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Benefits 2009

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Wednesday 10/7/09 presentation on understanding the benefit options you may be presented with in your career search.

Wednesday 10/7/09 presentation on understanding the benefit options you may be presented with in your career search.


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  • 1. YOUR COMPENSATION INCLUDES MUCH MORE THAN JUST SALARY
  • 2. BENEFIT PACKAGES – what’s included? Health Insurance Dental/Vision Life Insurance Long Term Disability – LTD Educational Benefits (employee and dependents) Sick Leave Vacation Leave PTO – Paid Time Off Holidays Retirement Contributions Parking Childcare Facilities
  • 3. HEALTH INSURANCE Average cost of an office visit - $80 Emergency Room Visit - $256 Average cost of a MRI - $2,064 Average cost of a broken ankle (visit, x-ray and cast) - $1,386 Average cost of a birth - $8,000 to $10,000 Average cost of having your wisdom teeth pulled - $1,100
  • 4. HEALTH INSURANCE “ Health Insurance Premiums Rose Four Times the Wages and Inflation in the last decade.” “ The average employer-sponsored premium for a family of four costs close to $13,000/year and the employee foots about 30% of the cost.” National Coalition on HealthCare – September 2009.
  • 5. HEALTH INSURANCE WHAT DOES THIS MEAN TO YOU – as the cost of health care costs increase for your employer – more costs are shifted to you either through lower salaries, lower health insurance coverage or higher premiums.
  • 6. HEALTH INSURANCE Types of Health Insurance Health Maintenance Organizations (HMO) Primary care physician – coordinates care Pre-approved appointments only Least expensive plan for employee Referrals to Specialists required Preferred Provider Organizations (PPO) More flexibility Payment to health care providers negotiated In and out-of-network care available
  • 7. HEALTH INSURANCE Types of Health Insurance (con’t) Indemnity Plan or Fee-for-Service Offers the most freedom & flexibility Few employers offer this plan – expensive Expensive plan for employee
  • 8. DENTAL/VISION INSURANCE Dental plan maybe included in the health plan or a stand alone plan that costs extra. Dental plans usually pay 100% for preventative 80% for restorative – fillings 50% for crowns Vision coverage is usually part of medical plan but can be stand alone or not offered.
  • 9. LIFE INSURANCE Term Life No cash value Inexpensive Terms at end of employment Whole Life Has a cash value Cost based on age Usually not offered by employers
  • 10. LONG TERM DISABILITY LTD One of your most important benefits – replaces a % of your salary if you become disabled (usually a 6 month waiting period). An expensive benefit to provide to employees.
  • 11. EDUCATIONAL BENEFITS An important benefit if you want to further your education. Educational benefits can be offered to spouses/dependents You could be taxed on the value of the benefit.
  • 12. PAID TIME OFF PTO Vacation leave and sick leave combined. Accrued – carries over to the next year Or Use it or lose it at the end of the year
  • 13. RETIREMENT 401(k) Contributions – retirement savings plan funded by a for-profit employer 403(b) – Contributions – retirement savings plan funded by a non-profit employer
  • 14.
    • RETIREMENT
    • Eligibility Requirements – waiting period
    • Employer Contributions & Matching Contributions
    • Supplemental Retirement – money deferred by employee
    • Vesting – meaning yours to keep when you leave the company – can vest immediately or a period of time.
    • Early Withdrawal – no withdrawals except hardships, are allowed until you terminate.
  • 15. RETIREMENT Tax-deferred compounding – one of the best features of either 401(k) or 403(b) plans. Your contributions are pre-tax and money earned is also pre-tax until withdrawn.
  • 16. RETIREMENT $1 million – in your 401(k) Saving just $200 a month or $1.15 an hour for 35 years assuming 10% interest. Waiting 5 years to begin saving you will need to save $356 a month or $2.05 an hour. Waiting 10 years to begin saving you will need $634 a month or $3.66 an hour. JUST DO IT!
  • 17. RETIREMENT $50,000 – salary You contribute 10% of your salary into your 401(k) - $5,000 $45,000 is your new taxable salary Claiming a $45,000 salary instead of a $50,000 lowers your tax bill by $1,400 (28% tax bracket) Because you took advantage of pre-tax contributions - your new take home salary instead of being reduced by $5,000 is only reduced by $3,600. You are paying yourself first and paying Uncle Sam second.
  • 18. OTHER BENEFITS Free Parking Holiday Pay Childcare Facilities Short-term Disability
  • 19.
    • WHAT IS YOUR REAL COMPENSATION?
    • (It’s more than just salary )
    • Total Compensation includes:
      • Salary
      • Benefits (employer paid, i.e. health,
    • dental, vision, life, etc)
      • Employer Retirement Contributions
      • Employer payment to Social Security and Medicare Taxes
      • Educational Benefits
      • Disability Benefits

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