GEFORCE CORE 490 PARTIV COMPENSATING 13-3 APPLYING THE CONCEPT Retirement Plans Recommend the appropriate retirement plan based on the person's situation. a 401(k) b. 403(b) CIRA d. Roth IRA e. SEP 12. My company doesn't offer any retirement benefits for part-time employees, so how should I save for retirement? 13 I work for a major corporation, and it offers the standard retirement plan with a 5% match. 14. I already have a retirement plan at work and put in the maximum taxe deferred contribution. What other options do I have to save even more for my retirement? 15. I started my own business and want to save for retire ment. What retirement plan should I use? 11. I work for a church, but we do have a retirement account WORK APPLICATION 13-9 Select a company that offers retirement benefits and state the type of plant offers. If it is a defined benefit, describe the plan. If it is a defined contribution, identify the option selected and, if the employer offers any matching Contributions, bar they are. Paid Time Off Paid time off (PTO) benefits include a group of options such as vacation time/annual leave, severance pay, personal time off, sick days, and holidays. Some companies pro- vide an all-encompassing PTO plan, sometimes called a "PTO Bank," that allows the employee to use their paid time off in any way they wish, whether for sick days or vaca- tion, holidays, or any other purpose. Others apportion the available days for vacation, sick time, holidays, and others. These benefits contribute approximately 7% of the average employer's total cost of wages and benefits, or a little over 10% of direct wages. Another way to look at this is that the average cost of paid time off is $1 fo every $10 in direct wages. None of the listed PTO benefits is mandatory at the federa level in the United States at this point, yet most employers provide at least some holiday off and some vacation and/or sick time. In addition, you need to be aware that som states have already passed, or are currently attempting to pass, mandatory sick lea and even, in some cases, annual leave and other PTO laws. Paid time off is commo viewed as an entitlement (Chapter 12). Let's do a quick review of the most com types of PTO. SHRM K:B15 Time Off and Other Benefits VACATION OR ANNUAL LEAVE. Although federal law does not currently require any vacation time, the majority of US firms provide paid vacations to their emplo according to the US Bureau of Labor Statistics. In fact, about 97% of employers pr paid vacation in some form-either as a stand-alone benefit or as part of a PTOP to their full-time workforce 4 The FORCE CORED 6 PARTI: COMPENSATING 13-4 APPLYING THE CONCEPT Flexible Benefit Plans Place the letter of the type of flexible plan on the line next to state ment that describes it. a modular b. core plus c. full choice 16. I don't think our benefit plan is fair because I use my spouse's health insurance plan and I just lose the benefit. To be fair, I should be able to use the money for other benefits I want. 12 I sure wish we got more of our compensation in benefits, but at least with my benefit package, I can choose any benefit I want to every year. 10. My benefit plan has five packages, and get to pick one of them that I want every year. But it's touto select one 19. I definitely want to get health care and retirement benefits, and it's nice to have the option of selecting a few other benefits with a set dollar value. 20. The hard part about my benefit plan is that there are to many options to choose from that I have a hard time selecting the ones I may really need. benefits and the value of each of them on some routine basis, usually at the end of the year. The basic reason for doing so is that most of us don't understand the true cost and value of the benefits that our organizations provide. And if we don't understand the cost and the return of our benefits programs, we don't perceive the value that we get from having the organization provide us with these benefits All we really need in order to communicate the value of benefit programs is a basic, ongoing communication process. We provide information through multiple communica- tion channels and should provide it more often than just once per year during open enroll- ment. There are a number of methods that have achieved acceptability in HR departments around the world and can reach at least part of our workforce. We may want to use more than one method because of the multigenerational nature o today's workforce. For older baby boomers, standard mailings to the employees' home X and Y employees, searchable knowled bases and email reminders may work better, while finally with net-gen employees, soch media may take the lead. We have to consider the makeup of our workforce and use me ods that will be appropriate in reaching each of the groups within it. Finally, if we are sure of the best way to communicate with our employees, we should ask them. O WORK APPLICATION 13-13 Does any company you know of ter domestic partner benefits! Do bine these benefits should or GEFORCE CORE 490 PARTIV COMPENSATING 13-3 APPLYING THE CONCEPT Retirement Plans Recommend the appropriate retirement plan based on the person's situation. a 401(k) b. 403(b) CIRA d. Roth IRA e. SEP 12. My company doesn't offer any retirement benefits for part-time employees, so how should I save for retirement? 13 I work for a major corporation, and it offers the standard retirement plan with a 5% match. 14. I already have a retirement plan at work and put in the maximum taxe deferred contribution. What other options do I have to save even more for my retirement? 15. I started my own business and want to save for retire ment. What retirement plan should I use? 11. I work for a church, but we do have a retirement account WORK APPLICATION 13-9 Select a company that offers retirement benefits and state the type of plant offers. If it is a defined benefit, describe the plan. If it is a defined contribution, identify the option selected and, if the employer offers any matching Contributions, bar they are. Paid Time Off Paid time off (PTO) benefits include a group of options such as vacation time/annual leave, severance pay, personal time off, sick days, and holidays. Some companies pro- vide an all-encompassing PTO plan, sometimes called a "PTO Bank," that allows the employee to use their paid time off in any way they wish, whether for sick days or vaca- tion, holidays, or any other purpose. Others apportion the available days for vacation, sick time, holidays, and others. These benefits contribute approximately 7% of the average employer's total cost of wages and benefits, or a little over 10% of direct wages. Another way to look at this is that the average cost of paid time off is $1 fo every $10 in direct wages. None of the listed PTO benefits is mandatory at the federa level in the United States at this point, yet most employers provide at least some holiday off and some vacation and/or sick time. In addition, you need to be aware that som states have already passed, or are currently attempting to pass, mandatory sick lea and even, in some cases, annual leave and other PTO laws. Paid time off is commo viewed as an entitlement (Chapter 12). Let's do a quick review of the most com types of PTO. SHRM K:B15 Time Off and Other Benefits VACATION OR ANNUAL LEAVE. Although federal law does not currently require any vacation time, the majority of US firms provide paid vacations to their emplo according to the US Bureau of Labor Statistics. In fact, about 97% of employers pr paid vacation in some form-either as a stand-alone benefit or as part of a PTOP to their full-time workforce 4 The FORCE CORED 6 PARTI: COMPENSATING 13-4 APPLYING THE CONCEPT Flexible Benefit Plans Place the letter of the type of flexible plan on the line next to state ment that describes it. a modular b. core plus c. full choice 16. I don't think our benefit plan is fair because I use my spouse's health insurance plan and I just lose the benefit. To be fair, I should be able to use the money for other benefits I want. 12 I sure wish we got more of our compensation in benefits, but at least with my benefit package, I can choose any benefit I want to every year. 10. My benefit plan has five packages, and get to pick one of them that I want every year. But it's touto select one 19. I definitely want to get health care and retirement benefits, and it's nice to have the option of selecting a few other benefits with a set dollar value. 20. The hard part about my benefit plan is that there are to many options to choose from that I have a hard time selecting the ones I may really need. benefits and the value of each of them on some routine basis, usually at the end of the year. The basic reason for doing so is that most of us don't understand the true cost and value of the benefits that our organizations provide. And if we don't understand the cost and the return of our benefits programs, we don't perceive the value that we get from having the organization provide us with these benefits All we really need in order to communicate the value of benefit programs is a basic, ongoing communication process. We provide information through multiple communica- tion channels and should provide it more often than just once per year during open enroll- ment. There are a number of methods that have achieved acceptability in HR departments around the world and can reach at least part of our workforce. We may want to use more than one method because of the multigenerational nature o today's workforce. For older baby boomers, standard mailings to the employees' home X and Y employees, searchable knowled bases and email reminders may work better, while finally with net-gen employees, soch media may take the lead. We have to consider the makeup of our workforce and use me ods that will be appropriate in reaching each of the groups within it. Finally, if we are sure of the best way to communicate with our employees, we should ask them. O WORK APPLICATION 13-13 Does any company you know of ter domestic partner benefits! Do bine these benefits should or