Benefits Employee Benefits Definitions Examples The most common

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Benefits Employee Benefits Definitions Examples The most common Powered By Docstoc
					                        Employee Benefits

                                      Definitions

                                      Examples
                       The most common employee benefits

                   Benefit Type                                Employers Offering
                   Life Insurance                                    90%
                   Vacation Pay                                      77%
                   Holiday Pay                                       76%
                   Medical Care                                      71%
                   Retirement Plans                                  60%
                   Education Assistance Programs                     49%
                   Non-Production Bonuses                            46%
                   Employee Assistance Programs                      40%
                   Healthcare Reimbursement Accounts                 32%
                   Dependent Care Reimbursement Accounts             30%
                   Wellness Programs                                 23%
                   Job-Related Travel And Accident Insurance         22%
                   Employer Assistance For Childcare                 15%
                   Fitness Centers                                   13%
                   Long Term Care Insurance                          12%
                   Adoption Assistance                               10%
                   Stock Options                                      8%
                   Subsidized Commuting                               5%
                   Flexible Workplace                                 4%
                   Employer Provided Personal Computer                2%

                   Benefit Type                                   Desirability
                   Retirement Annuity (Pension Plan)                 91%
                   Thrift / Savings Plan (401k / 403b)               89%
                   Employee Healthcare Benefits                      89%
                   Retiree Healthcare Benefits                       87%
                   Life Insurance                                    71%
                   Long-Term Care Insurance                          63%
                   Health / Wellness Programs                        53%
                   Flexible Spending Accounts                        45%
                   Tele-work / Telecommuting                         40%
                   Child Care Subsidies                              31%


Mandated "Benefits"
 * Social Security
 * Unemployment Insurance
  * Workers Compensation

Health Insurance      $7,500+$3,600/year/family; $3,200+$900/year/person: employer+employee
Dental Insurance
Vision Care

Pension (Retirement)
- Health & Dental insurance in retirement
- Retirement Income
            - Defined Benefits
            - Defined Contributions (401-K, 403-B)   tax-deferred savings

Examples of Saving Plans for Retirement Income

Day Care (money or on-site center)

Health Savings Accounts (HSAs) in the Medicare bill of 2003

Salary Reduction Arrangements
          - Health Savings Account - Flexible Spending Account
          - Dependent Care Account - Flexible Spending Account

Life Insurance
Mental Health Insurance
Disability Insurance - short-term and long-term


Paid Vacation
                                Average Vacation Benefit (days)
                                       Length of Service
             1 Year     3 Years  5 Years 10 Years 15 Years 20 Years         25 Years
Paid Days      8.9        11.1     13.6      16.2       17.8    18.6          19.3




Paid Holidays
Bereavement Leave
Personal Leave (Mental Health Days)
Sick Leave (Well Pay)

Travel & Expenses Reimbursement - for normal work
Travel Insurance
Travel & Expenses Reimbursement - for professional conference
Membership in a professional organization
Membership in Community Organizations


Educational Benefits and Career Planning
Scholarships for children

Cafeteria System
Cash Payout for not using a benefit

Maternity Leave
Family and Medical Leave Act of 1993 (FMLA)

Relocation Expenses

Legal Services

Gym/Exercise/Spa membership

Profit-Sharing and/or discount stock purchase

Performance Evaluations - Career Paths




   Consolidated Omnibus Budget Reconciliation Act (COBRA) health benefit

                 Employee Retirement Income Security Act (ERISA)

                                      Overtime Pay




Direct Deposit
Wellness Program
Company Discounts
Parking Privileges
Business Cards & Title
Computer Loan (of money or equipment)
Hours off for Community Service
Healthy Physical Exam bonus
             Examples of Saving Plans for Retirement In
back to Benefits sheet

                         - assume this starting salary:
                         - assume that salary increases each year by:
                         - assume that retirement fund annually returns:
                         - assume the annual income tax rate (federal, state, soc security) is:

                                                                 These Examples are all for Pre-Tax Retirement Funds - 4
                           Years                            5%                     5%
                            of           Annual          Employee               Employer
                Age        Work           Salary        Contribution          Contribution
                                                       annual         total  annual           total
                 22           0           40,000        2,000        2,000     2,000         2,000
                 23           1           41,200        2,060        4,120     2,060         4,120
                 24           2           42,436        2,122        6,365     2,122         6,365
                 25           3           43,709        2,185        8,742     2,185         8,742
                 26           4           45,020        2,251       11,255     2,251        11,255
                 27           5           46,371        2,319       13,911     2,319        13,911
                 28           6           47,762        2,388       16,717     2,388        16,717
                 29           7           49,195        2,460       19,678     2,460        19,678
                 30           8           50,671        2,534       22,802     2,534        22,802
                 31           9           52,191        2,610       26,095     2,610        26,095
                 32          10           53,757        2,688       29,566     2,688        29,566
                 33          11           55,369        2,768       33,222     2,768        33,222
                 34          12           57,030        2,852       37,070     2,852        37,070
                 35          13           58,741        2,937       41,119     2,937        41,119
                 36          14           60,504        3,025       45,378     3,025        45,378
                 37          15           62,319        3,116       49,855     3,116        49,855
                 38          16           64,188        3,209       54,560     3,209        54,560
                 39          17           66,114        3,306       59,503     3,306        59,503
                 40          18           68,097        3,405       64,692     3,405        64,692
                 41          19           70,140        3,507       70,140     3,507        70,140
                 42          20           72,244        3,612       75,857     3,612        75,857
                 43          21           74,412        3,721       81,853     3,721        81,853
                 44          22           76,644        3,832       88,141     3,832        88,141
                 45          23           78,943        3,947       94,732     3,947        94,732
                 46          24           81,312        4,066      101,640     4,066       101,640
                 47          25           83,751        4,188      108,876     4,188       108,876
                 48          26           86,264        4,313      116,456     4,313       116,456
                 49          27           88,852        4,443      124,392     4,443       124,392
                 50          28           91,517        4,576      132,700     4,576       132,700
                 51          29           94,263        4,713      141,394     4,713       141,394
                 52          30           97,090        4,855      150,490     4,855       150,490
                 53          31          100,003        5,000      160,005     5,000       160,005
                 54          32          103,003        5,150      169,955     5,150       169,955
                 55          33          106,093        5,305      180,359     5,305       180,359
                 56          34          109,276        5,464      191,233     5,464       191,233
                 57          35          112,554        5,628      202,598     5,628       202,598
                 58          36          115,931        5,797      214,473     5,797       214,473
                  59      37             119,409    5,970      226,877     5,970      226,877
                  60      38             122,991    6,150      239,833     6,150      239,833
                  61      39             126,681    6,334      253,362     6,334      253,362
                  62      40             130,482    6,524      267,487     6,524      267,487
                  63      41             134,396    6,720      282,232     6,720      282,232
                  64      42             138,428    6,921      297,620     6,921      297,620
                  65      43             142,581    7,129      313,677     7,129      313,677
                  66      44             146,858    7,343      330,431     7,343      330,431
                  67      45             151,264    7,563      347,907     7,563      347,907
                  68      46            $155,802   $7,790    $366,134     $7,790    $366,134
                 Age     Years           Annual    annual         total   annual         total
                          of              Salary        5%                     5%
                         Work                        Employee               Employer
                                          Salary    Contribution           Contribution

Graph of retirement savings over time
back to Benefits sheet
r Retirement Income
                                        $40,000
                                             3%
                                             3%
                                            40%

l for Pre-Tax Retirement Funds - 401K or 403B
                        10%                    10%
                     Employee               Employer
                    Contribution           Contribution
                  annual          total   annual         total
                    4,000        4,000     4,000        4,000
                    4,120        8,240     4,120        8,240
                    4,244       12,731     4,244       12,731
                    4,371       17,484     4,371       17,484
                    4,502       22,510     4,502       22,510
                    4,637       27,823     4,637       27,823
                    4,776       33,433     4,776       33,433
                    4,919       39,356     4,919       39,356
                    5,067       45,604     5,067       45,604
                    5,219       52,191     5,219       52,191
                    5,376       59,132     5,376       59,132
                    5,537       66,443     5,537       66,443
                    5,703       74,140     5,703       74,140
                    5,874       82,238     5,874       82,238
                    6,050       90,755     6,050       90,755
                    6,232       99,710     6,232       99,710
                    6,419      109,120     6,419      109,120
                    6,611      119,005     6,611      119,005
                    6,810      129,385     6,810      129,385
                    7,014      140,280     7,014      140,280
                    7,224      151,713     7,224      151,713
                    7,441      163,706     7,441      163,706
                    7,664      176,282     7,664      176,282
                    7,894      189,464     7,894      189,464
                    8,131      203,279     8,131      203,279
                    8,375      217,753     8,375      217,753
                    8,626      232,912     8,626      232,912
                    8,885      248,784     8,885      248,784
                    9,152      265,400     9,152      265,400
                    9,426      282,788     9,426      282,788
                    9,709      300,981     9,709      300,981
                   10,000      320,010    10,000      320,010
                   10,300      339,911    10,300      339,911
                   10,609      360,718    10,609      360,718
                   10,928      382,467    10,928      382,467
                   11,255      405,196    11,255      405,196
                   11,593      428,945    11,593      428,945
 11,941      453,754     11,941      453,754
 12,299      479,666     12,299      479,666
 12,668      506,724     12,668      506,724
 13,048      534,974     13,048      534,974
 13,440      564,463     13,440      564,463
 13,843      595,240     13,843      595,240
 14,258      627,355     14,258      627,355
 14,686      660,861     14,686      660,861
 15,126      695,814     15,126      695,814
$15,580    $732,268     $15,580    $732,268
 annual         total    annual         total
      10%                     10%
   Employee                Employer
  Contribution            Contribution
back to Retirement sheet                      or, back to Benefits sheet




                               Strategies for Retirement Savin
      Retirement Savings



                           $800,000
                           $700,000
                           $600,000
                           $500,000
                           $400,000
                           $300,000
                           $200,000
                           $100,000
                                 $0
                                      1   6     11      16       21        26   31   36
                                                Years of Employment
ement Savings


                      10% of income per
                      year




                      5% of income per
                      year



  31   36   41   46
oyment