For more stories like this, sign up for the PLANSPONSOR NEWSDash daily newsletter.
Benefits platform provider Lively Inc., has debuted four lifestyle spending accounts, evolving benefits offerings to enable plan sponsors to meet the needs of employees, the firm announced in a Wednesday press release.
Amit Ahluwalia
Lively debuted the new LSAs because employers are considering adding a wide range of benefits outside of retirement plans in their efforts to recruit and retain staff, Amit Ahluwalia, chief revenue officer at Lively, says by email.
“Employers want to give employees the benefits that they want, and employees want to know that their employer values them as an individual. That’s why we’ve expanded our Lifestyle Accounts—so that employees have the right benefits to complement their lifestyle and accomplish their goals.”
LSAs are employer-funded taxable accounts—to provide a cash benefit to employees to pay for everyday, nonmedical lifestyle and wellness expenses. Employees pay out-of-pocket for eligible expenses, submitting for reimbursement through the LSA, and pay taxes for only the reimbursement amount, adds Ahluwalia.
“Employers are now making decisions about the benefits they offer for next year, so we wanted to give them some new and innovative options during this critical time,” Ahluwalia adds by email.
The San Francisco-based firm’s new LSA offerings include:
- ‘New chapter’ LSA, for family planning, fertility, surrogacy and adoption expenses;
- ‘Experiences’ LSA, for entertainment and travel such as concert and sports tickets, airline travel and hotels;
- ‘Team boost’ LSA, for teambuilding activities such as group and team events, milestone celebrations and travel expenses; and
- ‘Reconnect’ LSA, for return-to-work expenses such as transportation and meal reimbursement.
Lively launched the new LSAs because employees are rethinking their goals and expectations for employer benefits, according to the release.
Although LSAs are not retirement plan benefits, providing nonretirement benefits such as emergency savings accounts and LSAs are a method for plan sponsors to effect participants’ overall financial wellness and retirement readiness.