Dealers Urged to Make Benefits Enrolment Mandatory
August 27, 2018
CADA 360 Employee Benefits is leading a new initiative to encourage all dealers to make enrolment in their dealership’s employee benefits plan a condition of employment. CADA developed a CADA 360 Mandatory Enrolment kit that helps explain why it’s so important, and it was just released to dealers on August 23rd.
“This move wasn’t driven by any legislative changes. Our Trustees reviewed this issue and determined that mandatory enrollment was a best practice we should follow. It reduces risk to the plan and is better for employers and employees,” said Karen O’Connell, CADA’s Director of Governance & Plan Management, Benefits 360 Health & Welfare Trust. “The reason we are encouraging dealerships to make their plan mandatory is to protect employees from unforeseen expenses and life events that might affect them financially, and to protect dealers from administrative liability.”
Formerly, CADA offered group benefits to dealers and employees on the condition that the majority of employees are enrolled. But going forward, for CADA 360 Employee Benefits plans with less than 50 employees, all new plans must be offered as a condition of employment. Existing plans can move to 100% mandatory, or opt to grandfather the handling of current employees, but all new hires must be enrolled as a mandatory condition of employment.
Terms or conditions of employment include things like an employee’s job responsibilities, work days, hours, breaks, dress code, vacation and sick days, pay and more. They also include benefits such as health insurance, life insurance and retirement plans. Even if an employee has to pay a portion of the premium, an employer can still insist.
“The challenge with enforcing a plan as a condition of employment is that it requires the dealership's plan administrator to have a good follow-up system and be aware of the importance of getting applications in on time, noting employee's life changes and making sure earnings are reported accurately,” said O’Connell. “The new CADA 360 HR Automation suite of tools we just launched can be very useful in helping dealerships improve their onboarding and record keeping.”
CADA 360 HR Automation automates, streamlines, and simplifies the management of important and often repetitive tasks and can ensure that your onboarding, benefits enrolment, health and safety training, and health and safety training are completed and confirmed by all members of your team.
Mandating coverage for all eligible employees helps spread the risk among the greatest number of participants and this provides protection for all employees makes the cost of coverage affordable for all plan members.