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Not for Profit Benefit Survey

Click here for the 2015 NFP Not for Profit Benefit Survey.  You will find interesting benchmarking statistics but below are some that caught my attentions:

  • More Not for Profits (NPO) are offering High Deductible Plans
  • Employees are being asked to pay more in out of pocket expenses vs. premium sharing
  • NPO’s are adding voluntary products that complement the medical offerings
  • Increase use of self-service electronic vs. a paper-based enrollment system

This survey is from participating NPO’s over the entire country so we need to take the results into proper context.    What we do in WNY is not necessarily consistent in other parts of the country.   Generally, our NPO clients are competing locally for their employees and a discussion of the local market is critical.

The 2015 year is behind us and hopefully your “books” for 2015 are closed.   We are encouraging our clients to calculate their total benefit costs (including statutory coverage’s) as a % of total compensation.   We are finding senior executive teams monitoring this % on a regular basis to make sure they remain within an acceptable range.

It would also be prudent to break down the % by Medical, Ancillary, Statutory, and Retirement benefits.    We often find an organization over-funding one particular benefit and under-funding another.   For example, an organization might be contributing 8% of pay to the retirement plan but are constantly challenged to maintain a financially healthy medical plan.   The organization might consider, over time, to decrease the retirement benefits and shift the dollars to the medical plan.   And keep the total cost of benefits the same. 

Let us know how we can assist and hopefully we can entertain a conversation on the total compensation package at our next benefit update meeting.

Christopher C. Kempton, CLU, ChFC
Director – Group Benefits Division

Check the background of this investment professional on FINRA's BrokerCheck »
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