RMI 4330 Employee Benefits

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RMI 4330Employee Benefits

• J. Allen Seward

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What are employee benefits?

• Narrrow definition Employer provided
• death
• accident
• sickness
• retirement
• unemployment

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Broader definition

• Social insurance
• social security
• unemployment
• workers compensation
• temporary disability
• plus...

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Broad definition (continued)

• Private insurance and retirement plans
• old age
• death
• disability
• medical
• dental
• legal
• property/liability

• Other
• vacations
• sick leave
• jury duty
• maternity or sabbatical
• extra cash payments
• education and moving
• services in kind
• cafeterias, wellness

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Significance of Employee Benefits

• 42 of payroll
• 8.9 social insurance
• 7.5 pensions
• 10.5 medical
• 1.5 trillion in benefits

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Significance of Social Insurance

• Over 43 million people receive social security
  (other than medicare)
• 37 million receive Medicare
• PV(survivors benefits)gt13 trillion

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Group Medical Expense Insurance

• 1970 expense 20 billion
• 1995 expense 300 billion
• covers 210 million persons

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Retirement Plans

• 80 million people privately covered
• additional 24 million covered under federal,
  state and local plans
• assets of private plans 3.6 trillion
• 15 million current pension recipients other than
  social security

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Growth of employee benefits

• Industrialization and turn of century
• tax code in the 1920s
• WWII
• wage and price controls
• Inland Steel in 1948

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Assignment

• Question 2 at end of chapter
• do not turn it in!
• quizzable
• Read chapters 2 and 3!