Dear Plan Sponsor, Executive Notes is designed for the employers who use our benefits programs. The format provides brief sound bites that allow you to quickly scan for what is relevant to you. If your organization doesn’t offer all of our benefits, simply skip the sections that don’t apply to you.

Insurance topics

Open Enrollment starts soon, runs Nov. 1-30 BBT is working with our partner Milliman to create an online benefits administration solution for you and your employees. This new process will eliminate the current paper-based enrollment process. Your employees will be able to see their current benefits, and during the open enrollment period, they can compare their options and costs and update their selections for the coming year. We hope to have this new service ready when Open Enrollment begins on November 1. Please stay tuned for updates in the next few weeks. Open enrollment is the time when your employees can choose additional insurance products and increase their coverage in the insurance they already have. While BBT will communicate directly with your employees about open enrollment, please remind them of this important window to consider their insurance needs.

If you have questions about open enrollment, or the new online benefits administration system, please contact Jeremiah Thompson at (847) 622-3368.

BCBS Class Action Antitrust Lawsuit If your employees purchased or were enrolled in a Blue Cross Blue Shield health insurance or administrative services plan between 2008 and 2020, they may qualify to receive part of a settlement in a class action antitrust lawsuit. Eligible individuals received communication directly from Blue Cross Blue Shield with instructions on how to file a claim for damages. The deadline for submitting a claim is Nov. 5, 2021. For more information, go to www.BCBSsettlement.com. 

Retirement topics

Closing out low-balance accounts for former employees The annual letters have gone out to former employees who have a retirement plan balance of less than $5,000. The letters inform them that their account will be closed, and lets them know that they have until Sept. 30 to roll any vested money over into an IRA of their choosing.. If the former employee does not respond, the funds will be automatically rolled over into a Schwab IRA in the former employee’s name. If the balance is less than $1,000 they will receive a check for the amount of the balance.

Required Minimum Distribution Former employees who must take a RMD from their retirement account will be notified in late November or early December of the amount they must take. Northwest Plan Services will calculate and process Required Minimum Distribution amounts. RMDs will be required as follows: If the person was 70½ before Dec. 31, 2019, the age at which they have to take the RMD is 70½. If they were less than 70½ on that date, then the age at which they must take the RMD is 72. The RMD is mandated by the IRS if the person has not yet begun to receive distributions from their account or if their distribution is less than the RMD.

Uniform File Format We are asking that you adopt the new Uniform File Format for remitting retirement plan contributions by Dec. 31, 2021. Having all our plan sponsors using this format will greatly help our recordkeeping and ensure that we have contact information for your employees. The additional data collected in this format will also help us serve you better and stay in better communication with you. Click here to download a copy.

New program coming from Edelman Financial Engines Edelman Financial Engines will launch its next program, Financial Planning — Back to the Basics, on Sept. 20. It will consist of two emails sent to retirement plan members on Sept. 20-22 and Sept. 27-29. The program will focus on a variety of financial planning fundamentals, including topics such as —  meeting your match the power of compounding diversification, estate planning, and Social Security The past year has been a challenging time for many; this program will help members take a step forward in getting their financial and personal lives back to some type of normalcy.

If you have questions about the retirement plan-related topics above, please contact Tammy Chudy at (847) 622-3372.

Best, Lynnae Rodeffer Director of Employee Benefits

We hope you find this update helpful, and we welcome your feedback.