Getting the Most from Your Benefits
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The difference between a good job and a truly great one may be bundled in a package of perks. A decent benefits package -health coverage, life insurance, one or more retirement plans -may have a value of as much as a third of your pay or more; but many employers offer less. These days a generous benefits package is truly a gem to covet. As corporate America has looked for ways to cut costs, many firms have either cut back on their benefit plans, required employees to pony up more cash for their perks, or both. According to the Employers Council on Flexible Compensation, nearly half of its 480 member corporations slashed benefits in recent years. Moreover, many companies are asking employees to pay larger sums to cover both health premiums and medical deductibles. Businesses are getting especially stingy, too, about giving their retirees health benefits; some are forcing their ex-employees to pick up the entire tab for coverage, while others are eliminating health altogether for seniors.
It’s up to you to keep abreast of how your benefits measure up. You ought to pore over the employer’s benefits handbook as soon as you accept a job or even while you’re interviewing for a position if you can get your hands on it. If you’re a new hire, ask for a conference with your benefits counselor or personnel manager to ensure you understand everything you’re entitled to receive and when you’re eligible to start getting the benefits. At many companies, for instance, health coverage doesn’t kick in until several months after you’ve started.
When your firm passes out new benefits books or memos, be sure to read and keep them. Lucking in these publications may be news of costly changes (higher medical deductibles) or valuable features you may have previously overlooked (free legal counseling). At the very least, you’ll want to have a copy of the most current benefits book in case you have questions about how the perks work. A good example: You may not care about how the firm’s 401(k) loan rules work today, but six months from now you may need to know them so that you can tap your account to help pay for a home remodeling job.
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