Quiz 13: Recognizing Employee Contributions With Pay

Business

Flexible spending account is more common benefits provided by companies for child care because employee can select services according to their needs within allocated budget. Employee is not bound to avail any one specific service; rather he/she can select most preferred benefit. For example: if a female employee wants to avail day care facility which is near to her home she can select that facility through flexible spending account.

Defined benefits plan guarantee a specific level of retirement income to employees given by employer. This plan defines a specific amount invested by employer for each employee which will be paid at the time of retirement. However, sometimes government or businesses failed to fund these plans fully. The reason behind this underfunding may be financial difficulties experienced by government and business. According to law, if defined benefit plans are underfunded , government or businesses have to pay an additional premium along with the underfunded amount to retiring employee. If these plans do not earn expected level, employers have to make up the differences from other sources. Therefore, if defined benefit plans are underfunded, employers have to face above consequences.

My F benefit package offers managers to select benefits according to their needs : health, security and lifestyle. Managers can select benefits according to their wish within budget allocated to each of them for their position. Due to this, managers were satisfied with benefit package and company is also gaining employee loyalty without any additional monetary compensation. Therefore, My F plan helps Abus to retain their managers, motivates non managerial employees to perform better to get promoted to managerial level.