benefits+and+welfare (1)
TRANSCRIPT
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Benefit Services
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TABLE 131 Some Required and Discretionary Benefits
* While not required under federal law, all these benefits are regulatedin some way by federal law, as explained in this chapter.
Benefits Required by Federalor Most State Law
Benefits Discretionaryon Part of Employer*
Social Security
Unemployment Insurance
Workers Compensation
Leaves under the Family Medical
Leave Act
Disability, Health, and Life Insurance
Pensions
Paid Time Off for Vacations, Holidays,Sick Leave, Personal Leave, Jury
Duty, etc.
Employee Assistance and CounselingPrograms
Family Friendly benefits for ChildCare, Elder Care, Flexible Work
Schedules, etc.
Executive Perquisites
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Policy Issues in Designing BenefitPolicy Issues in Designing BenefitPackagesPackages
Policy Issues
Who will be covered
Coverage during
probation
Degree of employee
choice
Which benefits to offer
Whether to include
retirees
How to finance benefits
Cost containment
procedures
Communicating
benefits options
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Pay For Time Not WorkedPay For Time Not Worked
Vacations and
holidays
Parental leave
Supplemental
unemployment
benefits
Supplemental
Pay Benefits
Unemployment
insurance
Sick leave
Severance pay
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Pay for Time Not WorkedPay for Time Not Worked
Unemployment InsuranceUnemployment Insurance
Provides for benefits if a person is unable toProvides for benefits if a person is unable to
work throughwork through
no fault of his or her own.no fault of his or her own.
Tax is collected and administered by theTax is collected and administered by the
state.state.
Vacations and HolidaysVacations and Holidays
Number of paid leave days and holidaysNumber of paid leave days and holidays
varies by employer.varies by employer.
Qualification for and calculation of holidayQualification for and calculation of holidayand leave a varies b em lo er.and leave a varies b em lo er.
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Pay for Time Not Worked (contPay for Time Not Worked (contd)d)
Sick LeaveSick Leave
Provides pay to an employee when he or she is out ofProvides pay to an employee when he or she is out ofwork because of illness.work because of illness.
Parental LeaveParental Leave
The Family Medical Leave Act of 1993 (FMLA)The Family Medical Leave Act of 1993 (FMLA) Up to 12 weeks of unpaid leave within a oneUp to 12 weeks of unpaid leave within a one--yearyear
period.period.
Employees must take unused paid leave first.Employees must take unused paid leave first.
Employees on leave retain their health benefits.Employees on leave retain their health benefits.
Employees have right to return to job or equivalentEmployees have right to return to job or equivalent
position.position.
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Pay for Time Not Worked (contPay for Time Not Worked (contd)d)
Severance PaySeverance Pay
A oneA one--time payment when terminating antime payment when terminating anemployee.employee.
Reasons for granting severance pay:Reasons for granting severance pay:
Acts as a humanitarian gesture and goodActs as a humanitarian gesture and good
public relations.public relations.
Mirrors employeeMirrors employees twos two--week quit notice.week quit notice. Avoids litigation from disgruntled formerAvoids litigation from disgruntled former
employees.employees.
Reassures employees who stay on after theReassures employees who stay on after the
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Pay for Time Not Worked (contPay for Time Not Worked (contd)d)
Supplemental Unemployment Benefits (SUB)Supplemental Unemployment Benefits (SUB)
The employer makes contributions to a SUBThe employer makes contributions to a SUB
reserve fund.reserve fund.
SUB payments are made to employees for theSUB payments are made to employees for the
time the employee is out of work due to layoffs,time the employee is out of work due to layoffs,
reduced workweeks, or relocations.reduced workweeks, or relocations.
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Insurance BenefitsInsurance Benefits
WorkersWorkers CompensationCompensation
Provides income and medical benefits toProvides income and medical benefits to
workwork--related accident victims or theirrelated accident victims or their
dependents, regardless of fault.dependents, regardless of fault.
Death or disability: a cash benefit based onDeath or disability: a cash benefit based onearnings per week of employment.earnings per week of employment.
Specific loss injuries: statutory list of losses.Specific loss injuries: statutory list of losses.
Controlling workersControlling workers compensation costscompensation costs Screen out accidentScreen out accident--prone workers.prone workers.
Make the workplace safer.Make the workplace safer.
Thoroughly investigate accident claims.Thoroughly investigate accident claims.
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Insurance Benefits (contInsurance Benefits (contd)d)
Hospitalization, Health, and DisabilityHospitalization, Health, and Disability
InsuranceInsurance
Accidental death and dismembermentAccidental death and dismemberment
Disability insuranceDisability insurance Mental health benefitsMental health benefits
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Insurance Benefits (contInsurance Benefits (contd)d)
Health Maintenance OrganizationHealth Maintenance Organization
(HMO)(HMO) A medical organization consisting ofA medical organization consisting of
specialists operating out of a healthspecialists operating out of a health
care center.care center. Provides routine medical services toProvides routine medical services to
employees who pay a nominal fee.employees who pay a nominal fee.
Receives a fixed annual contract fee perReceives a fixed annual contract fee per
employee from the employer (or employeremployee from the employer (or employerand employee), regardless of whether itand employee), regardless of whether itprovides that person with service.provides that person with service.
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Laws Influencing Health CareLaws Influencing Health CareBenefitsBenefitsRetirement and Pension PlansRetirement and Pension Plans
Employee Retirement Income Security Act ofEmployee Retirement Income Security Act of1974 (ERISA)1974 (ERISA)
Mental Health BenefitsMental Health Benefits
Mental Health Parity Act of 1996Mental Health Parity Act of 1996
Family LeaveFamily Leave
Pregnancy Discrimination ActPregnancy Discrimination Act
Family Medical Leave ActFamily Medical Leave Act
The Newborn MotherThe Newborn Mothers Protection Act of 1996s Protection Act of 1996
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Trends in Health Care CostTrends in Health Care CostControlsControlsPremiums and co-pays
Reduced retireehealth care coverage
Health savings accounts
Outsourced health care planadministration
Wellness programsCost-ControlTrends
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Other Benefits IssuesOther Benefits Issues
LongLong--Term CareTerm Care
Insurance for older workers is a growing issue.Insurance for older workers is a growing issue.
Benefits for PartBenefits for Part--Time and ContingentTime and Contingent
WorkersWorkers
Leave and health benefits available to partLeave and health benefits available to part--timetime
workers.workers.
Benefits for longBenefits for long--term independent contractors.term independent contractors.
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Retirement BenefitsRetirement Benefits
Social SecuritySocial Security
(Federal Old Age and Survivor(Federal Old Age and SurvivorssInsurance)Insurance)
Retirement benefits at the age of 62Retirement benefits at the age of 62
SurvivorSurvivors or death benefits paids or death benefits paidto the employeeto the employees dependentss dependents
Disability payments to disabled employeesDisability payments to disabled employeesand their dependentsand their dependents
The Medicare programThe Medicare program
Health services to people age 65 or olderHealth services to people age 65 or older
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Retirement Benefits (contRetirement Benefits (cont
d)d)
Employee Retirement Income Security ActEmployee Retirement Income Security Act
(ERISA) of 1974(ERISA) of 1974 Established guidelines forEstablished guidelines for qualifiedqualified
pension plans.pension plans.
Requires fiduciary responsibility.Requires fiduciary responsibility.
Pension Benefits Guarantee CorporationPension Benefits Guarantee Corporation
(PBGC)(PBGC)
Insures plans that terminate withoutInsures plans that terminate without
sufficient fundssufficient funds
to meet obligations.to meet obligations.
Guarantees only defined benefit plans.Guarantees only defined benefit plans.
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Pensions and Early RetirementPensions and Early Retirement
Early Retirement WindowsEarly Retirement Windows
Offer specific employees (often age 50Offer specific employees (often age 50--plus)plus)an incentivean incentive
to voluntarily retire earlier than usual.to voluntarily retire earlier than usual.
Offer a combination of improved or liberalizedOffer a combination of improved or liberalizedpension benefits plus a cash payment.pension benefits plus a cash payment.
Require careful program construction to avoidRequire careful program construction to avoid
oversubscription and timely delivery to avoidoversubscription and timely delivery to avoidpotential age discrimination claims.potential age discrimination claims.
Older WorkersOlder Workers Benefit Protection ActBenefit Protection Act
(OWBPA)(OWBPA)
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FamilyFamily
--Friendly (WorkFriendly (Work
Life)Life)
BenefitsBenefitsSubsidized child careSubsidized child care
Sick child benefitsSick child benefits
Elder careElder care
Time offTime off
Subsidized employee transportationSubsidized employee transportation
Food servicesFood servicesEducational subsidiesEducational subsidies
Fitness and medical facilitiesFitness and medical facilities
Flexible work schedulinFlexible work scheduling
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Flexible Work SchedulesFlexible Work Schedules
FlextimeFlextime
Compressed workweek schedulesCompressed workweek schedules
Workplace flexibilityWorkplace flexibility
Job sharingJob sharing
Work sharingWork sharing