Compliance October 15, 2015

No Social Security COLA for 2016

There was no increase in inflation in the third quarter, so under current law, there will be no increase in Social Security payments.
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Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 65 million Americans will not automatically increase in 2016, the Social Security Administration announced.

The Social Security Act provides for an automatic increase in Social Security and SSI benefits if there is an increase in inflation as measured by the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The period of consideration includes the third quarter of the last year a cost-of-living adjustment (COLA) was made to the third quarter of the current year. As determined by the Bureau of Labor Statistics, there was no increase in the CPI-W from the third quarter of 2014 to the third quarter of 2015. Therefore, under existing law, there can be no COLA in 2016.

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Other adjustments that would normally take effect based on changes in the national average wage index also will not take effect in January 2016. Since there is no COLA, the statute also prohibits a change in the maximum amount of earnings subject to the Social Security tax, as well as the retirement earnings test exempt amounts. These amounts will remain unchanged in 2016. The Administration has provided a fact sheet of information about 2016 Social Security and SSI changes.

The Department of Health and Human Services has not yet announced Medicare premium changes for 2016. Should there be an increase in the Medicare Part B premium, the law contains a “hold harmless” provision that protects approximately 70% of Social Security beneficiaries from paying a higher Part B premium, in order to avoid reducing their net Social Security benefit. Those not protected include higher income beneficiaries subject to an income-adjusted Part B premium and beneficiaries newly entitled to Part B in 2016. In addition, beneficiaries who have their Medicare Part B premiums paid by state medical assistance programs will see no change in their Social Security benefit. The state will be required to pay any Medicare Part B premium increase.

Information about Medicare changes for 2016, when available, will be found at www.medicare.gov. More information is at www.socialsecurity.gov/cola.

Diversions October 15, 2015

To Hire a Millennial, Think Like a Millennial

Relationships, technology and attention constraints are all key facets of the Millennial profile.
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They grew up with search engines and cell phones, not inkjet printers and Walkmans. No wonder companies need a different set of engagement techniques to lure Millennials to the workforce.

The ability to attract and engage Millennials is essential to business success, but many organizations struggle to engage and hire these individuals, who have grown up in a distinctly different environment socially, economically and technologically.

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A new report from recruiting firm Findly outlines strategies and ways to connect with Millennial candidates, and what companies can do to meet their needs.

Millennials aren’t that loyal: They are twice as likely as 30-somethings to leave a job after three years. They’re attention-challenged: Millennials spend the greatest amount of time online (35 hours per week) and on their cellphones (14.5 hours per week) compared with other generations. But they want to make a difference: 84% of Millennial respondents said that “knowing I am helping to make a positive difference in the world is more important to me than professional recognition.”

Technology is a major differentiator and defining factor for Millennials. Pew Research asked members of each generation, “What makes your generation unique?” The most popular response from Millennials was “technology use” (24%). Baby Boomers’ most frequent response (17%) was “work ethic”—two concepts that often crop up in anecdotes about workplace frustration between Boomers and Millennials.

Findly’s suggestions include:

Deliver relevant content. Millennial job seekers often crave as much information as possible to guide their search. Employers can meet this need by updating their career website to reflect their unique culture, showcasing their values and providing a glimpse of what it would be like to work there.

Build personal relationships. Conducting onsite events, such as career fairs and on-campus recruiting efforts, is a proven strategy for connecting with Millennials directly and on a more personal level.

Use technology. As more Millennial candidates leverage their smartphones and tablets to search and apply for jobs, companies must deliver a mobile-optimized experience. If candidates can’t complete the apply process from their mobile devices, they are more likely to drop out of the application altogether.

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