D E P A R T M E N T O F F I N A N C EUNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGNCollege of Commerce and Business AdministrationD E P A R T M E N T O F F I N A N C EFinance/LIR 360 - Employee Benefit Plans Professor Stephen D'ArcyM W F 2-2:50 pm 311 Wohlers Hall 131 Animal Science Lab Tel: 333-0772 Fall, 2002 email: [email protected] Hours:Friday 1:00-1:50 pm and by appointmentTextbook: Employee Benefits, Burton Beam, Jr. and John McFadden, Sixth Edition, Dearborn Financial Publishing, 2001.Course Web Site: http://www.cba.uiuc.edu/~s-darcy/fin360/index.htmlCourse ObjectiveThe objective of this course is to provide students with an understanding of the basic terminology, practices and current issues in employee benefits. This field is rapidly growing in importance for both employers and employees, as well as undergoing significant changes as the result of new legislation. Students completing this course should be able to utilize their own future employee benefit plans more wisely and be in a position to help employers or insurers adapt such plans to meet changing conditions. Accessibility StatementTo insure that disability-related concerns are properly addressed throughout the semester, students with disabilities who require reasonable accommodations to participate in this class are asked to see me within the first two weeks of class. Date Topic Reading AssignmentAug 28 Course Overview -- 30 Introduction to Employee Benefits Chapter 1Sept 4 Employee Benefit Planning and Management Chapter 2 6 Social Security Benefits Chapter 3 9 Other Social Insurance Programs Chapter 4 11 The Group Insurance Environment Chapter 5 13 To be announced 16 Group Life Insurance: Term Coverage Chapter 6 18 Group Life Insurance: Lifetime Coverage Chapter 7 20 Group Disability Income Coverage Chapter 8 23 Medical Benefits: The Changing Environment Chapter 9 25 Medical Benefits: Traditional Plans Chapter 10 27 Medical Benefits: Managed Care Plans Chapter 11 30 Medical Benefits: Plan Provisions and Taxation Chapter 12Oct 2 Dental and Other Group Insurance Benefits Chapter 13 4 Alternative Funding Methods Chapter 14 7 Group Insurance Ratemaking Chapter 15 9 Other Nonretirement Benefits Chapter 16 11 Cafeteria Plans Chapter 17 14 Student Paper Presentations Handouts 16 Student Paper Presentations Handouts18 Review for Midterm -- 21 Midterm Exam -- 23 Introduction to Qualified Retirement Plans Chapter 18 25 To be announced 28 Plan Qualification Requirements Chapter 19 30 Pension Benefit Formulas Chapter 20 Nov 1 Pension Plan Funding Chapter 21 4 Profit-Sharing and Similar Plans Chapter 22Date Topic Reading Assignment 6 401(k) and Other Salary Savings Plans Chapter 23 8 Illinois State Universities Retirement Plan Handouts 11 Illinois State Universities Retirement Plan Handouts 13 To be announced 15 Student Paper Presentations Handouts 18 Student Paper Presentations Handouts 20 Qualified Plan Distributions and Loans Chapter 24 22 Plan Restrictions Aimed at HCEs Chapter 25 Dec 2 Administration of Retirement Plans Chapter 26 4 Individual Retirement Plans and SEPs Chapter 27 6 Executive Benefits and Nonqualified Deferred Comp. Chapter 28 9 Student Paper Presentations Handouts 11 Student Paper Presentations Handouts 13 Review for Final Final Exam Thursday, December 19, 2002 1:30-4:30 pmStudents will write three short papers on current issues in employee benefits and present one of the topics to the class. The papers will be due on October 7, November 8 and December 2. Lists of possible topics for each paper will be distributed approximately one month prior to the due date. In addition to the papers, there will be five problem sets assigned as follows:Subject Handed Out Due DateTaxation of Employee Benefits 9/20/02 9/27/02Health Insurance 10/4/02 10/11/02Deferred Compensation 11/8/02 11/15/02SURS 11/15/02 11/22/02Overview of Employee Benefits 12/4/02 12/11/01The maximum number of points for each aspect of the course will be: Assignments 50In Class Exercises 20Papers and Presentations 40Midterm Exam 30Final Exam 60Total 200The exams will be open book, open note. Calculators can be used, but not shared. The final exam is based on all the material covered during the