Compensation Package for Professional Employees
1. Salary. ABC Corporation offers highly competitive salaries for professional employees. Salary
ranges are establishes from surveys through various professional services. Employees are
compensated for level of education achieved and for total years of experience.
2. Medical Insurance Benefits. Medical, dental, vision and prescription drug insurance is fully
paid for by the Company for employees and their families. Full-time employees are eligible for
these benefits on the first day of the month after 30 days of employment.
a. Medical – CareFirst, by Blue Cross/Blue Shield, is the Healthcare provider for ABC.
Employees who have coverage elsewhere may choose to waive coverage with ABC. Proof of
other coverage is required.
b. Dental – The dental plan is offered through the CareFirst Dental Rider. It is a PPO dental
plan, and allows employees to have access to both in network and out of network providers.
Employees who have coverage elsewhere may choose to waive coverage with ABC.
c. Vision – our vision coverage is through CareFirst vision plan and helps employees pay for
routine eye care. You have access to the Davis Vision Network of nationwide eye care
providers and may also go out of network to receive care at a reduced benefit.
d. Prescription Drug Plan – employees who elect Blue Cross/Blue Shield PPO will
automatically be enrolled in our prescription drug program. Drug co-pays vary based on
generic formulary, brand formulary and non-formulary. We also offer a mail order drug
program to help reduce drug costs.
3. Life, AD&D, and Business Travel Insurance. ABC offers the following coverage. Coverage
begins 30 days from the date of hire.
a. Life Insurance. ABC provides its employees with life insurance in the amount equal to 1x
times their base annual earnings, for a maximum of $100,000, at this time.
b. Dependent Life Insurance. Employees also receive life insurance benefits on their spouse
($25K) and dependent children ($10K per dependent child). ABC pays for the cost of the
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c. Accidental Death and Dismemberment. ABC also provides its employees with accidental
death and dismemberment coverage in the amount equal to 2x times their base annual
earnings, for a maximum of $200,000.
d. Business Travel Insurance and SOS International. ABC provides additional AD&D
coverage of up to 3 times base salary up to a maximum of $1,000,000 per employee when the
employee is on travel for ABC business. Coverage begins at the time the employee leaves
his/her home or ABC work location and ends when the employee returns to either his/her
home or ABC work location. Through SOS International, employees who travel
internationally on business will have access to important information such as medical access,
emergency evacuation procedures and travel alerts, just to name a few.
4. Disability Insurance. ABC offers the following coverage. Coverage begins 30 days from the
date of hire.
a. Short Term Disability (STD). ABC pays for short-term disability for its employees. The
period of coverage begins at 0 days for injury and 7 days for sickness and runs until calendar
day 90 of the disability. Employees on STD will receive 60% of their basic monthly earnings
during the STD period. The maximum weekly benefit is $1000.
b. Long Term Disability (LTD). ABC also pays for long-term disability. The period of
coverage begins on calendar day 91 of the disability. Employees on LTD will receive 60% of
basic monthly earnings during the LTD period (up to age 65). The maximum monthly benefit
c. Employee Assistance Program (EAP). The EAP is a free service to all employees and their
families available twenty-four hours a day, seven days a week. Assistance is available for
many different life areas from credit counseling to mental health problems. A toll free phone
number is provided at time of enrollment.
5. Time Off Benefits
a. Paid Time Off. ABC Corporation offers its full-time employees 15 days of paid time off per
year. The employee may choose to use paid time off for vacation or sick leave. Paid time off
may be rolled into the next calendar year, but the maximum balance may not exceed 240
hours. Accrual of paid time off begins with the first full pay period.
b. Holidays. Full-time employees are also provided with 10 paid holidays. These holidays
include New Year’s Day, Martin Luther King, Jr. Day, President’s Day, Memorial Day,
Independence Day, Labor Day, Columbus Day, Veteran’s Day, Thanksgiving Day, and
6. Retirement Plan.
a. Pension Plan - ABC employees are enrolled in the SEP-IRA upon hire. This plan,
administered by Fidelity Investments, allows ABC to contribute a percentage of employee
basic compensation on a pre-tax basis. Participation begins the month of January or June
following employment. ABC makes contributions with each paycheck starting at that time.
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b. 2005 Contribution. - The current 2005 annual contribution is 10%. An additional 0-5%
discretionary contribution is possible at the end of the calendar year at the discretion of the
c. Vesting - The employee is fully vested immediately after enrollment. The employee has full
investment direction over these contributions within the funds offered by Fidelity
Investments. Rollovers from other tax-qualified plans into the SEP-IRA are allowed at any
7. Other Financial Benefits.
a. Employee Referral Program. As ABC continues to grow, we look to our employees to help
us find qualified individuals to join our team. ABC will pay employees $1,000 for each
eligible referral that joins the Company.
b. Educational Assistance. ABC reimburses 100% of tuition, lab fees, and book costs up to
$4,000 per calendar year for pre-approved satisfactorily completed work-related coursework.
Employees who voluntarily terminate employment with ABC within 12 months of receiving a
reimbursement are required to repay (before the last day of employment) all reimbursements
received within the prior 12 months. Taxability of payments made under this program will be
determined at the time of the reimbursement. Appropriate federal, state and other taxes will
be deducted from the reimbursement, as appropriate.
c. Cash Bonuses. ABC has a Spot Bonus Award for which employees may be eligible. These
bonuses reward employees for specific accomplishments. Also, employees who celebrate 5,
10, 15+ years of service are eligible to receive a Service Award Bonus.
d. Metro Check/Parking. In locations where the company pays for employee parking,
employees may wish to use public transportation instead. Accordingly, ABC will provide the
employee with a Metrocheck allotment each month. This amount is based on the cost of
parking at your location. Metrocheck may be used for the Metro, VRE, MARC trains,
numerous buses, and car/van pools.
For additional information or for answers to your questions, please contact your local Human
This information is intended to serve as a guideline to ABC’s employee benefits and does not represent, and
should not be construed as, an employment contract, any aspect of an employment contract, or a promise of
employment. No statements herein supersede actual terms of group insurance policies, qualified plan
documents, or ABC standard operating procedures in force at the time of hiring or during employment. In case
of a discrepancy, the actual group insurance policy, qualified plan document, or ABC standard operating policy
shall override this statement. ABC reserves the right to alter, modify, change and/or terminate any and/or all
of the benefits described in this summary at any time and at the sole discretion of the Company. Effective
date: January 1, 2006
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