Category: Benefits

  • Public Service Loan Forgiveness: Help Employees Achieve Their Financial Goals

    Public Service Loan Forgiveness: Help Employees Achieve Their Financial Goals

    by Julie Burrell | September 17, 2024

    The Public Service Loan Forgiveness (PSLF) program can offer significant financial relief to higher ed employees, but many don’t know they qualify for this benefit. PSLF is open to most full-time higher ed employees of nonprofit colleges and universities who have direct federal student loans.

    HR can spread the word to current employees and use loan forgiveness as part of a retention and recruitment strategy. The average amount of individual loan forgiveness under the PSLF is $70,000, which makes the PSLF an especially attractive benefit to potential employees.

    Here’s what you need to know about who qualifies for PSLF, how to offer a free webinar on PSLF to your employees, and what steps you can take to ensure eligible employees enroll.

    What is PSLF?

    Public Service Loan Forgiveness forgives the balance of direct federal student loans after 120 qualifying payments made by the borrower if they work for a qualifying employer (after October 1, 2007) and are under a qualifying repayment plan. It’s intended to reward and incentivize public service, like teaching, nonprofit work and work in the public sector. PSLF eligibility isn’t about what job an employee does or what their job description is; it’s about where they work.

    Who qualifies for PSLF?

    Full-time employees of a nonprofit organization or a federal, state, tribal, or local government are eligible. Full-time work is defined as 30 hours or more per week. That means most full-time higher ed employees are eligible for PSLF, including those who may work part time at your institution but are also employed at other qualifying jobs (as is the case with many adjuncts). But the PSLF only applies to direct federal student loans. Borrowers with other federal student loans may be able to consolidate them into a direct federal student loan.

    How do I ensure my institution counts as an eligible employer?

    Use the PSLF Help Tool, which will search the federal employer database. The help tool is also useful to recommend to employees since it’s a step-by-step guide through the enrollment process.

    Six Tips for Getting the Word Out

    1. Partner with Public Service Promise, a nonprofit, nonpartisan organization that offers free webinars led by experts.
    2. Encourage HR staff to apply for PSLF. With firsthand experience, you and your team will be able to speak knowledgeably about the process.
    3. Publicize PSLF as a benefit to your employees, especially those who may not know they can take advantage of this program, including adjuncts and non-exempt and part-time employees.
    4. Include information about PSLF on your benefits websites or portal.
    5. Consider appointing a knowledgeable point person on campus, like a financial aid officer, to help answer employee questions.
    6. Involve non-exempt, adjunct and part-time employees in outreach campaigns. Employees can meet the 30 hours per week requirement with more than one job. So if they have multiple jobs at multiple qualifying employers, employees can add those hours up. And the PSLF instructions include how to calculate hours worked by adjunct faculty. Payments do not need to be consecutive, so even adjuncts without summer appointments can still take advantage of PSLF and start to chip away at the 120 payments.



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  • Senate Finance Committee Holds Hearing on Paid Leave – CUPA-HR

    Senate Finance Committee Holds Hearing on Paid Leave – CUPA-HR

    by CUPA-HR | November 14, 2023

    On October 25, the Senate Finance Committee held a hearing on federal paid leave. This comes as congressional Democrats and Republicans have shown interest in finding bipartisan consensus for a federal paid leave program. The hearing also provided policymakers and witnesses the opportunity to discuss the promise and drawbacks of paid leave proposals.

    Increasing employee access to paid leave was a primary focus of the hearing. Both sides of the aisle agreed that all workers will need to take leave during their careers without the obligation to juggle work requirements. Policymakers highlighted that 70 percent of Americans want national paid leave and that 72 percent of Americans who are not currently working cite caregiving and family responsibilities as the main reason. To address these issues, Democrats argued for a federally mandated paid leave program, while Republicans worried that a one-size-fits-all program could limit employer-provided paid leave options and be difficult to implement on a wide scale.

    Witnesses Describe Potential Benefits of Federal Paid Leave

    Some of the witnesses discussed the benefits of a federal paid leave program, concluding that better access to paid leave would benefit workers, employers and the economy. Jocelyn Frye, president of the National Partnership for Women & Families, stated that offering paid leave tends to benefit both workers and employers through increased labor force participation (both for women and generally), worker retention, and wage growth. Ben Verhoeven, president of Peoria Gardens Inc., added that investing in paid leave gave him better return on investment than his capital investments, as implementing paid leave increased business growth and employee retention and promotions.

    Objection to a One-Size-Fits-All Leave Program

    Despite these benefits, Elizabeth Milito, executive director of the National Federation of Independent Business’s Small Business Legal Center, said that employers would face trade-offs under a federal paid leave program. Milito argued that employers operating on the same amount of funds but under new federal benefit requirements would be obliged to provide paid leave as a benefit, leading to some employers being unable to provide higher compensation or other benefits like health insurance. Rachel Greszler, senior research fellow at The Heritage Foundation, said that in response to state paid leave programs, some companies choose to send workers to the state program first and then supplement the paid leave benefit to provide 100 percent wage replacement. This creates an administrative burden for the employee, who receives full wage replacement only if they participate in both paid leave programs.

    Republicans and their witnesses also said that a federal program would require flexibility and simplicity to be most effective. Milito and Greszler concurred that most small businesses do not have a qualified HR professional to deal with additional compliance needs. Greszler also stated that the biggest unintended consequence of a one-size-fits-all approach would be a rigid structure that does not work for most employees and businesses. She specified that a carve-out for small businesses or the ability to opt in to a federal program would be most appropriate.

    CUPA-HR continues to monitor for any updates on federal paid leave programs and will keep members apprised of any new developments.



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  • Hybrid, Remote and Flexible Work: The Secret Sauce for Employee Retention? – CUPA-HR

    Hybrid, Remote and Flexible Work: The Secret Sauce for Employee Retention? – CUPA-HR

    by CUPA-HR | September 19, 2023

    Given the number of employees who successfully executed their work remotely at the height of the pandemic, it may come as no surprise that a substantial gap exists between the work arrangements that higher ed employees want and what institutions offer. According to the new CUPA-HR 2023 Higher Education Employee Retention Survey, although two-thirds of employees state that most of their duties could be performed remotely and two-thirds would prefer hybrid or remote work arrangements, two-thirds of employees are working completely or mostly on-site.

    Inflexibility in work arrangements could be costly to institutions and contribute to ongoing turnover in higher ed. Flexible work is a significant predictor of employee retention: Employees who have flexible work arrangements that better align with their preferences are less likely to look for other job opportunities.

    Flexible Work Benefits: A No-Brainer for Retention

    While more than three-fourths of employees are satisfied with traditional benefits such as paid time off and health insurance, survey respondents were the most dissatisfied with the benefits that promote a healthier work-life balance. These include remote work policies and schedule flexibility, as well as childcare benefits and parental leave policies.

    Most employees are not looking for drastic changes in their work arrangements. Even small changes in remote policies and more flexible work schedules can make a difference. Allowing one day of working from home per week, implementing half-day Fridays, reducing summer hours and allowing employees some say in their schedules are all examples of flexible work arrangements that provide employees some autonomy in achieving a work-life balance that will improve productivity and retention.

    A more flexible work environment could be an effective strategy for institutions looking to retain their top talent, particularly those under the age of 45, who are significantly more likely not only to look for other employment in the coming year, but also more likely to value flexible and remote work as a benefit. Flexible work arrangements could also support efforts to recruit and retain candidates who are often underrepresented: the survey found that women and people of color are more likely to prefer remote or hybrid options.

    Three Things You Can Do

    1. Use Data to Make a Case for Change. The CUPA-HR 2023 Higher Education Employee Retention Survey provides multiple data points that support remote, hybrid and flexible work for the retention and recruitment of top talent.
    1. Explore CUPA-HR Resources. Discover best practices and policy models for navigating the challenges that come with added flexibility, including managing a multi-state workforce:
    1. Remember the Two-Thirds Rule. In reevaluating flexible and remote work policies, remember: Two-thirds of higher ed employees believe most of their duties can be performed remotely and two-thirds would prefer hybrid or remote work arrangements, yet two-thirds are compelled to work mostly or completely on-site.

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