Employee Benefits : A Primer for Human Resource Professionals

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  • Edition: 3rd
  • Format: Paperback
  • Copyright: 2007-12-04
  • Publisher: McGraw-Hill/Irwin
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Joseph Martocchio'sEmployee Benefits: A Primer for Human Resource Professionalswas written to promote a fuller understanding of employee benefits programs among students enrolled in college-level compensation and benefits course. It's relevant to students who plan to be general managers, who deal with a variety of human resource issues in their day-to-day jobs, as well as to those who expect to be human resource practitioners. The real-world focus of Martocchio's text is evident on every page, as he seeks to balance current academic thought with brief examples of contemporary benefits practices in business.Martocchio'sEmployee Benefitsis forward-thinking and seeks to bring the topic into the mainstream of compensation understanding. The Third Edition continues to be concisely written, highlighting key issues in order to provide the reader with a solid foundation for discussing benefits issues with employee benefits professionals. As practices and laws affecting benefits change frequently, Martocchio stays on the cusp of recent developments, capturing all recent changes with his Third Edition.

Author Biography

Joseph J. Martocchio is a professor at the Institute of Labor and Industrial Relations, University of Illinois at Urbana-Champaign.

Table of Contents

Introduction to Employee Benefitsp. 1
Introducing Employee Benefitsp. 3
Defining and Exploring Employee Benefitsp. 4
Defining Employee Benefitsp. 5
Employee Benefits in the Total Compensation Schemep. 7
The Field of Employee Benefits Practicep. 8
Legally Required Benefitsp. 9
Discretionary Benefitsp. 10
Origins of Employee Benefitsp. 14
Legal and Regulatory Influences on Discretionary Benefits Practicesp. 15
Strategic Planning for the Benefits Programp. 16
Basic Strategic Planning Conceptsp. 17
Approaches to Strategic Benefit Planningp. 19
Information Used in Strategic Benefit Planningp. 21
External Environmentp. 21
Internal Environmentp. 26
Plan for the Bookp. 27
The Economics of Employee Benefitsp. 31
Why do Employers Offer Benefits?p. 32
Cost Advantagep. 33
Recruiting Certain Types of Workersp. 36
Tax Incentivesp. 37
Who Pays for Benefits?p. 38
Two Extensionsp. 44
Government Mandatesp. 44
Differences in Benefit Cost Increases across Groups of Workersp. 46
Summaryp. 47
Regulating Employee Benefitsp. 49
Labor Unions and Employee Benefits: The National Labor Relations Act of 1935p. 51
The Internal Revenue Codep. 53
The Fair Labor Standards Act of 1938p. 55
The Employee Retirement Income Security Act of 1974p. 56
Defining Pension Plans and Welfare Plansp. 58
Scope of Coverage for Pension Plans and Welfare Plansp. 60
Protection of Employee Rightsp. 60
Amendments to the Internal Revenue Code Relating to Retirement Plansp. 63
Jurisdiction, Administration, Enforcement, Joint Pension Task Force, and Other Issuesp. 63
Plan Termination Insurancep. 64
The Consolidated Omnibus Budget Reconciliation Act of 1985p. 67
The Health Insurance Portability and Accountability Act of 1996p. 69
The Pension Protection Act of 2006p. 71
Federal Equal Employment Opportunity Lawsp. 72
The Equal Pay Act of 1963p. 72
Title VII of the Civil Rights Act of 1964p. 74
The Age Discrimination in Employment Act of 1967 (ADEA)p. 75
The Pregnancy Discrimination Act of 1978p. 76
The Americans with Disabilities Act of 1990p. 76
The Civil Rights Act of 1991p. 77
Summaryp. 78
Retirement, Health, and Life Insurancep. 81
Employer-Sponsored Retirement Plansp. 83
Defined Retirement Plansp. 86
Origins of Employer-Sponsored Retirement Benefitsp. 86
Trends in Retirement Plan Coverage and Costsp. 86
Qualified Plansp. 87
Minimum Standards for Qualified Plansp. 87
Defined Benefit Plansp. 92
Benefit Formulasp. 92
Nondiscrimination Rules: Testingp. 94
Accrual Rulesp. 95
Minimum Funding Standardsp. 96
Benefit Limits and Tax Deductionsp. 96
Defined Contribution Plansp. 96
Individual Accountsp. 97
Investments of Contributionsp. 97
Employee Participation in Investmentsp. 97
Nondiscrimination Rules: Testingp. 97
Accrual Rulesp. 98
Minimum Funding Standardsp. 98
Contribution Limits and Tax Deductionsp. 98
Types of Defined Contribution Plansp. 98
Section 401(k) Plansp. 99
Profit-Sharing Plansp. 99
Stock Bonus Plansp. 100
Employee Stock Ownership Plans (ESOPs)p. 101
Savings Incentive Match Plans for Employees (SIMPLEs)p. 101
Section 403(b) Tax-Deferred Annuity Plansp. 101
Section 457 Plansp. 102
Hybrid Plansp. 103
Cash Balance Plans and Pension Equity Plansp. 103
Target Benefit Plansp. 107
Money Purchase Plansp. 108
Age-Weighted Profit-Sharing Plansp. 108
Integrating Qualified Pension Plans with Social Securityp. 109
Integration Methodsp. 109
Uniform Disparity under the Excess and Offset Approachesp. 111
Plans Ineligible for Integrationp. 111
Summaryp. 111
Employer-Sponsored Health Insurance Programsp. 115
Defining and Exploring Health Insurance Programsp. 116
Origins of Health Insurance Benefitsp. 117
Health Insurance Coverage and Costsp. 118
Individual vs. Group Insurance Coveragep. 120
Regulation of Health Insurance Programsp. 121
Federal Regulationp. 121
State Regulationp. 124
Multiple- vs. Single-Payer Health Care Systems in the U.S.p. 125
Fee-for-Service Plansp. 127
Types of Medical Expense Benefitsp. 128
Features of Fee-for-Service Plansp. 129
Major Medical Insurance Plans: Supplemental and Comprehensivep. 132
Managed Care Plansp. 132
Health Maintenance Organizationsp. 132
Types of Health Maintenance Organizationsp. 133
Features of Health Maintenance Organizationsp. 133
Preferred Provider Organizationsp. 135
Features of Preferred Provider Organizationsp. 135
Point-of-Service Plansp. 137
Specialized Insurance Benefitsp. 137
Dental Insurancep. 137
Vision Insurancep. 139
Prescription Drug Benefitsp. 140
Mental Health and Substance Abusep. 143
Maternity Carep. 144
Consumer-Driven Health Carep. 145
Retiree Health Care Benefitsp. 148
Summaryp. 149
Employer-Sponsored Disability Insurance and Life Insurancep. 153
Disability Insurancep. 154
Origins of Disability Insurancep. 155
Short-Term Disability Insurance Programsp. 156
Long-Term Disability Insurance Programsp. 157
Funding Disability Insurance Programsp. 158
Employee and Employer Tax Obligationsp. 159
Relationships between Company-Sponsored Disability Plans and Benefits Lawsp. 160
Life Insurancep. 162
Origins of Life Insurancep. 163
Coverage and Costs of Life Insurancep. 163
Types of Life Insurance Programsp. 163
Group Term Life Insurancep. 164
Tax Treatment of Group Term Life Insurancep. 166
Universal Life Insurancep. 168
Accidental Death and Dismemberment Insurancep. 168
Summaryp. 168
Government-Mandated Social Security and Workers' Compensation Programsp. 171
Origins of Social Security and Workers' Compensation Programsp. 172
Introduction to the Social Security Programsp. 173
Employers Required to Participate in Social Security Programsp. 174
Administration of Social Security Programsp. 176
Social Security Numbersp. 177
Old-Age, Survivor, and Disability Insurance (OASDI)p. 177
Qualifying for OASDI Benefitsp. 178
Determining Benefit Amountsp. 178
Old-Age Benefitsp. 179
Survivor Benefitsp. 184
Disability Benefitsp. 185
Medicarep. 186
Eligibility Criteria for Medicare Benefitsp. 188
Medicare Part A Coveragep. 188
Medicare Part B Coveragep. 189
Medigap Insurancep. 189
Medicare Part C: Medicare Advantagep. 189
Medicare Prescription Drug Benefitp. 190
Medicare as the Primary or Secondary Payerp. 191
Financing OASDI and Medicare Programsp. 192
Unemployment Insurancep. 194
Eligibility Criteria for Unemployment Insurance Benefitsp. 194
Unemployment Insurance Benefit Amountsp. 195
Financing Unemployment Insurance Benefitsp. 196
Depositing FUTA Moneyp. 196
State Compulsory Disability Laws (Workers' Compensation)p. 196
Coverage of Workers' Compensation Programsp. 197
Cost of Workers' Compensation Insurancep. 198
Workers' Compensation Claimsp. 198
Types and Amounts of Workers' Compensation Benefitsp. 199
Employers' Rights under Workers' Compensation Programsp. 201
Financing Workers' Compensation Programsp. 204
Employer and Employee Tax Obligationsp. 205
Relationship between Workers' Compensation and Benefits Lawsp. 205
Summaryp. 206
Servicesp. 211
Paid Time-Off and Flexible Work Schedulesp. 213
Defining and Exploring Paid Time-Off Programsp. 214
Paid Time-off Practicesp. 215
Holidaysp. 216
Vacationp. 217
Sick Leavep. 219
Personal Leavep. 220
Integrated Paid Time-Off Policies or Paid Time-Off Banksp. 220
Bereavement or Funeral Leavep. 221
Jury Duty and Witness Duty Leavesp. 221
Military Leavep. 222
Nonproduction Timep. 224
On-Call Timep. 224
Sabbatical Leavep. 225
Volunteerismp. 226
Leave Under the Family and Medical Leave Act of 1993p. 226
Flexible Schedulingp. 230
Flextime Schedulesp. 230
Compressed Workweek Schedulesp. 231
Telecommutingp. 231
Summaryp. 233
Accommodation and Enhancement Benefitsp. 235
Defining Accommodation and Enhancement Benefitsp. 236
Rationale for Accommodation and Enhancement Benefitsp. 236
Tax Benefits for Employers and Employeesp. 237
The Mental and Physical Well-Being of Employees and Family Membersp. 237
Employee Assistance Programsp. 237
Wellness Programsp. 243
Family Assistance Programsp. 246
Educational Benefits for Employeesp. 247
Educational Assistance Programsp. 247
Tuition Reimbursement Programsp. 249
Scholarship Programsp. 249
Support Programs for Daily Livingp. 250
Transportation Servicesp. 250
Physical Fitnessp. 251
Summaryp. 251
Employee Benefits: Design, Nonqualified Plans, and Global Issuesp. 255
Managing the Employee Benefits Systemp. 257
A Comparison of Traditional Benefits Plans and Flexible Benefits Plansp. 258
A One-Size-Fits-All Approachp. 258
Employer Choice to Customize Benefitsp. 259
Cafeteria Plans under Section 125p. 260
Types of Flexible Benefit Plan Arrangementsp. 262
Communicating the Employee Benefits Programp. 266
Legal Considerations in Benefits Communicationp. 266
The "Good Business Sense" of Benefits Communicationp. 268
Managing the Costs of Employee Benefitsp. 272
Cost-Control Methodsp. 273
Employee Educationp. 274
Utilization Reviewsp. 274
Case Managementp. 275
Provider Payment Systemsp. 276
Lifestyle Interventionsp. 276
Outsourcing the Benefits Functionp. 277
The Future of Employee Benefitsp. 278
Changing Employment Contractp. 278
Accountability to Shareholdersp. 279
Recent and Proposed Legislationp. 279
Domestic Partner Benefits and Same-Sex Marriage Issuesp. 280
Generational Diversity and Workplace Conflictp. 281
Presidential-Year Politicsp. 282
Summaryp. 283
Nonqualified Plans for Highly Paid and Executive Employeesp. 285
Introduction to Nonqualified Plansp. 286
Hallmarks of Executive Retirement Benefitsp. 287
Objectivesp. 287
Funding Statusp. 288
Mandatory Retirement Agep. 289
Nonqualified Retirement Plans for Executivesp. 290
Excess Benefit Plansp. 290
Supplemental Executive Retirement Plans (SERPs)p. 290
Contrasting Excess Benefit Plans and SERPsp. 292
Funding Mechanisms and Tax Obligationsp. 292
General Assetsp. 293
Corporate-Owned Life Insurancep. 293
Split-Dollar Life Insurancep. 293
Rabbi Trustsp. 294
Secular Trustsp. 294
Employee-Owned Annuitiesp. 294
Stock Option Plansp. 295
Basic Terminologyp. 295
Incentive Stock Optionsp. 295
Nonstatutory Stock Optionsp. 296
Restricted Stockp. 296
Phantom Stockp. 296
Discount Stock Optionsp. 297
Stock Appreciation Rightsp. 297
Reporting Requirementsp. 297
U.S. Department of Laborp. 297
The Internal Revenue Servicep. 298
Securities and Exchange Commissionp. 298
The Sarbanes-Oxley Actp. 302
Concluding Commentsp. 302
Summaryp. 303
Global Employee Benefits at a Glancep. 305
Not all Employee Benefits are Alikep. 306
North Americap. 307
Canadap. 307
Mexicop. 309
South Americap. 311
Brazilp. 311
Argentinap. 312
Europep. 313
Francep. 314
Germanyp. 316
Spainp. 317
United Kingdomp. 318
The Netherlandsp. 320
Italyp. 321
Polandp. 322
Swedenp. 323
Russiap. 324
Asiap. 325
The People's Republic of Chinap. 326
Hong Kongp. 327
Japanp. 329
South Koreap. 331
Indiap. 332
Saudi Arabiap. 333
Africap. 335
South Africap. 335
Australiap. 336
Summaryp. 337
Ancillary Exercises with Answers for Selected Chaptersp. 343
Glossaryp. 351
Indexp. 375
Table of Contents provided by Ingram. All Rights Reserved.

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