Writer forecasts retirement apocalypse, IRS outlines how to claim post-DOMA tax overpayments, and employees go mobile to get benefits info: 3 things you need to know this week in employee benefits

Retirement-focused commentary renames ‘three-legged stool’ as ‘three horsemen’

In an editorial for Time, Dan Kadlec, strategic advisor to the National Financial Educators Council, renamed the “three-legged stool” of retirement security—Social Security, employer-sponsored retirement plans and personal savings—the “three horsemen of the retirement apocalypse.”

Inflammatory, for sure, but also accurate? Kadlec cites some scary stats:

• Social Security represents 90% of income for one-third of all U.S. retirees, but the system is on track to run out of funding in 2033.
• More than 25% of employees have less than $1,000 in retirement savings. 

Kadlec quotes BlackRock executive Barbara Novick, who says the system needs “holistic” change, including mandating retirement plan participation, a bigger push toward annuities and sweeping Social Security reforms. 

IRS outlines post-DOMA employer procedures for reclaiming tax overpayments

When the Supreme Court struck down the Defense of Marriage Act this summer, the ruling left a knotted ball of regulatory yarn for employers to unravel regarding benefits administration and payments for same-sex couples.

Recently, the Internal Revenue Service released Notice 2013-61 to help employers navigate the cat’s cradle of questions brought by the decision. Specifically Notice 2013-61 outlines procedures for employers to follow when correcting overpayments of employment taxes paid for 2013 and prior years with respect to same-sex spouse benefits. The notice comes on the heels of previous guidance to employees seeking tax refunds for benefit payments on behalf of a same-sex spouse.

In 2013-61, the IRS details how to correct overpayments for same-sex spouse benefits for 2013 and prior years back to 2010. The procedures are 15 pages long and pretty complex, so we like this easy-to-digest breakdown from Ogletree Deakins.

This week’s hidden gem: Vast majority get pay, benefits info online

Since many American benefits systems are governed by laws that, in some cases, are about 40 years old—looking at you ERISA!—it’s gratifying to hear that benefits delivery and information has kept moving right into the 21^st century.

Results from the 2013 “Getting Paid in America” survey by the American Payroll Association show that 83% of U.S. employees have access to their pay and benefits information online, and that 41% can do so while on-the-go—logging on via computer, smartphone or tablet. 

“Employees feel empowered when they have direct access to their schedule and attendance information via self-service online,” said John Orr, senior vice-president of retail strategy and execution, Ceridian HCM. “With changing workforce demographics, workforce management features are increasingly desirable, enabling employees to interact with their workplace at the time and place of their choosing, on the device of their choosing.”