Benefit Plan Design Analysis Paper
Benefit Plan Design Analysis
Maisha Tolliver
HRM599
Professor Michael Ross
Part 2, 3 , 5
11/23/2012
State employees must pay a portion of their share of benefit and retirement premiums out of taxable income. The current concern is covering those employees who are deemed low income and fill positions which do not offer benefits. Secondly, state employers are faced with high turnover rates due to the lack of benefits. The Patient Protection and Affordable Care Act will ensure that all Americans have access to quality, affordable health care and will create the transformation within the health care system necessary to contain costs. New, refundable tax credits will be available for Americans with incomes between 100 and …show more content…
Even if industry competition offers a higher hourly wage or salary, the employee will realize that the higher wage pales in comparison to the benefits received with the organization. Organization’s which offer a great benefits package will attract more employees who are career-oriented. A career-oriented employee is one who looks for long-term work, a job that he can retire from and one that also helps take care of his family, financially and health-wise. The advantages and disadvantages of the Affordable Healthcare and Patient Protection Act advantages have been listed below:
• In 2013, medical-device manufacturers and importers will pay a 2.3% excise tax. Indoor tanning services already pay a 10% excise tax. This could discourage those businesses from hiring new employees.
• Between 3-5 million people could lose their company-sponsored health care plans. Many businesses will find it more cost-effective to pay the penalty and let their employees purchase their own insurance plans on the exchanges. Other small businesses might find they can get a better plan through the state-run exchanges.
Advantages
• Businesses with 50 or more employees will be required to provide health insurance, or pay an excise tax of $2,000 per employee except for the first 30 …show more content…
They must submit justification for rate hikes to states for approval. The Florida Retirement System pension plan is a defined benefit plan sponsored by the state of Florida. Upon completion of eight years of creditable service, employees are vested in the plan and are eligible to receive a lifetime monthly retirement benefit from the plan when you retire. The amount received is based on age, years of creditable service, the value of each year(s) of service, and highest five years average final compensation. The plan includes options for retirement income, survivor benefits, health insurance subsidy, disability benefits and cost of living increases. Employees and UNF share in the cost of the plan. Upon receiving pension payments, state entities should implement the following: you, your spouse and your eligible dependents will also be eligible to continue your health, dental and vision benefits and receive new insurance cards under the state-sponsored retirement program. Employees will also have life insurance but the benefit amount will be reduced to 25% of the amount it as an active employee and dependent coverage will be limited to $1,000
Maisha Tolliver
HRM599
Professor Michael Ross
Part 2, 3 , 5
11/23/2012
State employees must pay a portion of their share of benefit and retirement premiums out of taxable income. The current concern is covering those employees who are deemed low income and fill positions which do not offer benefits. Secondly, state employers are faced with high turnover rates due to the lack of benefits. The Patient Protection and Affordable Care Act will ensure that all Americans have access to quality, affordable health care and will create the transformation within the health care system necessary to contain costs. New, refundable tax credits will be available for Americans with incomes between 100 and …show more content…
Even if industry competition offers a higher hourly wage or salary, the employee will realize that the higher wage pales in comparison to the benefits received with the organization. Organization’s which offer a great benefits package will attract more employees who are career-oriented. A career-oriented employee is one who looks for long-term work, a job that he can retire from and one that also helps take care of his family, financially and health-wise. The advantages and disadvantages of the Affordable Healthcare and Patient Protection Act advantages have been listed below:
• In 2013, medical-device manufacturers and importers will pay a 2.3% excise tax. Indoor tanning services already pay a 10% excise tax. This could discourage those businesses from hiring new employees.
• Between 3-5 million people could lose their company-sponsored health care plans. Many businesses will find it more cost-effective to pay the penalty and let their employees purchase their own insurance plans on the exchanges. Other small businesses might find they can get a better plan through the state-run exchanges.
Advantages
• Businesses with 50 or more employees will be required to provide health insurance, or pay an excise tax of $2,000 per employee except for the first 30 …show more content…
They must submit justification for rate hikes to states for approval. The Florida Retirement System pension plan is a defined benefit plan sponsored by the state of Florida. Upon completion of eight years of creditable service, employees are vested in the plan and are eligible to receive a lifetime monthly retirement benefit from the plan when you retire. The amount received is based on age, years of creditable service, the value of each year(s) of service, and highest five years average final compensation. The plan includes options for retirement income, survivor benefits, health insurance subsidy, disability benefits and cost of living increases. Employees and UNF share in the cost of the plan. Upon receiving pension payments, state entities should implement the following: you, your spouse and your eligible dependents will also be eligible to continue your health, dental and vision benefits and receive new insurance cards under the state-sponsored retirement program. Employees will also have life insurance but the benefit amount will be reduced to 25% of the amount it as an active employee and dependent coverage will be limited to $1,000