Human Resources Management for Public and Nonprofit Organizations

Benefi ts 289

The Uniformed Services Employment and Reemployment Rights Act of

1994 strengthens and clarifi es the Veterans ’ Reemployment Rights Statute.

A fact sheet and interactive computer program, the USERRA Advisor, has

been developed by the Department of Labor ’ s Veterans ’ Employment and

Training Service to provide information as to the rights and responsibilities

of individuals and their employers under the act (U.S. Department of

Labor, http://www.dol.gov/vets/programs/userra/userra_fs.htm ).

Discretionary Benefi ts

Public and nonprofi t employers recognize that to be competitive, they need

to offer additional benefi ts beyond those mandated by law. Research

indicates that integrated benefit

programs lead to increased productiv-

ity and decreased turnover, increased

effectiveness of recruitment and

retention programs, and employee loy-

alty to the organization (Cayer, 2003;

Cayer & Roach, 2008; Coggburn &

Reddick, 2007; Champion - Hughes,

2001; Daley, 2008; Durst, 1999;

McCurdy, Newman, & Lovrich, 2002;

Reddick & Coggburn, 2007; Roberts,

2000, 2002, 2004).

Pensions

Pensions provide retired or permanently disabled employees with income

throughout the remainder of their lives. In the public sector, different classes

of employees are often covered by different pension plans. For example,

teachers, police, and fi refi ghters have pension plans separate from those

of other general employees. Some states have separate pension plans for

judges and legislatures. Police and fi refi ghters may retire with full benefi ts at

a younger age and with fewer years of service than other employees.

Prior to 1984, the retirement plan covering most civilian federal

employees was the Civil Service Retirement System (CSRS); employees

covered by CSRS were excluded from paying Social Security taxes. The

Social Security Amendments of 1983, however, required that federal

employees hired after December 31, 1983, be covered by Social Security.

A new retirement plan, the Federal Employees Retirement System (FERS),

Research indicates

that integrated benefi t

programs lead to increased

productivity and decreased

turnover, increased

effectiveness of recruitment

and retention programs,

and employee loyalty to the

organization.