Absence Management

Absence management is disability management which defines as programs and processes that seek to prevent disability, reduce the cost impact of disability and provide mechanisms to promote maximum functional recovery and return to work.
Here are some benefits of Absence management plans:
Individual Leave Plan – Helps employees to take leaves during disability.
Plan for work – it gives employee benefit that take leave and give some time to family.
Paid plans – During any disability employer pays some money to employee.

Listed below are some key characteristics of Absence management plans:
Preliminary work done: before handling this project I had study analyses & testing in previous semester and after that I had studied system specific testing in Hewitt. There is special training was given to us.
Resources available (RA):  All the resources like, proper platform, well designed test plan from the configuration side.
Confidence Factor (CF):   I did proper utilization of tools and well performed on platform namely 360 ASP Tool, AQT.
Capability Index (CI):  Sometimes the available resources that are tools & platform are not able to find appropriate participant or test cases according to the test plan because at that time no such participant exist in database. At that time we modified the participant according to the test plan and check the result.


Benefits Administration

The implementation and coordination of an employee benefits plan defines the benefits administration.
Today’s competitive business environment demands that companies find better, more efficient ways to manage their significant employee benefits investment. At the same time, results expected from these benefit plans are increasing.
As the leading provider of benefits administration for large and mid-sized organizations, Aon Hewitt provides a comprehensive suite of outsourcing solutions focused on the things our clients need the most. We apply our more than 70 years of HR expertise to drive better outcomes for our clients, helping them manage costs, drive participant outcomes and satisfaction, reduce risk and improve compliance. For our clients’ employees, our solutions drive better outcomes—like improved health and financial security—by providing the tools and support needed to promote better decisions. At Aon Hewitt, we provide these tools through an exceptional customer experience, resulting in improved satisfaction and engagement.

Life Insurance

It provides employee life insurance and dependent life insurance.
Employer usually offers a base level of employee life coverage at no cost to the Employee. Employees usually have the option to purchase additional coverage amounts for employee life insurance.
Accidental Death and Dismemberment (AD&D
Provides financial protection against accidental death or the loss of a limb, sight, or hearing of an employee or covered dependent.
It may also be called Personal Accident Insurance (PAI).
Benefit paid depends on the type of loss the insured incurs.
Business Travel Accident (BTA)
It pays additional life insurance to the employee’s family in the event that the employee dies while traveling on

Health and Welfare Plan

Health and Welfare (HW) plans are employer-sponsored plans that offer a group of employee’s benefits to ensure their health and well-being. It also protects employees against catastrophic events. HW plans primarily provide employees access to important services during their working years and potentially in retirement.

Here are some benefits of an HW plan:
Preventive care – It encourages employees to have regular doctor visits to detect potential health-related problems before they progress to a serious stage.
Tax advantages – Employees are able to pay for benefits on a before-tax basis.
Financial security through cost control – Benefits are more affordable when employer-provided. Because a larger group of employees is covered, each employee in the group receives a group-rate which is lower than if they receive coverage on their own.
Listed below are some key characteristics of an HW plan:
Employees choose the type of coverage (from an employer-defined list) as well as which individuals to cover (e.g., spouse or spouse and children).
Employers and/or employees pay for all or part of these benefits. Coverage cost varies, depending on the type and extent of the coverage.
Employee costs are usually deducted from employee paychecks.
There are several common types of HW plans:
Health Care
Life Insurance
Flexible Spending Accounts
Long-Term Care
Health Care
Health Care benefits provide coverage for health-related services (e.g., doctors, hospitals, and other service providers). Below are examples of health care benefits:
Mental health/substance abuse
Prescription drug
Retiree medical
Life Insurance
Accidental Death and Dismemberment (AD&D)
Business Travel Accident (BTA)

Defined Benefit Plan

Defined Benefit (DB/pension) plans provide income to employees in retirement and guarantee that     participant will receive their retirement benefits.
Here are some benefits of a DB plan:
Retirement plan – Provides income to employees at retirement.
Employer contribution – Employer contributes to the plan and assumes the risk of investment.

Listed below are some key characteristics of a DB plan:
Employer defines the benefits (formula) to provide income to employees at retirement. Employer makes contribution as defined each year to ensure the plan will be able to support payment of retiree benefits. Actuaries determine what amount the employer needs to contribute to meet this objective. Employees usually do not contribute toward the benefit. Employer assumes investment risk and the liability for providing the benefit. The benefit is predictable for the employee (based on a set formula) and is usually paid for his or her lifetime. The employee often has the option to have some percentage of the benefit continue to a survivor after the employee’s death for the survivor’s lifetime.

Employees usually have to work for an employer for a certain period of years to earn the right to a pension benefit. For example, an employee must work for an employer for up to five years before he or she will be eligible to receive a pension benefit. The time frame over which employee gains the ownership of the benefit is called a vesting schedule.

Employees collect the benefit (usually each month) once they meet early, normal or late retirement rules. Retirement age is determined by the U.S. government and applies to an age at which people typically retire. Many companies consider age 55 early retirement age and age 62 normal retirement age. Any age after normal retirement age is considered late retirement.

Defined Contribution Plan

Defined Contribution (DC) plans provide income security for retirement years, as well as some access to money prior to retirement.
Here are some benefits of DC plans:
Individual Retirement Plan – Helps employees save for retirement.
Tax Advantages – Contributions can be deducted from pay on a before or after tax basis. If before tax, the amount shown as taxable income is lower. This saves the employee money paid in taxes each year.
Choice of Investment – Employees can choose where to invest their money to maximize earnings.
Listed below are some key characteristics of DC plan:
Both the employee and the employer may put money into (or contribute to) an individual account for the employee.
Employees choose from a variety of investment funds in which to invest their money. The account can experience gains/loss over time.
Employees gain ownership (vesting) in the employer contribution over time. Employees are considered immediately vested in their own employee contributions.
Employees collect the benefit (the value of the account) at or after separation from employment, or sometimes sooner.
Employees decide the amount to contribute.
The maximum amount employees can contribute is subject to government limits, plan limits and choice of employee.
The maximum amount the employer contributes is defined by plan rules (and also subject to some government limits).
Because employees choose where to invest their money, they assume investment risk for their account balance.
Active employees may take loans (to be repaid) or withdrawals (not repaid) from their account while employed, depending on plan rules.
The benefit (the value of the account) is portable; meaning the vested portion of the benefit can be moved to another employer’s plan upon termination.
The employee benefit (the value of the account) is not fixed and often depends on:
•    How much the employee has contributed?
•    How much the employer has contributed?
•    How well the funds they chose to invest in have performed
•    How well the company has performed and
•    How much the employee has withdrawn versus saved over the years?

Health and Welfare Plans

Health and Welfare Plans provides health-related benefits to employees and their families, typically just while the employee is working for the employer. However, some employers offer Health and Welfare benefits to retired employees as well. These benefits may include insurance to cover the costs of visiting a doctor, or receiving medical care in a hospital. Health and Welfare benefits also usually include provisions to pay for part or all of prescription drug costs. Dental and eye care insurance may also be covered under some Health and Welfare plans.
Employers pay for some, and often most, of the cost of basic health care insurance for their employees. It is not uncommon, however, for employees to pay a portion of basic health care insurance costs.
It is quite common for employers to provide health care insurance for dental and eye care on an optional basis where employees share a larger portion of the cost with the employer.
Also, employees usually have many options related to health care. They can often pick the level of health care coverage they wish to have, whether or not a spouse or child will be covered by the insurance, and of course any optional insurance, such as dental, if it is available in the plan. All of the various levels of coverage have different costs. Typically, as the cost of the insurance option increases, the employee is required to share an increasing portion of the cost.

Defined Contribution Plans

A defined contribution plan is an investment vehicle that allows employees to save money for their retirement.
The basic premise of a defined contribution plan is that a fixed or defined amount of money is contributed by the employee and sometimes the employer into an investment vehicle with various investment options that will earn interest over the lifetime of an employee’s career. These earnings and continued employee/employer contributions from the employee, and possibly the employer, will usually grow large enough over time to provide an income basis for the employee when he or she is ready to retire.
Unlike a defined benefit plan, defined contribution plans do not guarantee a specific benefit amount to be paid at retirement. When an employee is ready to retire, he or she is able to withdraw the money that has accumulated in his or her defined contribution account. The value of that account depends on how much has been invested and interest rate earned (rate of return) on the investments within that account.
Employee provides the contributions to the plan from their own pay. The benefit of a defined contribution plan to the employee is the tax break they get for contributing. There are also special tax benefits an employee receives from the U.S. government if he or she contributes to a defined contribution plan to save for retirement.
Some employers also contribute to employees’ defined contribution accounts. For example, in a plan with a profit sharing contribution the company may contribute a certain amount at the end of a fiscal year if earning is strong for the company. Some companies also provide a matching contribution to help grow the employees’ defined contribution plan balance. For example, an employer may put in 50 cents for each dollar the employee contributes, up to a certain annual limit.
Employees typically have a choice as to how much they contribute to a defined contribution plan. They also usually have a choice about how to invest account balance. A defined contribution plan usually offers three or more investment options.
There are various types of defined contribution plans regulated by U.S. tax laws. The names of various defined contribution plans often refer to U.S. tax law code sections that explain the tax rules for the respective plan. For example, the most common U.S. – defined contribution plan, the 401(k) plan, has provisions specified in section 401(k) of the U.S. Internal Revenue Service Code. Other defined contribution plans include the 403(b) and 457 plans. These plans have unique provisions for participation and tax exemption, according to U.S. tax laws.

Types of Benefits

There are three major types of benefit plans that companies may offer which are commonly regulated by the government to ensure that employee health care and retirement security is provided – Defined Benefit, Defined Contribution, and Health and Welfare.
Defined Benefit Plans
These plans provide income to employees after they retire and stop working. In the U.S., defined benefit plans are often referred to as pension plans. Technically, a pension plan is a plan that provides retirement income to former employees. Other countries use the term pension plan more broadly to include defined benefit and defined contribution plans (Which will be reviewed next). Over time in the U.S., however, pension plans have more informally become synonymous with defined benefit plans.

Employee Benefit Plans What Are They?

When an employer benefit provides many choices and options, employers will establish a benefit plan to document and help coordinate the general rules and provisions around the complex benefit choices and options. The benefit plan (often called a plan document) provides a structure of rules, processes, and procedures to make it feasible for the employer to provide complex, optional, and variable benefits to a large population of employees.
The U.S. government also has an interest in seeing that U.S. employers provide health care and retirement benefits to American workers to minimize the need for Americans to rely on government support in these same areas.
The U.S. government provides guidelines for employee benefit plans, with the intention of protecting the health care and retirement benefits of U.S. workers. When U.S. employers follow these rules, the government provides the employer with a tax break. These guidelines also provide clear rules and regulation about employee benefits in the areas of health care and retirement.
By creating a benefit plan, an employer can also document that they are following these government required guidelines.