Human Resource Department Sunday August 1, 2010 Memo To: Upper Management From: HR Training Recruiter Subject: Employee Benefits for Employees Introduction It has come to my attention, that employees are concerned over some issues with the health insurance plan we offer, retirement and saving plans, as well as their time off and FMLA rights. I have come up with an excellent employee benefit plan that would educate the employees on their rights and show them how these benefits are best for their situations.
The employee benefit plan includes the different types of health insurance they can pick from that would be best for their situation. A breakdown and explanation of how the retirement and saving plans work with every year that person stays with this company. Lastly a full detailed description of how they can apply for their time off or if FMLA is needed and their rights. There will be few seminars from me, to personally explain all the new changes as well as answer any questions the employees may have about these changes. Changes in Health Insurance
Many employees are have a tuff time affording the current health insurance plan. After doing some research there is a health insurance plan that takes less money out of the employee’s pockets and they have the option of picking their own health coverage. There will be an open enrollment at the end of this month for health providers that the employees can learn about and make their decision based on what is best for them. The current health plan only has one provider which is Blue Cross Blue Shield. We will now offer two other providers along with Blue Cross Blue Shield which are Anthem Blue and Aflac.
What is Open Enrollment? “Open Enrollment is the period of time employers set up to allow employees to choose from the plans available to them. Usually open enrollment covers insurance plans such as health, dental, vision, life, accidental death & dismemberment, short term disability and long term disability”. (Nathan, 2010). At this time you can review all the information on these providers and pick a plan that works for you. The health plans still cover single, couples, and families, but you have the option to choose your coverage as well as your co-pay.
This new plan will help them employees to understand the coverage that is available to them and the price they can pay for their insurance. For an example if you just want health coverage and that’s it then you premium and co-pay will be a lot less. Of course the best possible coverage is everything that we provide like, health, dental, vision, life, accidental death & dismemberment, short term disability and long term disability. For some people they feel they don’t need all this coverage and that is fine too, you pick your plan and your co-pay. Retirement and Saving Plans
Something new we have also done to make money more manageable for your retirement is switched the pension plan which was tied into the stalk market to a 401K. Here you decide what you want taken out of your paycheck and added to your retirement fund. “Here’s how it works: You decide how much you want to contribute, and your employer puts the money into your individual account on your behalf. The investment happens through payroll deduction: You decide what percentage of your salary you’d like to contribute and, from then on, that amount comes straight out of your paycheck and goes into your account automatically.
Your paycheck will be smaller as a result – though not as small as you might think, thanks to the tax benefits involved”. (CNNMoney. com, 2010). This way you know what you are putting back for later in life. Saving plans are a little different; this is solely your call on what you would like to save. We do offer a savings plan that is tied in with the company’s bank and it works like this. For an example you would like 20. 00 a week taken from your paycheck and put into a savings plan. This equals out to be 1,040 a year.
Say you stay with this company for 20 years; your savings plan has now reached 20,800. There is only one down fall to this savings plan and it is that after 1 year or you decide to leave the company you have the right to remove these funds. The savings plan is a yearly renal and you the person decide if you would like to continue to save your funds or take the funds out with no penalties against you. Time Off and FMLA Rights We understand that things happen in a person life that must have actions taken as soon as possible.
There are a few options the employee has as far as time off or leave. All time off or leaves are unpaid but the employee can choose the time off needed. 1. The fist leave/time off the company offers is a 10 day personal leave. This is for employees that have worked out their 60 day probation period. You can request this leave only if your probation period is over. This is an unpaid leave and employees must return to work after the 10 days or they are considered as job abandonment at which time termination will follow. 2.
The second leave/time off granted to the employee is a 30 day personal leave. This is for employees that have worked out their 60 day probation period. You can request this leave only if your probation period is over. This is an unpaid leave and employees must return to work after the 30 days or they are considered as job abandonment at which time termination will follow. 3. The last leave/time off the company offers is FMLA. To qualify for time off through FMLA, employees must be employed for 12 month and a minimum of 1,250 hours.
The 12 month period does not have to be consecutive. Employees can take up to 12 weeks off during an employer-determined 12-month period. Before FMLA can be granted, all vacation or sick time must be used first. This is an unpaid leave and employees must return to work after the 12 weeks are over or they are considered as job abandonment at which time termination will follow. Conclusion We strive to be the best, and all starts with the employees that work for this company. If not for the employees the company would not be successful.
As times are tuff right now with the economy we wish to make things easier for the workers. I hope all the new changes will help with everyday living and relieve some burdens in your lives. Thanks to all that have made this company what it is today. References Nathan, S. (2010, August 31). Open Enrollment. Message posted to http://employeebenefits. about. com/od/employeebenefitbasics/a/OpenEnrollment. htm CNNMoney. com. (2010). Ultimate guide to retirement. Retrieved from http://money. cnn. com/retirement/guide/401k_401kplans. moneymag/index. htm