)
2025: $6,350 (self-only); $12,800 (family)

Transportation Tax Credits and Commuter Benefits

Commuter benefits can help employees save on public transit or parking costs, making it easier to manage daily expenses:

Contribution Limits:

2024: $315 per month
2025: $325 per month

Special Needs Adoption Assistance

Families adopting special needs children can benefit from significant tax exclusions if their employer offers an adoption assistance program:

Contribution Limits:

2024: $16,810 per year
2025: $17,280 per year

Planning for 2025

With these new contribution limits, employers should consider how to effectively communicate these benefits to employees. It’s also a good time for employees to review their plans and see how these increases can better align with their financial goals for the upcoming year. These adjustments by the IRS present a valuable opportunity for both employers and employees to make informed decisions about healthcare and other essential expenses.

Partnering with Pierce Group Benefits

At PGB, our team stays up to date on new IRS regulations and their impact on our clients’ employee benefits. To understand how these changes affect your organization, contact your dedicated Pierce Group Benefits Account Executive or reach out to a PGB Representative at partnership@piercegroupbenefits.com for further information.