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HomeMy WebLinkAboutAgenda Report - January 4, 1995 (32)CITY COUNCIL MEETING JANUARY 4, 1995 PENNINO: SUGGEST SHIRTSLEEVE REGARDING MAXIMIZING BENEFITS Council Member Pennino commented on a recent article that appeared in Money Magazine regarding ways to maximize a company's benefits. Mr. Pennino forwarded the article to the City Clerk and asked that copies be provided to the City Council and the City Manager. Council Member Pennino requested Council concurrence to schedule this matter for a future Shirtsleeve Session. Further, Council Member Pennino informed the City Council that during the NLC conference in Minneapolis, he had the opportunity to visit with the Vice President of General Mills and a report on the matter will be forthcoming. FILE NO. CC -6, CC -7(r) AND CC -21.1(g) SMART WAYS i0 MAXIMIIE YOUR COMPANY EH Now's the time to make the most of what you get—especially if you don't work for Procter & Gamble, the most generous boss. by Lesley Alderman CHANCES ARE YOUR BENEFIT PLAN GOT LEANER THIS YEAR. Even among our top 10 companies (see the ranking on page 184), led by Procter & Gamble, IBM and Chrysler, in that order, the trend is clear: fewer benefits, higher employee costs. In a study conducted last July by Wyatt, a Washington. D.C.-based human -resources consulting firm, more than a third of the 2,253 employers surveyed said they had required employees to make in- creased contributions to company benefit plans in 1994 and one-fifth upped medi- cal deductibles. Furthermore, now only 6% of companies pay the full cost of family health coverage, down from 12% in 1992. Even stalwart IBM—which has made our top 10 list for four years running—dropped free health care for its 124,000 employ- ees and their families after 38 years and began charging a $23 to $50 monthly pre- mium. Fully 60% of U.S. workers enrolled in managed-care plans for 1994, which tend to be less costly than indemnity, or fee-for-service, plans but restrict your choice of doctors. That's up from 51% in 1992. Similarly, employers are replacing their traditional (and costly) pension plans with 401(k) savings plans that invariably require employees to contribute to their ELDER CARE: IBM's free resource and referral program helped Fernando Fleites (left) find home services for his mother Juana, 77, after she took a bad fall last summer. Photographs by Nina Barnett MONEY • NOVEMBER 1994 183 YOUR BENEFITS FLEXTIME: Xerox lets executive secretary Tillie Ryan work from 8:30 a.m. to 3 p.m. so she can spend afternoons with son James, 7. own welfare. Fully 4% of companies surveyed by KPMG Peat Marwick, the New York City -based consulting firm, elimi- nated their pension plans over the past five years. American Express, for instance, which ranked ninth on our 1991 top 10, will substitute a plan that no longer guarantees set amounts upon retirement. And according to Roy Oliver, a KPMG na- tional partner, many other firms have simply closed their pen- sion plans to new workers. What's a smart employee to do in this slash -and -burn cli- mate? "Be an informed consumer when it comes to benefits," advises Doug Edwards, a managing consultant at Foster Hig- gins, a benefits consulting firm based in New York City. "You can't be passive anymore." That means taking advantage of every benefit your com- pany still offers, from enrolling in 401(k) plans with matching contributions to paying for health care with pretax income. And don't overlook family benefits. Most firms continue to add these inexpensive but useful perks. For example, Fer- nando Fleites (pictured on page 182), 42, a manager at IBM, enlisted the company's elder -care referral service when his 77 - year -old mother was hospitalized after she fell in the family's driveway last summer. Fernando, who had just relocated with his mother and wife to the Atlanta area from Putnam County Fewer companies pay the full cost for family health care 1 1992 6% 1994 MONEY • NOVEMBER 1994 189 YOUR BENEFITS in New York, didn't have a clue about local services. He needed to find social workers who could communicate with his mother, who speaks only Spanish. "I went from being scared to having a whole network available to me," he says gratefully. Within a week, his mother was back at home and Fernando was armed with a range of information about pro- grams for seniors. What follows are the best benefits moves you can make right now, during most companies' open enrollment period— usually from November through year's end. We've canvassed benefits experts for advice on how to better manage your core benefits and how to fully utilize the more marginal ones. Here's what you need to know: HEALTH INSURANCE Concentrate on your foreseeable needs. If you can choose be- tween a managed-care and an indemnity plan, you'll find it usually makes financial sense to opt for managed care—even though monthly premiums may be $6 to $20 higher. That's because such plans generally charge only $5 to $15 co -payments for doctor office visits and throw in free- bies like annual mammo- grams, physical exams or eyeglasses. Most employers now offer a choice of an HMO (health maintenance organization) or the newer PPOs (preferred -provider organizations), which, unlike HMOs, allow you to see physicians who are not on the ap- proved list (usually at a reimbursement of only 30%). HMOs are a smart choice if your medical needs are fairly basic or if you have young children who need regular checkups. For more freedom to choose among doctors—and higher out-of- pocket costs—join a PPO. If your employer is one of the 31% of large firms that offer only an indemnity plan but still let you choose how much cov- erage you receive, be sure to consider the plan's deductible as well as its out-of-pocket maximum. Assuming you're young and healthy, choose the least expensive plan—say, under $30 a month. Just make sure you can afford the plan's out-of- pocket maximum should a serious illness or accident occur. Compare your benefit plan with your spouse's. When both spouses work, take time to scrutinize your health options to find the most appropriate coverage for the least money. As a guideline, premiums for HMOs and PPOs are about $144 a month for family coverage. If both spouses' companies offer indemnity plans, don't sign up for more than one. Virtually all insurers now will reimburse you only up to the limit of the more generous plan. So paying extra premiums for a spouse's plan is rarely worth it. Sometimes it's smart to split the cover- age. For example, if your plan offers free individual coverage but family premiums are high—$200 to $250 a month—insure yourself but put the rest of the family on your spouse's plan. Stay alert to small changes. "Employers tinker with health- care coverage from year to year in an effort to keep down costs," says Michael Snyder, director of benefits at Eastman Savings & Loan Association in Rochester, N.Y. For instance, More employee managed - 1 Ok 1992 employers might hire new providers to get better -priced cov- erage. But inevitably, the care isn't identical. Kodak, for in- stance, recently switched from an HMO that charged $50 a month to one that charged only $25. A boon to employees, right? Not if you're a big consumer of prescription drugs. The new HMO had a drug deductible of $500, compared with only $100 under the old one. Each year at this time, check the benefits booklets to make sure features haven't changed. A few moments of investiga- tion could save you money. Get a tax break on medical costs. If you expect out-of- pocket medical expenses to total more than a few hundred dol- lars in 1995, sign up for a flexible spending account (FSA), now offered by 43% of large companies. That's because the money for an FSA account is deducted from your paycheck before Uncle Sam gets his due. Say you're married, earning $50,000 a year and expect to spend about $1,000 on health care next year. You'll save about $354 in taxes by opening an FSA, ac- cording to calculations by George Faulkner at Foster Higgins. You can use your FSA to pay for such expenses as medical exams, cab rides to your doctor, orthodontics and contact lenses—up to a maximum set by your com- pany, typically $3,000. And get this: You may 1994 spend all the money allocated to your FSA before you have actually made the payroll contributions. For example, if you have elective surgery in January and submit a bill to the FSA for $2,000, even though you have contributed only $250, the FSA reimburses you the full amount. "It can be used as an in- stallment plan with no interest," says John Hickey, a partner at Kwasha Lipton, a Fort Lee, N.J. benefits consulting firm. And should you leave your job before year's end and have spent more from your FSA than you have contributed, your com- pany must pick up the bill, according to rules set by the IRS. Two cautionary notes: First, you may revise your alloca- tion—up or down—only when you experience a "life change," such as marriage or a death in the immediate family. In addi- tion, you must come up with expenses equal to the total amount you've contributed by Dec. 31—or you forfeit the re- maining cash. But don't let that worry you too much. In 1993, with an average employee contribution of $769, only 4% of the total FSA accounts at large companies were left unused, reports Foster Higgins. Utilize fringe offerings. Vision care and prescription -drug programs are increasingly common in health plans. About 20% of companies now offer options where you pay only $5 for every prescription. If you take daily medication, such as Mevacor for lowering cholesterol, you may be able to order a three-month supply by mail for only $10, compared with the $381 tariff at the local drugstore. Four out of five companies now feature wellness programs, which let you take advantage of free cholesterol screenings, blood pressure tests and smoking -cessation courses. Some, like Chrysler, provide on-site Weight Watchers meetings as well as fitness classes at 60% discounts. s are choosing care plans 180 MONEY • NOVEMBER 1994 INVEST FOR GROWTH OVERSEAS Over half the value of world equi- ties is now found in foreign-based stocks, and many stock markets abroad have outperformed our own. The Strong International Stock Fund gives you access to these opportunities. This invest- ment searches the world for undervalued companies that offer the potential for superior growth' Call for a free investment kit. Average Annual Total Returns' (through 6-30-94) 29.16% 1 -year 17.10% since inception (on 3-4-92) Performance is historical • WO% no-load • Start with $4,000 • Available for IRAs Foreign stock markets have often 35% = outperformed our own. 30% - 25% - 20% - 15% - 10 % - 5% - 0% 1 Over the past decade, many overseas stock markets have pro- duced returns superior to ours. Shown are US. dollar -adjusted average annual total returns, with dividends reinvested, for the ten years ended 6-30-94 Results for other periods will vary. This chart does not represent the Fund's performance and is no guarantee of future results. In exchange for their greater growth poten- tial, investments in overseas markets pose special nsks including currency fluctuation and political risks, and the Fund's share price is expected to be more volatile than that of a US only fund Average annual total retums include changes in share puce as well as reinvestment of all dividends and capital gains Performance is historical Aand does not represent future results Investment retums and principal value vary, and you may have a gain or loss when you sell shares. For a free prospectus tat with more complete information, including management fees and expenses. call Strong Funds Distnbutors. Inc Please read it carefully before you invest or send money 444H94G MML1194 STRONG THE STRONG INTERNATIONAL STOCK FUND 1-800-368-7704 YOUR BENEFITS SUPPLEMENTAL INSURANCE Consider outside policies. Most firms offer free life insurance equal to one year's pay and Tong -term disability that covers 60% of your salary. You must pay extra for any additional coverage. But don't assume the supplemental coverage you can buy through your company plan has the lowest available rates. According to Steve Mueller, an assistant vice president at Commercial Life Insurance in Piscataway, N.J., you may find better deals from a profes- sional organization or other group—es- pecially if you're healthy and under 45 or so years old. Associations often ne- gotiate cheaper rates than a large com- pany because they have a low-risk pool of members. Although such discounts vary considerably depending on your circumstances and where you live, it can be substantial, perhaps 50% less than the company rate. For instance, the 314,000 -member American Institute of Certified Public Accountants ($90 to $270 a year; 212-596-6200) offers eight insurance programs, including term life, long-term disability and long-term care. The National Association for Female Executives (NAPE) has seven types of insurance for its 250,000 members ($49 a year; 800-927-6233). PENSION AND SAVINGS Plan for retirement Income. If you have an annual salary of $150,000 or more, your pension may just have become smaller than you were expecting. That's because a law that went into effect this year lowers the cap on which your pen- sion can be calculated from $235,840 to $150,000. Any amount you earn over the new limit will not be factored into your final pension. According to Fred Ru- mack, director of tax and legal services at Buck Consultants, a New York City - based benefits consulting firm, 37% of companies have a bridge plan to make up the difference; 12% of firms plan to add one. If your salary tops $150,000 and your employer doesn't offer a sup- plemental plan, advises Rumack, lobby the company to start one. Find out, for instance, if competitors offer such a plan and then cite their offerings. Meanwhile, you should of course be contributing the annual maximum to your 401(k), currently $9,240. And your working spouse ought to do the same. Go for the max in your 401(k). With 192 MONEY • NOVEMBER 1999 YOUR BENEFITS a 401(k) savings account, you're in charge of your retirement income. Our best advice, therefore: Invest the most you can afford and begin contributing as early in your career as possible. Most companies -84%, in fact—will match contributions somewhat, typi- cally 50e for every $1 you kick in, up to 6% of your annual salary. Some compa- nies even let you invest up to 15% of your pretax income, so long as you do not exceed the limit set by law, in 1995 about $9,500. Rick Cortright, for exam- ple, a senior staff supervisor at the Chrysler Customer Center in Highland Park, Mich., regrets his early indiffer- ence toward his company savings plan. Emergency child-care services are on the rise 5% 4e a• 1993 +•+ ' 1994 He waited seven years before starting to put 5% of his annual $50,000 -plus salary into a 401(k) account. "I really missed the boat," says the 33 -year-old father of two. A newly converted saver, he now contributes 10% of his pay and expects to up the ante to 15% with his next raise. Chrysler (No. 3 on our best - benefits list) matches 60% of the first 8% he contributes. And consider this: For the $584,731 that Rick Cortright will contribute from his own pocket over the next 32 years, he'll reap a cool $2.4 million at age 65, a combination of Chrysler's matching funds, his own contributions and the ef- fect of compounding. If Cortright had in- vested that money on his own, he'd end up with considerably less—$1.8 million. Be bold. You undoubtedly now have more investment choices for your 401(k) contributions than ever, thanks in part to U.S. Department of Labor regulations that went into effect in 1992 and encour- age employers to offer three or more al- ternatives. One out of every three companies now provides five or more options. If your company is still behind the curve, request more diverse choices. Experts caution that the biggest mis- take you can make with retirement sav- ings, after starting late, is to invest the funds too conservatively. Many employ- ees do just that. One-third of all em - MONEY • NOVEMBER 1994 195 #1 Performing Fund Since the Market Low of 1987 —per Mutual Fund Forecaster* The Kaufmann Fund A Small Company Growth Fund Five Year Compounded Annual Return' 20% 15r 10% 5°% 0r Kaalx KAUFX FUND 18.7% Inception (2/86) 14.4% Annual Returns: 1 Year 6.4% Annual ?Period ending 6/30!94 per Lipper Analytical Services More than twice the average total annual return of all funds. (As of 6/30/94, per Lipper Analytical Services) Morningstar 5 Star (*****) Rating** (Out of 2,184 equity funds as of 6/30/94) The Kaufmann Fund is an aggressive growth fund dedicated to the objective of capital appreciation through investment in small growth companies. The Fund invests primarily in com- panies beyond the venture stage that are profitable and have sub- stantial growth prospects. Lawrence Auriana and Hans Utsch Portfolio co -managers For information call: 1-800-632-3010 Out of 637 open-end equity funds, for the period of 12/4/87-6/30/94. „ Morningstar ratings are subject to change every month and are calculated from the funds' three - and five-year average annual returns with appropriate sales charge adjustments and a risk factor that reflects performance relative to three-month Treasury bill monthly returns. Ten percent of the funds in an asset class receive five stars. Total retums for periods ending June 30, 1994 are historical and include change in share price, reinvestment of dividends and capita/ gains. There is a 0.2% redemption fee and a 12b- 1 fee in excess of 0.25%. The S&P is an unmanaged index consisting of the common stock of 500 publicly traded U.S. companies. For more information including charges and expenses, please read the prospectus carefully before you invest. The performance cited represents past performance which is not indicative of future results; investment performance fluctuates; fund shares when redeemed may be worth more or less than original cost. THE KAUFMANN FUND, INC. 140 East 45th Street, New York, NY 10017 • Fax (212) 661-2266 It may seem far away, yet the best time to start saving for your child's college education is now. That's why we created Tbe Fidelity College Savings Plan. It guides you through the steps you need to take today — so you and your child can have a head start on the high college costs of tomorrow. You'll learn about the Plan's special features and you'll also receive a Worksheet that helps you assess how much you should be setting aside. The sooner you start saving, the easier it will be to have the amount you'll need to cover future college costs. Now that's a happy ending. Call 24 Hours for a Free Fidelity College Savings Plan Fact Kit 1-800-544-3889 Fidelity Investments° 2r For more complete information, including charges and expenses, call for a free prospectus. Read it carefully before you invest or send money. Fidelity Distributors Corporation. YOUR -BENEFITS ployee contributions to 401(k) plans go into GIC (guaranteed investment con- tracts) funds, which yield only 7% or so a year. Stocks, on the other hand, promise yields of about 10% annually over the long term. Here's what the pros advise: If you are in your twenties or thirties, put 70% of your savings in stocks, which traditionally provide fat- ter returns than less volatile invest- ments, such as bonds funds. As you get within 10 years of retirement, you can adjust your allocation to provide more stability by putting, say, 40% in stocks and 30% in bonds. Also, be careful not to put more than 10% of your 401(k) funds in your company's own stock; you will be far better off if you diversify your investments. FAMILY BENEFITS Perks for parents. Although family benefits don't deliver much to your bot- tom line, they do provide peace of mind. For example, Tillie Ryan (pic- tured on page 189), 30, an executive secretary at Xerox Business Services in Linden Oaks, N.Y., took advantage of the company's flextime policy last November to spend more time with her seven-year-old son, James. Now she works 8:30 a.m. to 3 p.m. instead of 8 to 5. "My life is less harried," says Ryan. "I can be home when my son is done with school." Child-care benefits of all kinds are of- fered by eight out of 10 employers. Emergency child-care programs, for in- stance, which provide short-term babysitters or on-site care when your kid or sitter falls ill, now appear at 12% of companies, up from only 5% last year. If you want a child-care option that's not available from your company, band together with colleagues to request it. "A lot of companies," says Karol Rose, a principal at Kwasha Lipton, "have not put policies in place because they have not heard from employees. If your re- quest is reasonable and cost-effective, they will often try to comply." Whether it's family care or core plan features, overall, the benefits bottom line remains the same: Read all the plan brochures and memos, stay in- formed about changes, and when the plan comes up short or offtrack, don't be shy about asking for more. B Reporter assodate: Brian Clark 196 MONEY • NOVEMBER 1994 YOUR BENEFITS P&B IBPS iNf CBMPANIES WIIN iNE BfSi BENffI1S Although Procter & Gamble (P&G) lacks a traditional pension plan, the company edged out last year's winner, IBM, for the top spot in Motives fourth annual ranking of the major corporations that provide America's most generous employee benefits. P&G makes up for that absent pension plan by rewarding employ- ees with rich profit sharing. The company's annual contribution to em- Rana/company (Number of U.S. employees) 1. Procter & Gamble Cincinnati (39,000) ployees' accounts amounts to 5% of pay and, after 20 years, reaches 25°ia-a gold mine for long-term workers. P&G also offers inexpensive and outstanding medical coverage, including three managed-care op- tions and a menu of insurance and other programs. P&G's first -place finish was helped by IBM's cost cutting. Revers- ing its 38 -year -history, the computer giant began charging employees $23 to $50 monthly for health insurance. Even so, IBM managed to add some perks: flexible spending accounts for health and dependent care as well as annual reimbursement up to $250 for an approved exercise program or other extras. Despite the leaner climate, all of our top 10 offer enviable medi- cal, pension or profit-sharing plans plus vacation and other leave. Third -ranked Chrysler provides free medical insurance and permits Cost: 919 a month. Deductible: Done to network; 2096 out of network. Reimbursement: 100%after 912 co -payment. No out-of-pocket MU. Cost: none. Deductible: preven- tive care and diagnostic, none; other, 975. Reimbursement: 50%. Max. annual: 51,600 a person. Life one year's pay. Short-term disability: 67% of pay for 52 weeks. Long-term disability: 5096. 2. IBM Armonk, N.Y. (124,000) Cost: 950 a month. Deductible: 0.396 of pay with 9250 minimum; avenge hospital deductible: 9300. Reimbursement: major medical, 80% surgical and hospital, 10096. No out-of-pocket max. Cost: 515 a month. Deductible: 940 per person. Reimbursement: set amount for each procedure, based on prevalling local charges. Lifetime max.:98,500 a person. 3.r H High ghland Park, Mich. (90,000) 4. Citicorp New York City (38,500) No cost. Deductible: 9250. Reimbursement: 8096. Out -d -pocket mu.: 3500. 41,6 Life: up to 950,000, based on length of service. Short-term disability: 52 weeks at full pay. Long-term disability: 6796. Cost: none. Deductible: 9150. Reimbursement: preventive, 9096; bask, 8096; major. 5096. Max. anonal: $L200 a person. Life: two times annual pay. Accrued pensions payable to survivors of employees who die before age 65. Short -tum disability: nine months at full pay and thea three months at 7096. Lang -term disability: 5516. Cost 5962 a year. Deductible: nous In network, 2%dpayout ofnetitaslt. Reimhnsemmt 10096 after $10 co- payment; 8096artdnetwoh Out-of-pocket max.: 5% of pay, out of network 5. John Hancock Boston (13,500) Cost: 3107 a year per fancily. Deductible: 5150. Reimburse- ment: preventive, 10096; bask and major, 5096. Max. annual: 32.500. Life: one years pay. Short-term disability: 6796 for six months. Long-term disability: 5096 of may. Coat: 398 a month. Deductible: none in network; 9350 out of network Reimburse- ment: 90%after 910 co-peyment; 7096 out of network. Mat. out of pocket: 93,000 in network; $10,500 out of network. Cost: 911a month. Deductible. preventive, none; 950. basic and major, per person. Reimbursement preven- tive,10096; basic, 8046; major, 5096. Mu. annual: 51,500 a person. Life: choice of one or two years' pay with 950.000 minimum. Short-term disabil- ity: 60% to 10096 of pay for 26 weeks, depending on length of service. Long- term disability: 6096. 6. Quaker Oats Chicago (11,000) Cost: 969 a month. Deductible: 9625. Reimbursement: 85%. Out-of- pocket max.: 93,150. Cost: 99 a month Deductible: none in network; none for preventive out of network. 9100 for all other. Reimburse- ment: preventive, 100%, basic, 9096, major. 60%. Max. annual: 51.375. Life: one year's pay. Short-term disability: up to 50 weeks at full pay, depending on service. Long-term disability: 5096. 7. MCI Washington, D.C. (42,500) Cost: average 946 of pay. Deductible: none in network; 9750 out of network. Reim- bursement: 8546 in network; 7096 out of network. Out-of-pocket mu.: 99,600 in network; 94,800 out ofnetwork. Cost: included in medical. Deductible: 3150. Reimbursement: preventive, 10096; basic, 80%; major. 5096. Max. annual: 91,500. Life: two times annual pay. Short-term disability: 26 weeks at 6796 of pay. Long-term disability: 6746. 8. AT&T New York City (226,800) Cost: 370 monthly. Deductible: 9450. Reimbursement: 8046; surgical and hospital, 95% to 100%. Out-of-pocket mu.: 91.000 a person. Cost: none. No deductible. Reimbursement 10096 preventive. Max. annual: 51,500 a person. Life: one year's pay. Short-term disability: one year at full pay after 25 years of service. Long-term disability: 5096. 9. Merck Whitehouse Station, NI (20,000) Cost: 940 a month. Deductible: to 0.5% of pay with 5300 minimum. Reimburse- ment: 9096 after 1096 co -payment. Out- of-pocket max.: 2.5% of annual pay with 91.500 minimum. Cost: none. Deductible: none for preventive. 325 a person for major. Reimbursement: 10046; major, 5096. Max. annual: 51.500, with 515,000 lifetime. Life: choice from six months' to six years' full pay. Short-term disability: 26 weeks atfull pay, based on length of service. Long-term disability: 5096 to 7046. 10. Bell Atlantic Philadelphia (23,000) Cost 3620 a year. Deductible: 9625. Reimbursement: 80%. Out-of-pocket mu.: 92,500a family. Cost: 938 a month. Deductible: S25 a person. Reimbursement: 10096 preventive, scheduled fee otherwise. Max. annual: 51,000. Life: choice of six months or one year's pay or 150,000. Short-term disability: up to 52 weeks at full pay, based on length of service. Long-term disability: 4096 to 7096. 184 MONEY • NOVEMBER 1994 employees up to 16 holidays a year, including the week between Christmas and New Year's. John Hancock, ranked fifth, offers pen- sion, 401(k) and profit-sharing plans. And new parents at AT&T have the luxury of taking a full year of family leave with all of their benefits intact. In 1991, when we launched this ranking, only four of our top 10 companies provided flexible benefits. This year, all 10 do. In response to this trend toward benefits menus, we retooled our evaluation criteria to award more points to plans with the greatest range of desirable choices. As a result, four companies -Chrysler, John Hancock, MCI and Bell Atlantic—emerged among our top 10 for the first time. Our methodology: We solicited 47 nominations of companies with superior plans from 12 leading benefits experts nationwide. We then winnowed Vacation: six weeks after 25 years; 12 holidays; parental leave: up to one year with benefits for three months No pension plan; extremely generous profit sharing instead. Retiree pays 512.60 a month per person for health insurance. those to the 25 firms that had 7,000 or more employees covered by the nominated plans. Last, nine senior consultants and partners from Coopers & Lybrand Human Resource Advisory Group, a consulting di- vision of the accounting firm, scored the remaining firms. Companies were identified to judges only by code numbers, and various benefits were assigned different weights in scoring. For this year's top 10 below, we describe the single most popular or representative medical, dental, and life and disability insurance options in the companies' flexible benefits plans. All premiums, deductibles and maximum out-of-pocket costs are for family coverage, unless noted. Vacation time is the maximum available; all 10 companies offer two weeks a year to new employees. Pensions are based on a final five-year average salary of $50,000 a year. Jeanhee Kim No savings plan. Cash profit sharing; fixed percentage that gradually increases from 5% to 25% of pay after 20 years. Flexible benefits that may be used for legal services, additional vacation or purchase of fitness equipment. Also, 2-for-1 higher education matching grants. Vacation; five weeks after 20 years; 12 holidays; paren- tal and personal leave: one year with benefits, renewable for up to three years 320,250 at age 65 after30 years; 376,875 at 60 after 25 years; 312,150 at 55 after 20 years. Free lifetime health insurance for retiree (and spouse) with 15 years of service. Savings plan: company match of 30% on up to 5% of pay. Max. pretax contribution: 9%. Stock -purchase plan: 15% discount on share price, up to 10% of salary. Company contributes 2% of salary to personal retirement account. Annual reimbursement up to 2250 for health and fitness programs or personal financial planning fees. Vacation: five weeks after 20 years; 14 to 16 holidays; parental leave: 12 weeks with benefits 323,854 at age 65 after 30 years. 320,155 at 60 after 25 years. Not eligible before 60. Companypaya portion of health insurance for retiree and family. Savings plan: company match of 60% on up to 8% of pay. Max. pretax contribution: 15%. Cash profit sharing based on company's performance (about 10%ofpay in '93). Annual education scholarships for employee's children up to 34.000; discounts on new and used Chrysler cars. Vacation: five weeks after 25 years, plus a week for every five years thereafter; 10 holidays; parental leave:12 weeks with benefits; per- sonal leave: two years without 323,150 at age 65 after 30 years. 321,260 i at 60 after 25 years. 517,730 at 55. ' Company pays a portion of retiree health insurance, depending on length of service. Savings plan: no company match. Max. pretax contribution: 1846. Bonuses of 3% of pay may go into a tax-deferred account, where company matches 100%. Fitness centers in 10 Locations; discounts on bank products like credit cards and mort- gages, plus free checking. Vacation. five weeks after 20 or 25 years, depending on position; 10 to 11 holidays; parental leave: one year with benefits 322.800 at age 65 after 30 years. 317,904 at 60 after 25 years. 310.104 at 55 after 20 years. Retiree pays 510 a month for health insurance and 315 a month for spouse. Savings plan: company match of 100% up to 2% of pay. Max. pretax contribution: 15% of pay. Cash profit sharing: based upon company performance (4.88% of pay in 1993) On-site child day care, dining and medical facilities; company store at Boston headquarters for up to 4096 discounts on clothes and gifts. Vacation: five weeks after 25 years; 12 holidays; parental leave: six months with benefits 321,800 at age 65 after 30 years. 517,090 at 60 after 25 years. 511.015 at 55 after 20 years. Retiree contributes 32.30 a month for health insurance and 34.60 a month for each additional family member. Savings plan: no company match. Max. pretax contribution: 796. Stock -ownership plan: annual award of about 1096 of pay. Health exams; fitness centers at 12 locations. Company pays broker fees for purchase of Quaker Oats stock. Vacation: five weeks after 20 years; 12 holidays; parental leave: 12 weeks with benefits: personal leave: one year without benefits 318,300 at age 65 after 30 years. 312,266 at 60 after 25 years. 37,419 at 55 after 20 years. No health insurance. Savings plan: company match of 67% on up to 696 of pay. Max. pretax contribution, 1506 of pay. Stock -purchase plan: 15% discount on share price, up to 15% of pay. Programs for high-risk pregnancy; child- and elder- care referral services; 325 monthly discounts on long- distance phone service. Vacation: five weeks after 25 years; 10 holidays; parental leave: one year with benefits; personal leave: two years with benefits 321,100 at age 65 after 30 years. 317,650 at 60 after 25 years. 514,190 at 55 after 20 years. Free health insurance for retiree and spouse. Savings plan: company match of 67% on up to 6% of pay. Max. pretax contribution: 16%. Education assistance service, including school selection and counseling; adoption referral and counseling services; com- pany -paid legal insurance. Vacation: six weeks after 27 years; 12 holidays; parental leave: 18 months with benefits; personal leave: one month with benefits 324,000 at age 65 after 30 years. 320,000 at 60 after 25 years. 512,000 at 55 after 20 years. Free health insurance for retiree and family. Savings plan. company match of 50% on up to 5% of pay. Max. pretax contribution: 5% Job sharing; fitness center, extra flex credits are given to employees who undergo thorough health exams. Vacation: five weeks after 25 years; 10 holidays; parental leave: up to one year with benefits for six months; personal Leave: up to two years without benefits 320,674 at age 65 after 30 years. 317.316 at 60 after 25 years. 313,120 at 55 after 20 years. Company pays portion of health insurance for retiree and spouse. Savings plan: company match of 83.3% in stock up to 6% of pay. Max. pretax contribution: 16% of pay. Health club discounts; job sharing; health programs including stop -smoking seminars, nutrition and stress management. MONEY • NOVEMBER 1994 1115