Chapter 13 Flashcards
Employee Benefits
Indirect financial payments given to employees (supplementary health + life insurance, vacation pension, education plans, discounts on company products
Government Mandated Benefits
- Employment Insurance (EI) (Federal program)
- Pay on Termination Employment (DOES NOT apply to contract workers or those fired w/ just cause)
- Leave of Absence (unpaid time off - and have guaranteed job upon return)
- Canada/Quebec Pension Plan (C/QPP)
- Worker’s Compensation (“no fault insurance plan”)
- Vacations + Holidays
- Paid Breaks (uninterrupted break in a work day)
Types of leaves of Absence
- Maternity/parental/adoption leave
- bereavement leave
- compassionate care leave
3 Types of Benefits for Canada/Quebec Pension Plan
- Retirement Income
- Survivor or death benefits
- Disability benefits
Voluntary Employer Sponsored Benefits
- Life Insurance (regardless of health)
- Supplementary Healthcare/Medical Insurance (Supplements provincial healthcare plans - prescrip drugs, hospital stays, dental, vision, hearing etc.)
- Short term disability (income to those away from work due to non-work related illness - requires proof)
- Sick leave (# allotted per year)
- Long-term disability (income to those away from work due to non-work related illness - requires proof)
- Sabbaticals (time-off to rejuvenate/pursue personal goals - usually unpaid)
- Retirement benefits
Ways Employers are Reducing Healthcare Benefit costs
- increase deductibles
- restrict drugs in a plan
- risk-assessment programs
- Healthcare spending accounts (pre-set amount for all healthcare benefits)
2 Types of Retirement Benefits (Voluntary)
- Benefit Pension Plan: based on income throughout working careers + years of service
- Contribution Pension Plan: based on contributions (Group RRSP)
Also:
- phase retirement: slowly ease into retirement
- SERP’s (Supplemental Employee Retirement Plans)
Employee Services
- Personal Services (credit unions, counselling, EAP’s, social, rec services)
- Job Related Services (childcare, elder care, food services, education subsidies)
- Executive Perquisites (Perks) (management loans, salaty guarantees - golden parachute, financial counselling, relocation benefits, company cars, chauffeured limos, concierge service
Flexible Benefit Programs
Individual benefit plans to accommodate employee needs and preferences
Flexible Benefit Programs (Contraints)
- must limit total cost of each package
- must include certain items that are not optional (Gov. mandated)
Flexible Benefit Programs (Advantages)
- Employees choose packages that best suit needs
- Meet changing needs of changing workforce
- Increased involvement of families improved understanding of benefits
- Intro of new benefits is less costly
- Cost containment (max is set by employer)
Flexible Benefit Programs (Disadvantages)
- Employees make bad choices + not covered
- Admin burdens + expenses increase
- Adverse selection - employees choose benefits that they are likely to use
Benefits Administration Techniques
- use software OR outsource
Ensure COMPLIANCE w/ LEGISLATION - keep up-to-date info - intranet increasingly used.
