1、,REGULATING EMPLOYEE BENEFITS,Chapter 4,McGraw-Hill/Irwin,Copyright 2011 The McGraw-Hill Companies, Inc. All rights reserved.,Noelle Baker, Contributing Editor,4-2,LEARNING OBJECTIVES,Necessity of government regulation of employee benefits Influence of NLRA (1935) Impact of Internal Revenue Code Fai

2、r Labor Standards Act (1938) Employee Retirement Income Security Act (1974) Pension Protection Act (2006), COBRA, HIPAA Impact of federal equal employment opportunity laws,4-3,Noelle Baker, Contributing Editor,Leveling the Playing Field,Legal protections granted to employees seek to make the power r

3、elationship between employer and employee one that is fair and equitable. Bennett-Alexander and Hartman,Noelle Baker, Contributing Editor,4-4,Historical Perspective,National Labor Relations Act of 1935 The Great Depression left workers desperate for employment and in need of laws to equalize the pow

4、er in the employer/employee contract. NLRA applies to private sector companies except passenger, freight, rail Defined contribution Plan: employers and employees make contributions to separate accounts and amount received depends on ROR (rate of return) on investment (typically a % of annual salary;

5、 % may differ for employer and employee 2.5%:7.5%) Multiemployer Plans: employees that move from employer to employer as work is available (skilled trades, construction site workers),Noelle Baker, Contributing Editor,4-19,Seven Issues Addressed by Title I,Reporting and Disclosure Vesting reports on

6、plan status (credits/accrual), To diversify the plan to minimize risk Act according to the proscribed document plan Trustees have the exclusive authority to control and manage the plan,Building Trust Through Transparency,Noelle Baker, Contributing Editor,4-23,Plan Termination Insurance,Distress Term

7、ination: a company is in financial distress. Involuntary Termination: the Pension Benefit Guarantee Corporation may terminate a company if the minimum funding requirements are not met or the plan cannot pay out its benefits Standard Termination: A plan may terminate if it can meet all its obligation

8、s and goes through all the steps of notification identified in Exhibit 3.4 of the textbook Title IV established the Pension Benefit Corporation (PBGC) which is a tax Exempt, self-financed corporation created to insure defined benefit pension plans under PBCGs pension insurance programs, the administ

9、rator of the plan and the companies that sponsor the plan have specific administrative and reporting responsibilities.,4-24,Noelle Baker, Contributing Editor,Participation Eligibility state and local government, most employment agencies, and union shops with over 25 members. Specifically addresses b

10、enefit administration and early retirement plan offerings must be on a voluntary basis. The Older Workers Benefit Protection Act places additional restrictions on the employer to prohibit differential treatment based on age.,4-35,Noelle Baker, Contributing Editor,Pregnancy Discrimination Act,Prohibi

11、ts discrimination against women in the workplace based on their pregnancy. Pregnancy may not be treated less favorably than other medical conditions.,4-36,Noelle Baker, Contributing Editor,American With Disabilities Act of 1990,Employers must provide the same health insurance regardless of disabilit

12、y status.,Employers may not fire or refuse to hire individuals with documented disabilities where a reasonable accommodation is possible. Employers must provide include persons with disabilities in their pool even if it will result in an overall rate adjustment for the company. The Americans With Di

13、sabilities Act of 2008 retains the original definition of “disability” but expands the definition of major life activities. The ADA applies to the same organizations as Title VII.,Noelle Baker, Contributing Editor,4-37,CIVIL RIGHTS ACT OF 1991 RELEVANCE,Employers must show that the challenged employ

14、ment action is a “business necessity”. Protects same groups as Title VII. Its relevance to employee benefit practices is illustrated in an employees ability to challenge the use of seniority systems using a continuing date of incident either the original date of incident or each time an incident occ

15、urred.,4-38,Noelle Baker, Contributing Editor,Genetic Information Nondiscrimination Act of 2008,Title I of the Act prohibits discrimination in employer-sponsored group health premiums based on genetic information or the using the information as a basis for determining eligibility or setting health i

16、nsurance premiums. Title II of GINA prohibits the use of genetic information in employment decisions and also the disclosure of said information. Title II applies to all three employment sectors. Bars the use of genetic information to discriminate in health insurance and employment. The act was created because of the decoding of the human genome and advances in genomic medicine.,Noelle Baker, Contributing Editor,4-39,Regulating Employee Benefits,The focus of