A paper in which you assess the advantages to participants and employers provided by non-retirement benefits, other than medical, dental, and vision plans. Give at least five examples of non-retirement benefits, including at least one that your organization does not offer. Also, discuss some factors that employers use to decide which non-retirement benefits to offer. Be prepared to discuss your paper in class.© BrainMass Inc. brainmass.com October 24, 2018, 9:16 pm ad1c9bdddf
Non-Retirement Benefits Paper
Paper in which you assess the advantages to participants and employers provided by non-retirement benefits, other than medical, dental, and vision plans. Give at least five examples of non-retirement benefits, including at least one that your organization does not offer. Also, discuss some factors that employers use to decide which non-retirement benefits to offer. Be prepared to discuss your paper in class.
I. Assess the advantages to participants and employers provided by non-retirement benefits other the normal medical, dental and vision plans? Give a minimum of five examples?
First we need to know what is meant by non-retirement benefits other than the above mentioned ones. There is no certain definition, but the below information tells us about the types of benefits that fall under this criterion:
The following list suggests that non-retirement benefits include extra cash payments, services, and cafeteria plans. However, as we see later, there are also parking privileges, and personal time off (Reserve/National Guard, Jury Duty, Death in family, Sabbatical leaves, etc.), amongst others, to add to this list:
-High compensation for employees: options or share offers
-Payments for Time Not Worked (e.g., Vacation, Holidays)
-Extra Payments to Employees (e.g., Educational assistance: books, fees, tuition; taxable income for graduate and professional schools, Moving expense)
-Services to Employees
Source: The Handbook of Employee Benefits, 6th Edition
Example 2: Cafeteria Plans
A cafeteria plan is a flexible benefit plan that allows employees to choose their benefits within certain prescribed limits. Among the choices in a typical plan are:
? Medical plan options that offer a choice between a traditional indemnity plan and an HMO.
? Group term life insurance for the employee and their dependants.
? Optional 401(k) retirement plan contributions.
? Spending accounts for unreimbursed medical expenses (e.g. deductibles and co-payment amounts) and dependent care (e.g., day care) expenses.
The underlying rationale of a cafeteria plan is simply the recognition that "one size doesn't fit all". Providing an individualized benefit plan that allows employees to tailor their benefits to their particular family needs may be one of the best ways to attract and retain valuable employees.
There are several ways that we can assess the advantages to both the participants and the employers.
1. Use Statistics: We could calculate the overall savings that these fringe benefits provide (e.g., tax savings, etc.), through statistics and income tax reports (although it might not be an easy chore to get the exact figures). For example, unlike employee compensation paid in cash, many fringe benefits are exempt from income and payroll taxes. These figures can be found in statistics. For example, the exemption of employer-paid health and life insurance premiums from tax was predicted to cost about $55 billion in income taxes and $40 billion in payroll taxes in 2000. This is a clear indicator that it is a financial advantage to participants. See more in this ...
The solution provides a detailed 5-page explanation of the problem.
Bonds and Default Statements
Many would agree that long-term bonds are safe and consider them as "risk free". But, I actually don't agree with this at all. What would happen if the United States government didn't have the money to pay back the bonds? If you remember towards the end of last year, the United States was at the edge of its seat wondering if the debt ceiling was going to be raised or not. If it wasn't raised, there was a possibility that the United States could default. That is a scary, scary thought in my opinion especially considering the US has a debt that is currently in the trillions.
The did end up coming up with a solution but its temporary. What are your thoughts on this? Do you think the US risks default in the near future or distant future? Can you imagine the impacts this could have?View Full Posting Details