Chapter 9 – Employee Benefits and Services – Flashcards

Are indirect financial payments given to employees. They may include supplemetary health and life insurance, vacation, pension plans, education plans, and discounts. Three mandatory benefits (CPP/QPP, RI, and workers compensation) account for over 50% of the employer portion of benefits.

A federal program intended to provide temporary financial assistance to eligible persons who experience interruption to their work through no fault of their own. A supplementary unemployment benefit (SUB) plan is an agreement between an employer and the employees (often collective bargaining) for a plan that enables employees who are eligible for EI to receive additional from SUB fund.

*Pay in Lieu of reasonable notice:* A lump sum equal to an employee's pay for the notice period provided to employees who cease working immediately.

An additional payout on top of their minimum notice period requirements and only if specific conditions apply.

Additional pay when a layoff of 50 or more occurs

Maternity/parental leave Bereavement leave - death of family member

Programs that provide three types of benefits: retirement income, survivor or death benefits. and disability benefits. Benefits are only payable to those individuals who make contributions to plans or to their family members

Provides income and medical benefits to victims of work-related accidents or illnesses, to their dependents regardless of fault -includes expenses and income benefits during time they can't work

Labour/Employment Standards sets minimum amount of paid vacation, usually 2 weeks and paid breaks depends on province. Annual vacation increases depending on years of service with org.

Life insurance provided at lower rates for all employees, including new employees regardless of health or physical condition.

The annual amount of health/dental expenses that an employee must pay before insurance benefits will be provided.

Coinsurance: the percentage of expenses that are paid by the insurance plan. 1. I increase amount of healthcare costs paid by employees 2. Restricted list of drugs that will be paid for under plan to encourage use of generic rather than brand names 3. Health promotion: promoting healthy lifestyles 4. Risk-assessment programs 5. Healthcare spending accounts: provides flexibility for employee

Retiree benefits costs are exceed costs for active employees in orgs, because early retirees are not eligible for health benefits until 65

Plans that provide pay to an employee when he is unable to work because non-work related injury or illness

provide continuation of all or part of employee's earning when employee is absent from work Usually medical certificate needed absence is beyond 2 days or more.

Grant full pay for specified number of sick days, usually up to 12 a year. Sometimes use sick days as extensions to their vacation. Different from ST Disability plans, because employees can use even when they aren't sick.

Disability Management: a proactive, employer centered process that coordinates activities of employer, insurance co, to minimize impact of injury, disability or decrease on worker's capacity to perform job

Mental health issues continue to be leading cause of ST and LT disability claims in Canada.

Sabbatical leaves are usually unpaid, but employers provide some or full pay. They help retain employees and avoid employee burnout, without employee losing job security or seniority. Help them with rejuvenating.

Pension plans: provide income when employees reach a certain age.

Plan that contains a formula for determining retirement benefits so that the actual benefits to be received are defined ahead of time.

Specifies what contribution the employer will make to a retirement fund set up for employee. Does not define the eventual benefit amount, only periodic contribution to the plan. -employee cannot be sure until retirement

employees have a portion of their compensation put into an RRSP by employer

A plan in which a certain amount of company profits is credited to each employee's account, payable at retirement, termination, or death.

A provision that employer money placed in a pension fund cannot be forfeited for any reason. Means required length of service by employee has non-forfeitable right to money contributed in pension plan.

Means that employees in defined contribution plans can take the money in their company pension account to a new employer's plan or roll it over into a locked-in RRSP

An arrangement whereby employees gradually ease into retirement use reduced work days or shortened workweeks.

Plans that provide the additional pension benefit required for employees to receive their full pension benefit in cases when their full pension benefit exceeds the maximum allowable benefit under the income Tax Act

A company-sponsored program to help employees cope with personal problems that are interfering with or have potential to mess with their job performance as well as issues affecting their well being of their families

Subsidized childcare: offered to assist work life responsbilities Eldercare Subsidized employee transportation Food services Educational Subsidies

Mgmt Loans, Salary guarantees such as golden parachute, financial conseling, relocation benefits, subsidized mortgages

Benefit plans individualized to accomdate employee needs and preferences Two constraints: -Limited total cost -Must include certain items like CPP, worker's compensation, and EI Even despite new technology, employers still find face to face is preferred method for providing initial information about new flex plan.

1. Importance of Employee benefits can help attract and retain right people to further business objectives. 2. Health insurance costs are rising because of new drugs, aging population, and reduction under health prov. health plans. Can be reduced by increasing amount of healthcare costs pd by employees, restricted drugs list pd under plan, health promotion, risk assessment, and health spending accounts

3. Three types of personal employee services are credit unions, counselling, and employee assistance plans. Six job-related services are childcare, eldercare, transportation, food services, education, and family friendly benefits 4. Flexible benefits approach allows employees to put together his own benefit plan subject to total cost limits. Then other benefits are selected for inclusion, such as life insurance, dental, health, disability, and retirement.