IFEBP Highlights Effects of COVID-19 on Retirement Savings Choices

Brandon Guest is a South Carolina-based business leader who serves as an area president of Arthur J. Gallagher & Co., a subsidiary of Gallagher Benefit Services. Brandon Guest of Charleston, South Carolina is a member of the International Foundation of Employee Benefit Plans (IFEBP), an educational organization with more than 31,000 members worldwide.

In May 2020, the foundation surveyed employers to examine the effects of the COVID-19 crisis on employee retirement savings plans. The survey also sought to determine the impact of the pandemic on staffing and health care offerings.

According to IFEBP, 63 percent of employers have allowed employees to take COVID-19-related distributions from 401(k)s and other defined-contribution plans. Close to half have also increased loan amounts for these plans, albeit temporarily.

The survey also showed that many employers are increasing the number of mental health services included in their health plans, alongside telehealth services. Furthermore, over a third have increased the length of time included in prior authorization plans for prescriptions, while 29 percent have increased the quantity of prescription medication that is covered.

According to IFEBP Vice President Julie Stich, the long-term effects of COVID-19 are yet to be understood. However, employers are keeping their employees' best interests in mind.