2 tier benefit plan

dodaniel · June 2003

We are a very small (less than 15 employees) non-profit organization. We would like to set up a 2 tier benefit plan. Non-exempt employees would be under one plan and exempt employees would be under another. My questions are:

#1 Can we do this type of plan?

#2 Does anyone already have such a plan that they can email to me (dodaniel@nw14.esrd.net)?

Thank you

sonny · June 2003

I am not sure in a company as small as yours that this is a good idea. .How different would the benefits be?

dodaniel · June 2003

PTO would accrue at the same rate. The only differences would be the amount of Life Insurance and retirement percentage. We are using a SEP retirement plan.

sonny · June 2003

We have different retirement % for Director level and up and also the amounts of life insurance vary by position. This can be bad for morale, but I no of nothing illegal about it.

blw · June 2003

We are a non-profit also in Texas and we have different benefits for different categories of workers. We have about 34 employees here at the office and about 160 at off site child care locations. Due to the nature of their jobs and the need to maintain state-mandated ratios, they have far less time off benefits than does the office staff, as well as a shorter "rope" so to speak before disciplinary actions begin for excessive absences and tardies. All full-time staff have the same insurance benefits, but Directors begin employment with 3 weeks vacation and other staff get two weeks. Hope this gives you some perspective. Tks, Barbara

2 tier benefit plan

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