YOUR COMPENSATION

INCLUDES MUCH MORE

THAN JUST SALARY

BENEFIT PACKAGES – what’s included?

Health InsuranceDental/VisionLife InsuranceLong Term Disability – LTDEducational Benefits (employee and dependents)Sick LeaveVacation LeavePTO – Paid Time OffHolidaysRetirement ContributionsParkingChildcare Facilities

HEALTH INSURANCE

Average cost of an office visit - $80

Emergency Room Visit - $256

Average cost of a MRI - $2,064

Average cost of a broken ankle (visit, x-ray and cast) - $1,386

Average cost of a birth - $8,000 to $10,000

Average cost of having your wisdom teeth pulled - $1,100

HEALTH INSURANCE

“Health Insurance Premiums Rose Four Times the Wages and Inflation in the last decade.”

“The average employer-sponsored premium for a family of four costs close to $13,000/year and the employee foots about 30% of the cost.”

National Coalition on HealthCare – September 2009.

HEALTH INSURANCE

WHAT DOES THIS MEAN TO YOU – as the cost of health care costs increase for your employer – more costs are shifted to you either through lower salaries, lower health insurance coverage or higher premiums.

HEALTH INSURANCE Types of Health Insurance

Health Maintenance Organizations (HMO)Primary care physician – coordinates care Pre-approved appointments onlyLeast expensive plan for employeeReferrals to Specialists required

Preferred Provider Organizations (PPO)More flexibility Payment to health care providers negotiatedIn and out-of-network care available

HEALTH INSURANCE

Types of Health Insurance (con’t)

Indemnity Plan or Fee-for-ServiceOffers the most freedom & flexibility

Few employers offer this plan – expensiveExpensive plan for employee

DENTAL/VISION INSURANCE

Dental plan maybe included in the health plan or a stand alone plan that costs extra.

Dental plans usually pay 100% for preventative

80% for restorative – fillings 50% for crowns

Vision coverage is usually part of medical plan but can be stand alone or not offered.

LIFE INSURANCE

Term Life No cash valueInexpensiveTerms at end of employment

Whole LifeHas a cash valueCost based on ageUsually not offered by employers

LONG TERM DISABILITYLTD

One of your most important benefits – replaces a % of your salary if you become disabled (usually a 6 month waiting period).

An expensive benefit to provide to employees.

EDUCATIONAL BENEFITS

An important benefit if you want to further your education.

Educational benefits can be offered to spouses/dependents

You could be taxed on the value of the benefit.

PAID TIME OFFPTO

Vacation leave and sick leave combined.

Accrued – carries over to the next yearOr

Use it or lose it at the end of the year

RETIREMENT

401(k) Contributions – retirement savings plan funded by a for-profit employer

403(b) – Contributions – retirement savings plan funded by a non-profit employer

RETIREMENT

Eligibility Requirements – waiting period

Employer Contributions & Matching Contributions

Supplemental Retirement – money deferred by employee

Vesting – meaning yours to keep when you leave the company – can vest immediately or a period of time.

Early Withdrawal – no withdrawals except hardships, are allowed until you terminate.

RETIREMENT

Tax-deferred compounding – one of the best features of either 401(k) or 403(b) plans.

Your contributions are pre-tax and money earned is also pre-tax until withdrawn.

RETIREMENT$1 million – in your 401(k)

Saving just $200 a month or $1.15 an hour for 35 years assuming 10% interest.

Waiting 5 years to begin saving you will need to save $356 a month or $2.05 an hour.

Waiting 10 years to begin saving you will need $634 a month or $3.66 an hour.

JUST DO IT!

RETIREMENT

$50,000 – salary

You contribute 10% of your salary into your 401(k) - $5,000

$45,000 is your new taxable salary

Claiming a $45,000 salary instead of a $50,000 lowers your tax bill by $1,400 (28% tax bracket)

Because you took advantage of pre-tax contributions - your new take home salary instead of being reduced by $5,000 is only reduced by $3,600.

You are paying yourself first and paying Uncle Sam second.

OTHER BENEFITS

Free Parking

Holiday Pay

Childcare Facilities

Short-term Disability

WHAT IS YOUR REAL COMPENSATION? (It’s more than just salary )

Total Compensation includes:

Salary Benefits (employer paid, i.e. health,

dental, vision, life, etc) Employer Retirement Contributions Employer payment to Social Security and

Medicare Taxes Educational Benefits Disability Benefits