Five W's Presentation


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  • Five W's Presentation

    1. 1. Presented by Jenny Sardi
    2. 2. <ul><li>The Objective </li></ul><ul><li>To exam the “Five W’s” of employee </li></ul><ul><li>benefits, and explore the purposes and </li></ul><ul><li>philosophies used by Employers as they </li></ul><ul><li>determine their benefit offerings </li></ul>
    3. 3. <ul><li>Who is covered by the benefit? </li></ul><ul><li>What is being protected by the benefit? </li></ul><ul><li>Why are employee benefits offered? </li></ul><ul><li>Where employee benefits are offered, (a look at the State and other regulatory considerations)? </li></ul><ul><li>When are employee benefits offered? </li></ul>
    4. 4. <ul><li>Wise spending of resources; </li></ul><ul><li>the Cost of providing </li></ul><ul><li>or not providing an employee benefit . </li></ul>
    5. 5. <ul><li>All forms of financial and tangible services and benefits employees receive as a part of an employment relationship. </li></ul>
    6. 6. <ul><li>Any form of compensation other than direct wages paid to an employee and may include: </li></ul><ul><ul><li>Employers share of legally required payments, (Statutory Benefits) </li></ul></ul><ul><ul><li>Payment for time not worked (paid vacation, paid holidays, parental leave, etc.) </li></ul></ul><ul><ul><li>Employers share of medical and medically related payments </li></ul></ul><ul><ul><li>Employers share of retirement and savings plan payments </li></ul></ul><ul><ul><li>Others - employee discounts, tuition assistance, childcare </li></ul></ul>
    7. 7. <ul><li>Employee Benefits are intertwined </li></ul><ul><li>with every aspect of an </li></ul><ul><li>Individual’s financial </li></ul><ul><li>and economic security. </li></ul>
    8. 8.
    9. 9. <ul><li>Active Employees </li></ul><ul><ul><li>Full-time and Part-time employees </li></ul></ul><ul><ul><li>Dependents of employees </li></ul></ul><ul><li>Former employees </li></ul><ul><li>Retirees </li></ul><ul><ul><li>Dependents of retirees </li></ul></ul><ul><li>Others... </li></ul>
    10. 10. <ul><li>There is more diversity in the workplace - one size fits all benefits may no longer work. </li></ul><ul><ul><li>Married or cohabitating couples, </li></ul></ul><ul><ul><li>Single head of households, </li></ul></ul><ul><ul><li>Caretakers for parents/children, </li></ul></ul><ul><ul><li>Employees that are still students, continuing education </li></ul></ul><ul><ul><li>And more </li></ul></ul>
    11. 11.
    12. 12. <ul><li>Employees are concerned with job security, family time, paying bills during times of income loss, adequate health insurance, making ends meet, saving for college, adequate childcare, and adequate elder care. </li></ul>
    13. 13. <ul><li>Medical Expense </li></ul><ul><ul><li>Health Insurance </li></ul></ul><ul><ul><li>Dental Insurance </li></ul></ul><ul><ul><li>Vision Insurance </li></ul></ul><ul><ul><li>Flexible Spending Account </li></ul></ul>
    14. 14. <ul><li>Losses due to disability </li></ul><ul><ul><li>Workers Compensation </li></ul></ul><ul><ul><li>Statutory Disability </li></ul></ul><ul><ul><li>Long term disability </li></ul></ul><ul><ul><li>Social Security </li></ul></ul><ul><li>Losses due to employee’s death </li></ul><ul><ul><li>Life Insurance for Employee </li></ul></ul><ul><ul><li>Life Insurance for Dependents of employee </li></ul></ul><ul><ul><li>Key Man Policies </li></ul></ul>
    15. 15. <ul><li>Retirement needs of Employee and Dependent </li></ul><ul><ul><li>Saving Plans </li></ul></ul><ul><ul><li>Defined Contribution Plans </li></ul></ul><ul><li>Loses due to unemployment </li></ul><ul><ul><li>Unemployment Insurance </li></ul></ul><ul><ul><li>Reimburser for Unemployment </li></ul></ul><ul><li>Others </li></ul>
    16. 16.
    17. 17. <ul><li>Business reasons: </li></ul><ul><li>To attract and hold capable employees </li></ul><ul><li>To improve corporate efficiencies and productivity </li></ul><ul><li>Tax advantages offered to employers </li></ul><ul><li>A cost effective and administratively efficient distribution channel </li></ul>
    18. 18. <ul><li>Social reasons </li></ul><ul><li>A social objective </li></ul><ul><li>Because of “ Moral Suasion ” – to prevent further government programs </li></ul><ul><li>To improve employee morale </li></ul>
    19. 19.
    20. 20. <ul><li>In one of the most heavily regulated States for Insurance </li></ul><ul><ul><li>Community Rating </li></ul></ul><ul><ul><li>Statutory Benefits </li></ul></ul><ul><ul><li>Complex Workers Compensation requirements </li></ul></ul><ul><li>Mostly in the small group market </li></ul><ul><li>Need to be aware of </li></ul><ul><ul><li>Mandatory Benefits, </li></ul></ul><ul><ul><li>Regulatory Issues like COBRA and HIPAA, TEFRA and DEFRA </li></ul></ul>
    21. 21. <ul><li>An example: </li></ul><ul><li>Statutory Disability – covers 50% up to a maximum weekly allowance of $170 a week. </li></ul><ul><ul><li>There are very feasible options for enhancing this disability coverage </li></ul></ul><ul><ul><li>Offering additional voluntary disability protection to your employees may pay off for the employees as well. </li></ul></ul>
    22. 22.
    23. 23. <ul><li>Certain Benefits require a set number of hours </li></ul><ul><ul><li>Community rating Health Insurance require employees to work 20 hours per week </li></ul></ul><ul><ul><li>Most Group Life or Dental programs require employees to work 30 hours a week. </li></ul></ul><ul><li>Certain Benefits must be provided to all employees regardless of hours worked. </li></ul>
    24. 24. <ul><li>There are two types of benefits: </li></ul><ul><li>Protection Benefits </li></ul><ul><ul><li>Protect employees against the risk of serious loss exposure. </li></ul></ul><ul><ul><li>Consist of medial expense benefits, life insurance, short and long term disability benefits. </li></ul></ul><ul><ul><li>The need for immediate protection is great and the reasons for a probationary period no longer make sense. </li></ul></ul>
    25. 25. <ul><li>Accumulation Benefits </li></ul><ul><ul><li>Consist of pension plans, bonuses, profit sharing, tuition assistance programs. </li></ul></ul><ul><ul><li>These benefits are used as rewards for service length and loyalty. </li></ul></ul><ul><li>Determining when to apply a waiting period should be consistent with the overall employer objective and benefits philosophy. </li></ul>
    26. 26. <ul><li>There may be financial or social reasons to apply a waiting period with both the Protection Benefits and Accumulation Benefits, </li></ul>
    27. 27.
    28. 28. <ul><li>Cost Shifting to Employees through premium contribution or through increased co-pays and deductibles. </li></ul><ul><ul><li>PRO of Cost Shifting – allows the continued offering of coverage. </li></ul></ul><ul><ul><li>CON of Cost Shifting – is not a solution to the high increases experienced each year. </li></ul></ul>
    29. 29. <ul><li>Alternative Health Plans and Funding Arrangements such as HSA Plans and HRA’S. </li></ul><ul><ul><li>Pro of HSA – the employee has more control over health care options, can allow unused dollars to build. </li></ul></ul><ul><ul><li>Con of HSA/HRA – upfront deductible is not always feasible for the employee , especially in the first year. </li></ul></ul>
    30. 30. <ul><li>Look at your benefit priorities through the Five W’s process. </li></ul><ul><li>Review all of your benefits and services to see where gaps and overlaps exist. </li></ul><ul><li>Explore alternatives for each coverage </li></ul><ul><ul><li>Committing to a worksite wellness program </li></ul></ul><ul><ul><li>Implementing an HSA, </li></ul></ul><ul><ul><li>Unemployment options, </li></ul></ul><ul><ul><li>Making some benefits voluntary instead of eliminating them altogether. </li></ul></ul><ul><li>Share a Total Compensation summary with your employees </li></ul>