differnet levels of benefits

lrobb

If we want to offer different levels of benefits to different job classes is there a problem with that as long as the same benefits are available to any eligible ee in the job class. For instance, MD's, nurses etc

Peyton Irby MS

There are non-discrimination rules (no discrimination in terms of benefits provided in favor of highly compensated employees) with any "qualified benefit" plans under ERISA. There are too many variables to consider for a quick answer. Your best avenue is to consult a benefit plan specialist.


Peyton Irby
Editor, Mississippi Employment Law Letter
Watkins Ludlam Winter & Stennis, P.A.
(601) 949-4810
[email]pirby@watkinsludlam.com[/email]

stilldazed

We offer three different levels of benefits. I would strongly suggest that if you are not doing it now, research it thoroughly. You are generally correct, as the other poster alluded, that as long as you identify your packages and offer a like package to every eligible participant in a class, you will probably be OK. The downside is complexity for administrative staff, the level of discretion required in communications to different workers, a consequent sense by workers with the least favorable package of being of lower value to the organization, affordability by workers, etc. We had 6 different plans in place when I joined the organization in '01. Administration had been such a nightmare that the 6 plans had morphed into way more than 6. It literally took years to correct the issues, redefine the plans, and transition folks into a more streamlined approach. We lost a few employees each time we made some changes, but we finally landed on 3 well defined plans about 3 years ago. It has been much easier. As an administrator, I wish we had only one.

Again, consider the pros and cons, and take an honest look at the administration, presentations, troubleshooting. The more plans you have, the more labor intense each of those can be.

best wishes.