Members of the executive suite rarely have much time to spare, making it critical that you make your point fast.

Here’s a three-step strategy you can use to consistently grab execs’ attention quickly and garner a budgetary thumbs up:

Step 1: Stress the big-picture strategy

It’s essential to begin by showing the top brass that you’re thinking strategically about adding to the company’s bottom line.

One way: Research wellness programs companies similar to yours have used, and provide actual figures on how much they’ve saved on health care as a result of their wellness initiatives.

Step 2: Focus on the quick returns

The bottom-line concern of the top brass is just that: the bottom line.

So make sure you have solid numbers on when your new program will start to see a return on the company’s investment.

Example: If you’re proposing an investment in smoking cessation, provide research showing how companies with similar programs are seeing fewer medical claims in year one.

Step 3: Keep their attention

C-level execs usually aren’t all that interested in the small details of the program — plan design, administration issues, etc.

To keep their interest, only tell them the highlights of your plans.

Example: Tell them that you’ll reward wellness participants — but leave out details like who’ll keep track of those who participate.

The Department of Labor’s released new proposed regs on providing advice to participants in individual retirement plans.

The proposed investment advice rules are intended to make sure that workers receive unbiased advice about how to invest in 401(k)-type plans.

The DOL will be accepting comments on the regs until May 5, and the regs are expected to be effective 60 days after publication of the final rule.

Here’s a quick look at some of the key provisions.

According to the proposed rules, investment advice can be given under the Pension Protection Act’s statutory exemption from liability (which allows employers to hire outsiders to provide investment advice to plan participants), but only if the advice is provided in two ways:

• through a financial advisor who is compensated on a “level-fee” basis, or
• through the use of a computer model that is certified as unbiased.

Level fees

The financial services company has to charge a flat fee schedule — in other words, fees don’t change depending on what investment options participants choose.

Computer models

If the rules are adopted, computer models used to offer advice would have to be certified in advance as objective and unbiased by an independent expert.

To comment on the proposed rules, click here.

And believe it or not, it’s often harder to convey good news effectively.

Suppose your company just reduced copays on your prescription drug plan. How would you break the news to employees?

If you’d just send out an e-mail or memo, you’d lose out on a ton of goodwill. Few people get jazzed about an e-mail or piece of paper.

Spreading the word

Here are two alternative ways to make sure everyone knows the good news:

1. Plaster the building with posters or announcements about the benefits change, or
2. Use some petty cash and throw a small on-site party to announce the new program or added benefits.

Of course, you’ll want to keep the celebration proportionate to the significance of the news.

Example: Launching a benefits Intranet or self-service system shortly before open enrollment deserves a full-scale celebration. In fact, it would even bump up the usage of the system.

But changing the mutual fund choices on a struggling 401(k) plan probably doesn’t call for much hoopla.

Assuming it’s truly an either/or situation, most financial planners say it’s better to focus on creating a retirement nest egg.

Why? Because holding assets like 401(k)s and IRAs don’t affect a student’s eligibility for financial aid. In fact, participation can help cut out-of-pocket college costs, because it reduces net income.

Secondly, there are plenty of unknowns that could affect students’ needs for funds. Will they attend a public or private school? Will they receive a scholarship? Will they attend a trade school or community college?

And unless the employee or spouse is in line for an old-fashioned pension, retirement savings will largely fall on the employee’s shoulders.

Social Security may help a bit. But unless employees participate in 401(k) and/or an IRA, most will someday be faced with three unpleasant options:

• delay retirement
• don’t retire at all, or
• retire to a lower standard of living.

5 helpful funding sources

As expensive as college can be, there’s at least the potential for some wiggle room in paying for it.

Some sources:

• Low-interest loans for tuition, books, etc.
• The student may qualify for a scholarship or grant
• The employee’s parents (the student’s grandparents) may be in a position to offer assistance
• Cheaper state schools or community colleges, and/or
• The student may work and contribute to his or her own expenses.

That’s just what may have happened at ABB Group, a manufacturing facility, in St. Louis, MO. Employee Timothy Hendron opened fire, killing four of his fellow co-workers before turning the gun on himself.

He was suing over ‘excessive fees’

With Hendron dead, we might never know the motive behind his violence. But what we do know is he was among several employees suing ABB and its trustee, Fidelity Management Trust, for “unreasonable and excessive fees” in ABB’s retirement plan.

Of course this is the most extreme example of just how heated the issue of retirement plan fees can become.

But the learning is clear: Closely monitor 401(k) fees to make sure they’re fair — and confirm that employees agree.

Companies appear to reduce their 401(k) match when they adopt automatic enrollment, according to a recent study by Urban Institute.

Reason: Higher participation rates mean increased costs for employers that have to match worker contributions.

The statistical model developed by the Urban Institute reveals that match rates are 7% lower on average for employers that adopt auto-enrollment.

Has your company considered reducing its 401(k) match to adopt automatic enrollment? Let us know in the Comments Box below.

Answer: There are three areas you should focus on closely, says employee benefits attorney John L. Utz.

1. Cost. Value is key here. If the new company’s more expensive than your current vendor, does it offer more resources? Are the additional services worth the extra cost?
2. Communication tools. Will your employees be able to easily read and understand the new provider’s educational materials? Will your workers be able to navigate the provider’s Web site easily?
3. Investment options. Are the vendor’s investment options varied enough to suit the needs of your employee population?

The Employee Retirement Income Security Act (ERISA) imposes strict requirements on employers sponsoring 401(k), group life, medical, dental and disability plans to report financial information to the Department of Labor (DOL) on Form 5500.

U.S. Census Bureau reports show there are about 110,000 employers that employ 100 or more people — and public records show some 60,000 (55%) of these employers have not filed a Form 5500, according to a recent ERISA Pros’ study.

Could result in expensive penalties

An employer can be penalized by the DOL up to $1,100 for each day its Form 5500 is late. The penalty is cumulative and is applied separately to each benefit plan an employer offers.

That means fines can add up fast.

“An employer sponsoring life, medical, dental and disability insurance plans that flies its Form 5500s just 30 days late could be fined $132,000,” said Bernard Kearse of ERISA Pros. “If that employer earns 8% net after tax, it would have to generate $1,650,000 in sales revenue to pay for the government’s fine.”

Here are some common species:

Bottom-liners

These no-nonsense employees don’t like fluff. So the most effective way to present info to — or answer questions from — this group is to be direct.

Concrete examples with tangible facts and figures work well with these workers.

Attackers

These employees tend to be more negative — they have no problem criticizing company initiatives and programs in public.

If an “attacker” comes to you with a gripe about changes you’re making to one of their benefits, show you care about the person’s concerns by listening. Then, if necessary, explain how the changes are meant to help them — or the company — long term.

Avoiders

These are the employees who want to do only the bare minimum.

They present a challenge to benefits pros who are trying to boost participation in company-wide initiatives — wellness programs, health risk assessments, 401(k), etc.

The key to success with this group is making things as simple as possible.

Example: Adding automatic enrollment to your 401(k) may be all it takes to boost participation among these workers.

A recent Watson Wyatt study found 55% of companies in the Fortune 100 only offer their employees defined contribution (DC) plans — 401(k), etc. — as opposed to traditional defined benefit (DB) plans — like closed or frozen pension plans.

That’s a big jump from having 46% of employers who only offered DC plans a couple of years ago — and it marks the first time that a majority of Fortune 100 companies are only offering DC plans.

The study also found that an increasing number of Fortune 100 employers are offering hybrid pension plans — account-based cash balance plans, etc. — instead of traditional DB plans.