retirememt benefits your total compensation statement · pdf fileincome protection benefits...
TRANSCRIPT
5 Years 15 Years Age 67
315,456
940,195
1,620,889
279,866
668,981
1,013,565
247,863
479,035
643,691
Employee Savings & Protection Plan - Salary Deferral SourceXYZ's Tax Deferred ES&P Plan allows you to save for your retirement through convenient payrolldeductions on a pretax basis. You can choose to invest in any or all of 17 investments funds.
You can choose to defer, in whole percentages, from 1% to 50% of your compensation up to anannual maximum of $16,500 in 20xx. Once you reach age 50, you may be eligible for "catch-up"contributions which allows an increase in your maximum dollar amount. Your savings and theirinvestment earnings are free from Federal Income Taxes until they are withdrawn.
Employee Savings & Protection Plan - Employer Contribution SourceEach year that you are eligible to share in contributions, XYZ will contribute to the Plan on yourbehalf an amount equal to 6% of your compensation up to $245,000 in 20xx. Your account will becredited annually with a share of the investment earnings or losses of the trust fund.
For further information regarding this plan, please call Fidelity Investments at 1-800-294-4015 orvisit their website at http://www.NetBenefits.com.
Employee Savings & Protection Plan Projections
Annual Investment Growth Rates 3% 6% 9%
The following projections illustrate what your account (including employee and employercontributions) might be worth in 5 years, 15 years, and at age 67 (your normal retirement age)based on your current total retirement account balance of $155,512 and annual investmentgrowth rate assumptions of 3%, 6%, and 9%. The projections assume that your pay, your currentcontribution rate of 9%, ES&PP 6% Employer Contribution, and the Plan provisions will remain thesame in the future.
Note: The information presented has been rounded to the nearest whole number. Every effort has been taken to ensurethat the information in this statement is accurate; however, no warranty of guarantee is implied or intended. If adiscrepancy is found to exist between your benefit statement and the benefit summary plan descriptions, the provisions ofthose documents will govern.
FV401k 3% 5yrs$247,863
FV401k 3% 15yrs$479,035
FV401k Age67 3%$643,691
Age Now
46.3
FV401k 6% 5yrs$279,866
FV401k 6% 15yrs$668,981
FV401k Age67 6%$1,013,565FV401k Age67 9%$1,620,889
FV401k 9% 5yrs$315,456
FV401k 9% 15yrs$940,195
'401k ESPP EE annl Cont
$3,121
'401k ESPP EE %9.00
'401k ESPP ER %
Base Annl Salary$100,000Commissions Paid in 2008
$9,500
'401k ESPP EE Proj Match At 3%
'401k ESPP ER Proj Match At 6%
'401k ESPP Total balance$155,512
'401k ESPP EE Acct Balance$155,512
'401k ESPP ER Cont Balance
If EE cont = 0%, FV is based2% cont for EE and ER. ERCont Source para = need tofind out ER's matching %
JOHN T. SAMPLE
ANY TOWN, NY XXXXX123 MAIN STREET
Prepared For:
I am very pleased to present your Total Compensation Statement. Each year XYZCompany makes significant contributions toward your personal benefits which are animportant component of your total compensation. This statement outlines the totalincome opportunity and benefits provided to you by XYZ as well as the cost of thosebenefits.
This statement is a convenient way to keep track of your benefit elections and is a usefulfinancial planning tool. Please review this statement and retain it with your otherimportant documents.
Sincerely,
David SmithPresident
Dear John,
How This Statement Was PreparedYour Total Compensation Statement reflects your benefit elections and your totalcompensation as of December 31, 20xx.
Your Personal InformationThe information in this statement is based on XYZ's records. Should you have any questionsconcerning the information represented in this Total Compensation Statement, please contactyour HR Department.
Hire Date:
Base Salary: $100,000
4/1/1996
$9,609
RETIREMEMT BENEFITSCompany's
Contribution
Once you have completed five years of service, and met all eligibility requirements, you may be100% vested and have a permanent right to your account balance under the Plan, even if you leavethe Company before retirement.
Last Name SampleFirst Name Processed John
Address1 123 MainAddress2
City Any TownState NY
Zip Code
X YZ
COMPANY
YOUR TOTAL COMPENSATION STATEMENT
As of December 31, 20xx, your balance was $155,512 and your 20xx Plan contribution was$3,121.
For 20xx, XYZ made a contribution to your plan in the amount of $9,609.
POMCO Group315-432-9171 Toll free 1-800-934-2459
INCOME PROTECTION BENEFITSNO CommissionWith Commission
Your 20xx benefits, including paid timeoff, represent approximately 34% of your
total compensation.
Paid Time OffTotal Benefit Costs
Pay for Time Worked
Total Compensation
$36,584
$153,529
$15,384
$9,500
CompanyContribution
Health Care Benefits $14,932
Retirement Benefits$10,620Social Security and Medicare Benefits$9,609
Commissions Paid in 20xx$92,061
$563Survivor Benefits$860Income Protection Benefits (24%)
(10%)
(60%)
(6%)
John T. Sample
ADD ER Cont 50
LifeER Cont $511
- Medicaland/or Dental
- SocialSecurity
$9,609
$14,878$667- Disability
& Life
- Workers' Compensation &Unemployment Insurance
$585
- ES&PP (Employer Contribution of 6% BaseSalary estimated for 2008)
(41%)(2%)
(29%)(2%)
(0%)
The following pie chart graphically illustrates how your payand benefits combine to form your total compensation.The benefits slice is further broken down into severalbenefit categories, as shown below. Note that health carecosts represent a significant portion of your benefits.
YOUR TOTAL COMPENSATION -
XYZ Company contributes an amount equal to your own Social Security and Medicare contribution.Monthly Social Security benefits may go to you and/or your dependents when you retire, becomeseverely disabled, or die. The amount of any benefits will depend on prior earnings, adjusted toaccount for changes in wages since 1951. The Social Security Administration will mail you an annual"Earnings and Benefit Estimate Statement" verifying the earnings credited to your account. Forcomplete information on your actual Social Security benefits, consult the local Social SecurityAdministration office.
Other benefits of significant value that you may be utilizing, but are not included in the Companybenefits cost, include the following:
•••
Referral BonusDirect Deposit for PaycheckEmployee Assistance Program
Salary ContinuationEducational Assistance ProgramJury DutyBereavement LeaveMilitary LeaveAdjusted Work Week March - Nov.
Attendance Incentive •• •
•••
•
SUMMARY OF 20XX TOTAL COMPENSATION
$15,384
$2
XYZ Company provides you with health care coverage to minimize the potential financial impact ofmedical costs for you and your eligible family members. The plan provides coverage for preventivecare, physician services, hospital services, and prescription drugs.You are currently enrolled in the medical plan with family coverage.
Dental Benefits
Medical Benefits
In addition to medical coverage, XYZ Company offers a dental plan to help reduce your out-of-pocket dental care costs. The plan is designed to encourage preventive care which will diminishyour need for costly corrective treatment in the future.You are currently enrolled in the dental plan with family coverage.
HEALTH CARE BENEFITS
Flexible Spending Accounts (FSA)
$13,241
$1,637$10,620
ADDITIONAL BENEFITS
Vacation Days Holidays 1320.0
Personal Days 2 Sick Days 5.0
PAID TIME OFF
Company'sContribution
Company'sContribution
SOCIAL SECURITY AND MEDICARE BENEFITS Company'sContribution
Prepared for John T. Sample
SURVIVOR BENEFITS Company'sContribution
XYZ Company offers you the option to purchase Supplemental Life Insurance coverage for yourself,your spouse and/or dependent child(ren), at favorable group rates, through payroll deduction.
XYZ Company provides you with Life and Accidental Death and Dismemberment Insurance benefitequal to 1.5 times your base annual salary up to a maximum of $400,000. Your beneficiary may beentitled to receive $115,000 in the event of your death. If you injured in an accident, you or yourbeneficiary may receive an additional $115,000 for loss of life or dismemberment.
Basic Life And Accidental Death & Dismemberment Insurance
Supplemental Life And Accidental Death & Dismemberment Insurance
You have elected to purchase $50,000 of additional coverage on yourself.
$54
XYZ Company provides employees with Short Term Disability Insurance. This insurance is designedto stabilize your income in the event that you are disabled due to a non-work related injury orillness. Benefits are calculated at 66.67% of your average weekly salary, up to a maximum of $542.Should you become disabled, you may be eligible for payments of $542 per week for maximum of26 weeks.
Under the Company's Long Term Disability plan, if you are disabled for more than 90 days, you mayreceive 60% of your average monthly earnings up to $10,000 until the age of 65, or until yourdisability ends, as defined in the contract. If you were to become disabled, you may be eligible toreceive up to $5,000 per month. Please be aware that this benefit is integrated with statutorydisability benefits such as Workers' Compensation and Social Security.
Long Term Disability
Short Term Disability
$66
In the event of a disability due to a work related injury or illness, you may be eligible to receive aweekly benefit up to the state maximum, depending on the nature of the disability or accident.These benefits are generally paid for as long as the disability exists.
Workers' Compensation
XYZ Company makes contributions to the state unemployment insurance fund. Should you becomeunemployed through no fault of your own, you may be eligible for weekly unemployment benefits.Check with your local unemployment office for more details as benefits vary from state to state.
Unemployment Insurance
$14
$585
Company'sContribution
$561
Business Travel & Accident InsuranceXYZ Company offers a Business Travel & Accident Policy in the amount of $200,000 of insurance inthe event of death or disability while traveling on company business. This benefit is provided toyou at no cost and is in addition to the Group Term Life Insurance you have.
XYZ's Flexible Spending Accounts allow you to pay for unreimbursed medical and dependent careexpenses with pre-tax dollars. Taxable earnings are reduced so you pay less taxes on earnings andyour take home pay is increased. You may elect to have up to $2,500 ($5,000 if married, filingseparately) deducted pre-tax per year for eligible dependent care expenses and up to $2,500deducted pre-tax per year for eligible health care expenses.You are currently contributing $2,000 annually to your medical care account and $1,000 toyour dependent care account.
$195
YOUR PERSONAL STATEMENT OF BENEFITS
Jane M. Sample15 Main StreetNew York, NY 13203
Your benefits,including paid time
off and bonus,represent
approximately 28% ofyour total
compensation.
Note: Your Total Compensation Statement reflects your benefit elections and your total target compensation as of 12/31/20XX. Annual totals are projections based on Company records as of this date andassumes perfect eligibility. Every effort has been taken to ensure that the information in this statement is accurate; however, no warranty or guarantee is implied or intended. If a discrepancy is found toexist between your benefit statement and the benefit booklets or summary plan descriptions, the provisions of those documents will govern.
COMPANYCONTRIBUTION
We are pleased to present to you this personalized statement of benefits. Thebenefits you enjoy represent a significant portion of your total compensationpackage. This annual statement was prepared so that you may have a betterunderstanding of the benefits provided by XYZ Corporation.
Dear Jane,
I encourage you to review your benefit statement carefully and keep it in a safeplace for future reference. If you have any questions about this statement orrequire additional information on any of the benefits offered, please contactHuman Resources.
Sincerely,Susan SmithPresident
Flexible Spending AccountsShort Term DisabilityLong Term DisabilityWorkers’ Compensation
ANNUAL BENEFITS CONTRIBUTIONS
401(k) Retirement Plan
XYZ Corporation provides eligible employees with Short Term Disability Insurance. This insurance is designed to stabilizeyour income in the event that you are disabled due to an off the job injury or illness. You may be eligible for payments of$444 (66% of your average weekly earnings) per week, for a maximum of 26 weeks.
HEALTH CARE BENEFITS
$1,344XYZ’s Annual Contribution:$480Your Annual Contribution:
Your Medical Plan: Good MedicineYour Medical Coverage Level: Family
$252XYZ’s Annual Contribution:$156Your Annual Contribution:
Your Dental Plan: Happy TeethYour Dental Coverage Level: Family
Medical Insurance
Dental Insurance
Flexible Spending Accounts
$2,500Your Annual Contribution:$103XYZ’s Annual Contribution:
INCOME PROTECTION
Short Term Disability$444Weekly Benefit:$175XYZ’s Annual Contribution:
Long Term Disability$1,750Monthly Benefit:
$193XYZ’s Annual Contribution:
Workers’ Compensation$346XYZ’s Annual Contribution:
SURVIVOR BENEFITS
Benefit Amount: $70,000
Your Benefit Amount: $200,000Your Spouses Benefit Amount: $100,000
Group Life Insurance
Supplemental Life & AD&D Insurance
$2,100Your 401(k) Contribution:
$1,050XYZ’s 401(k) Match:
$294XYZ’s Annual Contribution:Benefit Amount: $70,000
Group AD&D Insurance
Your Child(ren)s Benefit Amount: $10,000
RETIREMENT BENEFITS
$681,151Future Value Amount:(estimated value at retirement)
$2,430Your Annual Contribution:
$2,430XYZ’s Annual Contribution:
SOCIAL SECURITY AND MEDICARE
PAID TIME OFF
$1,215Holiday Pay :$1,890Vacation Pay:
$3,105XYZ’s Annual Contribution:
YOUR TOTAL COMPENSATION
Pay For Time Worked $31,895
Total Compensation $44,187
Total Other Benefits $6,187
Pay For Time Off $3,105Bonus $3,000
YOUR PERSONAL STATEMENT OF BENEFITS
Jane M. Sample15 Main StreetNew York, NY 13203
YOUR TOTAL COMPENSATION
Your benefits,including paid time
off and bonus,represent
approximately 28% ofyour total
compensation.
Pay For Time Worked $31,904Pay For Time Off $3,096
XYZ Corporation provides eligible employees with the opportunity to participate in Flexible SpendingAccounts that allow you to pay your share of unreimbursed medical expenses and dependent careexpenses with pre-tax dollars. You may elect to have up to $5,000 deducted pre-tax per year foreligible dependent care expenses and up to $3,000 deducted pre-tax per year for eligible medical anddental care expenses.
Flexible Spending Accounts
You are currently contributing $1,000 to your dependent care and $1,500 to your medical careaccounts annually.
$103
Short Term Disability
$175
Bonus $3,000
We are pleased to present to you this personalized statement of benefits. Thebenefits you enjoy represent a significant portion of your total compensationpackage. This annual statement was prepared so that you may have a betterunderstanding of the benefits provided by XYZ Corporation.
I encourage you to review your benefit statement carefully and keep it in a safeplace for future reference. If you have any questions about this statement orrequire additional information on any of the benefits offered, please contactHuman Resources.
Sincerely,Susan SmithPresident
Total Compensation $44,435
Total Other Benefits $6,435
In addition to medical insurance, XYZ Corporation offers a dental program to help reduce your “out ofpocket” dental care costs. This plan is offered to encourage preventative care which will diminish theneed for costly corrective procedures in the future.
$252
You are currently enrolled in the Smile Saver dental plan with Family coverage.
Dental Insurance
XYZ Corporation provides eligible employees with health care coverage to minimize the potentialfinancial impact of medical costs for you and your eligible family members. The Company offers you aPPO or HMO for your medical plan options.
$1,344
You are currently enrolled in the PPO plan with Family coverage.
Medical Insurance
Long Term DisabilityUnder the Company's Long Term Disability Plan, if you are disabled for more than 90 days, you mayreceive 60% of your base salary up to $6,000 per month until the age of 65, or until your disability ends,as defined in the contract. Please be aware that this benefit is integrated with statutory disabilitybenefits such as Workers' Compensation and Social Security. If you were to become disabled or injured,you may be eligible to receive benefits of $1,750 per month.
$193
Workers’ CompensationIn the event of a disability due to a work related injury or illness, you may be eligible for a weeklybenefit up to the state maximum depending on the nature of the disability or accident. These benefitsare generally paid for as long as the disability exists.
$346
INCOME PROTECTION BENEFITS
HEALTH CARE BENEFITSCOMPANY
CONTRIBUTION
XYZ Corporation provides eligible employees with Short Term Disability Insurance. This insurance isdesigned to stabilize your income in the event that you are disabled due to an off-the-job injury orillness. Beginning on the 8th day of illness or injury, you may be eligible for payments of $444 (66% ofyour average weekly earnings) per week, for a maximum of 26 weeks.
COMPANYCONTRIBUTION
Dear Jane,
XYZ Corporation provides eligible employees with Life and Accidental Death and DismembermentInsurance. Your beneficiary may be entitled to receive a benefit in the amount of $70,000 in the eventof your death. If you die or are injured by an accident, you or your beneficiary may be entitled toreceive an additional benefit.
$294
Note: The information presented has been rounded to the nearest whole number. Your Total Compensation Statement reflects your benefit elections and yourtotal target compensation as of 12/31/2012. Annual totals are projections based on Company records as of this date and assumes perfect eligibility. Everyeffort has been taken to ensure that the information in this statement is accurate; however, no warranty or guarantee is implied or intended. If a discrepancy isfound to exist between your benefit statement and the benefit booklets or summary plan descriptions, the provisions of those documents will govern.
Employee Stock Purchase Plan (ESPP)
Direct Deposit
Federal Credit Union
Tuition Reimbursement
XYZ Corporation contributes an amount equal to your own Social Security and Medicare contributions.Monthly Social Security benefits may go to you and/or your dependents when you retire, becomeseverely disabled, or die. The amount of any benefits will depend on prior earnings, adjusted toaccount for changes in wages since 1951. The Social Security Administration will annually mail you an"Earnings and Benefit Estimate Statement" verifying the earnings credited to your account. Forcomplete information on your actual Social Security benefits, consult the local Social SecurityAdministration Office.
$2,678
$3,096Vacation Days:9Holidays: 14
XYZ Corporation encourages you to save for your future retirement by offering a 401(k) RetirementSavings Plan. All employees are eligible to participate in this plan after attaining age 21 and after oneyear of service in which 1,000 hours have been worked. You may contribute a percentage of yourcompensation up to the IRS limitation each year. You are always 100% vested in your contributions.
$1,050As of December 31, 2012, you were contributing 6% of your salary to your 401(k) Retirement SavingsPlan. The Company’s match is anticipated to be $1,050. Your total account balance as of December 31,2012 was $34,125. If you and the Company continue to contribute at the current rate, and your accountgrows at a modest rate of 6%, your account balance is estimated to be $681,151 at retirement age 65.
RETIREMENT BENEFITS
SURVIVOR BENEFITS
PAID TIME OFF
SPECIAL PROGRAMS
SOCIAL SECURITY & MEDICARE
Your 401(k) can be extremely helpful to you by increasing your retirement assets. You may wish toincrease your contribution.
The Company will match 50% of your contributions up to 6% of your pay for a total of 3% of your grosscompensation. You become 100% vested in the Company’s contributions to your account after six (6)years of service. You are currently 100% vested in XYZ Corporation’s contributions to your account.
COMPANYCONTRIBUTION
COMPANYCONTRIBUTION
COMPANYCONTRIBUTION
COMPANYCONTRIBUTION
•
•
•
•
401(k) Retirement Savings Plan
Life Insurance and Accidental Death & Dismemberment Insurance
"In addition, the Company offers you the opportunity to purchase Supplemental Life and AccidentalDeath & Dismemberment Insurance for yourself, your spouse and your dependent child(ren) through theFarmington Company."
Voluntary Life and Accidental Death & Dismemberment Insurance
POMCO Group315-432-9171 Toll free 1-800-934-2459
Workers’ CompensationIn the event of disability due to a work relatedinjury or illness, you may be eligible for aweekly benefit up to the State maximumdepending on the nature of the disability oraccident. These benefits are generally paid foras long as the disability exists.
XYZ’s Contribution $671
Income Protection Benefits
We are pleased to present to you thispersonalized statement of benefits. The benefitsyou enjoy represent a significant portion of yourtotal compensation package. This annualstatement was prepared so that you may have abetter understanding of the benefits provided byXYZ Company.
I encourage you to review your benefitstatement carefully and keep it in a safe placefor future reference. If you have any questionsabout the statement or require additionalinformation on any of the benefits offered,please contact Human Resources.
Jane Doe
YOUR TOTAL COMPENSATION
Pay for Time Worked: $31,635Paid Time Off:Other Benefits:
Total Compensation:
$3,365$12,108
$47,108
Health Benefits
Medical InsuranceXYZ Company provides you with acomprehensive health care plan that includesprescription drug coverage to minimize thepotential financial impact of medical costs foryou and your eligible family members. TheCompany offers a choice between two plans,Plan A and Plan B.
You are currently enrolled in medical Plan Awith Employee and Family coverage.
XYZ’s Contribution $6,000
Dental InsuranceIn addition to medical coverage, XYZ Companyoffers a dental plan to help reduce your out-of-pocket dental care costs.
You are currently enrolled in the dental planwith Employee and Family coverage.
XYZ’s Contribution $420
Flexible Spending PlanXYZ's Flexible Spending Accounts allow you topay for unreimbursed medical and dependentcare expenses with pre-tax dollars. Alladministrative expenses are paid by XYZ.
You are currently participating in the medicalcare and dependent care flexible spendingaccounts.
XYZ’s Contribution $98
You
r Pe
rson
al B
enef
it S
tate
men
t
Annual Salary
35000
Long Term DisabilityUnder the Company's long term disability plan,if you are disabled for more than 180 days, youmay be eligible to receive up to $1,750 (60% ofyour monthly earnings up to $6,000) per monthuntil the age of 65, or until your disabilityends, as defined in the contract. Please beaware that this benefit is integrated withstatutory disability benefits such as Workers'Compensation and Social Security.
XYZ’s Contribution $193
Doe
Jane
Dear Jane,
Your benefits,including paid time
off, representapproximately 33% of
your totalcompensation.
Sincerely,
Short Term DisabilityXYZ Company provides eligible employees withshort term disability insurance, which isdesigned to stabilize your income in the eventthat you are disabled due to an off-the-jobinjury or illness. In the event of an off-the-jobdisability, you could be eligible for paymentsup to $500 per week for a maximum of 26weeks.
XYZ’s Contribution $88
Med Cov Level Employee and
Employee and
XY
Z
XY
ZCO
MPA
NY
Alex SmithPresident and CEO
Paid Time Off
Vacation Days15
Holidays10
XYZ’s Contribution $3,365
Social Security & MedicareXYZ Company contributes an amount equal toyour own total Social Security and Medicarecontributions. A monthly Social Securitybenefit may go to you and/or your dependentswhen you retire, become severely disabled, ordie. The amount of any benefits will dependon prior earnings, adjusted to account forchanges in wages since 1951.
XYZ’s Contribution $2,678
123
Mai
n St
reet
Jane
Doe
Any
Tow
n, N
Y 15
555
You
r Pe
rson
al B
enef
it S
tate
men
t
XYZ’s Contribution $210
Survivor BenefitsXYZ Company provides eligible employees withLife & Accidental Death and DismembermentInsurance. Your beneficiary may be entitled toreceive $50,000 in the event of your death. Ifyou are injured in an accident, your beneficiarymay receive an additional $50,000 for loss oflife or dismemberment.In addition, the Company offers you the optionto purchase Voluntary Life Insurance coveragefor yourself, spouse and dependent child(ren)through payroll deduction.
You elected to purchase $50,000 ofadditional coverage on yourself, $25,000 onyour spouse, and $10,000 of coverage onyour child(ren).
Special ProgramsDirect Deposit
Tuition Reimbursement
Employee Assistance Program (EAP)
Retirement BenefitsXYZ Company maintains a 401(k) Savings Planfor eligible employees to assist you during yourretirement years. In order to participate in theplan, you must be at least twenty-one years ofage, have completed one full year of service,and have worked at least 1,000 hours during theplan year. The plan consists of two parts:
XYZ’s Contribution $1,750
You can set aside a percentage of your totalwages up to the IRS limitation each year.Your contributions are made with pre-taxdollars and grow tax-deferred in youraccount.
XYZ Company will match 50% of yourcontributions not to exceed 6% of your totalcompensation. You will be fully vested inthe company’s contributions after five yearsof service.
You are currently contributing 10% of yoursalary to your 401(k) Plan.
XYZ Company's annual match is anticipatedto be $1,750.
XY
Z
XY
ZCO
MPA
NY
Address 1 123 MAIN STREET
City ANY TOWN
State NY
Zip ?NOTE: Every effort has been taken to ensure that the information in thisstatement is accurate; however, no warranty or guarantee is implied orintended. Calculations are based on benefit plan provisions and yourcompensation as of 12/31/20XX. If a discrepancy is found to exist betweenyour benefit statement and the benefit booklets or summary plandescriptions, the provisions of those documents will govern.
You are eligible for the following paid time off: