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Changes in Benefit Program





Example 1: Announce the benefits to employees

Memorandum

TO:

FROM:

DATE:

SUBJECT: Changes in insurance premiums

Unexpected changes in our health insurance policy with Great Eastern Life have necessitated some revisions in our current benefits policy arrangement. At present we are paying 100 percent of the health insurance premium for full-time employees and 50 percent of the premium for each dependent.

Effective May 1, we will be paying 25 percent of the premium for each dependent. Also, we will be discontinuing the dental coverage provided under our current plan.

Realizing these changes are to the benefit of no one, we are currently seeking other health and dental insurance options. But, this will take some time. In the interim we ask that everyone bear with us until this can all be resolved in a manner fair to both the employees and the company.

Example 2: Announce the employee profit sharing plan

Memorandum

TO:

FROM:

DATE:

SUBJECT: Insurance premiums

I am pleased to report that our negotiations with Imperial Health and Life have resulted in some major changes in our favor. As a result, a series of changes will be implemented in our health insurance benefits program over the next few months.

The first, and probably most important, is that we will now be paying 100 percent of the premiums for full-time employees. This is a substantial increase from the 75 percent paid under the current program. Additionally, coverage for dependents will be offered at a substantially discounted rate. Please review the memorandum to be included with payroll on the 15th for complete details on this new program.

Thanks to everyone for their patience and support throughout the course of these negotiations. We will continue to strive to provide more and better benefits as it is possible.

Example 3: 401 k profit sharing plan

Memorandum

TO:

FROM:

DATE:

SUBJECT: 401(k) eligibility

Effective January 1, all full-time employees who have been with the company for more than 120 days will be eligible for participation in the 401(k) program. This is a change from the previous 12-month probationary period for participation in the 401(k) program.

After completing 120 days of full-time employment, employees may enroll in the 401(k) program on the next quarterly entry date. The quarterly entry dates are January 1, April 1, July 1 and October 1.

For example, if an employee started work full-time on June 1 he/she would have completed 120 days as of September 28. Therefore, he/she would be able to enroll in the 401(k) program as of October 1.

Just a reminder, all 401(k) program forms should be completed and turned in to the management office 30 days prior to eligibility.

Example 4: Letter for employee benefits

Memorandum

TO:

FROM:

DATE:

SUBJECT: Profit sharing plan

After much consultation and discussion we have elected to implement a discretionary profit-sharing plan for all full-time and part-time employees. For purposes of this plan, part-time will be defined as more than 15, but less than 38 hours per week.

The formula for designating an employee’s percentage of profits will be detailed at a later date. Briefly, it will be based on length of service with some consideration as to annual performance evaluations.

Also, as noted, the plan will be of a discretionary nature. Whether or not employees receive their percentage each year will depend upon total company profits and performance for the previous fiscal year.

     

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