The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
The Associated Press
Target Corp. says it will no longer be offering health care coverage for its part-time workers.
The discounter is citing new options now available through health care exchanges under the Affordable Care Act.
Target said the majority of its part-time workers who have been eligible for its health care insurance coverage don't enroll. It said it will stop covering the part-time workers beginning April 1.
Target said in a corporate blog post that by offering its part- time workers insurance, it could actually disqualify many of them from new subsidies that could reduce their overall health insurance expenses.
Target says part-time workers who are enrolled in the health care plan and are losing coverage will be given a $500 cash payment.
Target said that employees who average between 20 and 31 hours per week will continue to be eligible for other benefits, including vacation, dental, disability and life insurance. Its part-time employees will still qualify for store discounts and its 401(k) plan.
Separately, Target said Wednesday that it was laying off 475 employees across the company's operations. It also said that over the past six months, it has closed about 700 open positions across the entire chain.