Part -1
Assignment:
Non-qualified benefits/plans simply means that the benefit or plan are intended for a few employees in top management, perhaps only one person and so, the cost of the benefit(s) is(are) not tax-deductible. The cost cannot be expensed for tax purposes.
Yahoo! was just sold. See what you can find out about the compensation and benefits of the CEO. Discuss in an essay what you found out and state why it makes sense to provide that level of total compensation and then argue why it does not.
Assignment: Cafeteria Plan
1. From the benefits discussed in the two chapters, make a list of those that you personally find valuable.
2. Would you require any of the benefits in the two chapters to be mandated by the government? Why or why not?
Assignment: Saving Social Security
Make a list of ideas of how the U.S. Congress might take action to insure Social Security is there for you and your children (should you have any.)
Take a look at the short handout on Social Security and also feel free to google the topic. If you provide ideas you found on the web, please cite the source. Frankly, I would prefer you think about this yourself and present (mostly) your own ideas.
Assignment: Retirement Savings
Using the Annuity Calculator, determine how much you will need to save at the end of each month of your working life. To do this, modify the Annuity summer 2017 spreadsheet per the following instructions, save the file and submit in the assignment. A copy of the Annuity Calculator is also attached.
1. In the yellow cells, enter what you think you will spend money on in your retirement and then estimate as best you can what the monthly cost will be If there is an annual expense, like traveling, then divide it up for a monthly cost. One objective of the assignment is to get you to think about what expenses you will have given what you want in life (travel, pets, a spouse, a second home, etc.)
2. I gave you 360 months or 30 years of life after you retire. Feel free to modify that. Northwestern Mutual has a Longevity Game on its website that has you respond to some questions, then projects the life expectancy, given your characteristics. I had one student who was projected to live to 103, but another who was expected to live only to age 49. Use that website's projection if you want.
3. Once there is a number in the green cell, save the spreadsheet and submit it.
Part -2
1. What information does the employer owe employees under ERISA?
First:
Second:
2. What is vesting and how is the time until an employee is 100% vested determined?
3. ERISA's main purpose is to: (To answer, put the line you think is correct in 16 font.)
a. protect most employee benefits for those not in top management in the private sector
b. protect top management benefit programs
c. oversee all employee benefits issued by any organization in the United States.
d. protect only retirement programs of employers in the private sector
4. Why would an employer offer benefits, instead of just core, cash, compensation?
5. Match the following benefits with their primary funding sources. If the source may differ on a state by state basis, use NY State as your reference. Items A through D may be used more than once.
Medicare _______
Medicaid ________
Social Security Retirement _______
Unemployment _______
SSI _____
A=income taxes (Federal and/or state) B=payroll taxes
C=employer (non-income)taxes D=other
6. How do non-qualified benefits and benefit plans differ from plans and benefits that are qualified?15 points. Provide 2 examples of specific, non-qualified benefits (plans)
7. Why do you expectations of how you and your employer will act matter. (Thought question relating back to first couple of chapters.)
8. Relating some specific examples, how are employee benefits different in the U.S. than most other countries? Do you believe one general approach is better than the other? (In other words, would you change how the U.S. deals with employee benefits?)
9. What are the benefits that someone (who qualifies) MAY receive from Social Security?
10. Opinion: What is the singular most useful thing for you, thatyou learned in this course? You must provide an item and some discussion to get credit. "Everything" doesn't count or does "nothing". Provide enough detail so I know you learned something.
Part -3:
There are profiles of the benefits provided in several countries. You are to make a table comparing 1 country in the book with a country paired with it below. Also relate if the U.S. has that benefit mandated.
You may do a web search and library search to find the benefits provided or mandated in that other country.
United Kingdom & Ireland
Argentina & Chile
Sweden & Finland
China & Russia
Mexico & Cuba
Hong Kong & Singapore
Germany & Poland
France & Spain
Canada & Iceland
India & Vietnam
Japan & Indonesia
Attachment:- annuity summer.xls