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Benefit Options.pptx
- 3. Legally Required Benefits Workers’ Compensation Form of no-fault insurance -Employer liable for providing benefits to employees that result from occupational disabilities or injuries, regardless of fault -Disability must be work-related Covered by State -Employers pay premium to insurance company or state fund Covers work-related injuries, diseases Medical care for work-related injuries Temporary disability benefits Permanent partial and permanent total disability benefits Survivor benefits Rehabilitation
- 4. Legally Required Benefits (cont.) Social Security Provides a foundation of basic security for workers and their families Money comes from contributions made by: -employees, -their employers, and -self-employed people during working years
- 5. Legally Required Benefits (cont.) Unemployment Insurance Majority of states, unemployment compensation is financed exclusively by employers that pay federal and state unemployment insurance tax.
- 6. Retirement and Savings Plan Payments Employees rank pensions as one of the more important benefits Two generic types of pension plans -Defined benefit plans -Defined contribution plans Legally Required Benefits (cont.)
- 7. Legally Required Benefits (cont.) Life Insurance One of the most common benefits Most companies offer term policies -Value of 1-2 times an employee’s salary -Most plan premiums paid completely by employer
- 8. Legally Required Benefits (cont.) Medical and Related Payments Underlying structure of health care delivery: -Commercial insurance plan. -Health maintenance organization (HMO): Limited group of providers at agreed upon rates. -Preferred provider organization (PPO): Lower rates for employer selected providers. -Point-of-service plan (POS): Hybrid plan combining HMO and PPO benefits.
- 9. Legally Required Benefits (cont.) Medical and Related Payments (cont.) Short- and Long-Term Disability Private sources of disability income: Salary continuation plans. -Most prevalent practice is paid time off (PTO). Disability plans. -Short-term illness is covered by PTO. -Short-term disability (STD) pays a percentage of an employee’s salary for temporary disability. Long-term disability (LTD) plans, take over when short-term plans expire.
- 10. Legally Required Benefits (cont.) Medical and Related Payments (cont.) Dental Insurance -A rarity 30 years ago, dental insurance is now much more prevalent. The dental equivalent of HMOs and PPOs is the standard delivery system. -At the start of the century, the typical cost for employee dental coverage was $219. The relatively modest increase in dental care costs can be traced to stringent cost control strategies (plan maximum payouts are typically $1,000 or less per year) and an excess supply of dentists. Vision Care -Vision care dates back only to the 1976 contract between the United States Auto Workers and the Big Three automakers. Since then, this benefit has spread to other auto-related industries and parts of the public sector. Most large employers offer a vision plan. Most plans are noncontributory and usually cover partial costs of eye examinations, lenses, and frames.
Editor's Notes
- Human resources professionals share three widely held views about benefits administration. First, the number of employee benefits and the laws affecting them have been escalating rapidly. Second, a good benefits administrator can serve an organization substantial sums of money through proper benefits plan design and effective administration of benefits. Third, proficiency in benefits plan administration requires years of experience. This topic explores the different types of employee benefits. It includes discussion on the benefits which are mandated by laws and other types of miscellaneous benefits which are voluntarily given by employers. Class Based on our previous discussion, what is employee benefits? Benefits are cash or non – cash given to the employees on top of their basic salaries (Rosales, 2019). Employee benefit is defined by Haynes (2018) as any form of reward provided by the organization other than wages or salaries that are paid for in whole or in part by the employer
- Workers’ compensation is an insurance program, paid for by the employer, that is designed to protect employees from expenses incurred for a work-related injury or disease. An injury or disease qualifies for workers’ compensation if it results from an accident that arouse out of, and while, in the course of employment. There are five categories of workers’ compensation benefits. 1. Permanent total disability and temporary total disability 2. Permanent and temporary partial disability 3. Survivor’s benefits in cases of fatal injuries. 4. Medical expenses 5. Rehabilitation and training in most states, for those unable to return to their prior career So here in the Philippines, employees are entitled to a package of benefits under the Social Security and Employees' Compensation (EC) Programs in the event of death, disability, sickness, maternity and old age. Self-employed and voluntary members also get the same benefits as covered employees, except those benefits under the EC program. Qualified members will receive A cash allowance paid for the number of days a member is unable to work due to sickness or injury.
- Social security benefits are paid to replace part of the lost family earnings. The money to pay these benefits comes from the Social Security contributions made by employees, their employers and self-employed people during working years. As contributions are paid in each year, they are immediately used to pay for the benefits to current beneficiaries. Here in the Philippines we have SSS, Pag-IBIG, Philhealth and GSIS For SSS we have Loans, Sickness, Maternity, Disability, Death/Funeral, Lumpsum and Retirement/Pension For Pag-IBIG we have Loans, Savings, Death/Funeral and Lumpsum For Philhealth we have cash assistance for hospitalization And lastly, GSIS for Government workers.
- This is intended to cushion the effects of unemployment for their members.
- In a defined benefit plan, an employer agrees to provide a specific level of retirement pay/pension that is expressed as either a fixed peso or percentage of earnings amount that may vary with years of seniority in the company.
- One of the most common employee benefits is some form of life insurance. Typical coverage is a group term insurance policy with a face value of one to times the employee’s salary. (Milkovich, Newman, 2002)
- This benefit may be in a form of (1) community-based system (2) a commercial insurance plan (3) self-insurance. (4) a health maintenance organization or a (5) preferred provider organization.
- A number of benefit options provide some form of protection for disability. Many companies have some form of salary continuation plan that pays out varying levels of income depending on duration of illness. A long-term disability plan might begin when the short term-disability plan expires, typically after 26 weeks.