Reference no: EM132885406
The company offers a comprehensive self-insured health plan with benefits equivalent to the Silver plans under healthcare.gov. Participating employees contribute $100 per month ($150 per month for family coverage), and the deductible is $1,000 per year for an individual and $1,500 per year for family coverage). Employees may choose to participate in the health plan from their first day of work, or they may annually choose to enroll during the 1-day open enrollment period. Over the last two years, the plan cost around 50% of payroll, partly because the children of two employees unfortunately got diagnosed with rare forms of cancer that were very expensive to treat (both have recovered, happily!). company has no excess-of-loss insurance.
Company offers no vision or dental insurance & no long-term or short-term disability insurance.
Company provides a wellness program that also covers $10 toward per month toward the cost of a health/fitness club membership for all employees. company also provides a doggy play area for employees who wish to bring their dogs to work. A vet attends the doggy play area once a week, paid for by Company. There is no charge for using the doggy play area.
Company makes no contributions to unemployment insurance & purchases workers' comp insurance from a private provider. Coverage has not been reviewed in many years & the CEO's believe that they are paying 2.5% of payroll for this insurance. The CEO's cannot recall ever having made a claim.
No HSA is offered currently
A non-contributory defined benefit (DB) plan is offered to all employees, after a 3-year minimum service requirement. The plan provides a retirement benefit of 1% of an employee's highest salary for every year worked at the company. The plan does not pay COLA's. The plan has a minimum age requirement of 16. The plan uses a 9-year-cliff vesting schedule. The maximum number of years an employee can earn is 40. Up to now, no call center employee has ever vested in the DB plan. The plan actuary has priced the plan using the Entry Age method, with an assumed entry age of 30, a retirement age of 62, no mortality or termination between entry and retirement, and a discount rate of 10% p.a. both pre- and post-retirement. Salary growth is assumed to be 2% p.a. and the actuary uses US national mortality tables from the Social Security Administration to price the plan.
Employees may participate in both the DB plan and the DC plan
Identify any issues you see with the health plan.