Employee Benefit Environment Flashcards
1
Q
Employee Benefit Environment
Reasons for Growth of EE Benefit Plans
A
- External forces
- Attract and retain EEs
- Corporate efficiency
- Social objectives
- Collective bargaining
- Favorable tax legislation
2
Q
Employee Benefit Environment
What is the purpose of the Group Technique?
A
Prevent adverse selection
3
Q
Employee Benefit Environment
Characteristics of Group Technique
A
- Only certain groups eligible
- Steady flow of lives through group
- Minimum number of people in group
- Minimum portion of group must participate
- Eligibility requirements
- Max limits for any 1 person
- Automatic determination of benefits
4
Q
Employee Benefit Environment
Employee Benefit Concerns
A
- Benefits provided
- Who is covered
- Should EEs have benefit options?
- How should plans be financed, administered, and communicated?
