Term
| Broad View vs Narrow View |
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Definition
Broad View-Considers benefits to be compensation other than direct wages-gov't mandated and private.
Narrow View-Initially by employee and/or employer not underwritten by gov't. |
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Term
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Definition
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Term
Firms establish employee benefit plans-why
Inland Steel--what significance?
WW Cross? |
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Definition
To attract and retain employees
Concern for employee welfare
Inland Steel--1948 NRLB ruled bargain in good faith includes Insurance and Fringes.
WW Cross-NRLB ruled wages include health and accident plans |
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Term
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Definition
| Sets forth framework for good faith collective bargaining over wages, hours, conditions, and benefits. establisheddistinction between retirement and welfare benefits. |
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Term
| Feredal Tax Advantage for employee benefit plans |
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Definition
Most Employer contributions are deductible
Generally not income to employees
Retirement funds accumulate tax free until distributed |
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Term
| Functional approach to employee benefit planning |
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Definition
| Application of a systematic method of analysis to ER total benefit program. Interms of its ability to meet various employee needs, manage loss exposures-within the ER overall compensation goals and costs. |
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Term
Why is Functional approach considered appropriate in planning, design and admin
Steps |
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Definition
Employee benefits are very significant element of total compensation
Benefits represent a large item of labor 18-65% of PR
In the past were piecemeal
Keeps plan current and in compliance
Steps--Classify EE, Classify categories of persons, analyze benefits available, determine gaps or overlapping, consider recommendations, est cost or savings, evaluate alt methods of financing, consider cost saving tech, decide on appropriate benefits
IMPLEMENT-COMMUNICATE-PERIODICALLY REEVALUATE |
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Term
Three types of total compensation/benefit policies
Type of industry affect |
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Definition
Average
High
Low
The larger-well established may take a liberal approach but developing firms may seek short term incentives |
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Term
| Compensation vs Needs orientated philosophy |
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Definition
Employers with Compensation/service orientated tend to relate to employee benefits to compensation or service.
Benefits/nees ER tends to relate to the needs of employees and dependents |
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Term
| Types of employee needs & exposures |
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Definition
Medical expenses
loss to employee disability
deaths
retirement needs
capiatl accumulation needs
temp termination
counseling
dependant care
education |
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Term
| Separate classes of employees |
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Definition
Active FT
Dependents-of FT
Retirees
Disabled
Surviving Dep
Termed-COBRA |
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Term
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Definition
Effects participation and needs
If mandatory-may create relations problems
many are not mandatory and varyin levels and types of benefits |
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