Philhealth launches fully 'loaded' card

source: http://philhealth101.blogspot.com/2011/09/getting-fully-loaded-philhealth-card.html

It's all in the news. PhilHealth has recently launched its new PhilHealth card launched last September 5, 2011 at SM MOA. This card is packed with privileges in the form of discounts and other incentives offered by partner establishments. The new card known as the I-PhilHealthy Cardis the first project under the Public Private Partnership Scheme that will be implemented by PhilHealth. Under this scheme, PhilHealth may engage in partnerships with private establishments or merchants which are interested in offering their services or providing product discounts and other incentives to PhilHealth members. Through this, PhilHealth members need not be confined, admitted or undergo surgery to avail PhilHealth benefits as they are able to avail the privileges offered by partner merchants.

Aside from the added value of the I-PhilHealthy Card, PhilHealth has also used this opportunity to facilitate and provide an easier means of enticing and getting new members into the program through the services of partner registration sites. With this, PhilHealth has enhanced public accessibility through the increase in the registration sites and collection windows towards the goal of universal coverage.

The PhilHealth ID Card and the I-PhilHealthy Card

The difference between the PhilHealth ID Card and the I-PhilHealthy Card is not only on the material used for the card. As shown in the illustrations of the card, the PhilHealth ID card can be considered a valid ID card due to the presence of the cardholder's picture not present in the I-PhilHealthy Card. The I-PhilHealthy Card is similar to the old card released by PhilHealth known as the PhilHealth Number Card (PNC) which only contains the PhilHealth Identification Number (PIN) and the name of the member. The I-PhilHealthy card is made up of PVC material, has a magnetic stripe and displays additional information such as the date of birth and sex of the cardholder.

Will the I-PhilHealthy Card replace the PhilHealth ID Card? The answer is

no

, PhilHealth will still be issuing the PhilHealth ID Card to its members who will request for it and both cards can be used in availing PhilHealth benefits. The I-PhilHealthy card is optional, meaning it is the choice of the member to obtain the card to avail the added value of being a PhilHealth member. Moreover, obtaining a PhilHealth ID Card is issued free of charge and applying for an I-PhilHealthy Card will have entail a minimal cost that will be borne by the member.

Who can avail of the I-PhilHealthy Card?

• Non-PhilHealth members. Individuals interested in becoming a PhilHealth member may obtain an I-PhilHealthy Card upon registration and a one (1) quarter payment of premium contribution. Employed individuals who have not yet been issued their PhilHealth number may also obtain the card through registration with PhilHealth;

• Existing members. Existing members (those who already have their PhilHealth numbers) in any category (private and government employees, OFWs, individually paying members, sponsored members and lifetime members) may obtain an I-PhilHealthy Card. Sponsored members should likewise apply for the card within the validity of their PhilHealth membership. Lifetime members shall be issued a "PhilHealth Gold Card" as provided by Unilab having the same privileges as that of the I-PhilHealthy Card.

• Dependents. All valid declared dependents may also obtain their own card. It should be noted that the available/offered privileges and discounts can only be enjoyed by the principal members, however, the dependent card can be presented to accredited health care facilities when availing PhilHealth benefits. A different material will be used for a dependent's I-PhilHealthy card which is somewhat similar to the material used in LRT and MRT cards.

Where to register/obtain the I-PhilHealthy Card?

• All SM outlets;


• All CIS Bayad Centers;


• Mobile and onsite registration through partnership with Prime IT Source.

The I-PhilHealthy Card is not available in any PhilHealth office, hence, you would need to go to any of the above registration sites.

As for mobile and onsite registration, members enrolled through this registration scheme will immediately be issued their corresponding I-PhilHealthy Card and members will be introduced to the National

Health Insurance

Program (NHIP) through the Information and Education Campaign being conducted. You may coordinate with your local barangays for the schedule of the PhilHealth onsite registration. We will also try to post or tweet the schedule if available. Moreover, you can request for an onsite registration by coordinating with the Marketing and Collection Department (MCD) or the International & Local Cooperation Department (ILCD) of PhilHealth Central Office or through the PhilHealth Regional offices.

In addition, for existing PhilHealth members, the

registration sites above will not process any amendment or changes to your membership record

such as correction in your name or date of birth or change in civil status. They shall only be processing addition of your declared dependents. You would need to go to any PhilHealth office for this. Hence, if there are any discrepancy found in the information you have provided upon application and the information provided by PhilHealth, your transaction cannot be processed by the registration site. You would need to first correct or update your record with PhilHealth. So to prevent this from happening, ensure that you have an updated PhilHealth record before you apply for the I-PhilHealthy Card.

The SM outlets and CIS Bayad Centers are also accepting collections or payments of your premium contributions particularly for individually paying members. They shall be

accepting card and registration applications starting on September 16, 2011

within NCR and the rest of the branches will follow. You may ask directly with the SM and Bayad Centers nearest you for their exact implementation schedule.

What documents are needed to apply for an I-PhilHealthy card?

• Non-PhilHealth member. Unemployed and employed members not yet registered with PhilHealth (those without PhilHealth numbers) will be required to submit a fully accomplished PhilHealth Membership Registration Form (PMRF) with attached supporting documents for the principal member and declared dependents. Required documents are listed in the 2nd page or back page of the PMRF. For employed non-PhilHealth members, attach an ER2 to be provided by your employer;

• Existing Members. Existing members should submit an accomplished PMRF (write your PhilHealth number, name and date of birth along with the information of your dependents that will be issued their dependent card) with attached supporting documents for newly declared dependents. You can read our post on who can be declared or recognized as a valid dependent. For employed or individually paying members, photocopy of existing PhilHealth ID Card (PIC) or PhilHealth Number Card (PNC). In lieu of the PhilHealth card you may submit a photocopy of any valid ID. For OFWs, bring photocopy of your existing PhilHealth ID Card or e-receipt, a Member Data Record (MDR). OFWs may also apply for the card through authorized representatives (next of kin), just in case provide an authorization letter. For members under the lifetime membership program (pensioners, retirees and others), bring a photocopy of your Lifetime Membership Program Card. For sponsored members, bring photocopy of your PhilHealth ID Card (with effectivity);

Bring the original documents and IDs to be presented to the registration sites, however, you will only be required to submit the photocopies / xerox copies.

How much will be the cost for the Card?

• Non-PhilHealth member. New registrants shall pay a total of Php360.00 when applying in SM outlets (distributed as Php50.00 for registration and card fees, Php300.00 for one quarter payment and Php10.00 collecting fee) or Php358.00 in CIS Bayad Centers (comprising of Php50.00 for registration and card fees, Php300 for one quarter payment and Php8.00 collection fee);

• Existing member. Existing members with active coverage or payments only needs to pay the Php50.00 registration and card fees. However, inactive or non-paying PhilHealth members may also pay their premium contributions in the registration sites plus the corresponding collection fee;

• Dependents. When the principal member applies for the card, two (2) of his/her dependents will be issued their own I-PhilHealthy Card free of charge. The member may opt to provide all his/her declared dependents with their individual card in excess of the two free dependent cards for a corresponding fee. We will be posting the fee once the official advisory comes out.

How to use the I-PhilHealthy Card

There is no need to activate the card and the member is eligible to avail the privileges as long as the member is actively or regularly paying the corresponding premium contributions. The I-PhilHealthy Card of the principal member can be used to avail privileges in the form of discounts or incentives offered in any partner merchants.

Discounts offered is

not on top of the 20% Senior Citizens Discount

, hence Lifetime Members should choose which discount to use when transacting with the partner establishments.

The partner merchants may require you to present a valid ID when availing the privileges to ensure your identity.

Who are the partner merchants / Where can you use the I-PhilHealthy Card (a separate post will be provided to list all services and privileges being offered)

• Qualifirst Health Inc.;


• GlaxoSmith Kline;


• United Laboratories, Inc.;


• Watsons Personal Care stores;


• Fresenius/ FMC Renal Care Corp.;


• PQ Health Shield;


• Rose Pharmacy Inc.;


• South Star Drugstore;


• Vivian Sarabia Optical Corp.;


• J&W Drug Testing, Inc.;


• SM outlets;


• CIS Bayad Centers;


• Prime IT Source;


• e-Soluzione;


• 1abx;


• All Cards Plastic Philippines;


• and more to come...

Mechanics in Applying for an I-PhilHealthy Card

• The member will go to any registration site and submit the needed documents;


• The Partner Registration Facility (PRF) shall verify the completeness of the documents;


• The PRF shall encode all needed information from the PMRF into the system;


• The PRF will ask you to confirm correctness of encoded / retrieved information. For existing members, you will be informed to coordinate with PhilHealth if there is any discrepancy found in your record. The discrepancy should first be resolved in order to be issued an I-PhilHealthy Card;


• Once member information is confirmed the PRF will generate a PhilHealth number and encode the two dependents, generate a PhilHealth number for the dependents for the issuance of their own free dependent cards. You may ask the PRF to encode more than two dependents for issuance of the PIN and dependent card at a given cost;


• The PRF will provide a claim stub for the claiming of the I-PhilHealthy Card. The stub also contains the date when the card can be picked-up which is at least two (2) weeks from the date of your application. The I-PhilHealthy Card can be claimed at the site where you have registered or lodged an application;


• The PRF will forward unclaimed cards after one year of issuance to corresponding PhilHealth branches. Hence you would need to coordinate with the PhilHealth Office to claim your I-PhilHealthy Card. Call any PhilHealth office near your area on what branch you can claim the card. PhilHealth might also mail the card based on the address in your membership record.

Replacement of Lost / Stolen Card

• Submit an Affidavit of Loss, a request letter for replacement and the documentary requirements for existing members. You will be required to pay for the Php 50.00 registration and card fee and may claim the replacement card at the registration site you have filed your request.

In our personal opinion, since the I-PhilHealthy Card might not be considered a valid ID card by other institutions or establishments due to the unavailability of the cardholder's picture, it is therefore recommended that you hold onto or request for a PhilHealth ID Card. This is especially recommended for those individuals who do not own an ID card since they will need one for transacting with PhilHealth or encashing of check payment issued by PhilHealth (for directly filed claims).

As PhilHealth has not yet released an official advisory or Circular on these, the information contained here will be updated based on the final information release from PhilHealth. So keep checking back on this post for updates.

New Case Rate Packages from PhilHealth

source: Philhealth

NEW case rate packages for selected medical conditions and surgical procedures will soon be available in institutional health care facilities accredited by the Philippine Health Insurance Corporation (PhilHealth).

According to PhilHealth President and CEO Dr. Rey B. Aquino, "the shift from fee-for-service to case rates for these medical and surgical cases was prompted by developments taking place in the health care industry, most notable of which is the need to provide optimal financial risk protection especially to the most vulnerable groups, including the poorest of the poor." He added that better member appreciation and faster reimbursement of fees to health care providers were also among the major considerations for introducing this new type of provider payment scheme.

The use of case rates is an internationally accepted payment mechanism that serves to package payment for health interventions. Through this mechanism, members will be able to predict how much PhilHealth will be paying for each of the services provided. "Gone are the days when we could not even give a definite amount of benefits for each of these common medical conditions and surgical procedures," Aquino said, adding that "...now, the member is empowered with just the right amount of information he needs for a particular disease or illness."

Among the medical cases and the corresponding package rates are Dengue I (P8,000.00), Dengue II (P16,000.00), Pneumonia I (P15,000.00), Pneumonia II (P32,000.00), Essential Hypertension (P9,000.00), Cerebral Infarction (CVA I, P28,000.00), Cerebro-vascular Accident with Hemorrhage (CVA II, P38,000.00), Acute Gastroenteritis (P6,000.00), Asthma (P9,000.00), Typhoid Fever (P14,000.00), and Newborn Care Package in Hospitals and Lying-in clinics (P1,750.00).

On the other hand, the surgical procedures include Radiotherapy (P3,000.00 per session), Hemodialysis (P4,000.00 per session), Maternity Care Package (MCP, P8,000.00) coupled with the Normal Spontaneous Delivery (NSD) Package in Level 1 (P8,000.00) and Levels 2-4 hospitals (P6,500.00), Caesarian Section (P19,000.00), Appendectomy (P24,000.00), Cholecystectomy (P31,000.00), Dilatation and Curettage (P11,000.00), Thyroidectomy (P31,000.00), Herniorrhaphy (P21,000.00), Mastectomy (P22,000.00), Hysterectomy (P30,000.00) and Cataract Surgery (P16,000.00).

Aquino said the new case rate packages are available for all member-types admitted in any of the accredited institutional health care providers nationwide starting September 1. He, however, emphasized that "...for our Sponsored Program members who are admitted in government hospitals, the "No Balance Billing" (NBB) policy applies, meaning no other fees nor expenses shall be charged to or paid for by the patient-member above and beyond the package rate."

The NBB policy shall also apply to any other member type such as the employed, individually paying and overseas workers, who will avail themselves of the MCP and NCP in all accredited MCP non-hospital providers such as maternity clinics, and birthing homes.

"This policy was approved after a series of consultations with concerned medical societies and other institutional partners. These conditions and procedures were also among the top 49 percent of total claims we paid for over the previous years," the PhilHealth Chief noted. With all of these packages in place, the government agency needs about P3 billion for the next six to 12 months once members start availing themselves of the packages early next month.

New Holiday for 2011 & Php22 COLA granted to all minimum wage workers

HR Online has been down for the past few months due to technical problems, but we are now back up and running with two of the hottest news for us working citizens!

First off is the new holiday. Originally a regional holiday for the city of Calamba, the birthday of national hero, Jose Rizal, has been turned into a nationwide holiday and moved to June 20, 2011.  This adds one long weekend the the sparse count of long weekends for the year - with most of the holidays falling on sundays.

June is a great time to catch some last minute summer fun - right before the monsoon season hits the country. A copy of the proclamation can be found at the Official Gazette, the Philippine Government's official website.

The second news is the approved Php22 cost of living allowance (COLA) granted to all minimum wage workers. There are many mixed reactions regarding this announcement, with the trade unions mostly contesting the price and mechanics of the granted allowance.  DOLE reasoned out that this adjustment was put under COLA because it is the win-win situation for both employees and employers - granting a monetary increase to the minimum wage without adding extra burden to the financial constraints of employers. Whether or not the Php22 daily increase can help the employed sector deal with rising inflation prices is the point that trade unions are contesting the the moment.

For those who are not aware,  increasing the minimum wage adds to the financial burdens of employers because it is not only the salaries that they pay the employees that get changed. With increases in minimum wage, an employee's gross monthly wages also changes and may put them in higher salary brackets for their government benefits (SSS, philhealth and PAG-IBIG). In addition, higher wages also means higher payouts for companies who grant paid or cash-convertible leaves, 13th month pay and retirement benefits.

Only those who are minimum wage earners are entitled to receive the additional Php22 allowance. However, there is no rule restricting companies from granting the same benefit to their above-minimum wage workers. The allowance in non-taxable and amounts to Php478 - 573 additional income per month for employees who work 5-6 days a week.

The new minimum wage table can be found at the National Wage and Productivity Commission (NWPC) website.

Official Proclamation for the Php22.00 Minimum Wage Increase for NCR

The official proclamation for the 2010 minimum wage increase has been published last June 18, 2010. The wage order will take effect on July 1, 2010.

The minimum wage increase does not include family drivers, household help, persons in the personal service of another and employees of Barangay Micro Business Enterprises (BMBEs). There are other exemptions listed in the wage order exempting certain types of establishments from the mandated wage increase.

Specifically noted in the wage order were the exemption of employees who received increases granted to employees within 3-5 months of the effectivity of the wage order. This exemption depends on certain qualifying factors listed in the wage order.

Despite all these exemptions and complaints about the inadequacy of the wage increase to sustain the current living needs of filipino citizens, this new wage increase gives private sector employees approximately Php500-600 additional income per month. Coupled with overtime pay and other premiums, Sec. Andres of the RTWPB-National Capital Region (NCR) estimates that employees would be receiving Php533.00 per day.

Minimum Wage Increase for 2010

The talk of the town this morning is the much-awaited minimum wage increase mandate by the government.

News has now come out that the Regional Tripartite Wages and Productivity Board has decided on a Php22.00 increase on the minimum wage for Metro Manila, citing that they have considered both the need of the citizens and the capacity of employers to pay wages. This is a far cry from the proposed Php75.00 increase by various labor organizations, but after 2 years of no minimum wage increases, any wage increase would be a welcome sight.

Negotiations for the minimum wages in other regions, as well as other groups, are still in the works. The minimum wage increase will not take effect until 15 days after they release the proclamation, which in turn will only be released once all negotiations for all regions have been finished. This means all minimum wage earners will have to hold on to their horses for a bit more before shouting for joy at the increase in their salary.

For Metro Manila minimum wage earners, here's a short summary of the monthly equivalent of the upcoming wage hike:

1. For those whose rest day is on Sundays only (approx. 26days/month) - Php 10,571.00


2. For those whose rest day is both on Saturdays and Sundays (approx. 22 days/ month) - Php 8,888.00


3. For those who are paid even during their rest days and holidays (approx. 30-31 days/month) - Php 12,288.33

Minimum wage earners can highly maximize this increase particularly because they are not charged witholding income tax. As such, the most that is removed from their salaries on a monthly basis amounts to a maximum of Php500.00. Those who are earning above the minimum wage, however, are not entitled to receive a salary increase from their employers just because of this mandate. It is highly recommended, though, that these employers take alternate measures to ensure that their employees are still receiving the correct salary that is commensurate to their cost of living.

Gov’t issues pay rules for holidays on Holy Week, Araw ng Kagitingan

source: http://www.dole.gov.ph/secondpage.php?id=1160

The Department of Labor and Employment (DOLE) today said that April 1 (Maundy Thursday) and 2 (Good Friday) are regular holidays throughout the nation, while April 3 (Black Saturday), 2010 is a nationwide special non-working day.

The Labor and Employment Chief said that Presidential Proclamation No. 1841, issued earlier on July 21, 2009, had affirmed the regular holidays on April 1 and 2, and April 9, 2010. At the same time, Proclamation No. 2029, by authority of the President signed by Executive Secretary Leandro R. Mendoza on March 24, 2010, declared Saturday, April 3, 2010, which falls between Good Friday and Easter Sunday, as a special (non-working) day throughout the country, citing that, “our people must be given the full and uninterrupted opportunity to ponder on the significance of the Holy Week and to properly observe its traditions… without prejudice to public interest.”

Roque thus advised the country's employers in the private sector on the pay rules to be applied during the said nationwide regular and special non-working holidays as follows:

1.       For the regular holidays on April 1 (Maundy Thursday), April 2 (Good Friday), and April 9 (Araw ng Kagitingan), 2010:

A.      If the holiday falls on an employee’s regular workday:

-  If worked, [the employee] is entitled to 200% of his [or her] basic wage for the first eight (8) hours and, for work in excess of the 8 hours, to an additional 30% of his or her hourly rate on the said day.

-  If unworked, the employee is entitled to 100% of his or her regular daily rate, provided he she was present or was on leave with pay on the workday immediately preceding the holiday.

B.      If the day is the employee’s rest day:

-  If worked, the employee is entitled, for the first 8 hours, to 200% of his or her daily rate plus 30% and, for work in excess of 8 hours, plus 30% of his or her hourly rate on the said day.

-  If unworked, the employee is entitled to 100% of his or her regular daily rate, provided he or she was present or was on leave with pay on the workday immediately preceding the holiday.

C.      Where the day immediately preceding the holiday is a non-work day in the establishment or the

scheduled rest day of the employee, he or she shall not be deemed on leave of absence on that day, in which case he or she shall be entitled to the holiday pay.

2. For the special non-working day on April 3, 2010 (Black Saturday):

-  If worked, the employee is entitled to 130% of his [or her] daily rate for the first 8 hours, and to an additional 30% of his or her hourly rate on the said day for work performed in excess of 8 hours.

-  If unworked, he or she is not entitled to any payment, unless there is a favorable company policy, practice or collective bargaining agreement (CBA) granting payment for special days even if not worked.

- If worked and falling on the employee’s rest day, the employee is entitled for the first 8 hours to150% of his or her regular daily rate, and for work performed in excess of 8 hours, plus 30% of his or her hourly rate on the said day.

Any clarifications regarding the holiday pay rules may be made with the DOLE Call Center at tel. no. 527-8000.

PAG-IBIG Overseas Program

With the governments efforts in talking to other countries to generate more jobs for us, and the resurging of international jobs, going overseas is once again a viable option for a lot of skilled filipinos. PAG-IBIG has a housing program that our OFWs should look at.

Here are the details I received through email:

Pag IBIG Overseas Program (POP)

A Program for overseas Filipinos
Join, save for your future and be a happy homeowner now!

Offers the best housing loan packages!!!

1) Lowest Interest Rates - as low as 6% interest rate for loans up to Php 400,000; 7% interest rate for loans over Php 400,000 up to Php 750,000; 8.5% for loans over Php 750,000 up to Php 1 Million
2) High Loan To Collateral Ratio - as high as 95% loanable amount for loans over Php 750,000 up to Php 1.25 M (Developers with buyback agreement). Down payment can be as low as 5% of the selling price
3) Longest Loan Term - maximum of 30 years to pay. Member can choose the loan term, from 1 to 30 years to pay, provided that it shall not exceed the difference betwwen the principal borrower's age at the time of loan application and age seventy
4) Up to Php 3 Million Loan - based on the lowest of the ff: capacity to pay (40% of NDI); actual need; loan to collateral ratio; and membership contribution (member may upgrade contribution to increase the loanable amount). Tacking provision is allowed up to 2 co-borrowers (parents & siblings)

What is the Pag IBIG Overseas Program (POP)?

- A voluntary savings program
- Open for Filipino overseas contract workers / immigrants / permanent residents / seafarers
- Opportunity to save for their future
- Avail of a housing loan of as much as Php 3 million

Non-members can join by simply accomplishing the member's data form and paying the required membership contribution

A Savings Program

- All contributions of the member earn dividends and the contributions plus the dividends can be withdrawn at the end of the membership term (5, 10, 15 or 20 years)

House & Lot as low as Php 1.8 M or Php 16,000 / month*
Condominium as low as Php 1.1 M or Php 8,000 / month*
*monthly amortization

You can check out the official guidelines at the PAG-IBIG Website.

President Arroyo approves Salary Standardization Law

Government employees and civil servants have cause to rejoice! Based on this announcement, Civil servants are now entitled to performance-based increases.

This, I think, might not sit well with civil servants who have long been benefiting from tenure-based benefits. However, if our more senior civil servants have been rendering good service through good performance of their duties, they have no reason to be miffed about this new development.

I have yet to see what the exact law states, but for the private sector, this might be a good comparison for their own performance based systems.

Retirement 101: Helping Employees Help Themselves

written by Tess Malon from Talent Management, May 2009

Employees with choices are well-informed economic agents that act rationally to maximize their self-interests. It is assumed they can interpret and weigh information presented regarding benefits options, appropriately evaluate and balance these choices and then make informed decisions. The reality is very different. Employees can be their own worst enemies when it comes to making decisions about planning for their retirements.

Certain types of decisions and problems may be simply too complex for some employees to master on their own. Many employees have the best intentions, but they lack the willpower to carry out the appropriate changes in behavior.

The good news is once talent managers understand what keeps employees from successfully saving for retirement, they can determine how to help employees help themselves.

Plan sponsors must design, regulate and evaluate the institutions that help millions of Americans provide for their economic retirement security. One of the most powerful things plan sponsors can do effectively is utilize framing mechanisms that make it easy for employees to succeed at being the CFO for their retirement plans.

Talent managers have a unique opportunity to craft new strategies that will empower and guide employees toward their retirement goals. How they do this will affect their organizations' ability to recruit, retain and motivate the best workers. It also will determine the financial future of the next generation of retirees.

Three major forces are converging to reshape the retirement landscape. First, life expectancy has improved dramatically. In the 20th century, the average lifespan rose from 47 to 78. Older Americans are healthier than ever before. Retirement, once a few years' respite at the end of life, now commonly lasts 20 years or more. New generations of retirees are challenged to imagine what they want to do and achieve, and to prepare wisely to support the lives they want.

Second, while the economy has reduced these figures somewhat, the number of retirees in the 77 million-member baby-boom generation is the largest in history to leave the workforce. Comparatively, younger population groups will grow modestly or even shrink during the next decade.

Third, the responsibility for retirement saving has shifted to the individual. Earlier generations often could count on an employer-defined benefit plan, or employer-paid pension, to see them through their retirement years. But according to a November 2008 article titled "The Financial Crisis and Private Defined Benefit Plans" by the Center for Retirement Research, since 1980, the percentage of workers with only defined contribution plans has multiplied almost fourfold. And those with only defined benefit plans fell from 60 to 8 percent in 2006. Meanwhile, the age of eligibility for Social Security has risen, along with worries about the federal government's ability to fund entitlement programs at current benefit levels for future generations.

Plan sponsors need to be concerned with these problems because the stagnating growth of the labor force will mean increased competition for talent. The looming shift from an "employer" to an "employee" labor market means employers must respond to employees' needs. Further, employees that don't adequately prepare for retirement will not retire. Employees that should retire but can't will drag down an organization's financial and emotional bottom line.

The most successful organizations develop an intimate understanding of employee needs, behaviors and capabilities. Companies that effectively solve problems for their employees will attract and retain top talent.

The following are some strategies to consider when deciding how best to assist employees in effectively planning for retirement:

1. "Auto-everything plans" address employees who do not participate in retirement plans or do not defer enough by defaulting to an appropriate investment choice. Auto-everything plans are one of the most effective framing tools talent managers have to facilitate retirement planning success.

It is the sponsor's responsibility to make wise choices in plan design. More often than not, participants follow the path of least resistance in their decision making, making the easiest, rather than the best, decisions. Not surprisingly, many participants lack well-informed investment preferences, and these preferences are easily altered by the way choices are presented to them.

Small barriers can have large effects on behavior. It is logical to assume employees would be willing to spend a bit of time to arrive at a proper plan for retirement savings and investing decisions. But research findings prove other barriers such as plan design keep employees from making these decisions. For instance, having a large number of investment choices can negatively influence participation rates in the 401(k).

2. Take the emotion out of investing. Emotions can run counter to good investor behaviors. A person's natural and powerful fight-or-flight mechanism can distract investing behavior unless talent managers educate them to override that instinct and instead rely on rational, informed thought.

Educate participants so they understand that their natural reactions to market activity are normal, but not always conducive to good investing.

For instance, when markets decline, staying invested can be in the participant's best interest. In fact, turbulent times can be an opportunity to invest more. But these often are counterintuitive thoughts. Warren Buffett recently said, "A simple rule dictates my buying: Be fearful when others are greedy, and greedy when others are fearful."

3. Show employees why investing more, not less, is the right choice. A natural reaction to the significant downturn we have experienced recently is fear and a desire to stop contributing. Instead, suggest that employees take this opportunity to increase contributions.

Why? Increasing contributions is the quickest way to boost an account, and now is an ideal time to buy because everything is on sale. It's like buying a pair of jeans. If you have $100 and a pair of jeans cost $100, you can buy one pair. If the jeans are on sale for $33 a pair, you can buy three pairs with that same $100. Why buy one when you can have three? Using tangible, simple examples that employees can relate to and understand will help them to connect the dots.

4. Encourage employees to get interest-free loans. Big corporations are getting help from Uncle Sam with the bailouts; employees can do the same in their 401(k)s. Remind employees that for every $100 they defer into their 401(k)s, they get a free loan from the government because they do not have to pay state or federal taxes on that $100. They get to take Uncle Sam's money and tuck it away in their account for the next 10, 20 or 30 years.

Encourage employees to maximize that free government loan by deferring every possible penny and making their hard-earned dollars work for them inside their tax-deferred savings vehicle: their 401(k)s. Think of it as a personal bailout package from the government.

5. Remember a picture is really worth a 1,000 words. People often assimilate information in picture form at an exponentially higher rate than words and letters. This principle is never truer than when talent managers help employees effectively plan for retirement. A significant percentage of employees have never calculated what they need to save today to maintain their standard of living in retirement. Do it for them in the form of a picture. Some 401(k) vendors will do it for you free of charge. Taking time to do this calculation can be highly effective in changing participant behavior.

Employees who calculate a goal will change their behavior, and of those, almost 60 percent will start saving more as a result of doing the calculation. When presented in a graphical format, a gap or replacement ratio analysis makes employees' choices tangible, illustrating what sacrifices today are worth 30 years from now.

6. Be a good steward for employees' money. Any money participants pay someone else today is money they won't have when it comes time for them to retire. Further, they also lose the magical power of compounding on those monies. The aforementioned money refers to expenses deducted from participants' accounts on a daily basis. These expenses make a big difference to hard-working participants, and talent managers can control them.

Participants are relying on plan sponsors to be good stewards of their money. Roughly, more than 60 percent of plans are overpaying plan expenses. Blue Prairie Group has uncovered overpayment of expenses in 100 percent of the expense analysis projects undertaken during the past six years. Help employees keep every dollar they can in their accounts.

7. Incorporate adult learning principals in targeted educational programs. Participants who receive information about their retirement savings in accord with research-based principles of how adults learn best will increase their retirement-plan contributions. Adults learn best when information is provided using a consultative approach that influences behavior by incorporating three interactive steps: assess, educate and influence (the AEI method).

Plan sponsors should ensure vendors use similar techniques that build on adult learning principles by using a learner-centered process. The techniques are most effective when they engage learners as active, self-determining individuals who will benefit from assistance making informed choices.

Thankfully, we know the barriers keeping employees from succeeding so we can implement strategies to facilitate their success. Talent managers have the ability to dramatically impact employees' quality of life by giving employees information to meet their specific needs and encourage them to make good choices. Thus, talent managers can dramatically impact the return on investment organizations get from the valuable employee benefit dollars they spend on these programs.

[About the Author: Tess Malone, AIF, FLMI, PRP, is an institutional retirement and investment practice leader at Blue Prairie Group, an HR and investment consulting firm.]