Intro to EE Benefits Flashcards

1
Q

EE Benefits (def)

A

Part of the total compensation package, other than pay for time worked, provided to ees in whole or in part by er pmts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Examples of benefits

A

Life insurance
pension plan
workers comp
vacation

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Why has there been growth in ee benefits?

A
  1. Cost effectiveness
  2. Unions
  3. Er impetus
  4. govt’ impetus
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What is a common problem from EEs around benefits?

A

They feel entitled to benefits despite performance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is the Govt’ Impetus in benefits?

A
Govt' mandated benefits:
1. Workers Comp
2. EI
3. CPP
Includes laws on family and survivor benefits, retirement age.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the Union’s role in benefits?

A

fight for new and improved benefits especially:
pension plans
supplementary unemployment benefits
retiree benefits

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What considerations should be made around cost-effectiveness?

A
  1. Most benefits are not taxable
  2. Group benefits are a lower cost
  3. Group insurance has easy qualifications that some employees might not otherwise get.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What are the key issues in benefits planning, design and admin?

A
  1. establish objectives
  2. Integrate benefits with rest of compensation
  3. external competitiveness
  4. adequate benefits
  5. benefits admin:
    • Who
    • How much choice
    • how financed
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What are the factors that influence benefits planning?

A

Employer factors:

  1. relationship of benefits to total comp costs
  2. cost relative to benefit –> ie long term forecasting
  3. Competitor offerings –> lag, lead, meet
  4. Role in attraction, retention, and motivation
  5. legal requirements
  6. absolute and relative costs

EE Preferences:

  1. Fairness (Equity)
  2. Personal needs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are the things to consider when administering a benefits program?

A
  • Benefits communication
  • claims processing
  • cost containment
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the plan types to choose from?

A
one size fits all
modular
core plus options
cafeteria
Healthcare spending account
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are some advantages of flexible benefits?

A
  • 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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Disadvantages of flex plans?

A
  • 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
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are some cost containment opportunities?

A
  1. Probationary periods
  2. Benefit max
  3. Coinsurance - er and ee ea pay a % of the insurance cost
  4. Deductibles
  5. Coordination of benefits
  6. Admin costs - competitive bids
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What are the different types of benefits?

A
  1. Legally required bene.
    - Workers comp
    - CPP
    - EI
  2. Other govt
    - MSP
  3. Retirement and other savings
    - Defined benefit pension
    - Defined contribution pension
    - Profit sharing
    - Stock options
  4. Life insurance & accidental death
  5. Extended medical (medical, dental, vision)
  6. Income security
    - Short & long-term disability
    - sick leave
  7. PMTs for time not worked
    - rest periods
    - Vacation
    - holidays
  8. Misc
    - parental leave
    - childcare
    - eldercare
    - EAP
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Advantages and disadvantages of different pension plan alts:

A

Defined bene:

  • Explicit easily comm
  • company absorbs the risk
  • good for long-term ees
  • er cost unknown

Defined contribution:

  • unknown benefit level hard to comm
  • ee assume the risks
  • favourable for short-term ees
  • ee costs known upfront