Exam 11: Employee Benefits

In a defined-benefit plan, the retirement benefit is determined according to a predetermined formula.

Which of the following is an example of a family-friendly benefit that is increasingly being used?

Self-employed individuals can contribute to the Canada Pension Plan.

In Canada, the higher the household income, the lower the retirement age.

What considerations should an organization make in implementing an effective benefits program?

James Callaghan has worked full-time for BC Metals for four years. He has learned from the HR manager that his earned pension benefits cannot be revoked by the employer. Why is this so?

Susie Jones has definite preferences in terms of the benefits offered by her employer. Susie will be able to select the benefits she values highly and avoid those she does not need or want if her employer offers which benefit format?

The collective bargaining agreement between ACME Inc. and the union CUPA 1003 Local requires the employer to provide a limited vision care package. Workers are demanding more. Who will determine any new package?

Flexible benefits plans are also known as "cafeteria" plans.

Employees who resign from a position or who are terminated for cause may not be eligible to collect employment insurance (EI).

Benefits programs should be based on specific objectives in line with the organization's strategic compensation plan.

Legally required benefits amount to 50 percent of the benefits packages that Canadian employers provide.

Employee benefits typically represent 40 percent of total payroll costs to employers.

Health care benefits are considered "discretionary" because employers are not required by law to provide them.

Canada has experienced a growth in the proportion of part-time workers (versus full-time) over the past decade. What is a key reason for this growth?

Employer health plans are generally restricted to medical, surgical, and hospital expenses.

Childcare, eldercare and extended leave policies are all examples of employee services.

In addition to paid holidays, some employers give workers additional personal use days.

Employee assistance programs and wellness programs cannot help organizations cut the costs of health care benefits.

Many firms outsource their cafeteria plans to a professional vendor because of the complexity of administering the system.