What Is a Supplemental Executive Retirement Plan?

Enterprise supplementary benefits refer to the welfare items defined by the enterprise in addition to the basic legal benefits of the country. The number of enterprise supplementary benefits and the level of the standard are largely affected by the economic benefits and ability to pay of the enterprise, and Think for your own purpose.

Business Supplementary Benefits

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Corporate supplementary benefits refer to

At present, some large modern enterprises are paying more and more attention to corporate welfare.

The benefits and services defined and provided by enterprises themselves are collectively referred to as welfare compensation in many enterprises. Includes life insurance, education plans, health insurance and services, child benefits, and some life for employees. These benefits are of an indirect income nature. It is therefore a supplement to monetary compensation. Corporate employee welfare programs are increasingly diversified. There are the following categories:

Health insurance plan

Why companies are committed to developing health insurance plans. There are three main reasons:

(1) With the rising cost of corporate health and welfare, we need to find new ways to control medical costs and co-ordinate the medical expenses of employees. There are three main reasons for the increase in the cost of welfare and health protection. The first is the increasing number of projects. Some developed countries In addition to daily disease treatment, health protection also includes many items such as health care, dentistry, and vision care, which cause medical expenses to rise; the second is wasteful and inefficient management systems, such as the continuous increase in the fees charged by the medical sector and the over-consumption of employees. The common problems faced by national enterprises; Third, with the aging of the population, the labor force of enterprises is also gradually aging. These factors have led to an upward trend in corporate healthcare costs.

(2) The increase of enterprises' investment in human capital. Health investments are also human capital investments. With the intensification of competition, companies have gradually realized that the physical and mental health of employees is an important aspect of human resource development and management. In the past, corporate health care focused on the treatment of employees' physical diseases, and did not focus on mental and mental health care. As people attach more importance to mental health, investment in companies is also increasing. In addition, in recent years, alcoholism, drug use, and AIDS have become serious social problems in developed countries. It also greatly affected the efficiency and corporate image of the company. Forcing companies to treat their employees with physical and psychological problems.

(3) The increase of employees' health needs. With the improvement of living standards and education, employees' awareness of health insurance is becoming stronger and stronger, and the demand for health care is increasing. Companies are responding to these needs. Increased investment in health insurance. There are various ways to implement health insurance programs. usually. To improve the effectiveness of health care projects. Both adopt a management approach in which enterprises and employees jointly invest and benefit. But in terms of input sharing. Enterprises with good benefits and high benefits. Enterprises may invest more; otherwise. More staff input. but. Nor does it rule out that some companies use health benefits as a means of attracting talent and a commitment to employees. At the same time as setting up health and welfare programs. There are measures to strictly control health and welfare expenditure. Such as the establishment of employee cooperative medical care. Make up for the shortcomings of health insurance; induce employees to reduce their interest in health insurance through other benefits plans; Reduce the proportion of employees' hospitalization expenses.

Annuity plan

Annuity plans are corporate pension plans. Traditional annuity plans are set up only for older employees who have retired after years of service in the business, so that they can receive pensions from the company on a monthly basis after they have retired after working for a certain number of years. At present, enterprise annuity plans are mainly divided into three levels, one is the state's statutory pension and reimbursement; the other is the enterprise's pension plan formulated for employees. It is also referred to as the company's supplementary endowment insurance plan; the third is a commercial endowment insurance project that employees individually participate in.

Closely related to enterprises is the enterprise supplementary pension insurance scheme. Its basic feature is the organic combination of various old-age security methods to complement each other in order to achieve the goal of elderly economic security. This is a higher-level endowment insurance system that has been developed and developed in developed countries. The reason why corporate supplementary pension insurance is called supplementary insurance is in terms of the relationship between the three levels of insurance systems. Social basic endowment insurance is an endowment insurance system characterized by redistribution of income. It is the foundation of multi-level endowment insurance. It best embodies the principles of equity and relief in social insurance. Provide minimum income protection for low-income workers who cannot achieve the goal of endowment insurance through self-accumulation (enterprises and individuals). Coverage is wide. But the level of income security is low. Enterprise supplementary pension insurance is linked to employment because of its emphasis. And can provide supplementary retirement income security. Therefore, it is an important supplement to the basic social endowment insurance system.

Enterprise supplementary endowment insurance is a form of commercial insurance established by enterprises. Its main sign is that it adopts the management of fund system, while the management and operation of insurance funds are moving towards marketization and socialization. Enter the capital market. This is one of the main differences from basic insurance. Enterprise supplementary endowment insurance is entrusted by the enterprise to a specialized operating agency to engage in fund operations, allowing it to enter the capital market in the form of investment. Therefore, it can effectively avoid the disadvantages of administrative management. Reduce management costs. Bring rich profits to policyholders.

Some sources of supplementary pensions are paid by the enterprise. Some are paid by both the company and employees, but the company is the main investor. The operation of insurance premiums is directly related to the effectiveness of the enterprise. By nature, supplementary pension is part of the future income of employees, but whether an enterprise can provide future endowment insurance for employees depends on the current operating benefits and expected benefits of the enterprise.

There are two basic forms of corporate supplementary endowment insurance:

First, the Nafee type. Contribution-type supplementary endowment insurance is a way for enterprises to establish endowment insurance accounts. The insurance premiums are paid regularly by the enterprise and its employees (mostly enterprises) at a certain percentage. The level of supplementary endowment insurance when employees retire depends on the scale of fund accumulation and their investment income.

Second, the benefit type, also known as the supplementary pension insurance form. This form has the nature of corporate benefits and rewards, and is usually an old age pension paid by an enterprise based on its experience, qualifications and other conditions. It generally depends on two basic factors: the specific income level of the employee and the length of labor employment, such as the product of a percentage of the income level before retirement and the length of labor. The level of benefits constituting supplementary pensions.

3. Housing plan

Housing plans are what many businesses motivate and retain employees. An important means of addressing employees, especially young and newly recruited employees. Many companies have developed and implemented housing plans. E.g. At present, most of the foreign capital and joint ventures in China have implemented employee housing plans. 82% of enterprises have established a housing provident fund. The other ways to solve employee housing are in turn: companies monetize housing. Included in the salary; the enterprise builds or purchases a commercial house and sells it to employees at the cost of the house management department. Employees enjoy part of the property rights; the company issues a certain amount of housing subsidies on schedule. Does not address housing; the property that the enterprise will build or purchase will belong to the commercial housing of the enterprise. Assigned to employees for free or low rent. Refunds are required when employees leave the company.

4. Educational training plan

In recent years. With the company's emphasis on talent training and use. Companies have increased their investment in employee training costs. Many companies have designed training programs for employees that correspond to their career development. And take a variety of means to motivate employees to update their knowledge and skills. Employee education and training programs are multiple in nature. Welfare is not mainstream, though. But it can play a unique role in two aspects: First, it can change the function of corporate welfare to simply provide life services. The company's well-being and corporate human resources development strategy are well combined; the second is to meet the individual needs of employees for high-level development. Good combination of enterprise development and employee self-development. Many well-known large companies have been effective in implementing employee education programs. Many companies in China have also begun to attach importance to the implementation of employee education programs. For example, at present, 75% of foreign companies in China have about 5% of their annual training expenses as a percentage of sales revenue. Among them, the average training budget per company is 1636 yuan / year. The time is 8.2 days / year; the average per-person training budget is 3384 yuan / year. The time is 5.5 days / year.

5. Staff service plan

In addition to the above benefits, the company also provides employees or their families with direct services designed to help employees overcome their difficulties and support their career development.

(1) Employee assistance plan

This is a therapeutic benefit program. It is a service plan that provides counselling and assistance to employees about psychological depression caused by alcohol, gambling, drug use, domestic violence or other diseases. According to the statistics. In the United States, 10% to 15% of employees will encounter difficulties affecting business performance. therefore. Many companies have established employee assistance programs. 1997. 59% of companies provide assistance services to employees. Although the cost of this benefit is relatively large. But the benefits it outweighs the cost. On employee assistance programs. The average employee spends about $ 30 to $ 40. However, as a result, the occurrence of adverse phenomena such as absenteeism, accidents, and casualties has been greatly reduced. In the organization and operation of the program. There are three forms: one is the assistance activities carried out by internal staff in the enterprise; the second is that the enterprise provides services by signing contracts with other professional institutions; and the third is the concentration of resources by multiple enterprises. Work out a plan of assistance.

(2) Employee consultation plan

This is similar to an employee assistance program. Businesses buy a package of consulting services for their employees from an organization that can be used anonymously by employees. The range of services available there includes: resolving couple and family conflicts, quitting addiction, relieving bereavement, career counseling, reemployment counseling, legal counseling, and Lan retirement counseling. The reemployment assistance program provides technical and spiritual support to unemployed and fired employees. Help employees find new jobs. Specific services include: career assessment, job search method training, resume and cover letter writing, interview skills and basic skills training. These services are provided as employee benefits. The goal is to enable employees to maintain work at an acceptable level when there is a problem with their personal or family life.

(3) Family assistance program

This is a benefit provided by the company to the care of family members. It mainly takes care of the elderly and children. Due to aging and the increase in dual-worker and single-parent families. The burden on employees to take care of elderly parents and young children has increased. therefore. To give employees peace of mind. Businesses provide home assistance benefits to employees. There are mainly elderly care services and child care services. The elderly care services provided by the company include:

1) Flexible working hours and leave system. Flexible working hours are allowed to compress weekly working days (10 or 12 hours per day). In this way, you can spend an extra day to one and a half days a week to take care of your family. The leave system allows employees to take time off during work hours to take care of relatives or handle emergencies. Also. Some companies also allow employees to extend the leave time required by statutory benefits.

2) Provide employees with information on elderly care. Recommended for elderly care centers.

3) The company makes financial compensation for the contributions of employees who have an elderly care institution. Or directly support the elderly.

(4) Family life arrangement plan

The company arranges special departments to help employees handle various chores and sundries in life. Similar to logistics services. It is reported. Microsoft Global Technology Center in China. There is a special department-the administrative department is responsible for the life affairs of the staff. Undertake the role of "nanny". Its work includes: helping employees pay utility bills, accessing relatives and friends from abroad, finding rented houses, recharging credit cards, paying monthly mortgage payments, and delivering personal belongings. As long as it is a private matter that can be handled by someone. Microsoft employees can ask the administrative department to arrange someone to do it. The purpose of implementing this package of benefits. It is to minimize unnecessary troubles for employees. Let them work and rest better.

In addition to the benefits mentioned above. The company also provides employees with welfare programs such as transportation services, health services, travel services and catering services. Some companies provide transportation subsidies for employees to work. Add the monthly fare for buses, subways and trains. Some companies also provide shuttle services to and from work. In many companies. The company provides employees with a gym and a variety of fitness equipment. Health education seminars are also held for employees. The purpose is to improve and maintain the physical and mental health of employees. Organize employees to travel in spring and autumn. Or provide employees with travel holidays and reimburse travel expenses. In addition, the company provides catering services for employees. The canteens established within the company are generally non-profit and serve employees at a cost below cost. Some canteens even eat for free. For companies without a cafeteria, employees' work meals are often arranged uniformly, such as ordering through takeaway. Water or vending machine services are even more common.

The benefit plans discussed above are all-member benefits plans, that is, benefits that all employees can enjoy equally. In fact, companies also have special benefits and special benefits for employees with different positions and different needs, which are designed for senior talents in the enterprise, such as senior management personnel or professional professionals. It is actually the contribution rate, which is a special report for such personnel. Common special benefits are: luxury car services, flying on business trips, and star-rated hotels.