Module 9 Flashcards
Employee Benefits
Employee Benefit Plans
That part of total compensation, other than pay for time worked, provided to employees in whole or in part by employer payments.
Types of Employee Benefits
- Legally Required Benefits
- Retirement Plans
- Group Life and Accident Insurance
- Medical Insurance
- Income Security
- Additional Benefits
Legally Required Benefits (Examples)
- Canada/Quebec Pension Plan (Pension)
- Worker’s Compensation (Income)
- Employment Insurance (Income)
Pension Plans
- Defined Benefit Plans
- Defined Contribution Plans
- Combination Plans
Defined Benefit Plans (DB)
Pension amount is known, employer contribution unknown, investment risk with employer, complex and expensive to administer, and requires less employee involvement.
Defined Contribution Plans (DC)
Pension amount is unknown, employer contribution known, investment risk with the employee, easier and cheaper to administer, and requires more employee involvement.
Combination Plans
Hybrid of DB and DC.
Group Life Insurance (GLI)
Covers basic life, optional life, dependent life, and retiree life insurance.
Accidental Death & Dismemberment (AD&D)
Provides lump sum in case of death by accident or injuries sustained.
Sick Leave and Disability Plans
- Sick Leave
- Salary Continuation
- Long-Term Disability (LTD)
Sick Leave
Provide full pay for a short period of time (2 weeks), accumulates over time.
Salary Continuation
Provides full pay for a number of weeks, followed by reduced pay for additional weeks up to a limit, medical evidence often required, does not accumulate over time.
Long-Term Disability (LTD)
Provides income for long-term illness that is not work-related.
Extended Health Care (EHC) Plans
Usually covers employees and dependents. Covers perscription drugs, hospital accommodation above ward level, medical services and supplies, vision care and accidental dental.
Health Care Spending Account (HCSA)
An account for individual employees credited with a dollar amount.
Dental Plans:
Covers preventative, basic, major restorative and orthodontic dental services.
Benefit Plan Administration
confirm eligibility –> employee completes benefit application process –> plan admin enrolls employee –> employee receives confirmation of enrollment
Reasons for the Rise in Flexible Benefit Plans
- Flexibility
- Cost Control
- Technological Advances
- Diverse Workforce
- Competitive Pressures
Continuum of Choice in Benefit Plans
(from least flexibility and complexity, to most)
- Traditional No Add-Ons
- Traditional With Add-Ons
- Modular Flex
- Core Plus Flex
- Full Flex
- Total Reward Flex
Employee Assistance Programs (EAP)
Support programs assisting employees and their dependents (usually in hard times).
EAP Covered Services
- Crisis Intervention
- ST Professional Counselling
- ST Work-Life Counselling
- Triage/Referral to LT Services
- Self-Help Groups
EAP Service Delivery
- In-person
- By Phone
- Online
- Via Learning Materials
Employee Relocation
(from least expensive to most expensive)
- Local Hires or Domestic Relocation
- Country to Country Transfers
- International Assignees
Local Hires or Domestic Relocation
Employee hired by a Canadian company in Canada.
