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Questions and Answers
What factor is NOT typically considered in a defined-benefit pension plan?
What factor is NOT typically considered in a defined-benefit pension plan?
Which type of pension plan requires contributions from employees?
Which type of pension plan requires contributions from employees?
Registered pension plans (RPPs) are regulated at which levels?
Registered pension plans (RPPs) are regulated at which levels?
What is a significant issue historically associated with pension plans?
What is a significant issue historically associated with pension plans?
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Which benefit is typically NOT included in Employee Assistance Programs (EAPs)?
Which benefit is typically NOT included in Employee Assistance Programs (EAPs)?
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What percentage of Canadians reportedly have eldercare responsibilities?
What percentage of Canadians reportedly have eldercare responsibilities?
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Which of the following is a characteristic of insured pension funds?
Which of the following is a characteristic of insured pension funds?
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Which term best describes caregiving provided by employees for elderly relatives while they work?
Which term best describes caregiving provided by employees for elderly relatives while they work?
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What percentage of payroll costs does employee benefits constitute in Canada?
What percentage of payroll costs does employee benefits constitute in Canada?
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Which of the following is a concern for management regarding employee benefits?
Which of the following is a concern for management regarding employee benefits?
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What is one of the cost containment strategies suggested by the Conference Board of Canada?
What is one of the cost containment strategies suggested by the Conference Board of Canada?
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Which of the following is NOT a requirement for employee benefits by law in Canada?
Which of the following is NOT a requirement for employee benefits by law in Canada?
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Which type of insurance helps workers with income loss due to work-related injuries?
Which type of insurance helps workers with income loss due to work-related injuries?
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What is a characteristic of flexible benefits plans?
What is a characteristic of flexible benefits plans?
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What condition affects the duration of paid vacations in an organization?
What condition affects the duration of paid vacations in an organization?
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Which method is effective for determining employee needs in benefits programs?
Which method is effective for determining employee needs in benefits programs?
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What is severance pay?
What is severance pay?
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Which of the following is not categorized as a discretionary major employee benefit?
Which of the following is not categorized as a discretionary major employee benefit?
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Which of the following is NOT a method for communicating employee benefits?
Which of the following is NOT a method for communicating employee benefits?
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What role do committees play in managing employee benefits?
What role do committees play in managing employee benefits?
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Which of the following statements about discretionary employee benefits is accurate?
Which of the following statements about discretionary employee benefits is accurate?
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Which aspect is essential for an effective benefits strategy?
Which aspect is essential for an effective benefits strategy?
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What is a potential disadvantage of flexible benefits plans?
What is a potential disadvantage of flexible benefits plans?
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Which of the following is a core component of flexible benefits plans?
Which of the following is a core component of flexible benefits plans?
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Study Notes
Employee Benefits - Chapter 10
- Employee benefits management and strategic benefits programs are cost-effective. Key aspects of managing employee benefits are essential.
- Benefits mandated by law are included in the employee benefits package. These legally required benefits are vital to consider.
- Discretionary employee benefits are also crucial. These benefits are not legally required.
- Retirement policies and programs are constantly evolving, and understanding the factors involved in pension plan management is key.
- Employers offer various work-life benefits. Types of these benefits are relevant to understand.
Elements of an Effective Benefits Program
- Benefits strategy is crucial in ensuring an effective benefits program.
- Communication of employee benefits is important for employees to understand their available options.
- Administering benefits efficiently is very important.
- Involvement of employees is significant to consider.
- Flexible benefits are necessary for a diverse workforce. Design benefits for employees with unique situations.
Allowing for Employee Involvement
- Employee input is helpful in determining needs.
- Consult with employees.
- Committees, opinion surveys, focus groups, and employee participation—all contribute to employees' input.
- Websites aid in providing easily accessed information for employees
Benefits for a Diverse Workforce (Cafeteria Plans)
- Flexible plans allow employees to select benefits that best suit individual needs.
- A core benefits package (life, health insurance, sick leave, vacation) provides minimal coverage.
- Employees can use credits to choose additional benefits as needed.
Flexible Benefits: Advantages and Disadvantages
- Advantages: Benefits match individual needs, adapt to a diversified workforce, and employees gain a better understanding of the benefits and cost involved. Employers can maximize the value and limit costs by allowing employees to "buy" desired benefits.
- Disadvantages: poor employee benefit selection results in unwanted financial costs, establishing and maintaining a flexible plan comes with costs, and employee choices of high-value benefits might impact employer premium costs.
Communicating Employee Benefits Information
- Various methods exist for communication; using in-house publications, bulletin boards, group meetings, training classes, online modules, blogs, benefit hotlines, social media, payroll inserts/pay stub messages, specialty brochures, and new hire orientations is crucial.
HRIS and Employee Benefits
- HRIS systems reduce costs, increase efficiency, and ensure accuracy in benefit administration.
- Online systems are easy and inexpensive to adapt to employee demands.
- Many large organizations outsource benefit administration to external providers.
Concerns of Management
- Benefits in Canada and the USA typically account for a substantial portion of payroll costs (20-25% in Canada and 30-35% in the USA).
- Management must consider the tax implications of benefits.
- Strategies to control costs include adjusting contributions, setting dollar limits, changing coverage, imposing benefit caps, and utilizing preferred providers.
Employee Benefits Required by Law
- Canada and Quebec Pension Plans (CPP/QPP)
- Employment Insurance (EI)
- Workers' Compensation Insurance
- Provincial hospital and medical services are all mandated by law.
Workers' Compensation Insurance
- Insurance protects workers from loss of income or treatment costs arising from work-related injuries or illnesses.
Reducing Workers' Compensation Costs
- Conduct risk assessments to identify high-risk areas in the workplace.
- Prevent injuries by adapting workplaces according to ergonomic principles.
- Provide high-quality medical care to injured employees with specialized training.
- Ensure effective communication between employers and injured workers.
- Manage employee care from the time of injury until return to work.
- Provide workers with extensive health & safety training.
Discretionary Major Employee Benefits (Healthcare)
- Medical benefits
- Dental, optical, and healthcare benefits
- Wellness programs
- Employee assistance programs (EAPs) are all discretionary benefits.
Cost Containment Strategies for Discretionary Benefits
- Education and Motivation: Communicate benefit costs, provide incentives for healthy lifestyles and retirement planning.
- Change Coverage: Introduce dollar limits & eliminate duplicate coverage.
- Improve the System: Remove upgrades, set minimum fees, create partnerships, move towards defined contribution plans, manage claims.
Payment for Time Not Worked
- Vacations with Pay: Eligibility depends on industry, location, and organizational size. Vacation durations vary based on tenure.
- Paid Holidays: Statutory or province-designated holidays.
- Sick Leave: For illness or injury.
- Severance Pay: Lump-sum payment to terminated employees.
Retirement Programs
- Retirement is an important life aspect; careful planning is essential.
- Retirement Policies
- Preretirement Programs
- Pension Plans are crucial to understand.
Types of Pension Plans
- Defined-benefit plan: Benefits based on a predetermined formula – years of service and average earnings.
- Contributory plan: Both employees and employers contribute to the fund.
- Non-contributory plan: Employer provides coverage; generally less common.
- Defined-contribution plan: Variable forms exist including profit sharing, matching contribution, employer-sponsored retirement savings plans.
Pension Plans (continued)
- Federal regulations apply to Registered Pension Plans (RPPs).
- Pension portability is important for employee needs.
- Pension funds can be administered by trustees or insured through annuities.
Employee Services: Creating a Work-Life Setting
- Employee Assistance Programs(EAPs)
- Counselling
- Childcare
- Eldercare
- Other services impacting work-life balance
Eldercare
- Care provided to an elderly relative.
- Employee responsibility is widespread (32% of Canadians).
- Employees spend approximately 23 hours per month on eldercare.
Family-Friendly Benefits
- Childcare/eldercare referral services
- Time off for children's school activities
- Employer-paid childcare facilities
- Flexible work hours
- Employee-accumulated leave days
- Subsidized temporary/emergency dependant care
- Extended leave policies for childcare/eldercare
- Child sick programs, caregiver on-call services
- Flexible work arrangements (work-from-home, telecommuting)
- Partial funding of costs
- Customized career paths
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Description
Explore the vital components of employee benefits management as detailed in Chapter 10. This quiz covers essential topics including legally mandated benefits, discretionary benefits, retirement policies, and work-life benefits. Understand the strategies for effective communication and administration of benefits programs.
