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HOFSTRA UNIVERSITY

FRANK G. ZARB SCHOOL OF BUSINESS

 

“to provide students with a perspective on the integration of the functional areas of business, while maximizing the use of analytical skills and knowledge for decision making in a contemporary global business environment”

 

DEPARTMENT OF MANAGEMENT AND GENERAL BUSINESS

MGT 123 -- MANAGING EMPLOYEE BENEFITS

 Undergraduate - Spring 2003

 

Instructor:                     Janet Lenaghan                                    

Office Hrs:                    Saturday -7:55am - 8:55am

Office Location:            Room 053 Weller Hall             

Office Ext.:                   36574                                                            

E-mail address: PERJAL@HOFSTRA.EDU

 

Department of Management & General Business

Weller Hall, Room 228. 

Extension: 35726

Department Chair -- Dr. Bruce Charnov

 

DESCRIPTION OF COURSE         A comprehensive analysis of design, funding and administration of employee benefit plans. Special interest is given to the contemporary issues, including pending legislation and current trends.  Topics include the environment of employee benefit plans, social insurance, defined contribution plans, defined benefit plans, taxation, health and welfare plans, and plan communication.  Each topic will be discussed from a public, private, multi-employer and international view.

 

PREREQUISITES OF COURSE     MGT 101 and junior class standing or above.

 

REQUIRED TEXT:  Burton T. Beam, Jr.  and John J. McFadden, Employee Benefits, Sixth Edition, Dearborn Financial Publishing, Inc.

 

ASSIGNED READINGS   Each student will be responsible for the readings assigned from various trade journals and magazines relating to the subjects discussed in class.  Most of the readings will be placed on reserve in the library for the student's convenience.

 

 

OUTCOME OBJECTIVES AND METHODS OF ACHIEVING THE OBJECTIVES

To acquaint the student with the field of employee benefits.  Upon completion of the class, the student should be able to understand the basic issues involving an employee’s total compensation package including government mandated benefits as well as employer sponsored benefits; the interaction between all employee’s benefits including financing, needs-assessment, communication and design, and legal issues.  The student should be more aware of current trends and issues in the field of employee benefits including Congressional discussions, legislative updates, and societal concerns. Lastly, throughout the semester, discussions will include different career possibilities in the employee benefit field.

 

 

ATTENDANCE POLICY   It is expected that each student attends class and be prepared to discuss the assigned material.  If an absence is unavoidable you will be expected to obtain the information discussed during the missed class and be prepared for the next topic. However, more than three absences will result in your final semester grade being lowered.   Equally as important to attending class is that you arrive on time. If you are late, please enter the room without any disturbance.  If you arrive after attendance is taken, you will be marked absent.  Remember participation is 10% of your grade - if you are not in class you will lose points.

 

METHODS OF EVALUATING STUDENTS

Exams - 75% of final grade

There will be three (3) exams each worth twenty-five percent of your final grade.  The exams will test your knowledge of the covered material including class discussion and assigned readings.  You will be expected to apply what you have learned and will be graded on your understanding of the material.  The format of the exams will consist of short answer questions and essays.

 

Group Project - 15% of final grade

A semester project will be assigned on a group basis that will consist of an oral presentation. Each group will present their topic to the class.  The presentation cannot exceed 20 minutes in duration.   This project will be a case study and require the group to act as employee benefit consultants.  All projects must be approved and each group must submit a disk containing the PowerPoint presentation.  Projects will be graded on the following criteria:

·        Demonstrated knowledge of concepts and course material

·        Creativity and Effort

·        Content

·        Quality

·        Presentation skills

 

Participation - 10% of final grade

We learn from each other.  It is critical to the learning process that each person expresses their own thoughts and views on the subject matter.  In order to do so you must be prepared for class by reading the assigned material. Those who attend class consistently and MEANINGFULLY CONTRIBUTE to the discussion will receive a high participation mark.  Remember it is not enough just to attend class, you need to actively participate!

 

SCHOOL OF BUSINESS POLICY ON MAKE-UP EXAMS        To be eligible for a makeup examination, a student must submit to the instructor written documentation of the reason for missing a scheduled examination due to medical problems or a death of an immediate family member.  The instructor (not the student) determines whether or when a makeup is to be given.  If a makeup examination is to be given, the instructor will determine the type of makeup examination.  If the student misses (for any reason) the scheduled makeup examination, additional makeups are not permissible.

 

UNIVERSITY POLICY ON INCOMPLETE GRADES    A student unable to complete the course may, with the permission of the instructor, receive a grade of incomplete (INC).  The instructor will permit the student to complete and submit the missing work no later than the third week of the following semester.  All undergraduate students may accumulate up to nine credits of INC grades without penalty.  Past this nine-credit limit, all subsequent INC grades not made up convert to F’s at the end of the semester following the one in which they were assigned.

 

ASSIGNMENTS

 

February 1 – February 8

Topic:  Introduction, Environment of Employee Benefit Plans and Employee Benefit Planning

Read:   Chapters 1 & 2

 

Initial discussions will focus on defining employee benefits, and on examining the factors influencing the rapid growth of these plans.  Discussion continues with a review of the basic concerns in designing employee benefits plans.  Students will be provided with a systematic approach to analyzing an employer's overall total employee benefit package.  The fundamental approach will concentrate on identifying employees' needs, setting objectives, and managing loss exposure within the employer's fiscal constraints. Communication strategies will be presented.  The topic will conclude with a debate on outsourcing benefit administration. All of the above will be discussed within the context of the legal environment in which employee benefit plan operate.

 

February 8 – February 15

Topic: Social Insurance Programs

Read:   Chapters 3 & 4

 

This section covers the fundamentals of several social insurance programs.  It is essential to understand social insurance programs because their successful coordination with private benefits programs is vital to sound employee benefits planning.  Discussion begins with a look at Social Security benefits including the objectives, requirements and financing of the program.  Other social insurance programs discussed will include workers compensation, unemployment and temporary disability.

 

February 22

Topic:  Group Insurance Environment and Group Life Insurance

Read:   Chapters 5 -7

 

Initial discussions will serve as the basis for the next few chapters by having a discussion on the characteristics of group insurance and how it differs from individual insurance.    The first group insurance to be discussed is death benefits.  The discussion will center on the most important considerations involved in the design of a death benefit plan. Term and Universal Life Insurance will be reviewed in terms of design, provisions, financing, administration, benefits, and tax implications.

March 1  - EXAM #1 - CHAPTERS 1-7

 

March 8 – March 29

Topic: Medical, Dental and Other Group Insurance Plans

Read:   Chapters 9 - 13 and applicable sections of Chapter 14 & 15

 

This section begins with a brief look at the current environment of medical benefit plans including recent trends.  The providers of group medical coverage will be examined including the various products currently available.  This includes a comprehensive review of managed care options such as HMOs, POS, and PPOs and other alternatives.  Each will be discussed in terms of models, financing, provisions, contracting, regulations, and evaluation.  Current trends in medical insurance will be examined.  Topic will conclude with a review of other group benefits such as dental, long-term care, and various work-life benefits.

 

April 5

EXAM #2 - CHAPTERS 9 - 13 & APPLICABLE SECTIONS of 14 & 15

 

April 5 – May 3 *

Topic:  Retirement Plans and Cafeteria Plans

            Group Presentations

Read:   Chapters 17-20 and applicable sections of chapters 22-23.

This section focuses on the general requirements that must be met by qualified pension plans with respect to nondiscrimination, funding, vesting, eligibility, distributions and plan coverage.  The benefits of a qualified plan and the regulatory structure in which they must operate will be examined. Discussions continue with an in-depth look at retirement plan design, differentiating between defined contribution and defined benefit plans and the criteria used to determine which design to use.  Further discussions will center on the different plan provisions including retirement age, contributions, limitations, coverage, survivorship benefits, accrual rates and integration with social security.  Profit sharing and other similar plans will also be presented. Discussion will continue with a comprehensive analysis of cafeteria plans including purpose, design, obstacles, tax implications, funding, election requirements and communication.  Discussion will examine the legislative environment, specifically eligibility criteria and cost issues. 

 

* April 19 – Class not in session – Spring Recess

 

 

May 10

CLASS NOT IN SESSION – SPRING RECESS

 

May 17

Topic: Group Presentations

EXAM #3 - CHAPTERS 17-20 and applicable sections of chapters 22-23.