Employers or their administration companies commonly send regular benefits statements to employees. When you receive a benefits statement from your employer, you should keep it on hand for reference purposes. It contains information about some of the personal assets that you have amassed while employed with your firm.
Employee Benefits
As a way to attract quality employees, some companies offer employee benefits plans. Employee benefits may include health coverage, general insurance, pensions, profit-sharing accounts and retirement funds. Certain types of benefits have running balances that change regularly, so employers need a way to update employees on the status of their benefits.
Defined Contribution vs. Defined Benefits
Employers offer two main types of employee benefits --- defined contribution and defined benefits. Defined contribution plans are investment accounts where the employee makes contributions as does the employer. These include 401k's and other profit-sharing plans. Defined benefits include pensions, which provide the employee with a set monthly income after retirement.
What Is a Benefits Statement?
An employee benefits statement is a rundown of all of the benefits accounts held by the worker. It is similar to a bank or asset statement. It lists the employee's name, address, personnel number and other basic identifying information. The benefits statement shows a summary of each benefits account, including individual retirement accounts and profit-sharing plans, the beginning account balance, ending balance and total value of assets. If the employee has insurance, it summarizes coverage levels. Some benefits statements also show a summary of the employee's personal and sick days remaining for the year as well as vacation days available.
Getting Benefits Statements
Some employers provide workers with an online terminal where they can log in to retrieve benefits statements. Employees must retrieve login information from the company's payroll or human resources department. Employers also commonly send printed employee benefits statements to workers on a regular basis. Many companies hire third-party firms to handle the administration of employee benefits. These firms field phone calls from employees and mail out benefits statements on behalf of the employer.
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