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Health Benefits & 401(k)
posted at 11/8/2011 10:30 AM EST
on Workforce Management
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Posts: 39
First: 11/7/2011 Last: 2/4/2013 |
Being in Canada I'm obviously not as familiar with US heath benefits and 401(k)s as you guys are. I now need your help answering the following questions: |
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Re: Health Benefits & 401(k)
posted at 11/8/2011 12:24 PM EST
on Workforce Management
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Posts: 174
First: 9/20/2011 Last: 2/11/2013 |
In Response to Health Benefits & 401(k): Being in Canada I'm obviously not as familiar with US heath benefits and 401(k)s as you guys are. I now need your help answering the following questions: 1. I understand that legislation around health care benefits in the US now dictates that employers must now provide all their employees with the same plan. In other words, they can't have different plans for different levels or locations or job descriptions, they must provide all their employees in the US with the same plan (even if that plan is "no plan"). Is my understanding correct? 2. With regard to the above question, does this also apply to 401(k) contribution matching? To be specific, we have 12 employees in the US. They all participate in a non-employer-matching 401(k) plan. We would like to start matching contributions for just two of the employees based on their level (they are the VP and the Director of US Sales, the remaining employees are sales reps and managers). Is this still legal in the US? Thanks in advance for your responses, much appreciated. Posted by hrbth I am not sure that you cannot differentiate regarding different levels (hierarchy) for health plans. I am fairly certain that you cannot pick and choose regarding the 401k match. You can however vary the match based on service with the company or years in the plan. If you wish to give the higher level folks more comp set up an unfunded deferred comp plan that will pay out at termination. |
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Re: Health Benefits & 401(k)
posted at 11/8/2011 12:43 PM EST
on Workforce Management
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Posts: 173
First: 9/29/2011 Last: 2/11/2013 |
First I had heard that you had to offer the same health coverage to all employees. This might be included under the new health care legislation that passed earlier this year, but provisions of that won't be implemented for another couple of years if then. If you do opt for different plans, just make sure that your plans don't discriminate on anything other than a very objective criteria (eg, management and above position). You can't pick and choose the matches under your 401k plan as howard7 states. You can do other retirement fund options, however, and there are a number of them that you could do in lieu of or as a supplement to your 401k. A decent compensation or benefits consultant can halp with that. |
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Re: Health Benefits & 401(k)
posted at 11/8/2011 1:15 PM EST
on Workforce Management
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Posts: 39
First: 11/7/2011 Last: 2/4/2013 |
In Response to Re: Health Benefits & 401(k): Thanks! Your responses are a big help! |
Forums » Topic Forums » Benefits & Compensation » Health Benefits & 401(k)
