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Benefits (Retirement Plan (Contributory- employer and employee funding
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Benefits
Retirement Plan
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Defined-benefit plan- guarantees a specific level of retirement income based on age, years of service and earnings level
Defined-contributions plan- an individual acc for employee, specifying the size of investment into the account
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vesting rights- employees earn the right for pension funds irregardless of whether they are with the same employer
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Healthcare benefits
4 types: disability income, medical care, death benefits. rehabilitative services
when employees experiences pregnancy, given same treatment as a temporarily disabled employee- modify tasks, alternate assignments, leave (paid/unpaid)
Health Maintenance Organisation (HMO)- a plan requiring patients to receive medical care from the HMO itself
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Cafeteria style plans
make employees value benefits more
avoid costs of providing unwanted benefits
high and often difficult to measure costs
communicate policies well to emphasise value, clarify expectations, prevent situations of unequal treatment and lawsuits
paid time off (PTO) pools personal,sick and vacation days into one lumpsum
Total benefits package should consider: organisational goals, budget, employees' expectation, expectation of future hires
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benefits must be non-discriminatory and adhere to tax & accounting requirements
retirement benefits are future costs obligations (to be set aside for payment and not pay-as-you-go basis