Employee Benefits. TCHRA 2014 Larry Morgan, SPHR, GPHR, MAIR. Total Rewards. Compensation and Benefits 19% PHR 13% SPHR Compensation is “direct” Benefits are considered “ indirect compensation ”. Agenda. Review employee benefits History Benefit planning and assessment
Larry Morgan, SPHR, GPHR, MAIR
Review organizational strategy
Review compensation philosophy
Review current benefits
Review employee needs
Conduct gap analysis
A.determine which employees are underinsured.
B.revise benefits that are not meeting employee or organizational needs.
C.eliminate benefits that are the most costly.
D.ensure that all employees receive the same benefits.
Health and Welfare
Paid Time Off
A closer look at specific Benefit Programs
A.Health insurance to its employees.
B.Continued medical coverage to employees terminated for gross misconduct.
C.COBRA benefits to workers if the company terminates its health plan.
D.COBRA benefits to spouses of deceased workers.
Employer pays 7.65%
Employee pays 7.65%
A.by the employer
B.by the employee
C.jointly by the employer and employee
Cash balance plan
Money purchase plans
401(k) / 403(b) plans
Unemployment Compensation Amendments (UCA) imposes a 20% federal income tax withholding requirement on plan rollovers unless there is a trustee-to-trustee transfer.
Examples:Rabbi trusts, top hat, mirror plans and excess deferral plans
B.coordination of benefits.
C.establishment of out-of-pocket maximums.
A.Employers can deduct their part of a long-term care premium from annual income taxes.
B.Group-term life insurance policies of less than $75,000 are not taxed.
C.Employees do not have to pay taxes on supplemental unemployment benefits.
D.Insurance provided only to executives is not taxable
A.$1,000 reimbursement for a business trip
B.$300 per month for parking
C.$20 gift from a vendor
D.$1,500 for a job-related training seminar
An employer pays an FSA medical claim for $500 in March. In April, the employee leaves the company after setting aside only $250. What happens in this situation?
Major Legislative and Regulatory actions
A.higher limits for salary deferral contributions.
B.credited service for retirement plan purposes.
C.lower copayments and deductibles for continued family medical benefits.
D.an early vesting schedule for retirement benefits.
Consumer directed health care
Coordination of benefits
Defined benefit plan
Defined contribution plan
Flexible spending account
Full cafeteria plan
Fully insured plan
Group term life insurance
Health insurance purchasing cooperative
Highly compensated employee
In loco parentis
Indemnity health care plans
International social security agreements (Totalization agreements)
Lifetime maximum benefit
Long term care insurance
Long term disability
Medicare carve out
Mental Health Parity Act
Modified duty program
Money purchase plan
Non-duplication of benefits
Non-qualified deferred compensation
Older Worker Benefit Protection Act
Out of pocket maximum
Paid time off bank
Pension Protection Act
Point of service organization
Premium only plan
Profit sharing plan
Qualified domestic relations orders
Reasonable and customary
Roth 401(k)/403(b) plans
Section 125 plans
Serious health condition
Short term disability
Stop loss coverage
Supplemental unemployment benefits
Top hat plan
Work opportunity tax credit
Work related disability