New generation of workplace benefits to relieve a new generation of worker stress

AUSTIN, Texas - Younger generations of workers report high levels of stress, and they need employee benefits to help them deal with their stressors.

That was the word from two speakers from Medcom who discussed next-generation workplace benefits on Monday at the National Association of Health Underwriters annual convention.

Derek Ashton is senior business development director and Michelle Barki is senior legal counsel.

What’s stressing these younger workers? Millennials said their families’ welfare was their top stressor, while Gen Z is uncertain about their jobs and career prospects.

The oldest members of Generation Z are entering the workforce while the Millennial generation is moving into management roles and starting families. Ashton said workers from both generations told a Deloitte survey that they are experiencing stress, with more than 41% of Millennials and 47% of Gen Z saying they feel stressed all or most of the time.

What’s stressing these younger workers? Millennials said their families’ welfare was their top stressor, while Gen Z is uncertain about their jobs and career prospects.

Barki described three employer-funded benefits that could help younger workers’ physical and financial well-being.

Lifestyle accounts were invented in Canada, she said. These accounts are funded with post-tax dollars and are designed to enhance workers’ well-being while giving the employers some control over where the money is spent. Accounts may be used to fund things such as gym memberships or nutritional counseling. “Lifestyle accounts are supposed to give the employer some benefit as well by potentially lowering their employee health-care costs,” Barki said.

Education assistance is another benefit that can help workers’ financial well-being, Barki said.

The CARES Act expanded Section 127 of the Internal Revenue Code, allowing employers to provide tuition reimbursement for workers who are currently studying as well as employees who have student loan debt.

Under Section 127, she explained, an employer can provide a worker with up to $5,250 a year (maximum of $12,000 for four years). The funds are tax-free to the worker and the employer does not pay their share of FICA tax.

All current, laid-off, retired and disabled employees are eligible for the benefit.

Section 139 disaster relief programs can help workers when a disaster is declared, Barki explained. Employers can give their workers tax-free money under this provision of the IRC, and there is no limit to how much money employers can provide to their workers.

Disaster relief funds can be used for personal, family, living or funeral expenses, or expenses to repair a worker’s residence or its contents.

When the COVID-19 disaster emergency was declared in March 2020, Medcom’s employees received a debit card loaded with $500 to pay for expenses incurred from working at home, Barki said. Workers who volunteered to return to the office received a stipend. Disaster relief funds also can be used to help with day care expenses as well as increases in food, fuel and utility costs, she said.

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.

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