Benefits beyond Salary and Other Compensation

Perhaps the most important financial benefit that large employers offer to new employees is a comprehensive insurance plan. Such a plan covers the worker, his spouse, and their dependents. It provides family members with health and dental care and insures against the employee s death or dismemberment. Comprehensive group insurance does not come free to employees, buy they pay for it at lower rates than they would meet elsewhere. 

In offering pensions, U.S. employers and the federal government strive to replace a retiring worker s sakry with an equal retirement income. This income flows from three sources, which are Social Security payments, the employee s preretirement savings and investments, and pension benefits. Pensions strike a balance between lower present salaries and dependable future incomes when employees retire. 

Differences between pension plans can give reasons to accept one offer of employment and reject another. 

There are six defining features of iRS-quafified pension plans. 

Before they axe distributed, their earnings are not subject to taxes. 

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