1. Lecture 32 Review for Final Course Review Employee Benefit Issues in the News Review for Final

2. The Three Most Important Factors Influencing Employee Benefits 1Taxation 2Self Interest of Decisionmakers 3Changing Demographics

3. Current Issues in Employee Benefits Impact of terrorism on group life insurance “Janitor insurance” – abuses of COLI Health care costs Health care quality Mental health parity DNA testing Social Security reform Medicare prescription drug coverage Long term care insurance

4. Current Issues in Employee Benefits (cont.) Mismanagement of 401(k) plans Investing in your employer’s stock Accounting treatment for stock options Cash balance pension plans Impact of pension investments on firm profits Unfunded pension liabilities

5. Additional Employee Benefit Issues in the News Now Sarbanes-Oxley Act Executive Compensation Individual Social Security Accounts

6. Use of Employee Benefits Attract Employees Motivate Employees Retain Employees Encourage Employees to Retire

7. Finance/LIR 360 Final Exam Notice The Final Exam will be held on: Thursday, December 19, 2002 1:30 – 4:30 pm 131 Animal Sciences Lab.

8. Review for Final Final Exam is worth 60 points. Questions will be short answer, calculations and essay. Exam is open-book, open note. Exam covers all the material in the course: LecturesClass exercises ReadingsConsultants presentations AssignmentsStudent Presentations Termpapers