Chapter 1 Flashcards
1
Q
Employee Benefits Categories
A
- Legally Required Payments for Government Programs
- Payment for private insurance and retirement plans
- Payments or other benefits for time not worked
- Extra cash payments (other than wages and bonus)
- Cost of of services to employees
2
Q
Legally Required Payments for Government Programs
A
- Social Security
- Medicare
- Unemployment compensation insurance
- Temporary disability insurance
3
Q
Payment for private insurance and retirement plans
A
- Old Age
- Death
- Disability
- Medical Expenses
- Legal Expenses
- Property and Liability Losses
4
Q
Payments or other benefits for time not worked
A
- Vacations
- Holidays
- Jury Duty
- Maternity/Paternity Leave
- Reserve/National Guard duty
- Military leave
5
Q
Extra cash payments (other than wages and bonus)
A
- Educational Assistance
- Moving Expenses
- Suggestion Awards
- Christmas Bonuses
6
Q
Cost of of services to employees
A
- Subsidized cafeterias
- Employee discounts
- Wellness programs
- Free Parking
- Day Care Services
- Employee Assistance Programs
- Retirement Counseling
7
Q
LIMRA International
A
- Membership organization of life insurance and financial services organizations that provides marketing and distribution information and advice
8
Q
Growth of Benefits Factors
A
- Industrialization
- Influence of Organized Labor
- Wage Controls
- Cost Advantages
- Inflation
- State and Federal Legislation
9
Q
Industrialization
A
- Benefits improved EE morale and productivity
- Reduced EE turnover and expenses associated with it
- Led to more govt benefits: Social Security, etc
10
Q
Organized Labor
A
- Supreme Court ruling in 1949 established the right of labor unions to legally negotiate for EE benefits: strengthened influence of unions
- Have also affected benefits for nonunion employees: ER provide benefits to discourage workers from unionizing
- ER with both union and non union often provide same benefits for both
11
Q
Wage Controls
A
- Grew substantially during WWII and Korean War
- Federal Govt froze wages but not benefits
- ER used benefits to attract and retain EEs in labor market with little unemployment
12
Q
Cost Advantages
A
- EEs can usually obtain benefits at a lower cost through group insurance
- Favorable tax treatment for certain types of benefits
- Types of group benefits with the most favorable tax treatment also tend to be the most prevalent
13
Q
Inflation
A
- When levels are related to EEs wages, level and costs increase as wages increase
- When levels are stated as fixed amounts, inflation results in EE pressure for increase
- For most ER the cos of benefits has increased faster than wages because of medical costs
14
Q
Legislation
A
- Many states now liberalized their laws allowing what is allowed to be eligible
- Federally mandated benefits, and many states such as maternity, alcoholism, and drug abuse increased overall cost
