Official Course Description: MCCCD Approval: 05/24/94

MCCCD Official Course Competencies:

FIN130  19946-99999

Retirement Planning and Employee Benefits

1.

Explain employee group benefits. (I)

2.

Describe social security, workers compensation, and unemployment compensation. (II)

3.

Explain the use of qualified plans and non-qualified deferred compensation. (III)

4.

Describe ethical considerations in retirement planning and employee benefits. (IV)

5.

Explain social security and Medicare benefits as applied to employees and retirees. (V)

6.

Describe the types of retirement plans. (VI)

7.

Describe the characteristics of qualified plans. (VII)

8.

Explain distributions and tax treatment of retirement plans. (VIII)

9.

Describe other employee benefits, such as death and fringe benefits. (IX)

10.

Determine the most appropriate type of qualified retirement plan for a case scenario. (X)

MCCCD Official Course Outline:

FIN130   19946-99999

Retirement Planning and Employee Benefits

I. Employee benefits

A. Group life insurance

1. Types of coverage

2. Rights and provisions of coverage

B. Group medical insurance

1. Types of coverage

2. Rights and provisions of coverage

C. Group disability income

1. Types of coverage

2. Rights and provisions of coverage

II. Social insurance

A. Social security eligibility and coverage

B. Social security benefits

1. Retirement benefits

2. Survivors benefits

3. Disability benefits

4. Medicare benefits

C. Other forms of social insurance

1. Workers' compensation

2. Unemployment compensation

III. Tax planning

A. Non-qualified deferred compensation

1. Recognition: requirements necessary to defer recognition

2. Types of plans

B. Qualified plans

1. Pension plans

2. Deferred compensation

IV. Ethical considerations in retirement planning and employee benefits

A. ERISA fiduciary obligations

B. Prohibited transactions, parties-in-interest, disqualified parties

V. Social security and Medicare benefits as applied to employees/retirees

A. Basic provisions of OASDHI

B. Eligibility

C. Level of benefits

VI. Retirement plan types

A. Individual retirement accounts (IRAs)Ðbasic provisions

B. Tax-sheltered annuities (TSAs)Ðbasic provisions

C. Profit-sharing plans

1. Definition

2. Factors affecting suitability (for different types of business)

3. Provisions

D. 401 (k) plans

1. Definition

2. Factors affecting suitability (for different types of business)

3. Provisions

E. Money purchase plans

1. Definition

2. Factors affecting suitability (for different types of business)

3. Provisions

F. Defined benefit plans

1. Definition

2. Factors affecting suitability (for different types of business)

3. Provisions

G. Target benefit plans

1. Definition

2. Factors affecting suitability (for different types of business)

3. Provisions

H. Stock bonus plans: ESOPs and LESOPs

1. Definition

2. Factors affecting suitability (for different types of business)

3. Provisions

I. Simplified employee plans: SEPs and SARSEPs

1. Definition

2. Factors affecting suitability (for different types of business)

3. Provisions

VII. Qualified plan characteristics

A. Feasibility of installation of a qualified plan

1. Objectives

2. Factors

3. Case scenario: problem-solving, tax benefits, meeting objectives

B. Qualified plan coverage and eligibility requirements

1. Age/service

2. Coverage requirement

3. Minimum participation

C. Qualified plan vesting schedule

1. Types

2. Top-heavy plans

3. Case scenario: vesting schedule selection

D. Integration with social security/disparity limits

1. Defined benefit plans

2. Defined contribution plans

E. Factors affecting qualified plan contributions or benefits

1. Tax considerations

2. Nature of defined contribution

3. Nature of defined benefit

4. Comparison of defined contribution and defined benefit

5. Definition of compensation

6. Multiple plans

F. Actuarial methods and assumptions in defined benefit plans

1. Actuarial method

2. Effect on annual contribution

G. Top-heavy plans

1. Definitions

2. Vesting

3. Effects on contributions or benefits

VIII. Distributions and distribution options

A. Retirement plan distribution options

1. Lump-sum

2. Rollovers

3. Annuity payments

4. Qualified domestic relations orders

B. Tax treatment of plan distributions

1. Distributions

2. Lump-sum distributions

3. Rollovers

4. Annuities

5. Estate tax considerations

6. Qualified domestic relations orders

7. Loans

IX. Other employee benefits

A. Death benefits

B. Fringe benefits

C. Cafeteria plan

D. Voluntary employees' beneficiary association

E. Non-qualified deferred compensation

1. Types and applications

2. Funding methods

3. Tax implications

X. Analysis of factors

A. Recommendations of the most appropriate type of qualified retirement plan (case scenario)

1. Calculation of amount required to be saved for retirement

2. Analysis of key factors affecting plan selection

B. Suitability of an investment portfolio for a qualified plan situation (case scenario)

1. Investment risk

2. Investment constraints (UBTI)

3. Investment portfolio selection

4. Investment portfolio evaluation

C. Employee benefit analysis and application (case scenario)

1. Group life insurance benefits

2. Group health insurance benefits

3. Group disability insurance benefits

4. Other employee benefits