Exercise $79.$ Flexible Benefit Plan Choices

I. OBjectives

A$.$ To familiarize you with how flexible benefit plans work.

B$.$ To give you an understanding of some of the benefits offered in a flexible benefit

plan.

C$.$ To give you experience in selecting benefits.

D$.$ To give you an understanding of the criteria individuals use in selecting benefits.

II$.$ OUT$-$of$-$Class pREparantion tDus: $10$ minutes to read the exercise and select benefits

III. nN$-$CLass thme sucGrsted: $30-40$ minutes

IV$.$ pNOCEDURES

Assume that you recently graduated from college and are just starting a new job at a

large firm. You will be receiving a starting net pay $($net of all taxes and mandatory

deductions$)$ of $$30,000.$ Your task is to read the Benefit Policy described below and

determine which benefits you would select. Keep in mind that any money you spend on

additional benefits will reduce the $$30,000$ per year you can spend on other things such

as housing, entertainment, and travel. After each student in the class has selected the

benefits he or she would choose, the instructor will divide the class into groups of three

to five. Then, each student will explain his$/$ her selections to the rest of the group along

with the rationale behind the decisions. After each student is finished, your group needs

to prepare a list of criteria $($reasons you would or would not want a benefit$)$ that were

used in making the benefit selections. These criteria will then be written on an overhead

or blackboard for class discussion.