Texas Workers' Compensation & Recoupment of Overpaid Benefits - Injured Workers Have The Advantage

One of the hot topics of dispute resolution before the Division of Workers' Compensation these days is recoupment. Recoupment is an attempt by an insurance carrier to recover overpaid benefits from a claimant by reducing the claimant's future benefits by a set percentage until all of the overpaid benefits have been recovered. For years, it was a matter of fairness, and the Division made decisions with respect to recoupment on the basis of equity. The carrier's ability to recoup overpaid benefits has been significantly reduced, and when it can, how much it may reduce benefits may not be based on anything to do with fairness or equity.

THAT'S NOT FAIR!

Recoupment is now governed by Rule 128.1(e). That rule went into effect on May 16, 2002. Claimants made no immediate rush to embrace the windfalls allowed under the rule, and it wasn't until nearly two years later that the rule began to be included with any prominence in the recoupment discussions of the Appeals Panel. This is in part due to the lack of cases that were brought up on the issue. Even since 2004, when the Appeals Panel issued a "significant" decision on the matter, claimants have not aggressively pursued the use of the rule to their benefit. That rule, and the decisions addressing its interpretation, are now becoming widely known, and cases involving recoupment are becoming more common.

Rule 128.1(e) significantly limits a carrier's ability to recoup overpaid benefits. It has been interpreted to limit recoupment only to those situations where the overpayment is the result of a miscalculation in or change of average weekly wage (APDs 033358-S and 060318). The general rule is that in order to recoup overpaid benefits, there must be a statutory provision that allows such recoupment. In APD 060318, the panel noted provisions such as Texas Labor Code 415.008 (concerning fraudulently obtaining benefits), 408.003 (concerning reimbursement of benefit payments made by an employer), and 410.209 (allows reimbursement from the subsequent injury fund for payments made under a Division order which is reversed or modified), as statutory provisions that could allow a recoupment of benefits. But these instances are rare.

The results of Rule 128.1(e) can be rather harsh and unfair, and may certainly be without any consideration of equity. The only "significant" decision on this matter is Appeals Panel Decision (APD) 033358-S. The overpayment in this case resulted from a change made to the average weekly wage when the carrier received the DWC-3 wage statement. It was not received until the claim had progressed halfway through the payment of impairment income benefits (IIBs) based on a fifteen percent impairment rating. The carrier then suspended IIBs to recoup its overpayment on the notion that based on the number of weeks temporary income benefits were owed (TIBs) and the number of weeks IIBs would be owed, and multiplying that number of weeks by the benefit rate due, the amount of benefits the claimant was entitled to receive had already been paid. The panel found that logic to be "nonsensical."

The argument that a claimant will be paid a certain amount of benefits based on the benefit rate and the number of weeks owed is highly logical. For instance, a claimant with a TIBs rate of $250.00 who misses ten weeks of work and has a five percent impairment rating should receive a total of $6,250.00 ($2,500.00 in TIBs + $3,750.00 in IIBs) in workers' compensation indemnity benefits. That makes sense and is easy to calculate. But what if a change in average weekly wage results in a benefit rate of $200.00 and ten weeks of IIBs have already been paid? This means that the carrier has paid a total of $5,000.00 under the prior rate, and the claimant should only receive a total of $5,000.00 in indemnity, and yet there are five weeks of IIBs left to pay. The panel determined that the claimant is legally entitled to the remaining weeks of IIBs, holding that, "the amount of recoupment is a factor in determining the amount of benefits that will be paid to a claimant rather than the amount of recoupment being determined by a predetermined amount of total benefits." This means that a claimant can receive more in indemnity benefits than the calculation of benefit rate times weeks owed would yield because the claimant is legally entitled to benefits for a certain time period based on the impairment rating. If the claimant has a five percent impairment rating, he is owed fifteen weeks of benefits from the date of maximum medical improvement. Any adjustment made to the benefits owed calculation that precludes an income benefit for that legally entitled period runs afoul of the first part of Rule 128.1(e).

This does not mean that an adjustment is not made to allow the carrier to recoup an overpayment resulting from a change in average weekly wage from future benefits. Rule 128.1(e)(2) determines the amount of recoupment that will be allowed. If the claimant's benefits are being reduced to pay attorney fees or to recoup a Division approved advance of benefits, then the carrier is allowed to recoup the overpayment at a rate of ten percent. If the claimant's benefits are not being reduced to pay attorney fees or an advance, then the carrier is allowed to recoup at a rate of twenty-five percent.

In APD033358-S discussed above, the carrier determined that it had paid all of the benefits it owed pursuant to the calculation of benefit rate times weeks owed. It then suspended benefits to recoup the overpayment. In essence, it determined on its own to recoup at the rate of one hundred percent. The Appeals Panel determined that this was inconsistent with the rule. The rule only allows either a ten percent reduction in benefits or a twenty-five percent reduction in benefits, depending upon the circumstances. The rule does not allow a one hundred percent reduction in benefits. That panel ordered a ten percent reduction in benefits because the claimant's benefits were being reduced to pay attorney fees.

OR IS IT?

The problem with the result in APD 033358-S is that the carrier did not avail itself of the protections offered in Rule 128.1(e)(2)(c). The last section of the rule is a return to equity analysis. It allows for recoupment at a rate greater than that allowed in Rule 128.1(e)(2)(A) or (B) if the carrier enters into a written agreement with the claimant, or if unable to do so, by asking the Division to approve a higher recoupment rate. The rule specifically states that the primary factor that the Division should use in determining the rate of recoupment is the likelihood that the entire overpayment will be recouped! It provides that "the rate should be set such that it is likely that the entire overpayment can be recouped." The rule further states that the Division is to also consider the cause of the overpayment and the financial hardship that may be created for the claimant. This is equity analysis.

The bottom line here is that if the overpayment is due to a change in the average weekly wage, that overpayment can be recouped at any rate that the carrier can get the Division to approve, but it must ask for a rate to be set by the Division rather than setting the rate itself. Failure to request a rate from the Division will result in the default recoupment rates of Rule 128.1(e)(2)(A) and (B).

There are procedural questions that remain unanswered by the rule and by the Appeals Panel. How does a carrier request a rate of recoupment greater than the default rates? A quick review of the Division's website shows that there is no form that can be filed for such a purpose. Does the timing of the request matter? Do the default rates control until the date the carrier requests a change in the recoupment rate from the Division similar to a contribution case? Who makes the decision at the Division as to the amount of recoupment allowed prior to a benefit review conference or contested case hearing? Does the carrier have to provide evidence that it sought an agreement from the claimant as a condition precedent to the Division approving a change in the recoupment rate?

There are no answers to these questions, which will surely be litigated in time. It appears that the carrier must attempt to reach an agreement with the claimant before requesting a change in recoupment rates from the Division. There must, then, be a request made to the Division to approve a recoupment rate based on the equities of Rule 128.1(e)(2)(C). At that point, the carrier would be protected by the Rule and in any subsequent dispute resolution proceeding, it would be able to ask for a rate of recoupment greater than the default rates based on equity and fairness.

CONCLUSION

The carrier's ability to recoup an overpayment of indemnity benefits from future indemnity benefits has been limited to a large degree by Rule 128.1(e). The Appeals Panel has determined that in order for a carrier to recoup overpaid benefits, there must be a statutory provision allowing for that recoupment. Rule 128.1(e) only allows for recoupment when the overpayment results from a change in average weekly wage. When this occurs, the default recoupment rates are ten percent or twenty-five percent, depending on the circumstances. If the carrier wants to recoup the overpayment at a rate greater than the default rates, it must request that the claimant agree to a greater rate. If the claimant will not agree to a greater rate of recoupment, the carrier must request that the Division approve a greater rate based on the equities of Rule 128.1(e)(2)(C). If the carrier fails to make this request of the Division, then it will be limited to the default rates of Rule 128.1(e)(2)(A) and (B).

Matt Lewis represents injured workers in the Texas workers' compensation system. He is AV Rated by Martindale-Hubbell, the highest rating possible in competency and ethics. Mr. Lewis is board certified in workers' compensation law by the Texas Board of Legal Specialization, and serves on the Board's exam commission. In an effort to help workers across Texas, Matt writes the Texas Workers' Comp Blog published at http://www.dallasworkcomp.com/txworkcompblog.html

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Are You Selling Features or Benefits?

What is the benefit someone is buying when they purchase a wrist watch? Was the first thing that popped into your mind something along the lines of "the ability to know what time it is"? If so, you fell into the Feature/Benefit trap that we often fall into when we develop our promotional materials and sales presentations.

A feature is an attribute or characteristic of your product or service. And a benefit is the value of the characteristic or attribute to your prospective customer. So in the example above, a feature is "keeps accurate time" and a benefit might be "prevents you from being late to meetings or important events". We too often promote features when it is benefits that our customers are buying.

Benefits appeal to the wants and values of our prospective customers, and at the highest level benefits generally fall into three categories:

1. Money: The product or service helps the buyer make or save money.

2. Time: The product or service helps the buyer save time or frees up time for doing other things.

3. Ego: The product or service in some way makes the buyer feel good.

Ultimately your product or service must appeal to your buyer in one of these three areas. In addition, when developing benefits you must keep the following five considerations in mind:

1. The importance of benefits differs based on the target audience you want to communicate with. Often there are a variety of influencers and decision makers involved in a purchase decision. You must tailor your promotional materials and your presentation to each one.

2. It is important to consider needs and wants of your target audience when selecting benefits to promote. The needs and wants of a Timex buyer are very different from those of a Rolex buyer. Therefore, the features and benefits emphasized in promotional materials are going to be different.

3. Choose benefits that differentiate your product or service from the competition - or at least ones that your target market perceives as differentiating.

4. Benefits must be supported by features. Promoting benefits without features leads to a lack of credibility. A benefit statement such as, "Our computer system will improve productivity by as much as 45%, saving you $75 thousand dollars a year and paying for itself in eight months" must be accompanied by the features that bring about those benefits or your target market won't believe the benefit - it will have no credibility.

5. While your benefit message must appeal to the higher level values of money, time and ego, it must also communicate those intermediate benefits that lead to increased revenues, time savings and "feeling good". If you have ever attended a networking event I'm sure you have had the experience of hearing five people say "We help companies improve revenues". And the people claiming to provide this benefit may be as diverse as a CPA and an advertising account executive. Without some information on the intermediate benefits they provide, such as "improved communication with your target market," the higher level benefit of "improved profits" has no value.

Differentiating features and benefits in your mind as you develop your promotional materials or sales presentations is sometimes difficult. One way to help assure you are promoting benefits and not features is to state a feature followed by "which means" and/or "so that". For example, "All of our CPA's take 40 hours a year of continuing education in tax law changes. This means we can be sure you take all the deductions you are entitled to so that you save money on your tax bill at the end of the year."

One of the difficulties in crafting our own feature and benefit statements is that the benefits of a particular feature are so clear to us that we assume they are evident to our target market as well. And that is a dangerous assumption. You can use the "So what?" test to be sure you are communicating benefits to your target market.

Put yourself in your prospective customers' shoes and read the benefit statement. If you, as the prospective customer, can respond "So what? So what does this mean to me?" then you are still communicating features. Once you have communicated a benefit, your prospect will no longer be able to respond with "So what?".

Here is a five step process that you can implement to develop features and benefits for your product or service and assure you are communicating benefits that matter to your target market.

Step 1: Describe your product or service in 25 words or less.

Step 2: Specifically identify a customer group that you want to target your message to.

Step 3: List the problems your product or service solves for the above customer group and/or the needs and wants the product or service meets for the group.

Step 4: With the above information in mind, list three to five features of your product or service that solves the problems or meets the needs outlined in Step 3. Remember to use "which means" and "so that" to transition from features to benefits and from intermediate level values to higher values.

Step 5: Test each feature and benefit statement using the "So what?" test.

Taking the time and investing the energy to clearly communicate benefits to your target market will lead to a message that resounds with your prospective customers, leading to increased sales of your product or service.

Julie Chance is president of Strategies-by-Design, a Dallas-based marketing coaching, training and consulting firm that helps businesses from specialty retailers to professional service firms Map A Path to Success by implement marketing programs that work. Interested in learning more? Explore teleseminars presented by Julie at http://www.success-strategies-u.com, the training division of Strategies-By-Design (http://www.strategies-by-design.com).

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Various Types of Retirement Benefits

As there are a variety of different agencies that will jump at the chance and honor of becoming in charge of your financial plans for retirement, so are there various kinds of retirement benefits options for you to choose from.

The federal government itself, through its Social Security retirement benefits program for workers empowers you to receive payments after you have retired. The payments are based on the period you have been employed and social security taxes you have contributed.

Different kinds and sources of retirement plans / benefits

o Disability benefits

o Social security benefits

o Private savings

o Veterans benefits

Overviews of the different kinds of retirement plans

o Social security retirement benefits - this program allows many profits for more workers since it has wide - range and exclusive benefit options. This program already has a proven history of endowing worker - contributors with tremendous social benefits. Aside from benefits for its contributor, it also extends occasional support to its non-members, and many other humanitarian programs.

The latest update regarding membership of American citizens in the Social Security System is up to more than 96%.

The social security grants retirees with guaranteed lifetime benefits by means of a check paid every month. The amount of the check payment is adjusted each year according to the inflation for retirees who have met the following requirements:

- Work coverage of 40 credits or at least 10 years of receiving substantial earnings subjected to self-employment or social security taxes.

- Have reached 62 years old and above

- Have filed for the retirement benefit

It is important to remember that if you have checked out your eligibility for such benefit, then you must file an application to receive it. You are not entitled to receive such benefit if you did not take time to apply for it.

In calculating the benefit you will be receiving, the social security also depends largely on the number of years you have contributed to the taxes to determine the retirement payment you will be receiving every month. The general principle though is that, the later you filed your retirement notice, the higher the amount of your pension and retirement interest.

Recently, the full retirement age is 65 but one can already retire starting the age of 62. There are some unusual cases wherein early retirement became possible.

o Disability benefits - some people have experienced being physically helpless or unable to take care of themselves as a result of a catastrophic or traumatic accident. Meanwhile, some become incapacitated because of a health condition.

If this happened to you and medical findings determined that, you are bound to such conditions for up to or more than 12 months, then you need to file an application for disability benefits.

When you file for SSD benefits, you can also get full retirement benefits similar to those being received by retirees who fulfilled the full retirement age. However, you will be required to present a complete medical certification from a hospital accredited by the social security.

o Private savings - this along with retirement pension plans can be another productive option for retiring workers who are interested in maximizing their pensions and other benefits, like health care plans once they have reached retirement.

However, this kind of retirement benefit option may be expensive and requires higher contribution amount and longer period.

* Veterans benefits - the law protects veterans and their family members by providing them with some government dividends. This entitles to various benefit programs like health care, specifically designed for them.

Lala C. Ballatan a.k.a Kay Zetkin discovered the pleasure of writing through her daily journals way back when she was 10. With writing, she felt freedom - to express her viewpoints and assert it, to bring out all concerns -- imagined and observed, to bear witness.

For more information about the types of retirement benefits, get the help of a reliable California Retirement Benefits Attorney

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Intranet - The Benefits Realisation Plan

The Millennium Experience

A successful project is one that delivers on-spec ('quality'), time and cost. Right? Well consider these two projects...

The Millennium Dome was delivered on time for the 31 December 1999 and safely within a budget (fixed in 1998) of £289 million. The Project was also delivered to quality, albeit against a Specification that had been adjusted several times during the project to simplify the scope of work required (and ensure that time and cost deadlines could still be met). However, visitor number targets were greatly overestimated, the business a total flop and the whole endeavour deemed a failure by many.

The Millennium Wheel (or "London Eye") opened one month late on a dreary February morning in 2000 (following problems raising the wheel and then safety & quality issues with one of the 32 pods). It was also over budget, with building costs of £70m (against the £25m British Airways had originally planned to spend). However, an average of about 10,000 people a day now ride the wheel, making the London Eye the UK's biggest tourist attraction (and generating £15 million of trading profit a year) - a healthy return on investment for the shareholders.

A New Mindset for Change Projects

Traditional methodologies for change / project management (of which PRINCE is an example) tend to focus primarily on time, cost and quality. Benefits are all too often only implicitly recognised and the accountability for realising them is assumed to lie outside the project.

However, the pace of change within our society, industry and business grows ever faster. Somewhat paradoxically, there is an ever-greater need to ensure that changes 'stick' (delivering sustainable benefit and competitive advantage to the organisations making them). Most businesses have already achieved greater efficiency and effectiveness within single functions or processes; The challenge of the 21st Century is increasingly how to realise end-to-end change across a boundary-less business.

Rarely (these days) will a single customer sponsor a single project, delivering a single system into a single department.

The leadership challenge is thus how to engage multiple sponsors and change agents across the whole business to deliver excellence in change and the ruthless pursuit of business benefits and true return on investment (ROI).

The Case for a focus on Benefits Management

Recent research from the Cranfield University School of Management finds that 78% of IT-enabled change projects (in large UK companies) fail to deliver business benefits. 47% believed assessment of business benefits in business cases was poor or worse and 79% said that all the available benefits were not captured during that assessment. 45% believed benefits were overstated in their organisation to get investment approval.

Arguably, this will only change when project managers and their people become accountable for - and obsessed by - delivering business benefits and value through Change, rather than simply projects to time and cost.

Benefits Defined

Soft Benefits (sometime called "non-quantifiable" benefits) are those intangible improvements to be obtained from a change, including improved employee satisfaction, better customer satisfaction, increased knowledge sharing and re-use of intellectual capital. Whilst it is often accepted that such benefits do lead to financial gain, it is deemed impossible to demonstrate a proven causal link that would enable one to place a financial value on the benefit.

Direct Benefits are those which lead to a measurable impact on the bottom-line of the organisation, including increased revenue, reduced costs of sale / improved margin, operating cost reduction (e.g. through reduced headcount) and improvements in working capital (e.g. through a faster debt collection cycle). An individual or team can be held directly to account for achieving them and providing evidence of their realisation.

Indirect Benefits are those which facilitate or enable bottom-line impact, without leading directly to realisable items for which can individual or team had be held accountable. Such benefits include cost avoidance (i.e. costs not currently budgeted that might otherwise become payable) and capacity creation (where efficiency savings free up people to undertake high-value adding tasks but do lot lead directly to the release of FTEs or other costs).

The Benefit Realisation Toolset

In the http://www.viney.com/DFV/intranet_portal_guide/during/benefits_realisation_tracking.html">Benefits Realisation & Tracking chapter of my (free to access) Intranet Portal Guide, I outline a number of tools that can be used to better manage benefits on the typical portal project.

1) An enhanced Business Case

Many business cases simply do not sufficiently reference Benefits. Make sure that you dedicate at least as many column-inches to benefits as you do to costs. Split benefits between soft, direct and indirect. Ensure that direct benefits are included in the ROI, NPV or IRR calculations and that the people who will be accountable for their realisation have signed them off.

2) The Benefits Blueprint

Create a document that shows how your benefits link to actual business process changes, projects or deliverables and changes to systems. Suitable tools can be found in Cranfield's Benefits Network approach, the Six Sigma toolset and as add-ons to PRINCE. Position the overall result in the context of your vision and strategy. This will help you capture all the benefits and to sharpen what you need to do to achieve them.

3) The Benefits Realisation Plan

The key control document, a good Realisation Plan includes, for each benefit, (a) a description of what the benefit is, (b) how much it is worth, (c) who will be accountable for it's realisation, (d) when it will be realised and (e) where it will impact. If there are risks or dependencies to the benefit realisation, these should be noted and managed in the plan. Finally, it should be clear in the plan how the benefit realisation will be objectively measured and evidenced (e.g. through the monitoring of key performance indicators).

4) Benefit Evidence

In my guide, I suggest the use of Benefit Sign-off sheets, whereby the benefit owner identified at the Business Case and Planning stage is expect to sign-off once she is satisfied that the benefit has been realised. Evidence supporting the sign-off should also be attached to the sign-off sheet. This is a good discipline, to keep everyone honest.

Conclusions

The 21st Century Project Manager needs to be obsessed with delivering business benefits and value through change, rather than simply projects to time, cost and quality. There are tools that can help, including in particular the Benefits Realisation Plan. Good luck and don't forget to check back with my guide for further help and templates you can download.

David Viney (david@viney.com) is the author of the Intranet Portal Guide; 31 pages of advice, tools and downloads covering the period before, during and after an Intranet Portal implementation.

Read the guide at http://www.viney.com/DFV/intranet_portal_guide or the Intranet Watch Blog at http://www.viney.com/intranet_watch.

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Understanding Social Security Benefits

Social security as a foundation of our retirement income presents two facts:

Social security is a lifetime achievement and membership.


Social security benefits do not lose it value because financial adjustments are made from time to time.

How Social Security Works

You pay your taxes to social security as you work which becomes part of your income when you retire or become disabled. You actually earn the benefits that you deserve while working. Therefore, the longer you work and the more money you earn, the higher you social security benefits will be.

The amount of social security retirement benefits is based on some of these factors:

How much time you spent in the workforce


How much money you made.


Your age when you start receiving benefits.

To qualify for social security retirement benefits, you must have earned at least 40 social security credits in a job covered by social security. You can start receiving your retirement benefits at age 62. If you wait until you are older enough to start receiving your benefits, you will get a higher amount each month.

Whether you qualify for retirement or disability benefits, your spouse and dependent children can also receive monthly checks.

Social security is a dominant source of income for individuals age 65 or older. They depend on social security benefits for more than 50 percent of their income.

According to the records of the social security agency, more than 47.5 million people receive monthly benefits.

Applying for Benefits

Social security benefits are not paid automatically. You have to apply for them using special forms. When applying, you have to provide several documents such as your social security card, birth certificate, and proof of citizenship (if you were not born in the country). Depending on the type of benefit you are applying, you will be asked to produce certain documents. You can also apply online or call any local social security office to apply.

Planning your Social Security Benefits

Social security also serves as an alternative source of income. When planning your social security benefits, you have to consider the following factors:

Benefit amount - The benefit amount that you will receive can be calculated by comparing the value with the amount stated in the yearly statement sent to you.


Timing - The age to receive full retirement benefits was increased from age 65 to 67. The exact age for your full retirement will depend on your date of birth.


Working - If you plan to continue work, you can still receive your benefits. If you are younger than your retirement age, you can work and earn money only to a certain extent without reducing the amount of your benefit. After reaching the retirement age, the earning limit will be dropped.

Who Can Help You

Pursuing social security benefits often require a thorough understanding of social security laws and how the system works. To improve one's chances of success in obtaining his claim, he needs the services of a knowledgeable social security lawyer. A social security attorney who specializes in benefits and claims can help you achieve your goals.

For a better view on other matters surrounding Social Security Disability Claims, please contact our expert and highly commendable Los Angeles Attorneys.

Before becoming an online writer, Manuel worked as a journalist, a newspaper columnist, a scriptwriter, a fiction writer, a magazine editor, and a tutor. He acquired his legal background as a Senate legislative officer and later on, as a researcher and paralegal staff in various law offices. Someday he hoped to go back and devote more time to writing fiction, which is his first passion.

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Employee Benefits 101

Whether you're new to the job market, between jobs, or re-entering the workforce, you already have a lot on your mind. But while you're figuring out which job, industry, company, and salary are right for you, take a few minutes  to consider a piece of the puzzle many people overlook: employee benefits.

Benefits are one of the most important things to consider when you're looking for the a job or evaluating an offer. Your benefit package is intended to help you stay healthy and financially secure, and it's a major part of your employer's commitment to you. In fact, your benefits package could be worth 30% of your salary or more!

 

What are Employee Benefits?

 

Employee benefits are the compensation you receive from your employer in addition to your pay. There are dozens of types of benefits, but these are some of the most common:

Paid time off such as vacation time, holidays, and sick time
Medical insurance
Dental insurance
Vision insurance
Life insurance
Disability insurance
Flexible spending accounts
Long-term care insurance
Retirement benefits such as a 401(k) plan and/or pension plan
Legal assistance plans
Employee assistance programs
Discount programs
Company cars

Who Gets Employee Benefits?

 

It's up to each employer to decide which benefits they offer and, to some extent, who they offer benefits to. Most full-time American workers have access to basic benefits such as paid time off, medical insurance, and a retirement plan. Part-time workers occasionally have access to benefits, but that's much less common.

 

Are Benefits Negotiable?

 

Benefits are definitely negotiable, and you should always include them in your evaluation of a job offer. If you ask the right questions, you may be able to get additional benefits that weren't part of the original offer. If you can't do that, you may be able to negotiate for more pay by comparing one company's benefit package to that of another potential employer.

 

Here are some of the questions you should ask yourself (or a potential employer) when you're looking at a job offer. Don't settle for incomplete answers-- as in any negotiation, the more information you have, the more successful you'll be.

 

How big is the company? You should expect a larger benefit package from a larger employer, because large companies have more buying power and their employees have a wider variety of needs. On-site day care, for example, is relatively common among large employers, but it's very rare among companies with fewer than 1000 employees.

 

On the other hand, very small employers (say, those with twenty employees or fewer) are often willing to add benefits for the sake of an individual employee. You might convince a very small employer to buy medical insurance for you, even if they don't have a plan in place.

 

If you're accepting a smaller benefits package by taking a job with a smaller company, ask for a higher salary or wage to compensate for what you're giving up.

What plans do you qualify for? You may not be able to convince many employers to add a benefit plan just for you, but you can certainly ask for access to benefits that weren't part of your original job offer.

 

Many companies list their benefit plans on their websites, even if the plans aren't available to every employee. Use the Internet to find out what benefits your potential employers offer, and find out which of those benefits they're offering to you.

 

Federal laws require employers to be consistent in how they offer benefits, so you won't have much luck asking for an exception to the eligibility rules. Your best bet is to find out if there are minor changes to your employment status which would give you access to additional benefits. A few extra hours worked per week or a slightly different title could make a big difference in your benefits.

 

How much will you pay for benefits? Depending on the employer and which plans you elect, your payroll deductions for benefits can be anywhere from a few dollars to a few hundred dollars per paycheck. Unless you want to risk a nasty surprise when you get your first check, be sure to find out in advance what you'll be paying.

 

This is another area where understanding your benefits can help you negotiate a higher salary. Try to get specific information about other employers in your area. If your potential employer expects you to pay more than average for your benefits, use that fact to your advantage.

 

If you're comparing offers from two potential employers in the same industry and same area, you'll probably find that their benefits are very similar. That's because

companies who compete for employees don't want their benefit packages to put them at a disadvantage. That doesn't mean that your cost for benefits will be the same at either company. Get information about employee contributions for benefits, not just a list of plans.

 

Will you be part of a union? Unions have much more power to negotiate benefits than individual employees, but the trade-off for union members is that they have to take the union-negotiated benefit package "as is." 

 

If you are in (or will be joining) a union, make sure you understand the benefits package you'll be getting. If you want to make changes to it, you'll need to speak to your union leadership and wait for the next round of contract negotiations.

 

No matter what sort of job you're looking for or where you're planning to work, understanding employee benefits will put you in position to get the best deal possible.

If you'd like to learn more about the benefits offered by today's employers, you can find additional resources including a guide to medical plans and a comprehensive benefits glossary at [http://www.thebenefitsdesk.com]

Ted Conway is a Chicago-area benefits consultant and author, and the editor of The Benefits Desk, an online benefits resource for employers and employees.

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The 5 Most Common Mistakes with Employee Benefits

Progressive companies are increasingly relying upon employee benefits to attract and retain top talent according to a new MetLife study. 55% of employers rank 'employee retention' as their No. 1 benefits objective. Unfortunately, the same study showed that only 33% of workers feel strongly that their company effectively educates them on their benefits options. This reveals just one of the many problems the employers face when confronted with the daunting task of developing a benefits strategy and communicating it with their workers. If you're going to use benefits to build a solid workforce, here are the five most common mistakes to avoid.

Lack of communication

Perhaps the biggest mistake employers make is not involving the employees during benefits decisions. Open communication is key. Finding out what employees want in regard to benefits should be your first step before making any changes. Communicating your objectives will make employees an active part of the decision making process. Different employees have different needs. Don't assume that the folks in the warehouse are interested in the same benefits as the middle managers in accounting. This is a big mistake.

Cutting benefits to control costs

This is often misused because it is a short term solution to a long term problem and frequently results in high levels of employee turnover. While cost sharing is an important element in a long term benefits strategy, it's important to do this over multiple years. Managed incorrectly, this is a serious morale killer. To avoid this, develop a 3-year cost sharing timeline and instead of trying to figure out how to cut benefits, focus on exchanging low value / high cost benefits for high value / low cost benefits. Approaching this with a give-and-take mindset can alleviate most complaints from your employees.

Offering everything but the kitchen sink

Offering every known benefit causes more problems than it solves. When you offer every benefit imaginable, you set yourself up for skyrocketing costs. Also, down the road your employees will ask why you never add new benefits. Instead, consider starting with a simple package and adding new benefits incrementally. This will also provide the advantage of testing new benefits to understand their impact on your workforce.

Offering the benefits your management team suggests

Don't assume that feedback from managers will give you the best idea of what benefits to offer. While this is a valid way to gauge several business issues, benefits desires are often personal and not communicated to managers. Administering a survey to collect information about what employees want from their benefits is a simple solution. Larger companies can form a committee to explore the issue further and develop champions of the process through leaders in the organization, encouraging everyone to get involved.

Taking a short term approach

Anything you do to make short term improvements without considering long term objectives can be dangerous. This is often where an outside advisor can be advantageous, especially one with a long history in business that can share experiences that support or refute possible changes. By focusing on long term goals like employee retention, productivity, and absenteeism, you can navigate many common obstacles.

Designing and implementing a benefits strategy can take as little as two weeks and the long term implications can be sizable. As the labor market tightens, employee benefits will continue to grow in importance as companies seek an edge to attract and retain strong workers.

Mike Nacke designs employee benefits for growing manufacturers to attract and retain top talent, improve employee morale, and reduce absenteeism. He is also the host of Employee Magnetism, the talk show that offers practical advice on employee retention and attraction strategies from some of the nation's top experts. For more information, visit http://www.mikenacke.com

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Read More >> The 5 Most Common Mistakes with Employee Benefits

Employee Benefits - Back to Basics!

As the dust settles on the NI/Tax-enabled Flexible Benefits frenzy that died a sudden death with the pulling of the HCI scheme in May 2006, a small group of UK Organisations continue to march toward offering their Employees choice. According to research commissioned by Employee Benefits Magazine and JP Morgan Invest this year, 25% of organisations in the UK with over 5,000 employees now offer Flex. Overall, companies offering flexibility to at least a proportion of their staff have increased to 27% from 15% three years ago. But this interest in Flex is now a controlled process, by a select group of companies, rather than the mad scramble we have seen over the least few years.

I personally speak to over 500 organisations every year and meet with approximately a third of the FTSE 350 annually and I see a clear change in the interest levels of these organisations and the reasons that are being put forward to implementing Flex.

In August 2005 we conducted research across the FTSE 250 to evaluate the drivers toward Flexible Benefits and the top three were all Employer-focussed:

- Employee retention

- Employer Tax and NI savings

- Capping of Employer benefit costs

Today, the drivers are all centred back on the Employee and the twin drivers of Recruitment and Retention that kicked of the interest in Flexible Benefits in the 1990s.

The Employee Benefits / JP Morgan Invest research lists the following issues shaping benefits strategies today:

- Improving perceived value of the benefits package

- Making benefits more cost effective

- Communicating benefits

- Desire to improve staff engagement

- Desire for flexibility

In fact, I have heard more about Employer Brand and Employer of Choice over the first 6 months of 2007 than the previous three years put together.

This is not surprising as Recruitment is now the top problem for more than half of all UK companies ahead of business strategy or management according to a new study by KPMG and the Recruitment and Employment Confederation and this is causing a renewed pressure to build Employer Brand and re-look at Reward strategies.

This in turn is re-surfacing three key objectives:

- Offer Employees flexibility to choose their own preferred compensation & benefit package

- Increase take-home pay through group discounts and NI/Tax savings

- Communication of better value through Total Reward and Total Value statements

Employee flexibility

Of the 20 or so benefits that most organisations offer as part of their flex package, there are some clear winners and losers. The most popular benefits tend to be SAYE, Life Assurance and Private Medical. This appears to be equally fuelled by the importance Employees placed in the benefits as well as positive subsidisation of the benefits by Employers. This is usually followed by Catering Vouchers and Retirement/Investment benefits. Benefits that tend not to get such great take up are the nice-to-haves like Health Assessments, Car Parking and Lifestyle Management. Only the top 10 benefits on average get double digit take-up.

The biggest difference in benefit take-up rates are by age rather than sex, grade or income.

- Under 20 year-olds stick to staples like SAYE, Life Assurance and PMI choices and take the rest as cash

- Catering vouchers have a strong take-up by 20 to 40 year-olds

- Childcare Voucher take-up is expectedly highest in the 30 to 40 year-old group

- A sharp increase in interest in Retail Vouchers is usually seen in the 40 to 50 year-old age group

- The over 50s had a significantly greater interest in retirement benefits

This clearly does indicate a strong positive-negative preference to specific benefits by certain age groups and lumping them all into a single regimented benefit set is unlikely to be valued by individual employees in the same way. Of course, providing the benefits means investing in technology, systems and processes that can administer these benefits easily and cost-effectively, as well as in communicating the value of the offering appropriately.

Expanding take-home pay

Historically, in the UK, there has been a strong focus on base salary. However, there is an increasing realisation that the two critical factors in terms of Employee compensation are Cost to Company and Employee Take-Home Pay Employees tend to calculate take-home pay as post-tax cash plus value of appreciated benefits.

In research we conducted this year, there were significant cash savings through employee discounts, as well as NI and Tax savings to Employees who were able to invest in Benefits of their own choice. On average, there was a £355 saving for each employee that equated to 1.2% of salary at the basic level. Larger NI and Tax saving interventions increased this by 1.3% to result in a 2.5% saving on average for each employee. This is a substantial saving in a year where average salary increases have been 3.6% from June 2006 to 2007 according to Voca and disposable income is shrinking rapidly in the face of rising consumer debt.

These sort of Salary Sacrifice based benefits and Voluntary Benefits based on Group Discounts are seen as very attractive to Employees, but only if offered within a unified Employer-based system with a solid communication process behind the initiative.

Total Reward and Total Value

Of course, the key to investing in sourcing these benefits, placing them in a unified system and allowing your employees to make choices around their selection, is ensuring that your employees understand the value of what has been given to them.

Two Employers I have met over the last couple of months with approximately the same Employee size had dramatically different result from their Flex initiative. One Employer got a 70% take-up rate for their benefit programme and the other had a take-up rate of less than 7%.

Communication was key to the first company reaching a 70% take-up rate and the other failing miserably in their attempt to benefits nirvana. Communication initiatives do not come cheap and cannot deal with these large issues if done in an ad hoc manner. It needs to be done in a sustained manner and focus on the larger picture of what is on offer, the advantages, the value of the discounts, as well as the NI and Tax savings received by investing in these benefits. Take-home glossy brochures, employee forums, expert advisors, Total Reward / Total Value statements and Modellers can all help bring the message home to each and every one of your Employees.

Conclusion

Most companies I am speaking to currently have already made these choices and are investing in solid Reward Strategy planning, selecting robust systems that can deal with the administration of these strategies in a low maintenance and automated manner, and kicking off communication programmes that can bring their employees along with them as they progress along the path of sharing the Compensation and Reward strategy with their Employees rather than focussing on a top-down vision of what Employees want and need. It is really refreshing to get back to basics and deliver sensible Benefits Administration solutions that work.

Girish Menezes has a 'Masters in Management' from the London Business School. He runs a blog at http://employeereward.blogspot.com that is dedicated to the Reward & Benefits market. You can contact him at girishmenezes @hotmail.com

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Read More >> Employee Benefits - Back to Basics!

Social Security, Retirement Benefits, and Divorce

Social Security in the United States refers directly to a lesser known federal Old Age, Survivors and Disability Insurance program or OASDI. The program was originally rolled out in the 1930's in an attempt to limit what were seen as dangers to the American way of life such as increased life expectancy, poverty, and fatherless children. So the Social Security Act, signed in 1935, created social insurance programs to provide benefits to retirees, the unemployed, and as well as a lump sum benefit to the family at death. Many amendments have been made since the original Social Security Act of 1935. Most importantly; Medicare was added in 1965. The Social Security Act of 1965 also recognized for the first time that divorce was becoming a common cause for the end of marriages and added divorcees to the beneficiary list.

The largest component of benefits is retirement income. Throughout a person's working life the Social Security Administration keeps track of income and taxpayers fund the program via payroll taxes also known as FICA (Federal Insurance Contributions Act) taxes. The amount of the monthly benefit to which the worker is entitled depends upon the earnings record and upon the age at which the retiree chooses to begin receiving benefits. FICA taxes are 7.65% for employees and 15.3% for self employed individuals. The amount of taxes paid is not directly used to calculate an individual's benefit. The rate is broken down into two parts: Social Security and Medicare. The portion is 6.2% and is paid on a maximum of $106,800 of income for 2009. The income maximum is also known as a wage base. The Medicare portion is 1.45% on all earnings. These rates are set by law and haven't changed since 1990. The wage base for Social Security is indexed each year for inflation and Medicare has maintained an unlimited base since 1993.

Self employed person's pay double the amount of tax because the employer is responsible for the other half of an employee's liability. A self employed individual is both employer and employee. There are wages not subject to FICA taxes including some state and local government employees who participate in alternative programs such as CalSTRS and CalPERS. Each state and local government unit with a pension plan decides whether to elect Social Security and Medicare coverage. Civilian federal employees are covered by Medicare but usually not Social Security.

The earliest age at which reduced benefits are payable is 62. The age at which full retirement benefits are available is dependent upon the taxpayers age. An increase of regular retirement age was enacted to reduce the amount of benefits payable. For those currently over age 70 the normal age was 65. Anyone born after will fall somewhere on increasing scale which climbs incrementally to age 67 depending upon birth date. Anyone born after 1960 must reach age 67 for normal retirement benefits. Delaying receipt of benefits will increase a taxpayer's benefit until age 70.

Benefits are paid from taxes collected from other tax-payers. This makes it a pay as you go system and will eventually be directly responsible for the downfall of the program. At least as we know it today. In 2009, nearly 51 million Americans will receive $650 billion in Social Security Benefits. Economists project that payroll taxes will no longer be sufficient to fund benefits somewhere in the next 10 to 15 years. Once we can't cover the expense from cash flow, the program will begin drawing down the trust fund it has accumulated during times of surplus taxes. We can only speculate what happens when the trust fund runs out. This is the cause for concern often discussed in the news and other media. The fix for this problem is the subject of much political posturing including that witnessed in President Bush's 2005 State of the Union address.

The first reported Social Security payment was to Ernest Ackerman, who retired only one day after Social Security began. Five cents were withheld from his pay during that period, and he received a lump-sum payout of seventeen cents from Social Security. This might give you an indication of how Social Security handles business.

A current spouse is eligible to receive survivor benefits equal to 100% of the deceased worker's benefit if they have reached normal retirement age.

Divorced spouses are eligible for benefits equal to one half of the worker's benefit if they were married for 10 years have not remarried and are at least 62 years old. This is called a derivative benefit. A spousal applicant must wait until the worker has reached retirement age, 62, in order to apply for benefits. The worker is not required to have applied for benefits in order for the ex-spouse to apply for spousal benefits. They are not entitled to increases for benefits taken after normal retirement age. If a worker has died and the ex-spouse has reached full retirement age they can receive 100% of the worker's benefit as survivor benefits.

If an applicant is between age 62 and their normal retirement age; the application for benefits will be based on the applicant's earnings record. If one half of an ex-spouse's benefit is greater than the applicant's benefit on their own record; the applicant can choose to take whichever is greater. If you wait until your normal retirement age and file for spousal benefits you can continue to accrue benefits and enhancements for delaying your own retirement up until your age 70.

An ex-spouse's receipt of derivative benefits on the worker's record does not reduce the worker's benefits. It is even possible for more than one ex-spouse to collect on the worker's derivative benefits. This could lead to as much as 500% of the original benefit being claimed by the five ex-spouses.

Windfall Elimination Provision and Government Pension Offset Provision

For those worker's who are covered by a pension based on their own earnings not covered by Social Security a different method of computing benefits applies. The alternative method is called the Windfall Elimination Provision (WEP) and was created to close a loophole that enabled worker's who earned benefits in covered and non-covered employment from being labeled a low-earning worker and receiving a disproportionately large Social Security benefit.

The formula is weighted in favor of low earners because such a person is more dependent on Social Security. If the WEP is applicable it reduces a worker's Social Security benefit by 50% of the worker's pension benefit up to a maximum of $380.50 in 2010.

If you earned a pension based on work where you did not pay Social Security taxes, your Social Security spousal or derivative benefits may be reduced. The Government Pension Offset Provision (GPO) was enacted to treat retired government employees who had not contributed to Social Security similarly to retirees who had. The GPO reduces derivative benefits by two-thirds of other government pensions received. This can reduce Social Security benefits to zero.

The truly important ramification of the WEP and GPO on Social Security retirement benefits comes into play during divorce proceedings. Federal Law makes Social Security benefits the separate property of the party that earned them.

They are not assignable or divisible in a family law court and not considered an asset of the community in California.

Government and other pensions, on the other hand, are considered community property in the state of California to the extent benefits were earned during marriage. Derivative benefits under the Social Security program for ex-spouses would seem, at first glance to remedy the problem. The non-worker spouse get's half of the worker's retirement benefit via derivative benefit payments. Getting to the true ramifications of the WEP and GPO during divorce proceedings requires sound financial planning.

Consider the following couple.

- Jim was a private employee covered by the Social Security system. He retired at age 66 with a monthly Social Security benefit of $2,014.

- Barbara has been employed as a teacher for 30 years covered by the California State Teacher's Retirement System. She retired this year at age 65 with 30 years of service under CalSTRS and a monthly benefit of $5,520 without having paid a single penny into Social Security.

- Barbara's CalSTRS benefits are considered community property in California having been earned entirely during marriage.

- Jim and Barbara are divorcing and her CalSTRS pension will be divided equally with each party receiving $2,760.

- Jim will continue to receive his $2,014 per month of Social Security.

- Barbara will be entitled to a derivative Social Security benefit equal to one half of Jim's benefit, $1,007, or the benefit she has earned on her own record. Barbara has not earned a benefit on her own record so she will choose to receive the derivative benefit on Jim's record.

- The Government Pension Offset will reduce Barbara's Social Security benefits by two thirds of her $2,760 pension benefit, or $1,839.82. The GPO leaves Barbara with $0 from the Social Security derivative benefit.

- Barbara will receive a total of $2,760 from her CalSTRS Pension and $0 from Jim's Social Security derivative benefit.

- Jim's Social Security benefits will not be affected by the GPO or WEP.

- Jim will receive $2,760 from Barbara's CalSTRS benefit and $2,014 from his Social Security retirement benefits for a total of $4,776.

What looks to the lay person to be an appropriately arranged method for completing an equal division of assets leads to a grossly in-equitable settlement that provides Jim with $4,776 per month and Barbara with $2,760 per month.

The California Federation of Teachers sponsored a rally on November 7th to urge Congress to pass SR 484 in the Senate and HR 235 in the House of Representatives to repeal the Government Pension Offset and Windfall Elimination Provision. This has been attempted numerous times before without success. Social Security is a monster of finances, public policy and entitlement. Making changes is not easy or quick.

Consulting with a qualified financial planner experienced in the nuances of divorce finances and retaining their services as a neutral expert or advisor will help divorcing individuals work with and around in-equities caused by the system.

Pacific Divorce Management's mission is to help couples address the legal, emotional, and financial aspects of divorce in a civilized, equitable, and efficient manner by providing expert divorce financial planning advice.
While dissolving a marriage is never pleasant, it does not have to be an ongoing exercise in mutual misery. Pacific Divorce Management provides divorce financial planning services with a focus on the long term well being of all parties. The processes known as Mediation and Collaborative Divorce are forms of Alternative Dispute Resolution that Pacific Divorce Management specializes in.

Justin A. Reckers CFP, CDFA AIF ?
858.509.2329
jreckers@pacdivorce.com

http://www.pacdivorce.com

Our firm does not provide legal or tax advice. Be sure to consult with your own tax and legal advisors before taking any action that would have tax consequences. The information provided herein is obtained from sources believed to be reliable; but no representation or warranty is made as to its accuracy or completeness.

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Information About No-Fault Car Accident Benefits

1. I was injured in a car accident. Am I entitled to compensation?

In addition to the possibility of a lawsuit to recover a money award or settlement for injuries, pain and suffering and other losses, Ontario's government requires automobile insurers to provide certain mandatory benefits to most people who are injured or killed in car accidents. These benefits are called "statutory accident benefits". The statutory accident benefits system operates on a "no-fault" basis. This means that, subject to some limited restrictions, you may be entitled to compensation even if you are the one that caused the accident.

As an injured party, you may well be entitled to receive benefits regardless of whether you were a driver, passenger, cyclist or pedestrian. You, as well as your family members and dependants, can often receive benefits even if you did not have car insurance at the time of the accident.

There are often disputes about what benefits you are entitled to and what insurance assessments you are required to attend. It is often a good idea to consult with a personal injury lawyer to determine what you are entitled to and what steps you need to take to protect your interests.

2. What kind of benefits can I receive?

Income Replacement Benefits - these benefits are designed to reimburse you for some of the money you lose as a result of being unable to work due to an injury suffered in a car accident. Benefits are not payable for the first week and you must meet a disability test to qualify for the benefits. The disability test becomes more difficult to meet after more than two years have passed since the accident.

You can receive income replacement benefits whether you are an employee or a self-employed individual. The maximum that you can receive is generally $400 per week, unless other optional increased benefits are purchased.

If you are self-employed, your income calculation will be more complicated and insurers often hire accountants to assist them with these calculations.

Non-earner Benefits - you may receive these benefits if you are 16 years of age or older and have suffered a complete inability to carry on a normal life as a result of the accident within 104 weeks after the accident. A lawyer can assist in explaining what "complete inability to carry on a normal life" means and how that term has been interpreted by the cases. The benefits are only available to certain classes of people, ie: unemployed but enrolled in school on a full-time basis, or have completed your education less than one year before the accident and not be employed in a job that reflects your education and training.

The amount of the non-earner benefit is generally $185 per week, although nothing will be payable for the first 26 weeks of the disability. However, if your disability has lasted for more than 104 weeks, you will be entitled to receive $320 per week following the initial 104 week period.

Caregiver Benefits - these benefits may be payable if you (the injured person) were living with a person in need of care (such as a young child or an elderly parent) prior to the accident and were not being paid for these services. You may be able to recover reasonable and necessary expenses up to a maximum of $250 per week for the first person in need of care and $50 per week for each additional person. You should note that when it comes to the income replacement, non-earner and caregiver benefits, only one of these three benefits can be paid at any given period of time.

Medical and Rehabilitation Benefits - this benefit deals with reimbursement for reasonable and necessary expenses such as medical, surgical, dental, optometric, hospital, nursing, ambulance, audio metric, speech-language pathology, chiropractic, psychological, occupational therapy, physiotherapy, medication, prescription eyewear, dentures, hearing aids, wheelchairs, prostheses, orthotics, transportation to and from treatment sessions (excluding the first 50 kilometers of the trip in the injured person's vehicle), workplace/home/vehicle modifications, life skills training, counseling, and vocational assessments.

Subject to some exceptions set out in the pre-approved framework guidelines, you must submit a treatment plan to the insurance company prior to beginning treatment. If you do not submit a treatment plan, the insurance company could refuse to compensate you for treatment. The treatment plan must be prepared by a health professional and signed by one of the following - physician, psychologist, physiotherapist, dentist, or optometrist.

You can receive a maximum reimbursement of $100,000 for "reasonable and necessary" expenses acquired in the period of 10 years following the accident. If you suffered "catastrophic impairment", you may be entitled to receive up to $1,000,000 incurred over your lifetime.

Attendant Care Benefits - this benefit may provide compensation for services of an aide or an attendant who is assisting you due to your injury. This could include services of a family member or other aide looking after you at home, or services provided by a long-term care facility including a nursing home, home for the aged or chronic care hospital.

You may be entitled to a maximum of $3,000 per month for two years following the accident. If you suffered "catastrophic impairment", you may receive up to $6,000 per month up to a maximum of $1,000,000 without a time limit. The insurer may ask you to provide it with a certificate from a health professional confirming that you require attendant care services.

Funeral and Death Benefits - when a person dies due to a car accident, his or her estate may be entitled to reimbursement of funeral expenses to a maximum of $6,000.

The deceased's spouse, dependants and caregivers may also be entitled to death benefits. Death benefits are usually only payable if the deceased died within 180 days after the accident, or, if the deceased was continuously disabled as a result of the accident, within 156 weeks after the accident. No benefits will be payable to a person who dies before the deceased or within 30 days after the deceased.

A spouse may receive $25,000 if the deceased was married. If the deceased was not married, but had dependents, the $25,000 would be divided equally among the dependents. On top of the $25,000, each of the dependents and former spouses of the deceased (to whom the deceased had an obligation to pay spousal support) will be entitled to $10,000.

If the deceased was himself or herself a dependent at the time of the accident (ex. if the deceased was a minor child), $10,000 would be payable to the person upon whom the deceased was dependent (ex. parent or grandparent) or, if that person is dead, to that person's surviving spouse or dependents.

Visiting Expenses - if you sustained injury in a car accident, your family members and individuals who were living with you at the time of the accident may be entitled to reimbursement for all of their reasonable and necessary expenses incurred as a result of coming to visit you during your treatment or recovery. The visitors will only be reimbursed for expenses incurred within 104 weeks after your accident, unless your injury is catastrophic.

Lost Education Expenses - if, due to your injuries, you are unable to continue in the education program in which you were enrolled at the time of the accident, you may be entitled to claim for your lost education expenses up to the maximum amount of $15,000. You may get reimbursed for expenses incurred before the accident including tuition, books, equipment or room and board.

Housekeeping and Home Maintenance Expenses - you may receive compensation for reasonable and necessary housekeeping and home maintenance expenses, if your injury resulted in a substantial inability to do your housekeeping and home maintenance and you normally performed home maintenance services before your accident. Your housekeeping and home maintenance expenses may be paid for 104 weeks to a maximum of $100, unless the injury is catastrophic, in which case the time-limit does not apply.

Psychological and Mental Injuries - your family members and dependents (whether related or not) may be entitled to receive benefits if they have suffered psychological injuries as a result of your accident.

Cost of Examinations - you may be reimbursed for reasonable fees charged by health care providers in preparing disability certificates, reviewing and approving treatment plans, preparing applications for approval of assessments or examinations, preparing assessments of attendant care needs, and preparing applications for determinations of catastrophic impairment. You are normally required to obtain consent of the insurer before incurring examination expenses. However, there are certain exceptions. Your treatment providers may well be able to assist you in applying for these benefits

Other Expenses - you may be entitled to be reimbursed for all reasonable expenses you incurred in repairing or replacing clothing, prescription eye wear, dentures, hearing aids, prostheses and other medical or dental devices that were lost or damaged as a result of the accident.

3. How can I claim my benefits?

Compensation will not be paid to you automatically following your accident. In order to receive benefits, you should notify your insurer within seven days of the date of the accident that you wish to submit an application. Late applications are made in many cases and you could discuss this with a lawyer. The insurer will then be required to send you the application forms as soon as possible. You will have to complete the forms and send them back to your insurer within 30 days. If you will not be able to meet the 30-day deadline because of the severity of your injuries, it is probably a good idea for you to advise your insurance company (but you may well wish to seek legal advice from a lawyer).

4. Which insurance company will provide my statutory accident benefits?

If you have car insurance or if you are a listed driver on someone else's auto insurance policy, your own insurer will likely be responsible for providing you with benefits.

If you do not have auto insurance, and you were injured in a car accident as a pedestrian or a cyclist, you may be able to apply to the insurance company that insured the car that hit you. If you were a passenger, you may well be able to apply to the company that insured the car in which you were riding.

In some situations, no insured drivers are involved. In such cases, you may be able to claim compensation from a special government fund (the "Motor Vehicle Accident Claims Fund") set up to handle these type of scenarios.

It is important to remember that statutory accident benefits will generally only compensate you for losses that are not covered by some other private insurance policy or employment benefits plan. If these other policies or plans will cover only part of the losses incurred, the statutory accident benefits can be used to compensate you for the balance, subject to some limitations.

5. What can I do if the insurance company denied my claim for benefits?

If you are having problems recovering benefits to which you are entitled, you may be entitled to sue the insurer in court or try to enforce payment through arbitration. However, before you can proceed to court or to arbitration, you are required to mediate the dispute with the Financial Services Commission. It is extremely important to initiate mediation within two years from the date that the benefit was denied. An injury/car accident lawyer can provide further details with respect to this.

http://www.personalinjurylawlawyer.ca is a website offering free information about injury law and facilitating free lawyer case evaluations at http://www.personalinjurylawlawyer.ca

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10 Critical Benefits You Receive by Using Cost Benefit Analysis

When dealing with decisions using Cost Benefit techniques it is very important to follow the proven principles. The health of your company and your reputation depend on it. If these rules are not followed then your decisions could be flawed.

Let's start, shall we?

Benefit #1. You can compare competing projects quickly and accurately - saving you time and effort.

Cost Benefit Analysis weighs the total expected costs and compares them to the total expected benefits of one or more actions. The outcome of Cost Benefit Analysis is a Benefit Cost Ratio that is used to compare and rank competing investment options.

Once you apply these techniques you will quickly be able to compare and rank projects with confidence knowing that governments and large corporations use these proven principles.

Benefit #2. You can quickly determine whether a project may be VIABLE or UNVIABLE - quickly cutting out unviable options thereby saving you time and effort.

As mentioned above, Cost Benefit Analysis compares the costs and benefits of competing projects and produces a score (Benefit Cost Ratio) which if less than 1 shows that the project is UNVIABLE (all other things being equal).

This can quickly weed out the projects that will not make the cut, saving time and effort for you and others charged with considering these projects and making a final recommendation.

Benefit #3. You will be noticed and you will gain increased recognition if you use this technique correctly - more opportunities for you.

Since this powerful, proven technique can save discussion time, provide more accuracy and confidence, it will be seen as a real improvement. If you champion its introduction you will be noticed and gain recognition.

Benefit #4. You will be able to more confidently join or lead asset expenditure review discussions - more recognition and opportunities for you.

Once you learn and apply this method you can join in discussions at higher levels and feel confident that your skills can add value to the deliberations. Your input will be recognised and appreciated.

Benefit #5. Learning this very marketable technique will provide you with more options in your future.

There are many ways you can apply these techniques.

You could train others in the skill - both to internal and also to external clients.

You could be the assessor of the methodology PRIOR to projects being reviewed by senior management. This will save them time and frustration if they know that someone knowledgeable has already OK'd the maths and reviewed the assumptions for reasonableness.

You may wish to apply for more senior roles in your current employment or try out in other companies.

Benefit #6. You can apply these skills across small to large projects - making you more versatile.

The Cost Benefit principles can be used for projects as small as a PC replacement to underground assets that form part of large multi-billion capital works programs.

Your Cost Benefit Analysis skills are just as useful at either end of the scale.

Benefit #7. You will become recognised as the authority on this subject - more options for you.

Once you learn the theory and can present your proposal with confidence you will be recognised as the authority on this subject. Others will come to you for assistance seeking guidance for their projects.

Benefit #8. You can be sure that your decisions can withstand external scrutiny - saving you worry and concern.

The principles underpinning Cost Benefit Analysis have been in use since the 1960s by both government and big business. As long as you learn these principles from a recognised source, and apply them correctly, you can be confident that your analysis can withstand internal and external scrutiny.

Benefit #9. This methodology is scalable across small to large businesses.

Successful implementation across the business can only add to your marketable skill set meaning more opportunities for you. This skill could lead to consulting work for external clients - be they large or small - or starting your own Cost Benefit consulting business.

Benefit #10. Once this methodology is implemented it can significantly reduce the time taken to decide on competing projects -saving you time and frustration.

If this method is implemented for all investment proposals across the company then the comparison and choice amongst competing proposals is simplified. All other things being equal the project with the highest Benefit Cost Ratio should be the first to be authorised. The value of the business will increase the most by implementing the project with the highest Benefit Cost Ratio.

Ready to learn more from Bruce Hokin, The Cost Benefit Coach, about making better financial decisions, being more confident, and being recognized for these skills? Then grab your FREE copy of "The Absolute Beginners Guide to Cost Benefit Analysis" and FREE spreadsheets at http://www.thecostbenefitcoach.com Not only will you discover how to create your own Cost Benefit Analysis spreadsheet models in less than 60 minutes, guaranteed, you'll be using tested and proven, real-world methods.

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Advertising Gold For E-Authors - Extreme Benefits Extraction

Once a cherished project such as your first ebook or ecourse has been completed, we need to turn our attention to the marketing of your project.

Here's where things sometimes turn somewhat difficult if the author and the marketeer are one and the same person, and here's where we have to be cautious and take the right steps in the right order, so we might stay on track.

In order to write ANY form of marketing material for your ebook or course, you need to be completely FAMILIAR with all the benefits of your product.

Now it seems obvious that the author, of all people, SHOULD be familiar with the benefits but there is such a thing as over-familiarity, as well as having been immersed in the project for a long time and thus not seeing the proverbial forest for the trees any longer.

I was assisting just such an ebook author and absolute AUTHORITY on writing their major sales page the other day, and I was astonished that they couldn't answer certain basic questions I put to them, such as:

"How many chapters are there in your book?"

"How many pages does your book have?"

"How many illustrations?"

"How many words?"

"What's the ISBN?"

The answer was always something along the lines of, "Ahm ... I guess I could look it up ..."

Oooh!

These are the kind of "technical details" that are handled in a publishing house by "other people" - but of course, in web publishing they need to be known EXACTLY by the author, because these things comprise the "technical specifications" of the product and a prospective purchaser might well enquire or need to know up front before they make their buying decision.

But that's just an example and in a way, it is the tip of the iceberg.

What became very apparent was that the author in question had missed out on the first step of ANY marketing analysis.

This important step, which is the core topic of this article, is ESSENTIAL to be able to write any form of advertising copy, to target the correct audiences with the correct approach and to market the product, full stop.

This first step is called "the benefits extraction".

*** How To Do The Benefits Extraction ***

You need a printed out copy of your book or course, PLENTY of empty pieces of paper, a big pot of coffee and then, you take off your author's hat and instead, you put on your marketing hat and go through the text, ONE PARAGRAPH AT A TIME, and "extract" ALL the benefits that could possibly accrue for the reader/user/learner AND all they come into contact with *if they follow the advice and procedures outlined* exactly.

There is a HUGE range of potential benefits that can and will be found in this process, and even before we get into the text and content itself, there's also benefits such as:

Good sized print - easy to read for older people, avoid headaches!

Good use of white space - easy on the eye, relaxing reading

Well structured - information flow is logical, and thus easy to understand and learn

Fully indexed - things are easy to find, you can quickly get to what you need to know.

Helpful diagrams and illustrations - pictures say more than a thousand words ...

... and so on.

Once you get into the content, you will notice that sometimes, a single sentence or paragraph hides a MAJOR benefit, such as:

"The SINGLE little known SECRET to all your marketing problems!" (Page 23)

Take your time and keep backing up and asking yourself over and over again, "What BENEFITS will the reader/user get from this?"

Immediately, short term, long term?

Don't stop with things like,

"Reader will learn how to use the snarkometer ..."

That's not a benefit.

A benefit is what happens WHEN you use a snarkometer as its creator designed it to be used - so the benefit might be:

"Reader will be able to capture even well hidden, rare and elusive snarks."

From there, you can go on to further future benefits, such as:

"Reader will become famous and rich from his snark sales."

That's the point, after all!

*** Sorting Out Your Benefits ***

If you do this properly, you will find HUNDREDS of benefits, big and small, and for all sorts of different applications, situations and people, and from all sorts of different angles, in ANY decent ebook or ecourse.

You will have them all written down, as they come, with the referencing page numbers on your many sheets of paper.

Now it's time to sort them out.

Firstly, go through your list and find the MAJOR benefits that would make the best HEADLINES and major bonus lists.

As soon as you've got those, your advertising and marketing falls into place because now you know WHAT IT IS THAT YOU ARE SELLING!

"Deep down", of course you knew that all along but it's extraordinary how "deep down" this stuff often is and how hard one has to dig to get it out of the authors to bring it to the surface!

Pick out the top ten benefits and transfer them to a new sheet of paper.

Now, pick the next 20 or so which will become benefits in lists on pitch pages, or will be laid end-to-end in classifieds and sales letters.

Finally, take all the rest and sort them out in any way you want.

You might find that a particular market emerges that you hadn't thought about before with their OWN benefits list that is quite separate from the general main benefits, and where you can then market your product accordingly.

You might well find material amongst those benefits that you can use to write articles or engage in customer "education" - explain how and why these benefits arise in separate articles so they get to appreciate what you do and how VALUABLE your product really is.

You will find ideas, headlines, tag lines, and pure advertising GOLD COPY in this benefits extraction and analysis.

And once you are done, NOW you are ready to write REAL advertisements of all kinds - and you'll find that now you ACTUALLY KNOW what your product is from the marketer's standpoint, you'll also be able to SELL IT TO OTHERS.

Oh, and one more thing.

A benefits extraction is also possibly one of THE most motivational and exciting things any author or creator can do for THEMSELVES.

Yup, it's all true. It really is THAT good, and it REALLY has all those benefits!

It'll do the world for your self confidence AND for YOUR ability to start shouting about the amazing benefits of YOUR amazing product from the rooftops - and that in turn, leads to a whole lot more sales, more money in the bank, more joy and freedom and love all around!

So if you have not yet done your word-by-word extreme benefits extraction, go for it NOW.

It is absolutely THE FIRST STEP to ALL future marketing.

Good luck and surprise blessings,

Silvia Hartmann

Silvia Hartmann is the author of "MindMillion". You can get Silvia's FREE 60 Second Wealth Booster Course with many great bonuses, including the famous "Pitch Page Maker" at http://MindMillion.com/60/

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Minimizing the Income Tax on the Receipt of Lump-Sum Social Security Benefits

Sometimes a taxpayer will receive Social Security benefits in one lump sum. A taxpayer might have to pay income taxes on up to 85 percent of these benefits. However, a taxpayer may make an election under Section 86(e) of the Internal Revenue Code to minimize the income tax on the receipt of the lump-sum Social Security benefits.

Why would a taxpayer receive lump-sum Social Security benefits? A taxpayer could have been receiving Supplemental Security Income (SSI), which is tax free. Then, the Social Security Administration determines that the taxpayer should have been receiving Social Security disability benefits for the last several years instead of SSI. Another reason that a taxpayer could receive Social Security benefits in one lump sum is that the Social Security Administration may have initially denied the individual's application for Social Security disability benefits, but the individual wins those benefits on appeal.

Social Security benefits are not taxable for taxpayers with relatively low amounts of adjusted gross income. At moderate levels of adjusted gross income, 50 percent of the Social Security benefits are taxable. At high levels of adjusted gross income, 85 percent of Social Security benefits are taxable.

This graduated system for including Social Security benefits in gross income and the progressive nature of income tax rates can have a very bad effect on individuals who receive lump-sum Social Security benefits. Such individuals might have to pay a much larger amount of income taxes than they would have if they had received the Social Security benefits when they should have received them. If the taxpayer does not take action to make an election allowed by Section 86(e) of the Internal Revenue Code, that is what will happen.

Sometimes the taxpayer does not receive any cash for the lump-sum payment. For example, if the taxpayer had been receiving SSI and the Social Security Administration determines that the taxpayer should have been receiving Social Security disability benefits, the Social Security Administration will reduce the disability benefits by the amount of the SSI paid to the taxpayer. The taxpayer will receive a Form 1099-SSA showing the amount of the lump-sum Social Security disability benefits and yet the taxpayer received little, if any, cash.

Section 86(e) of the Internal Revenue Code allows a taxpayer who receives lump-sum Social Security benefits to elect to include in gross income only the sum of the Social Security benefits that the taxpayer would have included in gross income in prior years if the taxpayer had received the benefits in the years to which the lump-sum payment is attributable. A taxpayer may also make the election if the taxpayer received Railroad Retirement benefits in one lump sum.

Section 86(e)(2)(B) states that the taxpayer should make the election in the manner prescribed by the Secretary of the Treasury in regulations. However, the Secretary of the Treasury has not issued any regulations under Section 86. Once a taxpayer makes the election, the taxpayer may not revoke it with the consent of the IRS.

Because no regulations exist that prescribe the manner of the election, a taxpayer should make the election according to the guidance the IRS provides in IRS Publication 915, "Social Security and Equivalent Railroad Retirement Benefits." IRS Publication 915 has helpful worksheets and other information about making this election. Taxpayers who received Social Security benefits or Railroad Retirement benefits in one lump sum should consult IRS Publication 915 and determine whether the election will reduce their taxes.

Alan D. Campbell is a CPA in Arkansas and Florida and is self-employed primarily as an author of tax publications. He earned a Ph.D. in accounting with an emphasis in taxation from the University of North Texas. He is also admitted to practice before the United States Tax Court. He has published numerous articles on tax topics in professional journals. He is the co-author of the book Tax Strategies for the Self-Employed and the revision editor of CCH Financial and Estate Planning Guide, 15th edition. For more tax savings strategies, please see his blog: http://taxsavingsstrategies.blogspot.com

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Variable Annuity Living Benefits Explained

One of the major reasons living benefits have grown in popularity is because they reduce investor risk. The popularity is a direct result of poor market performance. Living benefits evolved because of this market decline and have made investing easier.

As the market had its steady and severe decline in the early 2000's, insurance companies came up with a novel idea: why not guarantee investors a rate of return, regardless of market performance. The GMIB is the grand daddy of the living benefits.

Other living benefits have been introduced since the first GMIB was released over 6 years ago. Now we have guaranteed minimum withdrawal benefits also known as GMB's, guaranteed account values known as GAV, and life-time benefits. Each one of these benefits may not be available at all insurance carriers and can go by different names. All these benefits deflect the risk of investing in the stock market and puts the risk on the insurance company. Of course, the insurance companies may make a profit from the fees you pay on these benefits. Lets take a look at the different benefits.

GMIB:

The terms of the guarantees seem pretty simple, you invest in the company's variable annuity for a specified number of years, typically 10 years. If the market does not perform well, the company guarantees you a minimum income stream for life, even if your account is at zero. The insurance company gives you a minimum interest rate for that 10 year period of time, usually 5 or 6%, which accumulates and is considered the "base benefit" amount. This base benefit amount is what is used to calculate the minimum stream of income that is guaranteed for the rest of your life. This benefit does require you to annuitize the contract. That means you turn in your contract for a stream of income, this option is irrevocable. The term used for this benefit is GMIB which stands for guaranteed minimum income benefit. Different companies use different terms for this benefit.

GWB:

The guaranteed withdrawal benefit was the second living benefit that hit the insurance market about 5 years ago. This benefit allows the owner of the contract to take withdrawals for a guaranteed minimum period of time. This type of benefit guarantees you your money back in the form of withdrawals. A withdrawal benefit usually allows you to take withdrawals in the amount of 6 to 12%. Typically, the benefits allow 7% on average and guarantees you that 7% for a minimum of 14.2 years, which equals 100% of your principal back. These benefits usually allow for step-ups every 3 to 5 years, and when you step-up the account value, assuming positive investment results, it restarts the 14.2 year time frame all over again. This benefit allows you to increase your income if your investments go up and guarantee your money back if you lose money in the market. Keep in mind you only get your money back in the form of withdrawals, it is not a lump sum benefit.

GAV:

These types of benefits guarantee your money back in a lump sum form. You invest your money with a company that has this benefit and after a specified number of years the benefit will mature and you receive, at a minimum, your money back. Depending on the company, you will have to hold the contract anywhere from 5 to 10 years in order to get your money back. There are many different variations to this benefit. It can either require you to invest into asset allocation funds or you give the company the authority to move money back and forth between the sub-accounts and the company's fixed account. After the required time period, if your account value is lower than your initial investment or the last stepped-up amount, if the company allows you to step-up the benefit, you will get back your money in a lump sum.

For-Life Benefits:

These are the newest living benefits. This type of benefit allows you to receive a percentage, usually 4 to 6%, of your original investment for as long as you live. These benefits also allow your income to increase if you experience positive investment performance, usually every 3 or 5 years. These benefits are usually age based, so depending on your age you may be charged more if you are younger and less if you are older. You may also be able to take out a greater percentage of your original investment if you are older. These benefits are pretty straight forward as long as you live the company will pay you. So if you invested $100,000 you are able to take out $5,000 per year for the rest of your life. There are many variations on this type of benefit and every company has a different name for it. Again this is an income benefit not a lump sum benefit.

Living benefits can be a wonderful thing, but they are extremely confusing. Just by reading the descriptions above, do not assume you understand them. What I had written above is a very simplified version of the benefits. Each benefit has pros and cons and even many of the agents or brokers selling them do not fully understand them. You have to know what you are buying and if there is a better one on the market for your needs. This is where I come in to help you. I have done the research, I have read all the materials and I have ripped them apart and rated each benefit from the top selling annuity companies. No other source out there has done what I have done and given you straight unbiased facts behind, not just living benefits, but annuities themselves.

Please remember that even if an annuity ranks low it does not mean it is a bad product or benefit. It is meant to compare each contract against its peer group. Each state may have a different variation of the products presented here. Please check with each company to insure that the benefits are available in your state.

Scott DeMonte is a widely respected expert in variable annuities. Scott has worked as both a financial advisor and as an executive for 2 of the best selling variable annuity contracts sold in America.

With over 12 years experience in the financial services industry, Scott decide to start his own company, http://www.annuityiq.com. Through his expertise he evaluates and rates variable annuity contracts.

By educating both brokers and consumers, Scott?s goal is clear: Get the right information, the first time.

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