The Tools and Techniques of Employee Benefit
THE TOOLS TECHNIQUES OF EMPLOYEE BENEFIT AND
RETIREMENT PLANNING
12th Edition
Outline
CHAPTER 1DESIGNING THE RIGHT RETIREMENT PLAN
A.ADVANTAGES FOR THE EMPLOYER
B.QUALIFIED VERSUS NONQUALIFIED RETIREMENT PLANS
C.TAX ADVANTAGES OF QUALIFIED PLANS
1.Types of Qualified Plans
a.Defined Contribution Plans
b.Defined Benefit Plans
D.QUALIFIED PLAN FUNDING VERSUS CASH
E.FACTORS AFFECTING PLAN SELECTION
CHAPTER 2PLANNING FOR RETIREMENT NEEDS
A.CURRENT INCOME SOURCES AND ASSETS
B.RETIREMENT NEEDS ANALYSIS
1.Steps in Calculating Retirement Funding
a.Seven Step Planner
2.Financial Needs at Retirement
3.Retirement Funding Shortfalls
CHAPTER 3SOCIAL SECURITY
A.ELIGIBILITY
1.Insured Status
a.Fully Insured
b.Currently Insured
B.BENEFITS
1.Retirement
2.Disability
3.Spouse’s Benefit
4.Survivor Benefits
a.Mother’s or Father’s Benefits
b.Child’s Benefits
c.Widow or Widower’s Benefits
C.COMPUTING BENEFITS
1.Maximum Family Benefits
2.Cost-of-Living Increases
3.Delayed Retirement Credit
D.WORKING AFTER RETIREMENT
E.INCOME TAXATION OF SOCIAL SECURITY BENEFITS
1.50 Percent Taxable
2.85 Percent Taxable
CHAPTER 4MEDICARE
A.WHAT IS IT?
1.Hospital Insurance (Part A)
2.Medical Insurance (Part B)
3.Medicare Advantage (Part C)
4.Prescription Drug Insurance (Part D)
5.Medicare Supplement Insurance
B.ELIGIBILITY AND ENROLLMENT
1.Hospital Insurance (Part A)
2.Medical Insurance (Part B)
3.Medicare Advantage (Part C)
4.Prescription Drug Insurance (Part D)
5.Medicare Supplement Insurance
C.BENEFITS
1.Hospital Insurance (Part A)
a.InpatientHospital Care
b.Skilled Nursing Facility Care
c.Home Health Care
d.Hospice Care
2.Medical Insurance (Part B)
3.Medicare Advantage (Part C)
4.Prescription Drug Insurance (Part D)
5.Medicare Supplement Insurance
D.TAXATION AND FINANCING
1.Hospital Insurance (Part A)
2.Medical Insurance (Part B)
3.Medicare Advantage (Part C)
4.Prescription Drug Insurance (Part D)
5.Medicare Supplement Insurance
E.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 5TRADITIONAL IRAs
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
1.Contribution Rules
2.Distribution and Rollover Rules
F.WHERE CAN I FIND OUT MORE ABOUT IT?
G.QUESTIONS AND ANSWERS
CHAPTER 6ROTH IRAs
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
1.Contribution Rules
2.Distribution Rules
3.Rollovers
F.WHERE CAN I FIND OUT MORE ABOUT IT?
GQUESTIONS AND ANSWERS
CHAPTER 7QUALIFIED PLANS: GENERAL RULES FOR QUALIFICATION
A.ELIGIBILITY AND COVERAGE
1.Highly Compensated–Definition for Employee Benefit Purposes
B.NONDISCRIMINATION IN BENEFITS AND CONTRIBUTIONS
1.Integration with Social Security
a.Defined Benefit Plans
b.Defined Contribution Plans
C.VESTING
D.FUNDING REQUIREMENTS
1.Actuarial Cost Methods
2.Actuarial Assumptions
3.Deduction Limits
4.Timing of Contributions
5.Fiduciary Rules
E.LIMITATIONS ON BENEFITS AND CONTRIBUTIONS
1.Defined Benefit Limits
2.Defined Contribution Limits
3.Compensation Limit
F.TOP-HEAVY REQUIREMENTS
CHAPTER 8QUALIFIED PLANS: DISTRIBUTIONS AND LOANS
A.CONTENTS OF THIS CHAPTER
B.I. PLANNING RETIREMENT DISTRIBUTIONS
C.II. PLAN PROVISIONS–REQUIRED SPOUSAL BENEFITS
1.Qualified Pre-retirement Survivor Annuity
2.Qualified Joint and Survivor Annuity
D.III. PLAN PROVISIONS–OTHER BENEFIT OPTIONS
1.Defined Benefit Plan Distribution Provisions
2.Defined Contribution Plan Distribution Provisions
E.IV. TAX IMPACT
1.Nontaxable and Taxable Amounts
2.Taxation of Annuity Payments
3.Lump Sum Distributions
a.“Grandfather” Rules
4.Taxation of Death Benefits
5.Federal Estate Tax
F.V. LOANS
G.VI. QUALIFIED DOMESTIC RELATIONS ORDERS (QDROs)
H.VII. PENALTY TAXES
1.Early Distribution Penalty
2.Minimum Distribution Requirements and Penalty
I.VIII. RETIREMENT PLAN ROLLOVERS
1.When Are Rollovers Used?
2.Tax Treatment of Rollovers
3.Alternatives to Rollovers
J.WHERE CAN I FIND OUT MORE ABOUT RETIREMENT PLAN DISTRIBUTIONS?
CHAPTER 9ESTATE AND RETIREMENT PLANNING WITH QUALIFIED PLANS AND IRAs
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
F.AN ISSUE AT RETIREMENT: ROLLOVER VS. KEEPING IT IN PLAN
1.Advantages of a Rollover
2.Advantages of Keeping It in a Qualified Plan
3.Converting to a Roth IRA
a.The Economics of the Conversion
b.Why Should a Roth IRA Conversion be Considered (if the Client is Eligible)
c.Negatives of a Roth IRA Conversion
4.Nonparticipant Spouse’s Rights
5.Using a “Frozen” Plan
G.PLANNING RETIREMENT DISTRIBUTIONS
1.After-death Minimum Distributions
a.Beneficiary is the Participant’s Spouse
b.Nonspouse Individual Beneficiary
c.No Individual Beneficiary
2.Beneficiary Designation
3.Trust as a Designated Beneficiary
H.ESTATE PLANNING FOR QUALIFIED PLAN AND IRA ACCUMULATIONS
I.SUMMARY
J.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 10INSTALLING A QUALIFIED RETIREMENT PLAN
A.Plan Adoption
B.Credit for Startup Costs
C.Advance Determination Letter
D.Master and Prototype Plans
CHAPTER 11QUALIFIED PLAN INVESTMENTS
A.FIDUCIARY REQUIREMENTS OF ERISA AND THE INTERNAL REVENUE CODE
B.PROHIBITED TRANSACITONS
C.UNRELATED BUSINESS INCOME
D.INVESTMENT POLICY
1.Investment Vehicles
E.INVESTMENT STRATEGY
F.SOCIAL EFFECTS
CHAPTER 12ERISA REPORTING AND DISCLOSURE
A.WHAT IS IT?
B.WHAT PLANS ARE EXEMPT FROM ERISA?
C.WHAT IS A "PENSION PLAN" UNDER ERISA?
1.Regulatory Exemptions – Pension Plans
2.Pension Plan Reporting and Disclosure
3.Title IV Reporting and Disclosure Requirements
D."WELFARE PLANS" UNDER ERISA
1.Regulatory Exemptions – Welfare Plans
2.Welfare Plan Reporting and Disclosure
CHAPTER 13LIFE INSURANCE IN A QUALIFIED PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.HOW IS IT USED?
1.Insurance Coverage
2.How Much Insurance–The “Incidental” Test
3.Life Insurance in Defined Benefit Plans
a.Combination Plan
b.Envelope Funding
4.Fully Insured Plans
a.The Overfunding Problem
b.A Solution–Fully Insured Plans
c.Other Advantages
d.How Does It Work?
5.Life Insurance in Defined Contribution Plans
F.TAX IMPLICATIONS
G.ALTERNATIVES
H.QUESTIONS AND ANSWERS
CHAPTER 14DEFINED BENEFIT PENSION PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
F.TAX IMPLICATIONS
G.ERISA REQUIREMENTS
H.ALTERNATIVES
I.HOW TO INSTALL A PLAN
J.WHERE CAN I FIND OUT MORE ABOUT IT?
K.QUESTIONS AND ANSWERS
CHAPTER 15CASH BALANCE PENSION PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES OF THESE PLANS
F.TAX IMPLICATIONS
G.ALTERNATIVES
H.HOW TO INSTALL A CASH BALANCE PLAN
I.WHERE CAN I FIND OUT MORE ABOUT THESE PLANS?
CHAPTER 16MONEY PURCHASE PENSION PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
F.TAX IMPLICATIONS
G.ALTERNATIVES
H.HOW TO INSTALL A PLAN
I.WHERE CAN I FIND OUT MORE ABOUT IT?
J.QUESTIONS AND ANSWERS
CHAPTER 17PROFIT SHARING PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
1.Employer Contribution Arrangements
2.Allocation to Participant Accounts
3.Vesting
4.Distributions
F.TAX IMPLICATIONS
G.ALTERNATIVES
H.HOW TO INSTALL A PLAN
I.WHERE CAN I FIND OUT MORE ABOUT IT?
J.QUESTIONS AND ANSWERS
CHAPTER 18ESOP/STOCK BONUS PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
1.ESOP Loans
F.TAX IMPLICATIONS
G.ERISA AND OTHER REGULATORY REQUIREMENTS
H.HOW TO INSTALL THE PLAN
I.WHERE CAN I FIND OUT MORE ABOUT IT?
J.QUESTIONS AND ANSWERS
CHAPTER 19SAVINGS/MATCH PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
F.TAX IMPLICATIONS
G.HOW TO INSTALL A PLAN
H.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 20SECTION 401(k) PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
1.Salary Reductions
2.Employer Contributions
3.Plan Distributions
F.TAX IMPLICATIONS
G.HOW TO INSTALL A PLAN
H.WHERE CAN I FIND OUT MORE ABOUT IT?
I.QUESTIONS AND ANSWERS
CHAPTER 21CROSS-TESTED/AGE-WEIGHTED PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.CROSS-TESTED PLAN DESIGN
1.Disadvantages of Cross-Tested Plans
F.FIXED-FORMULA AGE-WEIGHTED PLANS
1.Age-Weighted Profit Sharing Plan
2.Age-Weighted Pension (Target Benefit) Plan
G.TAX IMPLICATIONS
H.ALTERNATIVES
I.HOW TO INSTALL THE PLAN
J.WHERE CAN I FIND OUT MORE ABOUT IT?
K.QUESTIONS AND ANSWERS
CHAPTER 22HR 10 (KEOGH) PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TYPES OF KEOGH PLANS
F.HOW ARE KEOGHS DIFFERENT FROM OTHER QUALIFIED PLANS?
1.Earned Income
2.Life Insurance
G.TAX AND ERISA IMPLICATIONS
H.ALTERNATIVES
I.HOW TO INSTALL A PLAN
J.WHERE CAN I FIND OUT MORE ABOUT IT?
K.QUESTIONS AND ANSWERS
CHAPTER 23SIMPLE IRAs
A.WHAT ARE THEY?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
F.HOW TO INSTALL A PLAN
G.ERISA REQUIREMENTS
H.WHERE CAN I FIND OUT MORE ABOUT IT?
I.QUESTIONS AND ANSWERS
CHAPTER 24SIMPLIFIED EMPLOYEE PENSIONS (SEPS)
A.WHAT ARE THEY?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
F.HOW TO INSTALL A PLAN
G.ERISA REQUIREMENTS
H.WHERE CAN I FIND OUT MORE ABOUT IT?
I.QUESTIONS AND ANSWERS
CHAPTER 25TAX DEFERRED ANNUITY
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
1.Salary Reductions
2.The TDA Salary Reduction Catch-Up
3.Employer Contributions
4.Section 415 Limits
5.Nondiscrimination Requirements
6.Vesting
7.Plan Investments
8.Plan Distributions
F.TAX IMPLICATIONS
G.ERISA REQUIREMENTS
H.HOW TO INSTALL A PLAN
I.WHERE CAN I FIND OUT MORE ABOUT IT?
J.QUESTIONS AND ANSWERS
CHAPTER 26NONQUALIFIED DEFERRED COMPENSATION
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.OBJECTIVES IN PLAN DESIGN
1.Employer Objectives
2.Employee Objectives
3.Types of Benefit and Contribution Formulas
4.Withdrawals During Employment
5.Termination of Employment
6.Funded versus Unfunded Plans
7.Financing Approaches
F.TAX IMPLICATIONS
1.Constructive Receipt
2.Economic Benefit
3.Income Taxation of Benefits and Contributions
4.Social Security (FICA) Taxes
5.Federal Estate Tax Treatment
6.Taxation of the Employer
G.ERISA REQUIREMENTS
H.WHERE CAN I FIND OUT MORE ABOUT IT?
I.QUESTIONS AND ANSWERS
CHAPTER 27GOVERNMENTAL AND TAX-EXEMPT EMPLOYER DEFERRED
COMPENSATION (SECTION 457) PLANS
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.DESIGN FEATURES
1.What Employers Are Covered by Section 457?
2.Limit on Amount Deferred
3.Timing of Salary Reduction Elections
4.Distribution Requirements
5.Coverage and Eligibility
6.Funding
D.TAX IMPLICATIONS
E.ERISA REQUIREMENTS
F.ALTERNATIVES
G.HOW TO INSTALL A PLAN
H.WHERE CAN I FIND OUT MORE ABOUT IT?
I.QUESTIONS AND ANSWERS
CHAPTER 28THE PROCESS OF EMPLOYEE BENEFIT PLANNING
A.WHAT BENEFIT PLANS CAN DO
B.STEPS IN THE PLANNING PROCESS
CHAPTER 29DESIGNING THE RIGHT LIFE INSURANCE PLAN
A.STEP 1: IDENTIFY INSURANCE/CAPITAL ACCUMULATION NEEDS
B.STEP 2: ANALYZE EXISTING PLANS
C.STEP 3: IDENTIFY OBJECTIVES
D.STEP 4: DESIGN THE PLAN
CHAPTER 30DESIGNING THE RIGHT HEALTH BENEFIT PLAN
A.1. WHAT HEALTH BENEFITS DO EMPLOYEES WANT?
B.2. PLAN DESIGN FEATURES
1.Managed Health Care–Tools and Techniques
2.“Defined Contribution” Health Plans
C.3. HEALTH BENEFITS FOR EXECUTIVES
D.4. THE PROCESS OF DESIGN AND MAINTENANCE
CHAPTER 31CASH COMPENSATION PLANNING
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
1.Reasonableness of Compensation
a.Factors in Determining Reasonable Compensation
2.Treatment of Disallowed Compensation
3.Reimbursement Agreements
4.Timing of Income and Deductions
a.Timing of Corporate Deductions for Compensation Payments
F.ALTERNATIVES
G.HOW IS THE PLAN SET UP?
H.WHERE CAN I FIND OUT MORE ABOUT IT?
I.QUESTIONS AND ANSWERS
CHAPTER 32BONUS PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
F.ALTERNATIVES
G.HOW ARE THESE PLANS SET UP?
H.WHERE CAN I FIND OUT MORE ABOUT THESE PLANS?
I.QUESTIONS AND ANSWERS
CHAPTER 33SEVERANCE PAY PLAN
A.WHAT IS IT?
B.TAX IMPLICATIONS
C.ERISA IMPLICATIONS
CHAPTER 34GOLDEN PARACHUTE PLAN
A.WHAT IS IT?
B.TAX IMPLICATIONS
C.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 35STOCK OPTION
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
F.WHERE CAN I FIND OUT MORE ABOUT IT?
G.QUESTIONS AND ANSWERS
CHAPTER 36INCENTIVE STOCK OPTION (ISO)
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
F.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 37EMPLOYEE STOCK PURCHASE PLAN(Section 423 Plan)
A.WHEN IS IT INDICATED?
B.ADVANTAGES
C.DISADVANTAGES
D.ESPP REQUIREMENTS UNDER CODE SECTION 423
1.Coverage
2.Benefits
E.TAX IMPLICATIONS
F.ERISA AND OTHER REQUIREMENTS
G.HOW IS THE PLAN SET UP?
H.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 38RESTRICTED STOCK PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.WHAT CAN BE ACCOMPLISHED WITH RESTRICTIONS ON STOCK
1.Employee Retention
2.Discouraging Misconduct
3.Incentives
F.TAX IMPLICATIONS
G.WHERE CAN I FIND OUT MORE ABOUT IT?
H.QUESTIONS AND ANSWERS
CHAPTER 39CAFETERIA PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.EXAMPLE OF CAFETERIA PLAN
F.TAX IMPLICATIONS
G.ALTERNATIVES
H.HOW ARE THESE PLANS SET UP?
I.HOW DO I FIND OUT MORE ABOUT THESE PLANS?
CHAPTER 40FLEXIBLE SPENDING ACCOUNT
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.HOW IT WORKS–AND AN EXAMPLE
F.DESIGN FEATURES
G.TAX IMPLICATIONS
H.ERISA REQUIREMENTS
I.HOW TO INSTALL A PLAN
J.WHERE CAN I FIND OUT MORE ABOUT IT?
K.QUESTIONS AND ANSWERS
CHAPTER 41GROUP-TERM LIFE INSURANCE
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.DESIGN FEATURES
1.Nondiscrimination Requirements
a.Coverage Rules
b.Benefit Rules
c.Who Can Be Excluded
2.Requirements of Section 79 Regulations
3.Group Life Insurance Carve-out for Executives
a.The Carve-out Concept
b.Advantages of Carve-Out Coverage Over Group-Term
c.How to Structure the Carve-Out Coverage
D.TAX IMPLICATIONS
E.ERISA AND OTHER REQUIREMENTS
F.ALTERNATIVES
G.HOW TO INSTALL A PLAN
H.WHERE CAN I FIND OUT MORE ABOUT IT?
I.QUESTIONS AND ANSWERS
CHAPTER 42SPLIT DOLLAR LIFE INSURANCE
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
1.Premium Cost Split
2.Cash Value and Death Proceeds Split
3.Policy Ownership
F.SPLIT DOLLAR PLAN VARIATIONS
1.Equity Split Dollar
2.Reverse Split Dollar
G.TAX IMPLICATIONS
H.ERISA REQUIREMENTS
I.WHERE CAN I FIND OUT MORE ABOUT IT?
J.QUESTIONS AND ANSWERS
CHAPTER 43KEY EMPLOYEE LIFE INSURANCE
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.TAX IMPLICATIONS
1.To the Employee
2.To the Corporation
D.ALTERNATIVES
E.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 44DEATH BENEFIT ONLY (DBO) PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
F.TAX IMPLICATIONS
G.ERISA REQUIREMENTS
H.ALTERNATIVES
I.HOW TO INSTALL A PLAN
J.WHERE CAN I FIND OUT MORE ABOUT IT?
K.QUESTIONS AND ANSWERS
CHAPTER 45HEALTH INSURANCE
A.WHAT IS IT?
B.PLAN DESIGN
C.BENEFIT STRUCTURE
D.PLAN FUNDING
E.ELIGIBILITY AND COVERAGE
1.Internal Revenue Code Eligibility and Coverage Requirements
2.COBRA Continuation of Coverage
3.Continuing Health Coverage For Retirees
F.TAX IMPLICATIONS
G.ERISA AND OTHER REQUIREMENTS
H.WHERE CAN I FIND OUT MORE ABOUT IT?
I.QUESTIONS AND ANSWERS
CHAPTER 46HEALTH MAINTENANCE ORGANIZATION (HMO)
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.HMO BENEFIT STRUCTURE
F.TYPES OF HMOs
G.TAX IMPLICATIONS
H.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 47HEALTH SAVINGS ACCOUNT(Section 223 Plan)
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.ELIGIBILITY
F.CONTRIBUTIONS
G.FUNDING
H.PLAN BENEFITS
I.TAX IMPLICATIONS
J.ERISA IMPLICATIONS
K.ALTERNATIVES
L.QUESTIONS AND ANSWERS
CHAPTER 48HEALTH REIMBURSEMENT ARRANGEMENT (HRA)
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.DESIGN FEATURES
D.TAX IMPLICATIONS
1.Nondiscrimination Rules
a.Coverage Test
b.Benefits Test
c.Who Can Be Excluded
1.Internal Revenue Code Eligibility and Coverage Requirements
2.COBRA Continuation of Coverage
E.ERISA AND OTHER REQUIREMENTS
F.WHERE CAN I FIND OUT MORE ABOUT IT?
G.QUESTIONS AND ANSWERS
CHAPTER 49LONG-TERM CARE PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.PLAN DESIGN
D.TAX IMPLICATIONS
E.ERISA AND OTHER REQUIREMENTS
CHAPTER 50SICK PAY (SHORT TERM DISABILITY)
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.DESIGN FEATURES
1.Sick Pay
2.Short Term Disability Plans
D.TAX IMPLICATIONS
E.ERISA REQUIREMENTS
F.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 51LONG TERM DISABILITY INSURANCE
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.DESIGN FEATURES
1.Eligibility
2.Definition of Disability
3.Benefit Formulas
D.TAX IMPLICATIONS
E.ERISA REQUIREMENTS
F.WHERE CAN I FIND OUT MORE ABOUT IT?
G.QUESTIONS AND ANSWERS
CHAPTER 52“FRINGE” BENEFITS (SECTION 132)
A.WHAT ARE THEY?
B.EMPLOYEE DISCOUNTS
1.Advantages
2.Tax Implications
C.NO-ADDITIONAL-COST SERVICES
1.Advantages
2.Tax Implications
D.COMPANY CAFETERIAS AND MEAL PLANS
E.QUALIFIED TRANSPORTATION
1.Advantages
2.Benefits
F.QUALIFIED RETIREMENT PLANNING SERVICES
G.GYMS AND ATHLETIC FACILITIES
H.WORKING CONDITION FRINGES
I.DE MINIMIS FRINGE
J.DEFINITION OF HIGHLY COMPENSATED
CHAPTER 53COMPANY CAR OR REIMBURSEMENT PLAN
A.WHAT IS IT?
B.COMPANY CARS
1.When is it Indicated?
2.Advantages of Company Car Programs
3.Disadvantages
4.Tax Treatment of Employer
5.Tax Treatment of Employee
C.REIMBURSEMENT PLANS AND “NO PLANS”
D.REPORTING
E.WHERE CAN I GET ADDITIONAL INFORMATION?
F.QUESTIONS AND ANSWERS
CHAPTER 54DEPENDENT CARE ASSISTANCE PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
F.TAX IMPLICATIONS
G.ERISA AND OTHER REQUIREMENTS
H.ALTERNATIVES
I.HOW TO INSTALL A PLAN
J.WHERE CAN I FIND OUT MORE ABOUT IT?
K.QUESTIONS AND ANSWERS
CHAPTER 55EDUCATIONAL ASSISTANCE PLAN
A.WHAT IS IT?
B.ADVANTAGES
C.DISADVANTAGES
D.TAX IMPLICATIONS
E.ERISA REQUIREMENTS
F.HOW TO INSTALL A PLAN
G.WHERE CAN I FIND OUT MORE ABOUT IT?
H.QUESTIONS AND ANSWERS
CHAPTER 56LEGAL SERVICES PLAN
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.DESIGN FEATURES
F.TAX IMPLICATIONS
G.WHERE CAN I FIND OUT MORE ABOUT IT?
CHAPTER 57LOANS TO EXECUTIVES
A.WHEN IS IT INDICATED?
B.ADVANTAGES
C.DISADVANTAGES
D.TAX IMPLICATIONS
E.ERISA AND OTHER REGULATORY IMPLICATIONS
F.ALTERNATIVES
G.QUESTIONS AND ANSWERS
CHAPTER 58MOVING EXPENSE REIMBURSEMENT
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.TAX IMPLICATIONS
F.ERISA AND OTHER IMPLICATIONS
G.WHERE CAN I FIND OUT MORE ABOUT IT?
H.QUESTIONS AND ANSWERS
CHAPTER 59VEBA WELFARE BENEFIT TRUST
A.WHAT IS IT?
B.WHEN IS IT INDICATED?
C.ADVANTAGES
D.DISADVANTAGES
E.VEBA DESIGN ISSUES
1.Who Must Be Covered?
2.What Kinds of Benefits Can Be Provided?
F.TAX IMPLICATIONS
1.Taxation of Employees
2.Taxation of the VEBA
3.Employer’s Deduction
G.ERISA AND OTHER REQUIREMENTS
H.WHERE CAN I FIND OUT MORE ABOUT IT?
I.QUESTIONS AND ANSWERS