THE TOOLS AND TECHNIQUES OF EMPLOYEE BENEFIT

AND RETIREMENT PLANNING

(12th Edition)

Educational Objectives

CHAPTER 1 DESIGNING THE RIGHT RETIREMENT PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of factors relating to retirement plan design

2. understand key advantages of retirement plans for employers

3. identify major types of qualified retirement plans

4. identify key factors affecting plan selection

CHAPTER 2 PLANNING FOR RETIREMENT NEEDS

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of retirement income needs

2. identify key aspects of retirement needs analysis

CHAPTER 3 SOCIAL SECURITY

Upon completion of this chapter, the student should be able to:

1. have an understanding of Social Security eligibility

2. know the significance of being fully insured or currently insured for Social Security

3. have a basic understanding of Social Security (OASDI) benefits

4. understand how to determine Social Security benefits

5. have a basic understanding of how Social Security benefits are taxed

CHAPTER 4 MEDICARE

Upon completion of this chapter, the student should be able to:

1. identify basic benefits under each part of Medicare coverage

2. have a basic understanding of Medicare eligibility and enrollment criteria

CHAPTER 5 TRADITIONAL IRAs

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of the traditional IRA, including advantages, disadvantages, and tax implications

CHAPTER 6 ROTH IRAs

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of the Roth IRA, including advantages, disadvantages, and tax implications

CHAPTER 7 QUALIFIED PLANS: GENERAL RULES FOR QUALIFICATION

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of qualified plan requirements

2. identify key qualification rules for qualified plans

CHAPTER 8 QUALIFIED PLANS: DISTRIBUTIONS AND LOANS

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of qualified plan distributions and loans

2. identify key plan provisions regarding spousal benefits and qualified domestic relations orders (QDROs)

3. understand provisions relating to defined benefit and defined contribution plan distributions

4. have a basic understanding of tax issues related to qualified plan distributions, including premature withdrawal and minimum distributions requirement penalties

5. have a basic understanding of retirement plan rollovers

CHAPTER 9 ESTATE AND RETIREMENT PLANNING FOR QUALIFIED PLANS AND IRAs

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of estate and retirement planning with qualified plans and IRAs, including advantages, disadvantages, and tax implications

CHAPTER 10 INSTALLING A QUALIFIED RETIREMENT PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of the steps involved when installing a qualified retirement plan

CHAPTER 11 QUALIFIED PLAN INVESTMENTS

Upon completion of this chapter, the student should be able to:

1. identify key factors relating to qualified plan investments

2. have a basic understanding of fiduciary requirements for qualified plans

CHAPTER 12 ERISA REPORTING AND DISCLOSURE

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of ERISA reporting and disclosure requirements for pension plans

2. have a basic understanding of ERISA reporting and disclosure requirements for welfare plans

CHAPTER 13 LIFE INSURANCE IN A QUALIFIED PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of using life insurance to fund a qualified plan

2. understand ways in which life insurance may be used in defined benefit plans

3. understand ways in which life insurance may be used in defined contribution plans

4. identify key tax-related factors when using life insurance to fund a qualified plan

CHAPTER 14 DEFINED BENEFIT PENSION PLAN

Upon completion of this chapter, the student should be able to:

1. have a general understanding of defined benefit pension plans

CHAPTER 15 CASH BALANCE PENSION PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of cash balance pension plans

CHAPTER 16 MONEY PURCHASE PENSION PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of money purchase pension plans

CHAPTER 17 PROFIT SHARING PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of profit sharing plans

2. identify key tax-related factors for profit sharing plans

CHAPTER 18 ESOP/STOCK BONUS PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of stock bonus plans and ESOPs

2. identify key issues related to the use of an ESOP/Stock bonus plan for estate planning for shareholders of closely held businesses

CHAPTER 19 SAVINGS/MATCH PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of savings/match (thrift) plans

CHAPTER 20 SECTION 401(k) PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of 401(k) plans

CHAPTER 21 CROSS-TESTED/AGE-WEIGHTED PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of cross-tested age-weighted plans

CHAPTER 22 HR 10 (KEOGH) PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of HR 10 (Keogh) plans

CHAPTER 23 SIMPLE IRAs

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of the SIMPLE IRA

CHAPTER 24 SIMPLIFIED EMPLOYEE PENSIONS (SEPs)

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of the simplified employee pension (SEP).

CHAPTER 25 TAX DEFERRED ANNUITY

Upon completion of this chapter, the student should be able to:

1. identify basic features and applications of tax deferred annuities

CHAPTER 26 NONQUALIFIED DEFERRED COMPENSATION

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of nonqualified deferred compensation

2. identify key methods of arranging and funding nonqualified deferred compensation

3. identify key tax-related issues with nonqualified deferred compensation plans

CHAPTER 27 GOVERNMENTAL AND TAX-EXEMPT EMPLOYER DEFERRED

COMPENSATION (SECTION 457) PLANS

Upon completion of this chapter, the student should be able to:

1. identify key factors related to Section 457 plans

CHAPTER 28 THE PROCESS OF EMPLOYEE BENEFIT PLANNING

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of the process of employee benefit planning

CHAPTER 29 DESIGNING THE RIGHT LIFE INSURANCE PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of life insurance plan design considerations for executives

CHAPTER 30 DESIGNING THE RIGHT HEALTH BENEFIT PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of group health benefit plan design

CHAPTER 31 CASH COMPENSATION PLANNING

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of cash compensation planning

CHAPTER 32 BONUS PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of employee and executive bonuses

CHAPTER 33 SEVERANCE PAY PLAN

Upon completion of this chapter, the student should be able to:

1. identify key factors involved with severance pay plans

CHAPTER 34 GOLDEN PARACHUTE PLAN

Upon completion of this chapter, the student should be able to:

1. identify key factors of golden parachute plans

CHAPTER 35 STOCK OPTION

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of employee stock options

CHAPTER 36 INCENTIVE STOCK OPTION (ISO)

Upon completion of this chapter, the student should be able to:

1. describe key factors related to incentive stock options

CHAPTER 37 EMPLOYEE STOCK PURCHASE PLAN (Section 423 Plan)

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of Employee Stock Purchase Plans

CHAPTER 38 RESTRICTED STOCK PLAN

Upon completion of this chapter, the student should be able to:

1. discuss key factors related to restricted stock plans

CHAPTER 39 CAFETERIA PLAN

Upon completion of this chapter, the student should be able to:

1. identify key facts related to cafeteria plans

CHAPTER 40 FLEXIBLE SPENDING ACCOUNT

Upon completion of this chapter, the student should be able to:

1. understand key factors related to flexible spending accounts

CHAPTER 41 GROUP-TERM LIFE INSURANCE

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of group-term life insurance

2. identify key issues related to a group life insurance carve-out for executives

CHAPTER 42 SPLIT DOLLAR LIFE INSURANCE

Upon completion of this chapter, the student should be able to:

1. have a general understanding of split dollar life insurance arrangements

2. identify key differences between equity split dollar and reverse split dollar arrangements

3. discuss tax implications related to various split dollar life insurance arrangements

CHAPTER 43 KEY EMPLOYEE LIFE INSURANCE

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of key employee life insurance

CHAPTER 44 DEATH BENEFIT ONLY (DBO) PLAN

Upon completion of this chapter, the student should be able to:

1. understand death benefit only plans

CHAPTER 45 HEALTH INSURANCE

Upon completion of this chapter, the student should be able to:

1. have a general understanding of group health care plans

2. know key aspects of continuation of health care coverage under COBRA

3. understand issues related to continuing health coverage for retirees

CHAPTER 46 HEALTH MAINTENANCE ORGANIZATION (HMO)

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of health maintenance organizations

CHAPTER 47 HEALTH SAVINGS ACCOUNT (Section 223 Plan)

Upon completion of this chapter, the student should be able to:

1. identify essential facts related to health savings accounts (HSAs)

CHAPTER 48 HEALTH REIMBURSEMENT ARRANGEMENT (HRA)

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of health reimbursement arrangements

CHAPTER 49 LONG-TERM CARE PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of group long-term care plans

CHAPTER 50 SICK PAY (SHORT TERM DISABILITY)

Upon completion of this chapter, the student should be able to:

1. discuss key facts related to sick pay and short term disability plans

CHAPTER 51 LONG TERM DISABILITY INSURANCE

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of group long term disability insurance

CHAPTER 52 "FRINGE" BENEFITS (SECTION 132)

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of employee fringe benefits

CHAPTER 53 COMPANY CAR OR REIMBURSEMENT PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of company car and car expense reimbursement plans

CHAPTER 54 DEPENDENT CARE ASSISTANCE PLAN

Upon completion of this chapter, the student should be able to:

1. identify key facts related to dependent care assistance plans

CHAPTER 55 EDUCATIONAL ASSISTANCE PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of educational assistance plans

CHAPTER 56 LEGAL SERVICES PLAN

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of legal services plans

CHAPTER 57 LOANS TO EXECUTIVES

Upon completion of this chapter, the student should be able to:

1. understand tax and other implications of loans to executives

CHAPTER 58 MOVING EXPENSE REIMBURSEMENT

Upon completion of this chapter, the student should be able to:

1. have a basic understanding of moving expense reimbursements

CHAPTER 59 VEBA WELFARE BENEFITS TRUSTS

Upon completion of this chapter, the student should be able to:

1. Identify key issues related to VEBAs