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10-1

A Human Resource A Human Resource Management ApproachManagement Approach

STRATEGIC STRATEGIC COMPENSATIONCOMPENSATION

Prepared by David Oakes

Chapter 10Chapter 10

Legally Required BenefitsLegally Required Benefits

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10-2

Legally RequiredLegally RequiredBenefitsBenefits

Social Security

Workers’ Compensation

Family & Medical Leave

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10-3

Social Security ProgramsSocial Security Programs

Unemployment insurance

Old Age, Survivor, and Disability Insurance (OASDI)

Medicare

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10-4

Unemployment InsuranceUnemployment Insurance

Unemployment not worker’s fault

States administer within federal guidelines

States send money to federal government

Agriculture & domestic workers are exempt

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10-5

Unemployment EligibilityUnemployment Eligibility

Did not leave job voluntarily

Able and available for work

Actively seeking work

Has not refused suitable work Not off due to labor dispute Not fired for gross work violations

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10-6

OASDIOASDI

Old Age, Survivor, and Disability Insurance

Enacted in 1935, for retirement

Survivors’ insurance added 1939

Disability insurance added 1965

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10-7

OASDI ExemptionsOASDI Exemptions Civilian federal workers

Railroad employees (before 1984)

State & local government workers

Children Under 21, if working for a parent

Unless over 18, working in the family’s business

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10-8

OASDI Retirement RequirementsOASDI Retirement Requirements

Earn 40 quarters of credit, or Be employed for 10 years

Be age 62 for partial benefits

Be age 65 for full benefits

In 2022, be age 67

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10-9

OASDI Survivor’s BenefitsOASDI Survivor’s Benefits

Based on Eligibility Status & Relationship

Deceased was fully insured

Dependent, unmarried children

Widow(er) age 60 +

Dependent parent age 62 +

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10-10

Disability BenefitsDisability Benefits

Worker was fully insured

Meets Social Security work requirements Varies according to age & disability

Disability must last 1 year or be terminal

6 Months waiting period

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10-11

MedicareMedicare

For citizens age 65 +

Provided insurance coverage for Hospitalization Convalescent care Major doctor bills Prescription drug costs

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10-12

Medicare OptionsMedicare Options

Part A

Part B

Medigap

Medicare Advantage (Part C)

Prescription Drug Program

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10-13

Medicare Part AMedicare Part A

Covers inpatient & outpatient hospital care & services Provides unlimited in-home care Participants

Social security beneficiaries Retirees Voluntary enrollees Disabled

Employer & employee financed

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10-14

Medicare Part BMedicare Part B

Voluntary supplementary medical insurance $110 deductible, then covers 80% Financed by government & enrollees Participants

Part A enrollees Those on social security Railroad retirees

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10-15

Part B CoveragePart B Coverage

Diagnosis, therapy, surgery

Consultations

Medical services & supplies

Medications not self administered

Outpatient hospital services

Home health services

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10-16

MedigapMedigap

Supplements Parts A & B

Through private insurers

10 standardized choices

Medicare Select Option Lower premiums for fewer choices

Not offered in all states

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10-17

Medicare AdvantageMedicare Advantage Medicare + Choice, Part C Established through Balanced Budget Act of 1997 Alternative to Parts A & B Options

Fee-for-services Managed care plans Medical savings accounts

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10-18

Medicare Prescription Drug Medicare Prescription Drug Program Program

Part D

Covers 75% after $250 deductible up to $2,250

Cover 95% after $3,600 out-of-pocket

Employer subsidy for similar plan

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10-19

Workers’ CompensationWorkers’ Compensation

State compulsory disability laws

Enacted in 1911

Employer liable regardless of fault

Maritime, federal civilian, domestic agriculture, & small business workers not covered

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10-20

ObjectivesObjectives

Provide income & medical benefits

Reduce litigation

Relieve charities’ financial drain

Eliminate legal fees & time

Encourage employer safety

Promote accident study & avoidance

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10-21

NCSWCL ObligationsNCSWCL Obligations

Take initiative in administration

Review performance & adjust

Inform workers & insure payment

Inform providers & employers

Resolve disputes Adjudicate unresolved claims

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10-22

Workers’ Compensation ClaimsWorkers’ Compensation Claims

Injury

Occupational disease

Death

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10-23

Workers’ Compensation BenefitsWorkers’ Compensation Benefits

Medical services

Disability income

Death benefits

Rehabilitative services

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10-24

FMLA BenefitsFMLA Benefits 12 weeks of unpaid leave for

Birth, adoption, foster care Serious family medical problems Worker’s serious medical problem

Retention of Seniority Health insurance coverage Credit for previous service Accrued retirement benefits