prentice hall, inc. © 2006 10-1 a human resource management approach strategic compensation...
TRANSCRIPT
Prentice Hall, Inc. © 2006
10-1
A Human Resource A Human Resource Management ApproachManagement Approach
STRATEGIC STRATEGIC COMPENSATIONCOMPENSATION
Prepared by David Oakes
Chapter 10Chapter 10
Legally Required BenefitsLegally Required Benefits
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10-2
Legally RequiredLegally RequiredBenefitsBenefits
Social Security
Workers’ Compensation
Family & Medical Leave
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Social Security ProgramsSocial Security Programs
Unemployment insurance
Old Age, Survivor, and Disability Insurance (OASDI)
Medicare
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Unemployment InsuranceUnemployment Insurance
Unemployment not worker’s fault
States administer within federal guidelines
States send money to federal government
Agriculture & domestic workers are exempt
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Unemployment EligibilityUnemployment Eligibility
Did not leave job voluntarily
Able and available for work
Actively seeking work
Has not refused suitable work Not off due to labor dispute Not fired for gross work violations
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OASDIOASDI
Old Age, Survivor, and Disability Insurance
Enacted in 1935, for retirement
Survivors’ insurance added 1939
Disability insurance added 1965
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OASDI ExemptionsOASDI Exemptions Civilian federal workers
Railroad employees (before 1984)
State & local government workers
Children Under 21, if working for a parent
Unless over 18, working in the family’s business
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OASDI Retirement RequirementsOASDI Retirement Requirements
Earn 40 quarters of credit, or Be employed for 10 years
Be age 62 for partial benefits
Be age 65 for full benefits
In 2022, be age 67
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OASDI Survivor’s BenefitsOASDI Survivor’s Benefits
Based on Eligibility Status & Relationship
Deceased was fully insured
Dependent, unmarried children
Widow(er) age 60 +
Dependent parent age 62 +
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Disability BenefitsDisability Benefits
Worker was fully insured
Meets Social Security work requirements Varies according to age & disability
Disability must last 1 year or be terminal
6 Months waiting period
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MedicareMedicare
For citizens age 65 +
Provided insurance coverage for Hospitalization Convalescent care Major doctor bills Prescription drug costs
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Medicare OptionsMedicare Options
Part A
Part B
Medigap
Medicare Advantage (Part C)
Prescription Drug Program
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Medicare Part AMedicare Part A
Covers inpatient & outpatient hospital care & services Provides unlimited in-home care Participants
Social security beneficiaries Retirees Voluntary enrollees Disabled
Employer & employee financed
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Medicare Part BMedicare Part B
Voluntary supplementary medical insurance $110 deductible, then covers 80% Financed by government & enrollees Participants
Part A enrollees Those on social security Railroad retirees
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Part B CoveragePart B Coverage
Diagnosis, therapy, surgery
Consultations
Medical services & supplies
Medications not self administered
Outpatient hospital services
Home health services
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MedigapMedigap
Supplements Parts A & B
Through private insurers
10 standardized choices
Medicare Select Option Lower premiums for fewer choices
Not offered in all states
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Medicare AdvantageMedicare Advantage Medicare + Choice, Part C Established through Balanced Budget Act of 1997 Alternative to Parts A & B Options
Fee-for-services Managed care plans Medical savings accounts
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Medicare Prescription Drug Medicare Prescription Drug Program Program
Part D
Covers 75% after $250 deductible up to $2,250
Cover 95% after $3,600 out-of-pocket
Employer subsidy for similar plan
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Workers’ CompensationWorkers’ Compensation
State compulsory disability laws
Enacted in 1911
Employer liable regardless of fault
Maritime, federal civilian, domestic agriculture, & small business workers not covered
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ObjectivesObjectives
Provide income & medical benefits
Reduce litigation
Relieve charities’ financial drain
Eliminate legal fees & time
Encourage employer safety
Promote accident study & avoidance
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NCSWCL ObligationsNCSWCL Obligations
Take initiative in administration
Review performance & adjust
Inform workers & insure payment
Inform providers & employers
Resolve disputes Adjudicate unresolved claims
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Workers’ Compensation ClaimsWorkers’ Compensation Claims
Injury
Occupational disease
Death
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Workers’ Compensation BenefitsWorkers’ Compensation Benefits
Medical services
Disability income
Death benefits
Rehabilitative services