EXAM 3 BENEFITS Flashcards
mandatory benefits
social security
workers’ compensation
unemployment insurance
family + medical leave
health insurance coverage
purpose of social security
protects employee + family by taking away part of income in case of…
retirement
disability
survivors + family
health insurance (medicare)
who pays for social security benefits?
you and employer
retirement benefits- INTENDED TO KEEP OUT OF POVERTY
to be eligible…
- both 67 yrs old (you can retire at 62, you just get less)
- 40 work credits (min. of 10 years of work)
avg. >23,000 benefits received per year
problems?
- more receiving than giving
- higher life expectancy
- more relying on this as primary income
disability benefits
physical or mental – prevent from doing work for a year or more
to be eligible…
- terminal illness
- younger = fewer credits needed
medicare (automatically get if disability for 2 years)
family benefits
when YOU die, family gets money
survivors benefits
when your family dies, you get money
need certain number of work credits
death benefit of $255
health insurance (medicare)
to be eligible…
- 65 yrs old
OR
- disability of 2 years
OR
- permanent kidney failure
types of coverage
- part A: hospital (free for paying in)
- part B: medical (have to purchase)
- part C: medicare advantage (combines A + B)
- part D: prescription drug
workers’ compensation
no fault insurance (don’t have to prove company’s fault) for job-related injuries, illnesses, disabilities, and death
- disability income (2/3 income replaces unless lose body part)
- medical care
- rehabilitation
- survivor benefits (if death)
who pays? the employer
lots of fraud
unemployment insurance
designed to help by replacing income if lost job + find work –> through no fault of your own
why? laid off, quit (need good reason), company closes
eligibility? work certain amnt of yrs + earn certain ant + actively be seeking employment + register with state (CAN’T REFUSE SUITABLE EMPLOYMENT
length + amount varies (up to 26 weeks but extended the longer the unemployment period)
companies pay unemployment taxes based on experience rating (higher = $$$)
family and medical leave act of 1993
up to 12 weeks UNPAID leave during any 12 months (can be multiple times)
- child birth, personal illness, adoption/foster, illness (close family only), military
only companies with 50+ employees
eligibility? worked a year + certain amount of hrs
exceptions? spouse @ same company, make you use paid leave 1st, top 10% paid employees not eligible
people typically only use ~10 days
colorado’s family & medical leave insurance (FAMLI)
12 weeks PAID leave
eligible once you earn $2500 over past year
partial wage replacement up to $1100/wk
company + you (taxes) pay
patient protection & affordable care act (obama care)
50+ employees
increase access to affordable health care (30+ hours)
quality > quantity
consolidated omnibus reconciliation act
designed to give bridge between jobs for health insurance (unemployed –> employed)
20+ employees
stay on for up to 18 months (optional)
cheaper, small fee (~2%)
retirement plans
defined benefit- KNOW amount ahead of time (employees like, employers don’t) (ex. pension)
defined contribution- DONT KNOW amount ahead of time (employers like) (ex. 401k)
employee retirement income security act (ERISA) of 1974
reporting + disclosure (give info)
21+ yrs old, been @ company for a year
have enough funds
vesting: cliff vs. graduated
taxed when take money out
cliff
HIGH TURNOVER
after 5 years
vesting
point in time when the rights and interests arising from legal ownership of a property are acquired by some person (been @ company certain amount of time)
graduated
REDUCE TURNOVER
after 3 years = 20% invested (adds on every year until 7 years)
life insurance
designed to support family member should you die
offered through company
term: only good while working
whole: lasts forever
x2 salary
disability insurance
should you become disabled
short-term: last up to 6 months
long-term: after 6 months
you pay
injured on the job
workers comp
disability under social security
disability insurance
paid time off
vacation- ~11 days, increases the longer you’re at company
sick leave- based on hours worked
personal leave- take for whatever
holidays- some let you pick
use it or lose it vs. roll over
