EMPLOYEE BENEFITS How benefits should benefit you Or
EMPLOYEE BENEFITS How benefits should benefit you, Or WIIFM?
Good wages are a good thing. Employers also offer BENEFITS mainly to: -Increase employee loyalty -Increase employees’ focus and productivity -Increase attendance -Improve recruiting WIIFM?
Employees think the following common benefits are extremely important: - Health insurance (64%) Retirement savings plans (45%) Dental and/or vision insurance (37%) Life insurance (26%) Traditional pension or defined benefit plan (25%) Retiree health insurance (21%) Disability insurance (21%) Other health-related insurance (17%) Long-term care insurance (15%) www. patriotsoftware. com HOW BENEFITS SHOULD BENEFIT YOU.
WHEN WEIGHING EMPLOYEE BENEFITS: CONSIDER AFTER-TAX INCOME AND YOUR SPENDING PLAN (AKA BUDGET) … AND OTHER FINANCIAL GOALS. HOW BENEFITS SHOULD BENEFIT YOU.
850087762 50/20/30 SPENDING PLAN … HOW TO DIVVY UP YOUR TAKE-HOME PAY
Let’s talk about health insurance … HMO … OAP … FSA … HDHP … OON … OOP … PCP … POS … PPO … UCR Your employer may (or may not) offer a selection of health-insurance plans. You pick one. HMO – Health Maintenance Organization (often least expensive premiums, and most restrictive) PPO/OAP/POS – Preferred Provider Organization/Open Access Plan/Point of Service (more expensive premiums, more choice of health-care providers) HDHP – High deductible health plan (often paired with an HSA/health-savings account) Deductibles – annual amount you pay for covered health care service before your insurance starts to pay. Co-Insurance – percentage paid after deductible is met Co-Pays – a fixed out-of-pocket amount for an insured service
Other insurances (may be optional or automatic) Life Disability: Long term disability? Short term disability? Dental Vision Accidental Death & Dismemberment Retiree Health Specific illness, such as Cancer Long Term Care: For yourself? For parents? Child Life HOW BENEFITS SHOULD BENEFIT
Employer-sponsored retirement plans Defined Benefit Plan (DB) = “PENSION” -- Traditional pension plans, typically pay an (eventual) monthly payment based on earnings and years of service, and perhaps other criteria. Defined Contribution Plan (DC) – 403(b), 457, 401(k) – Participant determines how much of earnings to contribute to the plan and how that money will be invested; employer may or may not also contribute to the plan. Ultimate retirement benefit is based on eventual plan balance and an participants’ payout elections. WIIFM?
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