ADMS 2600 Lecture Notes - Pension, Unemployment Benefits, Life Insurance
3 Jan 2013
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Document Summary
Benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs. A basic or core benefits package of life and health insurance, sick leave, and vacation ensures that employees have a minimum level of coverage. Employees use credits to buy whatever other benefits they need. Employees select benefits to match their individual needs. Benefit selections adapt to a constantly changing (diversified) workforce. Employees gain greater understanding of the benefits offered to them and the costs incurred. Poor employee benefits selection results in unwanted financial costs. There are certain added costs to establishing and maintaining the flexible plan. Employees may choose benefits of high use to them that increase employer premium costs. In-house publications (employee handbooks and organizational newsletters) Covers all employees between ages of 18 and 70. Used to pay retirement pensions, disability benefits and survivor benfits. All contributions come from employers and employees.
