Three retiree needs your HRMS benefits module should address
Retirees may leave your company but they often require ongoing consideration. A robust HRMS benefits module will help you to manage daily operations for this unique group. Here are three high volume retiree areas where an HRMS benefits module will help you to stay ahead of the curve.
1. Change of personal details and beneficiaries
Retirees have a similar need for data changes as your general employee population. This group is interested in maintaining and updating dependents and beneficiaries. Your HRMS benefits module is a good place to store this data. The relevance of spousal healthcare and life insurance benefits should not be underestimated. When a long-time former employee dies a partner is left to put together the financial pieces.
When you have current beneficiary data in your HRMS this process is simpler for everyone involved. An HRMS benefits module will save hours of research in these urgent situations. The best way to be sure that your HRMS data is up to date is to allow retirees to have view and update access to beneficiary data and their own contact details.
2. Payment of pensions
Many companies choose to handle the payment of pensions to retirees via their HRMS. If you choose to deliver this functionality in-house make sure that your HRMS configuration is maintained. Defined benefit programs are usually tied to a consumer index or inflation so these may need to be adjusted annually. It is a best practice to allow your retirees to enter and maintain bank account details via self-service and to only allow pension payments through direct deposit.
Many retirees will move to warmer and sunnier climates sometimes even leaving the country so electronic payments are the way to go. Your HRMS benefits module is the key to keeping up to date and on top of your retiree payments.
3. Boomerang retirees and benefits impacts
Many companies have an open door policy when it comes to rehiring retirees for part-time hours or as contractors. Employers benefit from a knowledgeable and trained workforce who will come back on an ad hoc basis during busy times and retirees can supplement their income. Rehiring a former employee who may be covered under a retiree healthcare plan can be a tricky situation. An HRMS will help you to follow all legal and regulatory requirements in this area to make sure that you’re providing the appropriate coverage without invalidating the clauses on any existing plans.
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