Portable benefits

Portable Benefits

Benefits that one has accumulated on an employer-sponsored plan, usually but not always a retirement plan, that one may take with him/her to a new employer. For example, if an employee has a 401(k) with portable benefits and quits his job, he may roll over the benefits into his new employer's 401(k) plan. Most 401(k)s, 403(b)s, IRAs, and health savings accounts have portable benefits.

Portable benefits.

Benefits or accumulated assets that you can take with you when you leave your employer or switch jobs are described as portable.

For instance, if you contribute to a 401(k), 403(b), 457, or other defined contribution plan at your current job, you can roll over your assets to an individual retirement account (IRA) or to a new employer's plan if the plan accepts rollovers.

In contrast, credits accumulated toward benefits from a pension -- otherwise known as a defined benefit plan -- usually aren't portable.

Insurance benefits under an employer sponsored group health plan may also be portable as the result of The Health Insurance Portability and Accountability Act (HIPAA). If you have had group coverage and move to a new employer who offers health insurance, your new group health plan can't impose exclusions for preexisting conditions.

HIPAA may also give you a right to purchase individual coverage if you are not eligible for group health plan coverage and have exhausted the 18-month extension of your previous coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA) or similar coverage.

Other job benefits, such as health savings accounts (HSAs), are also be portable, but flexible spending plans (FSAs) are not.

References in periodicals archive ?
Portable benefits, which move with a freelance worker from gig to gig, could drive this transition.There are already about 300 active digital platforms in Africa, employing close to 5 million workers.
But with these caveats, a points system with fully portable benefits would fit the new world of work - and could become a cornerstone of a renewed social contract.
We need federal and local government to experiment with industry to develop a portable benefits system to follow workers from job to job and gig to gig.
In the case of education, the report calls on employers and colleges to work together to develop talent "pipelines." For example, it highlights Miami Dade College's "programs in animation and game development, working with companies such as Pixar Animation Studios and Google." Likewise, Toyota "has built its own advanced manufacturing technician program to provide a pathway for students seeking careers at the company." And to ensure labour mobility, the report gives pride of place to "flexicurity," in the form of portable benefits ("transition assistance for workers").
to sit down and discuss portable benefits and its effects on small business owners globally http://smallbizpolicyforum.com/panels/portable-benefits-creating-infrastructure-entrepreneurs-thrive.
One way to change that: Offer so-called portable benefits 6 basic protections such as health care, retirement and sick pay -- that would follow all workers from job to job.
We also need to introduce modern and sustainable social-welfare systems, including fully portable benefits. And we need to implement strategies for managing migration.
To address this challenge, we developed the idea of a "Shared Security System," a package of portable benefits for contingent workers first proposed in the Summer 2015 issue of the journal Democracy ("Shared Security, Shared Growth").
The best method would be to enact a system of "portable benefits" that can cover the nearly 150 million employed Americans, regardless of how they work or for whom.
In making their decision, plan sponsors also need to look at factors such as the impact on the volatility of cash flows, the demand of employees for more portable benefits and the relative effects of the two types of plans on reported accounting income.
Multiemployer plans provide portable benefits to workers who change employers, distribute risk among participating employers and participants, and continue to operate long after an individual employer, or sponsor, goes out of business, because their framework makes remaining employers jointly liable for funding benefits for all vested participants.
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