Page 10

{ your kiosk

UBER ISSUES Familiar with the new age taxi/ride sharing services like Uber or Lyft? They are part of a Transportation Network Company (TNC) that uses a digital network to connect passengers to participating drivers for a fee. Anyone who wants to use their own vehicle can tap into the network and start making money by driving people to their destination. While the ride-sharing model has legions of fans, it has come under scrutiny for issues related to passenger and driver safety, not the least of which is related to inadequate insurance.

Here’s the problem

While Uber, Lyft and other ridesharing services bumped up their liability

insurance this summer in response to new laws going into effect in many states, coverage is limited to liability—damage to others. So, drivers may still be uncovered for collision or damages to their car. Also, drivers themselves may not be protected if they are hurt in an accident that they cause.

Don’t be surprised

Don’t mistakenly think that your personal auto policy will fill in the gaps because most policies contain standard exclusions to limit exposures related to the commercial use of a vehicle. So, if you decide to make extra cash as a driver for Uber or the like, make sure to review your

current policy to avoid any surprises in the event of an incident. If you have a personal auto policy with Member Benefits note that your policy does not extend to commercial use. Your liability, medical payments, and uninsured and underinsured motorists coverages will not apply during any time you are logged into a TNC like Uber. Give us a call at 1-800-279-4010 for more information and help getting appropriate coverage. Property and casualty insurance programs are underwritten by WEA Property & Casualty Insurance Company. The terms and conditions of your coverage are exclusively controlled by your written policy. Please refer to your policy for details.


IT’S THE EASIEST MONEY YOU’LL EVER MAKE If your employer (or your spouse’s employer) offers a match in your 403(b) or 401k plan, take it. It’s free money. While matching contributions have been popular in the private sector for years, it is a rather new trend in benefits offered by Wisconsin public schools. More and more districts are now offering a match to incent staff to save for retirement and also to make their employee benefit package more attractive to potential recruits and veteran staff.

How it works The match will vary from employer to employer. It might be 50 cents to a dollar for every dollar you contribute, up to a set maximum—perhaps 3% to 6% of your salary, or in some cases a dollar limit. Matching funds usually vest over time— meaning the matched funds aren’t all yours until you’ve completed the vesting period—typically 3 to 5 years. Once


you’re fully vested, you can take the entire employer match with you should you part ways. However, if you leave before you’re fully vested, you may get to keep only a portion of the match or maybe none at all. It depends on the employer plan. But, all the money you contributed is still yours.


The average amount of employer match employees missed out on in 2014.


The average amount of employer match an employee will miss out on over the span of 20 years.


The total amount of unclaimed employer matching contributions, according to the survey of over 1 million employees.


The annual amount of lost employer matching contributions due to employees not saving enough.

Take the money Ironically, this benefit is underutilized and many employees are leaving money on the table.With continued changes to postemployment benefit packages in both the private and public sectors, employees will need to rely more on personal savings to fund retirement. Do it the easy way. Never pass up the opportunity to get free money from a match. An added bonus: The match effectively increases your income without increasing your tax bill, since you pay no taxes on matching contributions until you withdraw them in retirement.

Source: Financial Engines™

Your$ Magazine -- Winter 2016  

Protecting what’s important: What you don’t know may prevent you from protecting what you value most. Also in this issue: Learn the benefits...