1. Chapter 13 Benefits and Services
Name and define each of the main pay for time not worked benefits.
Describe each of the main insurance benefits.
Discuss the main retirement benefits.
Outline the main employees’ services benefits.
Explain the main flexible benefit programs.

2. The Benefits Picture Today
Indirect financial and nonfinancial payments employees receive for continuing their employment with the company

3. The Benefits Picture Today
Benefits Required by Federal or Most State Law
Benefits Discretionary on 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 Counseling Programs
“Family Friendly” benefits for Child Care, Elder Care, Flexible Work Schedules, etc.
Executive Perquisites
Which benefits to offer
Who will be covered
Whether to include retirees
Coverage during probation
Policy Issues
How to finance benefits
Degree of employee choice
Cost containment procedures
Communicating benefits options

4. Supplemental Pay Benefits
Pay for Time Not Worked
Supplemental Pay Benefits
Benefits for time not worked such as unemployment insurance, vacation and holiday pay, and sick pay
Unemployment Insurance
Provides for benefits if a person is unable to work through no fault of his or her own
Vacations and Holidays
Paid vacation days and holidays given by employer
Sick Leave
Provides pay to an employee when he or she is out of work because of illness
Parental Leave and FMLA
Such as pregnancy and maternity leave
Severance Pay
A one-time payment when terminating an employee
Supplemental Unemployment Benefits
The employer makes contributions to a reserve fund from which SUB payments are made to employees for the time the employee is out of work due to layoffs, reduced workweeks, or relocations

5. Insurance Benefits Workers’ Compensation
Provides income and medical benefits to work-related accident victims or their dependents, regardless of fault
How benefits are determined – The ADA – Controlling workers’ compensation cost – Case management
Hospitalization, Health, and Disability Insurance
Provide for loss of income protection and group-rate coverage of basic and major medical expenses for off-the-job accidents and illnesses
Health Maintenance Organization (HMO)
A medical organization consisting of specialists operating out of a community-based health care center. Which provides routine medical services to employees who pay a nominal fee.
Preferred Provider Organizations (PPOs)
Groups of health care providers that contract to provide services at reduced fees
Mental Health Benefits
Used to deal with mental illnesses

6. Insurance Benefits Trends in Health Care Cost Control
Communication, involvement, and empowerment
Premiums and co-pays
Prevention programs
Health savings accounts
Claim audits
Other cost control options

7. Insurance Benefits Long Term Care
Nursing assistance for former employees
Life Insurance
Group life insurance or accidental death and dismemberment
Group Life Insurance
Provides lower rates for the employer or employee and includes all employees
Benefits for Part Time and Contingent Workers
Up to what extent its important?

8. Retirement Benefits Social Security
A federal program provides benefits as retirement benefits at the age of 62. Also, survivor’s or death benefits paid to the employee’s dependents. In addition to disability payments to disabled employees and their dependents
Pension Plans
Plans that provides a fixed sum when employees reach a predetermined retirement age or when they can no longer work due to disability
Defined Benefits Pension Plans
A plan that contains a formula for determining retirement benefits
Defined Contribution Pension Plans
A plan in which the employer’s contribution to employees’ retirement saving funds is specified
Portability
Instituting policies that’s enable employees to easily take their accumulated pension funds when they leave employer
401 (k) Plans
Defined contribution plans based on section 401(k) of the Internal Revenue Code.

9. Retirement Benefits Pension Plans
Plans that provides a fixed sum when employees reach a predetermined retirement age or when they can no longer work due to disability
Defined Contribution Pension Plans
A plan in which the employer’s contribution to employees’ retirement saving funds is specified
Saving and Thrift Plan
Employees contribute a portion of their earnings to a fund; the employer usually matches this contribution in whole or in part
Deferred Profit Sharing Plan
Employers contribute a portion of profits to the pension fund, regardless of the level of employee contribution
Employees Stock Ownership Plan (ESOP)
Qualified, tax-deductible stock bonus plans in which employers contribute company stock to a trust for eventual use by employees
Cash Balance Plans
Defined benefit plans under which the employer contributes a percentage of employees’ current pay employees’ pension plans every year, and employees earn interest on this amount

10. Retirement Benefits Pension Planning and the Law
Law impact on pension planning
Employee retirement income security act (ERISA)
Pension benefits guarantee corporation (PBGC)
Membership requirements
Vesting vested funds (Money placed in pension fund that cannot be forfeited for any reason)
Benefit formula
Plan funding

11. Improving Productivity Through HRIS: Benefits Management Systems
Retirement Benefits
Early Retirement
Employees retired before retiring date
Early Retirement Window
A type of offering by which employees are encouraged to retire early, the incentives being liberal pension benefits plus perhaps a cash payment
Phased Retirement and the Aging Workforce
What is phased retirement programs?
Improving Productivity Through HRIS: Benefits Management Systems

12. Personal Services and Family Friendly Benefits
Benefits provided to employees voluntarily
Credit Unions - Employee Assistance Programs
Family – Friendly Benefits
Benefits such as child care and fitness facilities that make it easier for employees to balance their work and family responsibilities
Subsidized child care – Sick child benefits – Elder care – Time off … etc.
What is the effect on performance?
Other Job Related Benefits
Educational subsidies
Executives Perquisites
Examples and Use

13. Flexible Benefits Programs
The Cafeteria Approach / Flexible Benefits Plans
Each employee is given a benefits fund budget to spend on the benefits he or she prefers
Flexible Spending Accounts
Enable employees to pay for medical and other expenses with pretax dollars by depositing funds in their accounts from payroll deductions
Flexible Work Arrangements
Types
Flextime
A work schedule in which employees’ workdays are built around a core of mid-day hours when all workers are required to be present
Compressed Workweek
A work schedule in which employee works fewer but longer days each week
What is the effectiveness of flextime and compressed workweek programs?
Other Flextime Work Arrangements
Job sharing – Work sharing - Telecommuting