Blue Rose Benefit Plan - Assignment Example

All employees are entitled to get basic benefits like workers' compensation and Federal Family and Medical Leave. FICA taxes will be deducted from every employee’s salary.

The normal retirement age is 65. The benefit is determined based on the annual compensation package. Normal retirement rate benefits will be equivalent to 10% of the actual compensation earned by the employee annually. Pension benefits can be gained from the date of completing service. This is applicable to voluntary retirement, employment termination, and quitting due to disability. The company requires every employee who had completed a year with them to contribute 10% of their salary towards life insurance.

The company gives coverage up to 10 times the actual amount stored in the employee’s insurance account in cases of medical emergencies, death, or disability. The employees who had completed 5 years of working in Blue Rose are eligible to take a loan on their insurance savings. Senior engineers and management staff who have completed 8 years in Blue Rose and are permanent employees of the company can get paid leave up to 15 days a year for vacation or medical emergencies. They are also entitled to get a travel allowance for in-country vacations and free accommodation in company guest houses in certain locations.

The benefits given by Blue Rose are quite lenient considering the size and profit of the company. But, certain basic additions like medical and dental coverage and paid sick leave for all employees are required. The junior employees will benefit a lot from such plans.

Basic medical coverage for all employees in the company including trainees who have less than one year of experience is required. The plan should cover at least 25% of basic medical and dental expenses incurred by the employee.

Employees with less than 8 years of service in Blue Rose do not get paid sick leave while the seniors get up to 15 days paid leave. The junior employees should be provided at least 5 days of paid leave per year for medical emergencies.