1. Benefits and Services Chapter 13 Part 4 | Compensation
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2. After studying this chapter, you should be able to:
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.
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3. Types of Employee Benefits
Supplemental Pay
Employee Services
Insurance Benefits
Retirement Benefits
Types of Employee Benefits
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4. Policy Issues in Designing Benefit Packages
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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5. Pay For Time Not Worked Supplemental Pay Benefits
Vacations and Holidays
Parental Leave
Supplemental Unemployment Benefits
Supplemental Pay Benefits
Unemployment Insurance
Sick Leave
Severance Pay
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6. Insurance Benefits Workers’ Compensation
Provides income and medical benefits to work-related accident victims or their dependents, regardless of fault.
Death or disability: a cash benefit based on earnings per week of employment.
Specific loss injuries: statutory list of losses
Controlling workers’ compensation costs
Screen out accident-prone workers.
Make the workplace safer.
Thoroughly investigate accident claims.
Use case management to return injured employees to work as soon as possible.
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7. Trends in Health Care Cost Controls
Cost-Control Trends
Communication, Involvement, and Empowerment
Premiums and Co-Pays
Prevention Programs
Health Savings Accounts
Claim Audits
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8. Other Cost-Control Options
Automating health care plan administration
Defined contribution health care plans
Eliminating retiree health care coverage
Benefits purchasing alliances
Controlling Health Care Costs
Outsourcing health care plan administration
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9. Retirement Benefits (cont’d)
Membership Requirements
Vesting
Benefit Formula
Plan Funding
Policy Issues In Pension Planning
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10. Retirement Benefits (cont’d)
Defined Benefits Plans
Defined Contribution Plans
Qualified Plans
Nonqualified Plans
Types of Pension Plans
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11. Retirement Benefits (cont’d)
401(k) Plans
Employee Stock Ownership Plans (ESOPs)
Savings and Thrift Plans
Types of Defined Contribution Plans
Deferred Profit-Sharing Plans
Cash Balance Pension Plans
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12. Personal Services (cont’d)
Steps for Launching an EAP Program 1 2
Develop a policy statement. 3
Ensure professional staffing. 4
Maintain confidential record-keeping systems.
Be aware of legal issues.
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13. Flexible Benefits Programs
Cafeteria (Flexible Benefits) Approach
Each employee is given a limited benefits fund budget to spend on preferred benefits.
Types of plans
Flexible spending accounts
Core plus option plans
Flexible Work Arrangements
Flextime schedules
Compressed workweek schedules
Job sharing
Work sharing
Telecommuting
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14. K E Y T E R M S benefits supplemental pay benefits
unemployment insurance
sick leave
severance pay
supplemental unemployment benefits
workers’ compensation
case management
health maintenance organization (HMO)
preferred provider organizations (PPOs)
group life insurance
Social Security
pension plans
defined benefit pension plan
defined contribution pension plan
portability
401(k) plan
savings and thrift plan
deferred profit-sharing plan
employee stock ownership plan (ESOP)
cash balance plans
Employee Retirement Income Security Act (ERISA)
Pension Benefits Guarantee Corporation (PBGC)
vested funds
early retirement window
employee assistance program
family-friendly benefits
flexible benefits plan/cafeteria benefits plan
flextime
compressed work week
job sharing
work sharing
telecommuting
© 2008 Prentice Hall, Inc. All rights reserved.