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immediate cause of loss
do benefits equal healthcare only?
employee assistance programs
how are medical expenses covered on a pre retirement basis for active ees?
- Health Insurance Plans
- specialized coverages for narrowly defined perils
types of health insurance plans
- indemnity plans
- managed care plans
what are some examples of specialized coverages for narrowly defined perils?
- prescription drug insurance
- long term care insurance(LTC)
- dread disease policies
whats an example of a dread disease policy?
What are some example of occupational post retirement health benefits?
- workers compensation or disability benefits
non occupational post retirement health benefits.
- sick leave(or paid time off in a ppo)
- short term disability insurance(ex maternity leave)
- long term disability insurance
- oasdi disability benefits
ee benefits for loss of income due to death
- Employer provided life insurance
- Group Term Life Insurance (GTLI)
- wc death benefits
- social security survivor benefits
two types of oasdi survivor benefits
- accidental death and dismemberment
- business travel accidents(BTA)
ee benefits for loss of income due to retirement
what types of insurance is required by law in 2014?
oasdi, unemployment insurance, and wc
broad view of ee benefits
Any type of compensation other than direct current wages paid to Employees
On average, how much of payroll goes to ee benefits?
what types of compensation does ee benefits come in.(5)
- 1.Employer’sshare of legally required programs
- 2.Payment for private insurance and retirement programs
- 3.Payment for time not worked
- 4.Extra cash payments – not part of salary
- 5.Cost of goods and services to Employees
examples of extra cash pmts (type of compensation)
Ex. On-site Daycare, Transportation, tuition reimbursements
examples of de minimus fringes
coffee, water, etc
narrow view of ee benefits.
An employee benefit plan is any plan:
- Sponsored or initiated unilaterally or jointly by an Employer, and/or Employees
- Jointly sponsored
- Collectively bargained plans
- benefits that stem from an employment relationship
- underwritten or paid directly by any government
- protection against
- Loss of income
- “Health and
- Welfare Benefits” “Retirement Plans”
why were ee benefit plans introduced after ww2
- wage and price freezes due to price inflation
- ers decided to then substitute health insurance for wages
wagner act (1935)
Gave unions the right to bargain over: “wages” and other conditions of employment”
Inland Steel Case-1948
- Definition of “wages” under the Wagner Act includes benefits
- Benefits are a “bargainable issue”
Taft-Hartly Act- 1947
- aka Labor Management Relations Act (LMRA)
- Set forth requirements for “Taft-Hartly Plans”
- Collectively bargained multi-employer plans
- Jointly administered “welfare” fund
- $ is in “trust”
are benefits a de minimus fringe
how does the irs subsidize the purchase of health insurance?
by not taxing it
what happens if a plan is qualified?
it receives favorable tax treatment
what are the two parts of discrimination testing
- 1.Eligibility to participate or “be covered”
- 2.Benefits test
what happens if a plan is non qualified?
key Employees and/or HCE would not receive favorable tax treatment