Chapter 1: Introduction to Employee Benefits
Be able to describe the increase in the percentage of compensation devoted to employee benefits over time. Be able to explain what factors are responsible for this increase.
Why does the percentage of your salary devoted to employee benefits matter to you?
What are some of the public policy issues related to employee benefits, and what are the implications?
What are some of the likely future trends in employee benefits that we discussed in class?

Chapter 2: Employee Benefit Management and Planning
What are some of the employer objectives when designing a benefit plan? How specific are these stated goals, and how easy are they to measure?
How do employers determine who should receive benefits, and how do they decide what types of benefits to offer? What are the advantages and disadvantages of a market research approach? What are the advantages and disadvantages of using top management’s perception to design an employee benefit plan?
What is the life-cycle approach’s main recognition? What is the work-life approach’s main recognition?

What are some of the methods used by employers to control costs? How could self-funding control costs?
What methods do employers use to communicate employee benefits information to employees?
What factors influence the outsourcing of employee benefits? What is meant by outsourcing serving as a “buffer” function?

Chapter 3: Social Security and Medicare
Why does social insurance exist? What are some of the characteristics of social insurance?
What benefits are included in the Social Security program? (OASDI)
What are the tax rates for Social Security and Medicare? What is the wage limit for Social Security? What is the wage limit for Medicare? How does the “employer match” work?
How does one qualify for Social Security benefits? How many credits must one have to be considered fully insured or currently insured? Fully insured status qualifies you for what benefits? Currently insured status qualifies you for what benefits?
What is the current full retirement age for Social Security? What is the earliest one can begin collecting Social Security retirement benefits? What will be the full retirement age at the time of your retirement? What happens to your benefit if you retire early/late?
Who qualifies for retirement benefits? Who qualifies for survivor benefits? Who qualifies for disability benefits from Social Security?
Be able to calculate a benefit if given the percentage replacement rates, as we did in class.
Overall, how generous are Social Security benefits?
Who qualifies for Medicare benefits?
What does Medicare Part A, Part B, and Part D cover?
What does one gain by choosing Medicare Advantage (Part C)? What does one give up?
What does the term “doughnut hole” refer to in Medicare Part D?
What is the primary financial challenge facing Social Security and Medicare? What options do we have to solve it? Which of the options do you find most appealing?

Chapter 4: Other Social Insurance Programs
What percentage of workers are covered by unemployment insurance?
What are the goals of the unemployment insurance program? How does the program give employers an incentive to retain workers?
Who is eligible for unemployment benefits? What things can disqualify a person from being eligible?
How long do unemployment benefits last (not counting federal extensions)? What is the replacement ratio, and what is its highest value in any state? What is meant by a “low recipiency rate”? Why are the maximum payouts deliberately low? Are benefits taxable?
What is the purpose of a workers’ compensation insurance program? What is the doctrine of strict liability, and how does it represent a change in who is held responsible for workers’ injuries? What do we mean by workers’ compensation as the “exclusive remedy” for injuries at work?
What benefits are provided in the workers’ compensation program? Are they taxable?
How much are benefits for total disability?
What are some of the issues facing the workers’ compensation system today? Explain the concept of 24-hour coverage, and what the advantages and disadvantages of such a system would be for an employer and its employees.
Chapter 5: The Group Environment
Be able to explain what contributory, non-contributory, and voluntary benefits are.
Be able to explain self-funding.
What are some of the characteristics of group insurance?
What are some of the principles underlying group underwriting?
What is the advantage of using group insurance for voluntary benefits, if the employee is paying the total cost?
What are some typical benefits offered on a voluntary basis?
What are some of the federal and state regulations that apply to group insurance?