STRATEGIC COMPENSATION A Human Resource Management Approach Chapter
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STRATEGIC COMPENSATION A Human Resource Management Approach Chapter 10 Legally Required Benefits 1 Prentice Hall, Inc. © 2006 Prepared by David Oakes
Legally Required Benefits Ø Social Security Ø Workers’ Compensation Ø Family & Medical Leave 2 Prentice Hall, Inc. © 2006
Social Security Programs Ø Unemployment insurance Ø Old Age, Survivor, and Disability Insurance (OASDI) Ø Medicare 3 Prentice Hall, Inc. © 2006
Unemployment Insurance Ø Unemployment not worker’s fault Ø States administer within federal guidelines Ø States send money to federal government Ø Agriculture & domestic workers are exempt 4 Prentice Hall, Inc. © 2006
Unemployment Eligibility Ø Did not leave job voluntarily Ø Able and available for work Ø Actively seeking work Ø Has not refused suitable work Ø Not off due to labor dispute Ø Not fired for gross work violations 5 Prentice Hall, Inc. © 2006
OASDI Ø Old Age, Survivor, and Disability Insurance Ø Enacted in 1935, for retirement Ø Survivors’ insurance added 1939 Ø Disability insurance added 1965 6 Prentice Hall, Inc. © 2006
OASDI Exemptions Ø Civilian federal workers Ø Railroad employees (before 1984) Ø State & local government workers Ø Children ² Under 21, if working for a parent ² Unless over 18, working in the family’s business 7 Prentice Hall, Inc. © 2006
OASDI Retirement Requirements Ø Earn 40 quarters of credit, or Ø Be employed for 10 years Ø Be age 62 for partial benefits Ø Be age 65 for full benefits Ø In 2022, be age 67 8 Prentice Hall, Inc. © 2006
OASDI Survivor’s Benefits Ø Based on Eligibility Status & Relationship ² Deceased was fully insured ² Dependent, unmarried children ² Widow(er) age 60 + ² Dependent parent age 62 + 9 Prentice Hall, Inc. © 2006
Disability Benefits Ø Worker was fully insured Ø Meets Social Security work requirements Ø Varies according to age & disability Ø Disability must last 1 year or be terminal Ø 6 Months waiting period 10 Prentice Hall, Inc. © 2006
Medicare Ø For citizens age 65 + Ø Provided insurance coverage for ² ² Hospitalization Convalescent care Major doctor bills Prescription drug costs 11 Prentice Hall, Inc. © 2006
Medicare Options Ø Part A Ø Part B Ø Medigap Ø Medicare Advantage (Part C) Ø Prescription Drug Program 12 Prentice Hall, Inc. © 2006
Medicare Part A Ø Covers inpatient & outpatient hospital care & services Ø Provides unlimited in-home care Ø Participants ² ² Social security beneficiaries Retirees Voluntary enrollees Disabled Ø Employer & employee financed 13 Prentice Hall, Inc. © 2006
Medicare Part B Ø Voluntary supplementary medical insurance Ø $110 deductible, then covers 80% Ø Financed by government & enrollees Ø Participants ² Part A enrollees ² Those on social security ² Railroad retirees 14 Prentice Hall, Inc. © 2006
Part B Coverage Ø Diagnosis, therapy, surgery Ø Consultations Ø Medical services & supplies Ø Medications not self administered Ø Outpatient hospital services Ø Home health services 15 Prentice Hall, Inc. © 2006
Medigap Ø Supplements Parts A & B Ø Through private insurers Ø 10 standardized choices Ø Medicare Select Option ² Lower premiums for fewer choices Ø Not offered in all states 16 Prentice Hall, Inc. © 2006
Medicare Advantage Ø Medicare + Choice, Part C Ø Established through Balanced Budget Act of 1997 Ø Alternative to Parts A & B Ø Options ² Fee-for-services ² Managed care plans ² Medical savings accounts 17 Prentice Hall, Inc. © 2006
Medicare Prescription Drug Program Ø Part D Ø Covers 75% after $250 deductible up to $2, 250 Ø Cover 95% after $3, 600 out-of-pocket Ø Employer subsidy for similar plan 18 Prentice Hall, Inc. © 2006
Workers’ Compensation Ø State compulsory disability laws Ø Enacted in 1911 Ø Employer liable regardless of fault Ø Maritime, federal civilian, domestic agriculture, & small business workers not covered 19 Prentice Hall, Inc. © 2006
Objectives Ø Provide income & medical benefits Ø Reduce litigation Ø Relieve charities’ financial drain Ø Eliminate legal fees & time Ø Encourage employer safety Ø Promote accident study & avoidance 20 Prentice Hall, Inc. © 2006
NCSWCL Obligations Ø Take initiative in administration Ø Review performance & adjust Ø Inform workers & insure payment Ø Inform providers & employers Ø Resolve disputes Ø Adjudicate unresolved claims 21 Prentice Hall, Inc. © 2006
Workers’ Compensation Claims Ø Injury Ø Occupational disease Ø Death 22 Prentice Hall, Inc. © 2006
Workers’ Compensation Benefits Ø Medical services Ø Disability income Ø Death benefits Ø Rehabilitative services 23 Prentice Hall, Inc. © 2006
FMLA Benefits Ø 12 weeks of unpaid leave for ² Birth, adoption, foster care ² Serious family medical problems ² Worker’s serious medical problem Ø Retention of ² ² Seniority Health insurance coverage Credit for previous service Accrued retirement benefits 24 Prentice Hall, Inc. © 2006
- Cascade approach in human resource management
- Compensation and non compensation dimensions
- Time management human resources
- Retail management retail store organizational chart
- Management is universal and everywhere
- Strategic human resource
- Chapter 2 human resource management
- Chapter 9 human resource management
- Chapter 11 human resource management
- New approaches to organizing hr
- Human resource management chapter 1
- Human resource management lecture chapter 1
- Human resource management lecture chapter 1
- Types of international assignment in ihrm
- Chapter 4 job analysis and the talent management process
- Function of hrm
- Chapter 7 human resource management
- Chapter 7 human resource management
- Human resource management chapter 4
- Project management chapter 4
- Human resource management chapter 5
- Human resource management chapter 5
- Chapter 11 human resource management
- Strategic compensation
- Strategic competitiveness