In: Finance
A. ERISA. ERISA does not require that employers offer a pension plan. But if a company decides to have one, it is rigidly controlled by ERISA provisions. These provisions were designed to achieve two (2) goals. What are they?
B. Defined Contribution Plans. Why are defined-contribution pension plans gaining in popularity in the United States and defined benefit plans losing popularity?
C. Health Insurance. Name and describe the three general strategies available to benefits managers for controlling the rapidly escalating costs of health care. Identify which strategy your organization (or an organization with which you are familiar) has selected to strategically control health care costs. Explain why. Also share your view regarding whether the selected strategy was the best option for the organization.
D. Legally Required Benefits. Discuss the rationale for legally required benefits, varieties of legally required benefits, and the implications for strategic compensation.
These provisions are set to achieve the following goals:
Defined Contribution Plan is gaining popularity as there is a low risk to employer and administration costs are not very high as in the case of Defined Benefit plan.Through the Defined Contribution Plan employee will have an adequate asset for retirement.
The best strategy that my organization will follow is the third strategy, that is Self insurance as the manager can set the insurance premium by appointing the actuary, watch administrative fees, carve out high cost claim anduse data to improve wellness program which will ultimately be a cost effective one.
D. In legally required benefits there are laws in work place to protect employee health and financial well being. It states the minimum required employee benefits.
These are Disability insurance, Family and medical leave etc.