BA- Report

Exhibit 3: Two Possible Packages for Cutting Benefit Costs

Option 1:

Implement copay for benefits:

· Pension plan ($25.00 per month)

· Life insurance premium ($10.00 per month)

· Health insurance premiums ($50.00 per month)

· Dental insurance ($10.00 per month)

· Short-term and long-term disability insurance ($7.50 per month)

Reduction of Benefits

· Eliminate 10-minute paid break (workers leave work 10 minutes earlier)

· Eliminate one paid holiday per year

· Eliminate two sick days per year

Option 2:

Improved claims processing:

· Unemployment compensation

· Workers’ compensation

· Short- and long-term disability insurance

Increase deductible from $500 to $1,000 on health insurance

Implement probationary periods:

· 6 months’ probationary period on health insurance

· 1 year probationary period on dental insurance

Implement probationary period of 1 year on dental insurance

Implement copay for benefits:

· Health insurance - $50.00 per month

· Dental insurance - $10.00 per month

· Life insurance - $10.00 per month

· Short- and long-term disability insurance - $5.00 per month

Reduction of benefits:

· Eliminate payments to thrift plan

· Eliminate two paid holidays per year

· Eliminate tuition reimbursement