disclosure
and reporting requirements
disclosure
to participants and U.S. Department of Labor
annual reports to IRS - strict reporting requirements - severe tax penalties for non-compliance
Pension benefit plan - must be funded - two main types:
retirement pensions
deferred income plans
Welfare benefit plan - no funding requirements - examples of "welfare benefits":
medical/hospitalization
benefits
vacation
and sick leave pay
disability/death
benefits
unemployment
benefits
training/apprenticeship/scholarship
programs
prepaid
legal services
severance pay
normally
fits under welfare benefit plan as long as payments are not
contingent upon retirement, total pay does not exceed twice the
annual pay, and payments are completed within 24 months of termination
exception:
severance pay that is a one-time offer not routinely included in an
employer's benefit plan; this type of payment is more akin to
"wages in lieu of notice" (see below)
Not included in welfare benefits: "payroll practices" (see below), on-site facilities, holiday gifts, sales to employees, and some group insurance programs
Payroll practices include:
overtime pay
shift
premiums or differentials
holiday
and weekend premiums
maternity
leave pay paid out of general funds
"payday"
or wage payment laws - every state has a statute governing at least
some aspects of the wage payment procedure, such as a deadline for
final pay, limitations on what an employer may deduct from wages and
whether authorization for such deductions has to be in writing, and
rules on how often particular types of employees must be paid - in
Texas, this is the Texas Payday Law
severance
pay/wages in lieu of notice
severance
pay: this is a post-termination payment that the employer has somehow
previously obligated itself to give - it is usually based upon a set
formula such as length of prior service
wages in lieu of notice: this type of post-termination payment is something that the employer has never previously obligated itself to give - just like the name implies, it is given to make up for the lack of advance notice of termination - such a payment is usually not based upon length of service, but rather upon whatever arbitrary amount the employer deems appropriate at the time
