WTW Launches Flexible Contribution Program
WTW is launching a new solution that provides employees with expanded choice and flexibility in allocating employer contributions among financial benefits.
Under the approved flexible contribution program, the requesting sponsor’s defined contribution (DC) plan participants can direct employer DC contributions across the DC plan, non-taxable student loan repayments, retiree health reimbursement arrangements (HRA), and health savings accounts (HSA).
“Many employers have been interested in providing employees with robust choice and flexibility for a long time, but the legal, compliance, tax and administrative challenges associated with an “employee choice” program have been hard to overcome, until now,” said Chris West, DC strategy leader at WTW. “This innovative program allows plan sponsors to more effectively respond to the diverse financial worries of employees by letting individuals direct employer dollars where they need them the most.”
This solution comes at a time when many employees are craving more benefits choice and flexibility. WTW’s 2024 Global Benefits Attitudes Survey found more than three in four employees who have choice in their benefits indicate the benefits program meets their needs compared with just 37% of employees who don’t have a choice in benefits.
Moreover, WTW believes this solution can help support employee financial wellbeing. According to the Global Benefits Attitudes Survey, nearly nine in 10 workers are struggling to meet basic living costs while four in 10 are not on the right track with respect to their finances. The program helps individuals and families address financial priorities by allowing employees to allocate dollars where they need them the most.
“We are excited about the value this new approach can provide to employers, employees and their families. For employers, moving away from “one size” benefits can open a competitive advantage in their ongoing battle to attract and retain talented workers. For employees, it gives options on how best to use employer dollars based on their needs and life stage, including paying down student loans. Best of all, the program can be incorporated in a plan sponsor’s existing benefits programs. It’s a win-win-win proposition,” said West.
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
