Intro to EE Benefits Flashcards
EE Benefits (def)
Part of the total compensation package, other than pay for time worked, provided to ees in whole or in part by er pmts.
Examples of benefits
Life insurance
pension plan
workers comp
vacation
Why has there been growth in ee benefits?
- Cost effectiveness
- Unions
- Er impetus
- govt’ impetus
What is a common problem from EEs around benefits?
They feel entitled to benefits despite performance
What is the Govt’ Impetus in benefits?
Govt' mandated benefits: 1. Workers Comp 2. EI 3. CPP Includes laws on family and survivor benefits, retirement age.
What is the Union’s role in benefits?
fight for new and improved benefits especially:
pension plans
supplementary unemployment benefits
retiree benefits
What considerations should be made around cost-effectiveness?
- Most benefits are not taxable
- Group benefits are a lower cost
- Group insurance has easy qualifications that some employees might not otherwise get.
What are the key issues in benefits planning, design and admin?
- establish objectives
- Integrate benefits with rest of compensation
- external competitiveness
- adequate benefits
- benefits admin:
- Who
- How much choice
- how financed
What are the factors that influence benefits planning?
Employer factors:
- relationship of benefits to total comp costs
- cost relative to benefit –> ie long term forecasting
- Competitor offerings –> lag, lead, meet
- Role in attraction, retention, and motivation
- legal requirements
- absolute and relative costs
EE Preferences:
- Fairness (Equity)
- Personal needs
What are the things to consider when administering a benefits program?
- Benefits communication
- claims processing
- cost containment
What are the plan types to choose from?
one size fits all modular core plus options cafeteria Healthcare spending account
What are some advantages of flexible benefits?
- ee chooses to meet his/her needs
- helps firms meet ees changing needs
- increased involvement from ees = increased understanding of benefit
- intro of new benefits less costly
- cost containment - ee choses to spend a set amount
Disadvantages of flex plans?
- ees make bad choice and not covered in emergencies
- increase in admin and expenses
- adverse selection - ees pick only what they will use, therefore higher useage = high cost
What are some cost containment opportunities?
- Probationary periods
- Benefit max
- Coinsurance - er and ee ea pay a % of the insurance cost
- Deductibles
- Coordination of benefits
- Admin costs - competitive bids
What are the different types of benefits?
- Legally required bene.
- Workers comp
- CPP
- EI - Other govt
- MSP - Retirement and other savings
- Defined benefit pension
- Defined contribution pension
- Profit sharing
- Stock options - Life insurance & accidental death
- Extended medical (medical, dental, vision)
- Income security
- Short & long-term disability
- sick leave - PMTs for time not worked
- rest periods
- Vacation
- holidays - Misc
- parental leave
- childcare
- eldercare
- EAP