Question

What policy issues must employers address when developing benefit plans? What federal laws influence employers' pension and health plans?

Answer 1

answer-

Developing benefits plans is not a easy task for employers because any issue can raise legal situation for employers. In order a perfect benefit plan which is legal then employer should cover following issues-

What type of benefits are to offer to employees like medical benefits, family benefits, insurance, pension etc.

Who is eligible to receive these benefits and its coverage

Issues related to ex employee or retiree should be covered in the benefit plans or not

whether to deny or allow benefits to employees during the initial "probationary" periods

Where to get finance for these benefits

How to reduce cost of benefits

The mode of communication to communicate these benefit plans to employees

so, above are some imortant issues which can arise while making benefit plans.

there are Federal laws which have huge influence over employer's pension and health plan. these laws are

COBRA law- The Consolidated Omnibus Budget Reconciliation Act (COBRA) is a landmark federal law, passed in 1985, that provides for continuing group health insurance coverage for some employees and their families after a job loss or other qualifying event.

FMLA- The Family and Medical Leave Act (FMLA) guarantees certain employees up to 12 workweeks of unpaid leave each year with no threat of job loss. It also requires that employers covered by the law maintain the health benefits for eligible workers just as if they were working.

ADA law- ADA refers to the Americans with Disabilities Act of 1990 which is one of the most significant federal laws governing discrimination against persons with disabilities. The ADA requires that reasonable accommodation be made so as to provide individuals with disabilities equal opportunities.

ERISA law- The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.