The main retirement benefits detailed discussion

Chapter 13, Benefits & Service Discussions

Question 1: Name and define each of the main pay for time not worked benefits
1. Vacation pay
Vacation pay is a benefit paid to employees for time they are not working. This payment is usually calculated as a percentage of the employee’s regular pay. For example, if an employee is entitled to vacation pay at a rate of 2%, and their regular pay is $10 per hour, they would be entitled to $0.20 per hour of vacation pay.
2. Holiday pay
Holiday pay is a benefit paid to employees for time they are not working because of a holiday. This pay is usually calculated as a percentage of the employee’s regular pay. At a minimum, employees usually receive pay for Labor Day, Christmas, new year and fourth July.
3. Sick pay
Sick pay is a benefit paid to employees for time they are not working because of an illness or injury (Dessler, 2020). Sick pay is the continuance of your earnings when you are incapacitated to work due to illness or injury. Ordinarily, this benefit is subject to all standard payroll deductions. You are required to record it on the claim form; failing so may lead to an overcharge of RRB illness benefits, which you will be required to repay.
4. Jury duty
Jury duty is a benefit that employees receive for time not worked. This benefit allows employees to be compensated for their time on jury duty, which can often be very time-consuming. This benefit can be very helpful to employees called to serve on a jury, as it can help offset the loss. Some companies may require employees to provide proof of jury duty service to receive this benefit.
Question 2: Description of main insurance benefits.
1. Worker compensation
Worker compensation benefits typically include medical expenses, income replacement, and death benefits (Dessler, 2020). Medical benefits may cover the cost of hospitalization, surgery, rehabilitation, and other medical care. Income replacement benefits provide payments to workers who cannot work due to injuries or illnesses. Death benefits provide payments to the surviving spouses and dependents of workers who die as a result of their injuries or illnesses.
Employers typically pay for worker compensation benefits through insurance premiums. In some states, workers may also be required to contribute to the program’s cost through payroll taxes.
2. Hospitalization, health and disability insurance
Hospitalization insurance covers the costs of staying in a hospital. This includes the cost of a private room, meals, and any necessary medical treatments. On the other hand, Health insurance covers the costs of medical care. This includes the cost of doctor’s visits, prescriptions, and any necessary medical treatments. Disability insurance pays a portion of your income if you cannot work due to an injury or illness.
Each type of insurance has its own set of rules and regulations. For example, most health insurance plans have a deductible, which you must pay out-of-pocket before your insurance plan begins to pay for your medical expenses. Additionally, most insurance plans have a maximum amount they will pay out for each covered expense. For example, your health insurance plan may have a $250 deductible for doctor’s visits and a $5,000 maximum for hospitalization.
When choosing an insurance plan, it is important to understand the benefits and limitations of each type of insurance. By understanding the different types of insurance, you can make an informed decision about the best coverage for your needs.
Question 3: The main retirement benefits
a. Social Security
The US Social Security system is the country’s largest and most visible form of social welfare. Social insurance in this scheme helps retirees and their families out financially. Wage-based payroll taxes are used to finance the program. The three fundamental pillars of Social Security are retirement, disability, and hospitalization insurance (Dessler, 2020). Insurance for the elderly and their dependents is a boon to the retired and their family. When an employee cannot work because of a disability, disability insurance pays them a monthly payout. Employees who require hospitalization can receive benefits from their company’s hospital insurance policy.
Most retirees rely heavily on benefits from the Social Security program. In 2019, retirees might expect an average monthly payout of $1,471. The program also offers compensation to the dependents of workers who have passed away and those who cannot perform their jobs due to illness or injury. When it comes to social welfare in the United States, Social Security is a top priority. Millions of Americans rely on the program, an essential pillar of the country’s social safety net, for its stability and financial stability.
b. Pension Plan
A pension plan is an investment strategy for retirement that makes regular payments to retirees beginning at retirement and continuing throughout their lifetime. Normally, the payments are determined by the employee’s income and service history. As they offer a guaranteed source of income in retirement, pension plans play a significant role in the retirement planning of many workers.
Pension plans often fall into two categories: defined benefit or contribution (Dessler, 2020). In a defined benefit plan, the employer promises to pay the employee a set amount of benefits once they retire. The benefit’s value is determined by the employee’s income and service history. In a defined contribution plan, the employee makes a specified contribution to the plan each year. Additionally, the employer might contribute. The success of the investment fund determines the size of the retirement benefits. A worker’s retirement planning may include pension plans in significant measure. They can contribute to maintaining a good quality of living and offer a fixed source of income in retirement.
Question 4: main employees’ services benefitsand flexible benefit programs.
Most employers offer a suite of benefits to their employees, including time off, insurance, and retirement accounts. In addition, many employers also provide various services benefits, such as personal services such as legal, credit union and personal counselling, “family-friendly” services like child and elderly care facilities, and executive perquisites including company cars for executives (Dessler, 2020).
a. Personal services
Personal services can be extremely helpful to employees who are dealing with personal issues that may be affecting their work performance. Many employers offer personal counselling services as part of their benefits package, and these can be valuable resources for employees. Personal counselling can help employees deal with stress, anxiety, depression, and other mental health issues.
One of the most importantly personal service benefits is a credit union. The employer creates a pool of funds for employees to contribute and borrow to boost their financial strength. Many employers offer their employees free or discounted legal and personal counselling services. This benefit can be extremely valuable to employees, as it can help them resolve personal issues affecting their work performance.
b. Family-friendly” services
“Family-friendly” services are another service benefit that can be extremely helpful to employees. These services can include child-care facilities, which can be a lifesaver for working parents. Child-care facilities can provide a safe and secure place for children to stay while their parents are at work. They can also help parents save money on child-care costs. Many employers offer tuition reimbursement programs to help employees pay for college or continuing education courses. Tuition reimbursement can help employees further their education and improve their job skills.
c. Executive perquisites
Executive perquisites are another benefit that can be extremely helpful to executives. These benefits include company cars, a valuable perk for executives. Company cars can help executives save money on transportation costs and be a convenient way to get around.
Question 5: five creative solutions for reducing the health insurance benefits and the cost of the total benefits package.
Business health insurance is a significant company expense, particularly for small enterprises. Most proprietors of small businesses are requesting their employees to pay a larger share of the cost of benefits or eliminate them as a result of rising rates. The cost of grocery health insurance could significantly reduce profits, yet benefits frequently draw in and keep better workers. Here are five creative solutions to approach this issue decisively (Miller, 2019).
a. Increase co-payment
One option for grocery store employers would be to increase the co-payments for doctor visits and prescriptions for all employees. This would help offset the costs of health insurance benefits while maintaining the same coverage level.
b. Adopt a high-deductible plan
Another option would be to change the health insurance plan to a high-deductible plan. This would require employees to pay more out of pocket for their healthcare costs, but it could help to reduce the overall costs for grocery store employers.
c. Devise a wellness plan
The grocery store employers could also consider implementing a wellness program. This could include things like discounts on gym memberships or healthy food options. Employees who participate in the wellness program could receive lower health insurance premiums.
d. Encourage additional covers
Another option for grocery store employers would be to offer employees the option to purchase additional health insurance coverage through a voluntary benefits program. This would allow employees to choose the level of coverage they need and could help to offset the costs for the grocery store employers.
e. Consider health savings accounts.
A growing number of proprietors of small organizations, such as grocery stores, are selecting to open medical savings accounts as an alternative to traditional health insurance (Miller, 2019). These accounts, which are free from taxes and are designed to pay for specific medical bills, have the potential to lower the costs of health insurance while also providing employees with tax savings. To open a health savings account, you must have a high-deductible health insurance plan. This will allow you to deduct a certain amount from your paycheck for people and a larger amount for families.
Question 6: The downside of having two classes of employees, from a grocery perspective
In this scenario, potential problems could arise from having two classes of employees with different health insurance benefits. First, it could create tension and resentment between the two groups of workers. Those with inferior benefits may feel like they are being treated unfairly, and this could lead to conflict and division within the workforce. Additionally, it could make attracting and retaining talent difficult, as the inferior benefits on offer may deter potential employees. Finally, it could increase costs for the grocery chains, as they would have to contribute more to their employees’ health insurance with superior benefits.
One way to mitigate these potential problems would be to phase in the new benefits scheme over time so that all employees eventually have the same level of coverage. Additionally, the grocery chains could try to improve communication and transparency around the reasons for the change and ensure that employees with inferior benefits understand that they are not being treated unfairly. Finally, they could offer other attractive benefits and perks to potential employees to offset the cheap health insurance.
Question 7: Downsides to having to represent two classes of employees from union/member perspective
The biggest downside to representing two classes of employees is the potential for conflict between the two groups. If the union is not careful, existing employees could view the new hires as a threat to their own benefits and job security. This could lead to tension and even hostility between the two groups, which would make it difficult for the union to effectively represent both groups of workers. Additionally, it puts the union in the position of having to negotiate against itself, which is never ideal. And also, it means that the union has to expend resources on two groups of employees, when it would prefer to focus on just one.
One way to try to avoid this situation is for the union to be very clear from the outset about what the different benefits are for each group of workers. The union should also make it clear that existing employees will not have their benefits cut as a result of the new contract. If the union can provide this assurance, it may help to prevent any conflict from developing between the two groups of workers.
Question 8: Obligation of an HR manager to employees’ preparedness for retirement
As an HR Manager, I strongly believe that it is my responsibility to help employees prepare for retirement. There are a number of reasons why this is the case. Firstly, it is essential that there is a smooth transition from employment to retirement, and HR plays a key role in achieving this. We are responsible for developing a keen understanding of the employer’s benefits packages, benefits options available to the retiring employee, healthcare eligibility, pension plans and, where applicable, severance packages. Therefore, it is our duty to ensure that employees are aware of all the options available to them and can make informed decisions about their retirement.
Additionally, it is becoming increasingly common for employees to have no retirement savings when they retire. More than half of the American population (55%) do not have any retirement savings, and this can lead to resentment and dissatisfaction among employees (mybudget360, n/d). Therefore, it is essential that new HR policies are put in place to ensure that each and every employee has enough savings when they retire. Also, social security is a key issue when it comes to retirement. The elderly poverty rates have a direct relationship with social security, and in order to stop the growing elderly poverty rates, something needs to be done to promote and establish social security among employees.
It is clear that there is a responsibility on the part of HR to help employees prepare for retirement. By ensuring a smooth transition, providing adequate retirement savings and promoting social security, we can make a positive difference to the lives of employees during their retirement.
Question 9: Further impact of employee unpreparedness on businesses/organizations
If nothing changes in regards to employee retirement readiness, businesses and organizations will continue to feel the impacts in a number of ways. For one, the already-stretched resources of Social Security will be increasingly strained. This could lead to cuts in benefits or an increase in the retirement age, which would cause hardship for those who are already retired or close to retirement. Additionally, businesses may have to shoulder more of the burden of retirement costs, as employees are less able to save on their own. This could lead to increases in the cost of employee benefits, or cuts in other areas in order to make up for the added expense.
In the long term, the lack of retirement readiness could have even more dire consequences. As the population ages and the number of retireesretirees increases, there will be more strain on Social Security and other government programs. This could lead to even higher taxes, as the government looks for ways to make up for the shortfall. Additionally, businesses may find it even more difficult to attract and retain top talent, as employees increasingly view retirement benefits as a key part of their compensation package.
Clearly, the current situation is not sustainable. Something needs to be done in order to ensure that employees are able to save for retirement. This could take the form of government incentives, such as matching contributions or tax breaks. Alternatively, businesses may need to do more to encourage employees to save, such as offering matching contributions or matching 401(k) contributions. Whatever the solution, it is clear that action needs to be taken soon in order to avoid even more severe problems down the road.
Question 10: Recommendation to the CEO on employee preparedness for retirement
There are a number of recommendations that could be made to a CEO of an organization based on the case study above.
Firstly, it is important to increase awareness of the current situation regarding retirement savings in America. Too many people still believe that they will be able to retire comfortably without having to worry about money, when in reality this is often not the case. Increasing awareness of the importance of saving for retirement, and of the challenges that many people face in doing so, could help to encourage more people to start saving.
Secondly, it may be worth considering ways to help people save for retirement more effectively. This could involve providing more information and education on the subject, or working with financial institutions to offer more retirement-focused products and services.
Thirdly, it is important to ensure that people are able to access their retirement savings when they need to. This could involve working with the government to ensure that Social Security benefits are adequate, or providing support to people who find themselves in retirement with no savings.
Ultimately, the goal should be to make retirement a realistic goal for more people, rather than something that is out of reach for most. By increasing awareness, improving retirement savings options, and ensuring that people can access their savings when they need to, it may be possible to help more people enjoy a comfortable retirement.

References
Miller, Stephen. (2019). 15 Ways Employers Can Reduce Health Care Spending That Aren’t Cost-Sharing. SHRM. https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/top-ways-employers-hold-down-healthcare-spending.aspx.
Dessler, G. (2020). Human Resource Management, 16e. Develop Employability Skills, Engage, Assess, and Apply with MyLab Management.
mybudget360, M. (n.d.). Get used to the idea that you will never retire: GAO report shows that half of Americans 55 and older have no retirement savings at all. Get Used to the Idea That You Will Never Retire: GAO Report Shows That Half of Americans 55 and Older Have No Retirement Savings at All. https://www.mybudget360.com/retirement-savings-55-and-older-gao-report-pensions-half-americans-no-savings/