Benefit Provision Flashcards
What are the main roles of a government in provision of benefits?
Direct provision
Encouragement of provision
Regulation of provision
Why might an employer offer a pension/benefit scheme?
Forced by government Encouraged by government Desire to look after workers better than state Attract good employees Retain good employees Expertise pooling Expense pooling
How might an employer have a role to play in benefit provision for employees?
Educate Encourage provision Force provision Orderly financing of benefits Provide facility for benefits like a scheme e.g. pension scheme
How might a government provide financial instruments to encourage provision?
State-sponsored saving plans e.g. National Savings
Direct investment in national debt e.g. Gilts
Deposits with state bank
Deposits with local authority
What are the 3 most important benefits to provide from the state?
Pensions
Ill health
Protection to dependants
Give an example of tailoring the benefits of employees of a manual labour company
Manual labour versus executives of the company
Why are flexible benefit schemes useful, give 3 example of possible benefits
When inappropriate to provide all employees with same beenfits
Recognise employee needs change over time
e.g. pension benefits, additional holiday, enhanced death in service, long term sickness
Give 4 reasons why flexible benefits can meet all employees needs
Multiple options
Appropriate options for each type of group e.g. male/female
Change options over time
Change in benefits will be little or no cost to employer
Give 2 ways of financing a flexible benefit scheme, and a disadvantage for each
Share between employer and employee, legislation may limit
Joint with other companies,
Segregate funds in case of insolvency of 1.
How might an individual finance the provision of benefits?
State based scheme Employer based scheme Insurer Other financial organisation Property Other savings
Why might an individual make provision of benefits?
Forced by state Forced by employer Encouraged by state Encourage by employer Desire to protect dependants Desire to increase benefits for themself
Why is grouping together with other individuals good for making benefit provision?
Reduce cost undertainties
More Cost effective than individual arangements
4 examples how individuals can group together to provide benefits?
Trade union
Employee association
Religious organisation
Retirement communities
