3502(drennan) topic 1 notes
Card Set Information
3502(drennan) topic 1 notes
topic 1 notes
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
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
Collectively bargained plans
benefits that stem from an employment relationship
underwritten or paid directly by any government
Loss of income
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”
what happens if a plan is non qualified?
key Employees and/or HCE would not receive favorable tax treatment