Employee Benefits

by Beam, Burton T., Jr.; Mcfadden, John J.

• ISBN13: 9780793191741
• ISBN10: 0793191742
• Edition: 7th
• Format: Paperback
• Copyright: 2004-10-28
• Publisher: Dearborn Trade Pub

Summary

Featuring the most comprehensive and updated information available, this text explores the broad spectrum of employee benefits from social insurance programs to executive benefits. Written by two of the most respected authorities in the field,Employee Benefitsis an excellent resource for teaching undergraduates, graduates and practitioners alike.

Table of Contents

Dedication	iii
Preface	xi
PART ONE Introduction	1	(44)
Introduction to Employee Benefits	2	(16)
Definition of Employee Benefits	4	(1)
Book Overview	5	(1)
Significance of Employee Benefits	5	(4)
Factors Influencing the Growth of Employee Benefits	9	(5)
The Future	14	(1)
Opportunities in Employee Benefits	15	(1)
Web Sites and Other Additional Resources	16	(2)
Employee Benefit Management and Planning	18	(27)
What Are the Employer's Objectives?	20	(3)
What Types of Benefits Should a Plan Provide?	23	(7)
What Provisions for Controlling Costs Should Be Included in the Plan?	30	(2)
How Should the Plan Be Communicated to Employees?	32	(8)
Should Benefit Administration Be Outsourced?	40	(5)
PART TWO Social Insurance	45	(48)
Social Security and Medicare	46	(34)
Reasons for Social Insurance	48	(1)
Characteristics of Social Insurance	49	(1)
Social Security and Medicare	50	(3)
Social Security: Eligibility	53	(2)
Social Security: Types of Benefits	55	(3)
Social Security: Benefit Amounts	58	(4)
Social Security: Obtaining Benefit Information	62	(1)
Medicare: Eligibility	62	(1)
Medicare Part A: Hospital Insurance	63	(4)
Medicare Part B: Medical Insurance	67	(2)
Medicare Part C: Medicare Advantage (Medicare+Choice)	69	(2)
Medicare Part D: Prescription Drug Coverage	71	(4)
Adequacy of Financing	75	(2)
Employer and Employee Tax Treatment	77	(3)
Other Social Insurance Programs	80	(13)
Unemployment Insurance	81	(4)
Temporary Disability Laws	85	(1)
Workers' Compensation Laws	86	(6)
Federal Tax Treatment	92	(1)
PART THREE Group Benefits	93	(356)
The Group Insurance Environment	94	(38)
Structure of Benefit Plans	96	(1)
Group Insurance Characteristics	97	(7)
Alternative Funding Methods	104	(1)
Voluntary Benefits	104	(3)
State Regulation	107	(9)
Federal Regulation	116	(16)
Group Life Insurance: Term Coverage	132	(32)
Significance of Group Life Insurance	134	(1)
Nature of Group Term Insurance	134	(1)
Contract Provisions	135	(11)
Added Coverages	146	(6)
Tax Treatment	152	(12)
Group Life Insurance: Postretirement Coverage	164	(16)
Continuation of Group Term Life Insurance	166	(1)
Group Universal Life Insurance	167	(8)
Group Variable Universal Life Insurance	175	(1)
Group Term Carve-Outs	176	(4)
Group Disability Income Benefits	180	(22)
Sick-Leave Plans	182	(2)
Insured Disability Income Plans	184	(14)
Federal Tax Treatment	198	(2)
State Tax Treatment	200	(2)
Introduction to Medical Expense Benefits	202	(30)
Comments on Terminology	204	(1)
Development of Medical Expense Coverage	205	(4)
Cost Containment	209	(5)
State Reforms	214	(4)
National Health Insurance	218	(14)
Traditional Medical Expense Plans	232	(38)
Providers of Traditional Coverage	234	(7)
Basic Medical Expense Coverages	241	(4)
Major Medical Coverage	245	(16)
Managed Care Provisions in Traditional Plans	261	(4)
Coverage for Complementary and Alternative Medicine	265	(5)
Managed Care: Introduction and HMOs	270	(32)
Introduction to Managed Care Plans	272	(8)
Reasons for Use of Managed Care	280	(1)
Provider Networks	281	(3)
Utilization Management	284	(3)
Health Maintenance Organizations	287	(15)
Managed Care: PPOs and Other Types of Managed Care	302	(18)
Preferred-Provider Organizations	303	(4)
Point-of-Service Plans	307	(2)
Multiple-Option Plans	309	(1)
Comparison of Typical Medical Expense Plans	309	(1)
Benefit Carve-Outs	309	(11)
Consumer-Directed Medical Expense Plans	320	(16)
General Approaches	321	(3)
Archer Medical Savings Accounts	324	(4)
Health Reimbursement Arrangements	328	(2)
Health Savings Accounts	330	(4)
A Comparison Chart	334	(2)
Provisions and Tax Treatment of Medical Expense Plans	336	(38)
Eligibility	338	(7)
Coordination of Benefits	345	(5)
Relationship with Medicare	350	(2)
Termination of Coverage	352	(10)
Claims	362	(1)
HIPAA Administrative Standards	363	(4)
Federal Tax Treatment	367	(7)
Dental, Long-Term Care, and Other Group Insurance Benefits	374	(34)
Group Dental Insurance	375	(7)
Group Long-Term Care Insurance	382	(18)
Group Legal Expense Plans	400	(2)
Group Property and Liability Insurance	402	(6)
Alternative Funding Methods	408	(16)
Reasons for Alternative Funding	409	(1)
Methods of Alternative Funding	410	(14)
Group Insurance Rate Making	424	(25)
Manual Rating	426	(13)
Experience Rating	439	(10)
PART FOUR Other Nonretirement Benefits and Cafeteria Plans	449	(56)
Other Nonretirement Benefits	450	(32)
Meaning of Highly Compensated Employee	453	(1)
Payments or Other Benefits for Time Not Worked	453	(8)
Extra Payments to Employees	461	(2)
Services to Employees	463	(19)
Cafeteria Plans	482	(23)
Rationale for Cafeteria Plans	484	(1)
Nature of Cafeteria Plans	484	(8)
Types of Plans	492	(4)
Obstacles to Cafeteria Plans	496	(5)
Issues in Plan Design	501	(4)
PART FIVE Retirement Plans	505	(198)
Introduction to Qualified Plans	506	(20)
Management Objectives in Retirement Plan Design	508	(1)
The Government's Role---Pension Policy Issues	509	(3)
Qualified Plan Characteristics	512	(2)
Tax Benefits of Qualified Plans	514	(1)
Classification of Qualified Plans	515	(4)
Plans for Special Types of Organizations	519	(2)
Government Regulation of Qualified Plans	521	(5)
Plan Qualification Requirements	526	(32)
Structure and Design of a Qualified Plan	528	(1)
Eligibility and Participation	529	(1)
Age and Service Requirements	530	(4)
Overall Coverage Tests	534	(2)
Service for Predecessors and Other Employers	536	(1)
Commonly Controlled Employers	537	(1)
Vesting	538	(2)
Who Will Pay for the Plan?	540	(1)
Retirement Age	541	(2)
Nondiscrimination in Contributions and Benefits	543	(9)
Nontax Federal Regulation Affecting Qualified Plans	552	(6)
Defined-Contribution Plans I: Money-Purchase, Profit-Sharing, and Similar Plans	558	(22)
Current Qualified Plan Trends	560	(1)
Money-Purchase Defined-Contribution Pension Plans	561	(1)
Qualified Profit-Sharing Plans	562	(7)
Age-Weighted Plans	569	(3)
Using Employer Stock in Qualified Plans	572	(8)
Defined-Contribution Plans II: 401(k) and Other Salary Savings Plans	580	(20)
Salary Savings Plans in General	581	(2)
Section 401(k) Plans (Cash or Deferred Plans)	583	(6)
Simples	589	(3)
Section 403(b) Tax-Deferred Annuity Plans	592	(5)
Section 457 Plans	597	(3)
Defined-Benefit Plans	600	(28)
Defined-Benefit Formulas	602	(5)
Inflation Protection	607	(3)
The Accrued Benefit	610	(1)
Benefits at Termination of Employment	611	(1)
Death and Disability Benefits	612	(5)
Funding of Qualified Plans	617	(3)
Actuarial Methods and Assumptions	620	(3)
Minimum Funding Standards	623	(1)
Deductibility of Pension Plan Contributions	624	(4)
Qualified Plan Distributions and Loans	628	(14)
Management Issues in Design of Distribution Provisions	629	(6)
Federal Taxation of Distributions	635	(3)
Qualified Domestic Relations Orders	638	(1)
Loans from Qualified Plans	639	(3)
Plan Restrictions Aimed at Highly Compensated Employees	642	(12)
Ceiling on Compensation	643	(1)
Limitations on Individual Benefits or Annual Additions (section 415 limits)	644	(1)
Top-Heavy Plans	645	(3)
Qualified Plans for Owners of Unincorporated Businesses	648	(2)
Early Termination Rule for 25 Highest-Paid Employees	650	(1)
Federal Estate Tax Treatment of Qualified Plan Benefits	650	(4)
Plan Installation and Administration; Investments; Plan Termination	654	(22)
Plan Installation	655	(3)
Plan Administration	658	(5)
Investment Issues	663	(6)
Plan Termination	669	(1)
The Pension Benefit Guaranty Corporation and Its Plan Insurance	670	(6)
Individual Retirement Plans and Simplified Employee Pensions	676	(12)
Individual Retirement Plans	677	(8)
Roth IRAs	685	(1)
Simplified Employee Pensions	686	(2)
Executive Benefits and Nonqualified Deferred-Compensation Plans	688	(15)
Executive Benefit Checklist	690	(2)
Nonqualified Deferred-Compensation Plans	692	(3)
Compensation with Restricted Property	695	(2)
Stock Option Plans for Executives (Nonstatutory)	697	(2)
Incentive Stock Options	699	(1)
Life Insurance for Executives	700	(3)
Appendix A---Additional Resources	703	(6)
Glossary	709	(27)
Index	736