Cafeteria Benefit Election Exercise

Cafeteria Benefit Election Exercise

Following are three employee scenarios, three benefit election forms and three debriefing statements to consider when you make these Cafeteria Benefit Elections.

Your assignment is to read and consider that financial and benefit needs of each employee (on whose behalf) you will be making a Cafeteria Benefit election. Complete the “Cafeteria Benefit Election Form” and then in not less than 250 words (each) debrief this exercise by explaining why you made the elections you made for EACH election scenario.

Scenario 1

You are a 28 year old single parent of two elementary age school children, who are in generally good physical condition, needing to only see the doctor for physicals and an occasional emergency treatment. You have worked here for 1 year and are almost finished with your undergraduate degree. Upon its completion you expect to earn approximately 30% more than your current $24,000 per year. You have 1,000 "Bene Credits."

Scenario 2

You are a 45 year old married employee with three children in high school and college who live at home (or in the dorm). One child has Crohn's disease that requires a hospitalization once or twice a year. You have a knee problem that your physician has recommended you have surgery to correct, but have not made the decision of when to have the surgery. You have worked here for 6 years and earn $55,000 and have 1,500 "Bene Credits."

Scenario 3

You are a 60 year old employee who is married to 59 year old spouse. You have smoked for 25 years and have been diagnosed with thyroid cancer. Your father died at 59, your mother at 60 from medical complications. You have worked here for 4 years and earn $50,000. You have 1250 "Bene Credits."

Cafeteria Benefit Option Elections Scenario 1

Benefit	Annual “Bene” Cost #	Your Election
Dental	150
Additional Floating Holiday (2 max - cost per each)	50
Supplemental Retirement Savings 7	400
Vision Care	75
Short Term Disability – Low Option * A	200
Short Term Disability – High Option * B	175
High Medical * 1	300
Low Medical * 2	450
Basic Medical * 3	250
Term Life Insurance – Base (1 X pay)	25
Supplemental Term Life Insurance (per $10,000) maximum purchase 5 units	50
Legal Services	60
Pet Insurance	25
Flexible Spending Accounts Elections
-Health Care Spending Account 4 – list actual dollars
-Dependent Care Spending Account 5 – list actual dollars
-Transportation Spending Account 6 – list actual dollars
Total Cost

# - If you elect more that your allowed “Bene Dollars,”

your election will reduce your pay on a dollar for dollar basis.

A - Benefits are paid at 50% of base wages up to $5,000 per month

B - Benefits are paid at 65% of base wages up to $10,000 per month

1 - $2,500 deductible; 100% paid in network after deductible, Rx subject to deductible

2 - $1,000/3,000 deductible; 80/60% paid in/out network, $30/50 OV Co-pay, Rx $15/25%/50%

3 - $5,000 deductible in/out, 4 OV @ $25 co-pay, 65/0% in/out network no Rx

4 - Up to $2,400 per year

5 - Up to $5,000 per year

6 - Up to $230 per month (note: post amount as annual amount)

7 - Provides an employer contribution of $100 per year of service

DEBRIEF Scenario 1

Cafeteria Benefit Option Elections Scenario 2

Benefit	Annual “Bene” Cost #	Your Election
Dental	150
Additional Floating Holiday (2 max - cost per each)	50
Supplemental Retirement Savings 7	400
Vision Care	75
Short Term Disability – Low Option * A	200
Short Term Disability – High Option * B	175
High Medical * 1	300
Low Medical * 2	450
Basic Medical * 3	250
Term Life Insurance – Base (1 X pay)	25
Supplemental Term Life Insurance (per $10,000) maximum purchase 5 units	50
Legal Services	60
Pet Insurance	25
Flexible Spending Accounts Elections
-Health Care Spending Account 4 – list actual dollars
-Dependent Care Spending Account 5 – list actual dollars
-Transportation Spending Account 6 – list actual dollars
Total Cost

# - If you elect more that your allowed “Bene Dollars,”

your election will reduce your pay on a dollar for dollar basis.

A - Benefits are paid at 50% of base wages up to $5,000 per month

B - Benefits are paid at 65% of base wages up to $10,000 per month

1 - $2,500 deductible; 100% paid in network after deductible, Rx subject to deductible

2 - $1,000/3,000 deductible; 80/60% paid in/out network, $30/50 OV Co-pay, Rx $15/25%/50%

3 - $5,000 deductible in/out, 4 OV @ $25 co-pay, 65/0% in/out network no Rx

4 - Up to $2,400 per year

5 - Up to $5,000 per year

6 - Up to $230 per month (note: post amount as annual amount)

7 - Provides an employer contribution of $100 per year of service

DEBRIEF Scenario 2

Cafeteria Benefit Option Elections Scenario 3

Benefit	Annual “Bene” Cost #	Your Election
Dental	150
Additional Floating Holiday (2 max - cost per each)	50
Supplemental Retirement Savings 7	400
Vision Care	75
Short Term Disability – Low Option * A	200
Short Term Disability – High Option * B	175
High Medical * 1	300
Low Medical * 2	450
Basic Medical * 3	250
Term Life Insurance – Base (1 X pay)	25
Supplemental Term Life Insurance (per $10,000) maximum purchase 5 units	50
Legal Services	60
Pet Insurance	25
Flexible Spending Accounts Elections
-Health Care Spending Account 4 – list actual dollars
-Dependent Care Spending Account 5 – list actual dollars
-Transportation Spending Account 6 – list actual dollars
Total Cost

# - If you elect more that your allowed “Bene Dollars,”

your election will reduce your pay on a dollar for dollar basis.

A - Benefits are paid at 50% of base wages up to $5,000 per month

B - Benefits are paid at 65% of base wages up to $10,000 per month

1 - $2,500 deductible; 100% paid in network after deductible, Rx subject to deductible

2 - $1,000/3,000 deductible; 80/60% paid in/out network, $30/50 OV Co-pay, Rx $15/25%/50%

3 - $5,000 deductible in/out, 4 OV @ $25 co-pay, 65/0% in/out network no Rx

4 - Up to $2,400 per year

5 - Up to $5,000 per year

6 - Up to $230 per month (note: post amount as annual amount)

7 - Provides an employer contribution of $100 per year of service

DEBRIEF Scenario 3

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