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HEALTH
CARE BENEFITS
Are VEBAs the Future of Employee Health Care?
The contract agreement between the United
Auto Workers and Detroit's Big Three automakers has brought
health care trusts known as VEBAs—voluntary employees
beneficiary associations—to national attention. However,
the tiny city of Post Falls, Idaho, may be able to teach the
UAW a thing or two about running a VEBA.
Read more about VEBAs.
Also:
GM, UAW Reach Tentative Settlement
New Car Deal: UAW Provides Details of Pact With GM
Ford CEO Describes a New Deal for Automakers
Pros and Cons of Prefunding Retirement Vehicles
AFL-CIO Pushes Universal Health Care as Top Priority in '08 Election
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RETIREMENT
BENEFITS
Cash-Balance Plans May Make a Comeback
More companies are considering launching cash-balance plans, but many are taking a cautious approach.
Read more about cash-balance plans.
Also:
Accounting Rules May Put Pensions on Ice
Firms Gauging Impact of Pension Reform Law
Bush's Attorney General Nominee Ruled in Cash-Balance Plan Case
Employer and Employee Groups Protest IRS Call on Cash-Balance Pension Conversions
Court: Verizon Cash-Balance Plan Not Age Discriminatory |
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COMMENTARY
Kaiser Survey Shows Consumer Plans Instigate Premium Slowdown
The Kaiser Family Foundation's much ballyhooed annual health care cost survey may be flawed, but it might prove that new products in the health care market, specifically consumer-driven plans, are forcing health insurers to lower their premiums.
Read more about consumer-driven plans' effect on health insurance
premiums. |
NEWS
AND EVENTS
Quick Takes
More Choices in 401(k)s: Companies are adding investment options to their 401(k) plans, but participants seem to be sticking to their guns, according to a recent survey by the Vanguard Group.
Click
here to read more.
Savings Boost: Employees, particularly those in lower income brackets, could really benefit from an automatic annual step-up in their 401(k) plan contribution rates.
Click
here to read more.
Taxing Illness: Michigan lawmakers are going out on a limb to alleviate a state budget crisis. One proposal aims to include health benefits as taxable income.
Click
here to read more.
Health Incentives: Companies are increasing incentives to encourage healthy lifestyles, while others are increasing penalties for people who smoke.
Click
here to read more. |
DISCUSSION
Flexible Spending Account Enrollment
Posted in the Benefits
& Compensation Forum:
A reader writes: "The following situation occurred recently:
An employee was told that they were eligible for benefits on
the first of the month after 90 days of employment. The benefits
were medical, dental, life insurance and flexible spending.
After the 90 days passed and the employee tried to enroll in
the FSA plan they found out that they were actually eligible
to enroll after 30 days of employment. Despite the fact that
the employer had misinformed the employee, the employee has
been unable to enroll for the FSA account. The question is what
measures are appropriate for the employer to take to satisfy
the employee who was unable to open the account which they needed
for necessary dental expenses. Is it acceptable for the employer
to pay the employee the amount of the tax savings that was lost?
Are there any fines or repercussions to the employer's error?"
Join the discussion. |
METRICS
Defined-Contribution Plans
Percentage of private industry employees participating in defined-contribution plans by plan attributes, March 2007
|
Employee contribution
|
Pretax
option
|
|
Required
|
Not required
|
Pretax
|
Not pretax
|
| All workers |
65%
|
35%
|
78%
|
22%
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| Management/professional |
69
|
31
|
82
|
18
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| Service |
65
|
35
|
82
|
18
|
| Sales/office |
62
|
38
|
73
|
27
|
| Natural resources/construction/maintenance
|
67
|
33
|
80
|
20
|
| Production/transportation/material
moving |
65
|
35
|
78
|
22
|
| Full time |
66
|
34
|
78
|
22
|
| Part time |
58
|
42
|
76
|
24
|
| Union |
61
|
39
|
80
|
20
|
| Nonunion |
66
|
34
|
78
|
22
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| Avg. wage <$15/hr. |
61
|
39
|
74
|
26
|
| Avg. wage $15/hr.
or more |
69
|
31
|
81
|
19
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| Source:
U.S. Bureau of Labor Statistics |
Health Plan Premiums
Average annual employer and employee premium contributions and total premium for family coverage, firms with 200 or more workers, by plan type, 2007
|
Employee
|
Employer |
Total premium
|
| HMO |
$2,830
|
$9,228 |
$12,059
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| PPO |
2,869
|
9,656 |
12,525
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| POS |
2,725
|
8,512 |
11,237
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| HDHP/SO |
2,501
|
8,675 |
11,176
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| All plans |
2,831
|
9,402 |
12,233
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| Source:
Kaiser Family Foundation
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