Large vs. Small Company Benefits Differences
April 24, 2008 – 7:25 amI get bugged by some things pretty easily, and one item I’d like to discuss is my frustration with the huge differences in benefits packages between employers. My wife and I are good examples of how crazy these differences can be.
I work for a huge company and my wife works for a small but profitable firm that has about 25 employees. Here are just a few differences:
- I have a regular 401k, but my wife has a choice of a regular 401k or a Roth 401k
- I get a 2% match if I contribute 6%, my wife gets a 4% match if she contributes 6%. I get a 3% match once I’ve been with my company five years.
- I have top of the line medical insurance, but my premiums run $900/year. My wife’s company pays her insurance premiums entirely. I think she has a lower deductible too.
- My firm still has a traditional pension, assuming it continues to exist, and my wife does not.
- My wife and I both get 2 weeks of vacation. Hurray for equality in at least one area!
I would think that a larger firm would be willing and able to carry the extra costs for some of these items, including a better 401k match and a Roth 401k option at least. Perhaps my firm is “sub-par” in this area because they still have a pension program. It just seems odd to me that my wifes firm, which is tiny, can offer some benefit options that are more leading edge than mine.
My recommendation is that you take the time to review your benefits package as well as your spouses, and then choose the best of the available choices. This also includes reviewing the investment options within retirements accounts and reviewing medical coverage minimums and maximums.
In the end I’m just thankful we both have jobs. Enough with the complaining and comparing already.
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One Response to “Large vs. Small Company Benefits Differences”
We just reviewed our biz. health care insurance plan with our consultant and discovered some major savings. I feel its important to review all insurance/investments every 6 months to see if anything needs to be changed.
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1 Button To WiFi Review Gal (Who am I?) on May 6, 2008