Jazmin and Rachel Gymsplain Employee Benefits
On this episode of Financially Naked: Stories from The Financial Gym, Jazmin Higgins, Level 2 Certified Financial Trainer is joined by Rachel Adaline. Rachel joined The Financial Gym in May of 2022 as the Human Resource Manager and this is her first appearance on the podcast! She’s here to chat with Jazmin about Employer Benefits. There are different benefits that may be offered by your employer and sorting through them can be confusing. They gymsplain the typical enrollment packages to help you make sense of it all!
Podcast Notes
Health Benefit Plans:
There are two main types: Preferred Provider Organization (PPO) and Health Maintenance Organization (HMO).
PPOs are more flexible but have pricier premiums. They often have lower copays and deductibles plus they allow you to see a specialist without a referral.
HMOs are generally the more affordable option. They have low premiums, but you are required to choose a provider within the network. They are good if you are on a tight budget and don’t have consistent medical expenses.
Health Related Savings Accounts:
Health Savings Accounts (HSA) & Flexible Spending Accounts (FSA) allow you to save money pre-tax for health-related costs.
HSA’s carry forward year to year whereas FSA accounts have more restricted time limits depending on your employer.
Both can be used for deductibles, co-pays, medication, and other out-of-pocket medical costs. Places like fsastore.com showcase a wide variety of products that can be purchased with your FSA.
Dental & Vision Plans:
These are set up similarly to traditional health insurance with the PPO and HMO system.
Vision plans are often expensive, and are offered less frequently by employers.
Life Insurance:
Life insurance benefits really depend on the company you work for, and aren’t usually offered by smaller companies. These plans are usually free or low-cost so worth signing up for.
Retirement Savings Benefits:
All named after various tax codes: 401k, 403b, 457b.
These benefits allow you to save for retirement directly through your employer each paycheck.
Some employers will offer a ‘match’, which means they’re also committing to putting money in when you save.
Stock Related Benefits & Compensation:
Restricted Stock Units (RSU). It’s a type of compensation in the form of company shares. These are released to the employees on a vested schedule, meaning they’ll need to stay for a certain amount of time in order to receive those shares.
Employee Stock Purchase Plans (ESPP) is a benefit that allows employees to purchase stock at a discounted price.
Other Employee Benefits
Vacation Policy
Flexible hours & work from home options
Office equipment reimbursement for upgrading your home workspace
Student loan assistance or tuition reimbursement plans
Paid parental leave
Daycare services
Relocation or housing costs
Special partner discounts
Fitness programs or other wellness benefits
Parking reimbursement
Traditional bonuses, quarterly or annually.
Personal development or career training from a third party
Financial Coaching (people hire the Financial Gym to provide this benefit to their employees)
There are so many types of benefits out there, make sure to check out everything offered by your employer and take advantage of what is available! If you’re feeling confused or overwhelmed by sorting through your options, a Certified Financial Trainer can help walk you through everything. Trainer-on-Demand is great for these one-time questions, or learn more about the Accountability Program which comes with a full financial plan.