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Managing Employee Benefits

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Family Medical Leave Act (FMLA) ... FMLA ... be required to use all paid-vacation and personal leave before taking FMLA leave ... – PowerPoint PPT presentation

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Title: Managing Employee Benefits


1
Managing Employee Benefits
  • Benefits an indirect reward given to an
    employee or group of employees as part of
    organizational membership.
  • Types Mandatory Voluntary
  • Strategic Perspective Needed to offer
    competitive compensation packages to compete in
    tight labor markets aging workforce places
    greater demands on employers to monitor costs
    dual-career couples and single-parent families
    work family issues becoming more important.

2
Legal Issues
  • Workers Compensation
  • Unemployment Compensation
  • Social Security
  • Family Medical Leave Act
  • COBRA
  • Age Discrimination ADEA OWBPA
  • ERISA
  • HIPPA

3
Administration Issues
  • Communication important that employees have
    more understanding of the entire benefits program
    and its economic value. Use of Benefits
    Statements shows the dollar value of the
    benefits provided HRIS
  • Flexibility allowing employees to select
    benefits they prefer from a group of benefits
    offered by the employer.

4
Family Medical Leave Act (FMLA)
  • Covers employers with 50 or more employees who
    live within 75 miles of the workplace
  • Employee coverage must have worked at least 12
    months 1,250 hours in the previous year
  • Employer must allow eligible employees to taker a
    total of 12 weeks unpaid leave during any 12
    month period for one or more of the following
  • Birth, adoption, or foster-care placement of a
    child
  • Caring for spouse, child, or parent with a
    serious health condition
  • Serious health condition of the employee

5
FMLA
  • A serious health condition one requiring
    inpatient, hospital, hospice, or residential
    medical care, or continuing physician care.
  • Employee Privileges
  • Must be able to return to the same job or a job
    of equivalent status or pay
  • Health benefits must be continued during the
    leave
  • Leave may be intermittent
  • May be required to use all paid-vacation and
    personal leave before taking FMLA leave
  • 30 day notice, where practical

6
Health Care Regulation Cost
  • Regulation COBRA mandates that employers with
    20 or more employees offer extended health-care
    coverage to voluntary or involuntary quits,
    widowed or divorced spouses and dependent
    children of former or current employees, retirees
    and their spouses whose health care coverage
    ends.
  • HIPPA minimizes problems associated with
    preexisting conditions when changing jobs.

7
Controlling Health Care Costs
  • Managed Care consists of approaches that
    monitor and reduce medical costs using
    restrictions and market system alternatives.
    Plans emphasize primary preventative care, use
    of specific providers, place restrictions on
    certain kinds of treatment.
  • Preferred Provider Organizations (PPOs)
  • Health Maintenance Organizations (HMOs)
  • Co-payments Utilization Review
  • Wellness Communication Programs

8
Retirement Benefits
  • Legal Issues
  • Age Discrimination in Employment Act (ADEA)
    Older Workers Benefit Protection Act (OWBPA)
    main affects Early Retirement sets specific
    criteria that must be met when older workers sign
    waivers promising not to sue for discrimination.
  • Financial Accounting Standards Board (FASB) Rule
    106 requires that firms establish accounting
    reserves for funding retiree health-care benefits
  • Social Security Payroll Taxes 15.3 - 7.65
    each.
  • Employee Retirement Income Security Act (ERISA)

9
Retirement Benefit Terminology
  • Pensions
  • Contributory employer and employee fund plan
    Noncontributory employers fund plan
  • Defined-contribution plan employer makes annual
    payments benefits based upon total
    contributions investment returns on
    contributions
  • Defined-benefit plan pension amount based on
    age length of service
  • Vesting the right to receive benefits
    determined by length of service
  • Portability freedom to transfer pension plans
    between employers.

10
Security Benefits
  • Workers Compensation provides benefits to
    persons injured on the job. State law
    requirements employees give up right of tort
    actions against employers in exchange for
    benefits. Cost increases have been dramatic in
    many states.
  • Unemployment Compensation Funding based on
    payroll tax on the first 7,000 of annual earning
    of each employee. Tax is experienced rated for
    employers based on number of claims filed by
    workers who leave a particular employer.
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