It is necessary that managers and supervisors have a thorough understanding of the legal obligations relative to our benefits and rewards programs here at Forward Style, Inc, Authors Noe, Hollenbeck, Gerhart & Wright have noted that the heavy involvement of government in benefits decisions reflects the central role benefits play in maintaining economic security (Noe, Hollenbeck, Gerhart & Wright, 2008, p. 561). For this purpose I am offering an evaluation of our current programs as well as the legal requirements that must be adhered to. Private retirement plan
In offering private retirement, it is not a requirement of law to offer this rewards program to employees; however, employers are required to meet certain standards that align with the Employment Retirement Income Security Act (ERISA). These standards align with that obligates employers to describe the plans, funding, eligibility requirements, as well as risks, within 90 days after an employee has entered the plan. The Act was established in 1974 and is a “federal law that sets minimum standards for most voluntarily established pension and health plans in private industry to provide protection for individuals in these plans” (US Department of Labor, 2010). Employers usually offer private retirement plans to offset an individual’s social security plans. This is done in the form of IRA accounts as well as 401K. Employers will often match the employee’s investment at a specified rate. The employer is required to give a summary plan description (SPD) under ERISA. Medical Insurance
There are no state or federal requirements that employers must offer medical insurance to its employees. However, “health benefits are a critical part of any compensation package and disability benefits are, in turn, an important part of health benefits (MacDonald, 2006). Medical insurance is usually offered in the form of hospital, dental, mental health and disability insurance. Although not required by law to offer...
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