Total Rewards Module 5 - Creating the Indirect Compensation Program Flashcards
What are some things included the indirect compensation program?
Legally mandated benefits
Retirement plans
Paid time off
Perquisites and Employee services
What is the defined contribution retirement plan?
Employee only knows the contributions being made. The benefit at the end depends on how well the contributions were invested.
Registered RRSP, Deferred Profit Sharing
What is the defined benefit retirement plan?
The contribution and the benefit upon retirement are both defined. The benefit received is defined by a formula.
What is the hybrid retirement plan?
A combination of the defined contribution and defined benefit plan.
What are the different types of benefit plans?
Fixed (employer determined)
Flexible (employee determined - usually by spending credits)
Semi-Flexible (some benefits required, others optional)
What is a health spending account?
Employers provide employees with money to purchase benefits on their own. These are tax-favorable (not taxed as income)
What are the options for funding benefits?
Non-contributory - fully funded by employer
Fully contributory - fully funded by employee
Contributory - cost shared
