1. Provide an overview of discretionary benefits. (pp213-214)
a. We start seeing benefits in the 1875
i. American Express offers their employee a retirement plan
b. 1913- Woodrow Wilson is president he was a progressive democrat and was a ugenius (weed out our abnormality, such as race, disabilties)
i. 1911 we start passing workers compensation (to prevent workers compensation)
c. 1935- Social Secruity for the retirment age for 62 but the average living age was 52 so the polticians didn’t set it aside and used it as general funds.
d. Union Membership increases in the 1940s at about 43-56%
e. World War II- Wage stagnation during the 50s- companies don’t have the direct funds to pay employees. So they begin making retirment plans and giving medical insurance so they don’t loose good employees.
f. Medicare and Medicaid- established (Great Society)
g. 1974 ERISA, IRC Section 125, HMO Act
i. Local state and federal employees were not covered by EIRSA ii. SO they were getting these funds and using them for dead end projects iii. Section 125 actually lays out the tax information iv. HMO- Control health care, before you went to see see a doctor you had to get pre approval.
h. Today’s Health Care Debate
i. The Great Depocal “Obama Care” ii. That everyone should be given health care iii. July 1, 2013 is the first medical step iv. Universal January 1st 2013 first tax break
v. If Republicans gain control of the senate or the house then they will have a senate override
2. Identify and describe the minimum standards for qualified plans.
3.
4. Contrast flat benefit and unit benefit formulas.
5. Focus on Chapter 10 terminology concerning both retirement plans and health insurance
a. ERISA Title 1 requirment
i. Reporting and disclosure requirments ii. How do you handle their health care after they retire iii. Under EIRSA employee pension benefits plan