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.

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Benefits 2009

  2. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 14. <ul><li>RETIREMENT </li></ul><ul><li>Eligibility Requirements – waiting period </li></ul><ul><li>Employer Contributions & Matching Contributions </li></ul><ul><li>Supplemental Retirement – money deferred by employee </li></ul><ul><li>Vesting – meaning yours to keep when you leave the company – can vest immediately or a period of time. </li></ul><ul><li>Early Withdrawal – no withdrawals except hardships, are allowed until you terminate. </li></ul>
  15. 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. 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. 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. 18. OTHER BENEFITS Free Parking Holiday Pay Childcare Facilities Short-term Disability
  19. 19. <ul><li>WHAT IS YOUR REAL COMPENSATION? </li></ul><ul><li>(It’s more than just salary ) </li></ul><ul><li>Total Compensation includes: </li></ul><ul><ul><li>Salary </li></ul></ul><ul><ul><li>Benefits (employer paid, i.e. health, </li></ul></ul><ul><li>dental, vision, life, etc) </li></ul><ul><ul><li>Employer Retirement Contributions </li></ul></ul><ul><ul><li>Employer payment to Social Security and Medicare Taxes </li></ul></ul><ul><ul><li>Educational Benefits </li></ul></ul><ul><ul><li>Disability Benefits </li></ul></ul>