Exam 11: Employee Benefits

A primary objective of most benefits programs is to increase turnover.

Compare and contrast the risks to the employee in regard to defined-contribution and defined-benefit pension plans.

Long-term disability plans normally provide a disabled employee with 90-100 percent of their pre-disability income.

Who has the key responsibility of communicating benefits information to employees?

Logan Wolverine works for RAY Vision Inc. The employer deducts money every month from Logan's paycheque for his pension plan. RAY Vision matches this amount for his pension. What type of plan is this?

What's a major disadvantage of cafeteria benefit plans?

In the past two decades, more and more employees have been receiving dental care insurance as a benefit.

Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost non-existent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients. -Refer to Scenario 11.1. Some of Canadian Fasteners' employees have been around since its inception and are well into their late 40s. Which of the following pension plans would be most effective in allowing employees to have a decent pension when they retire?

With contributory pension plans, contributions are made jointly by employers and the government.

Only employees contribute to the Employment Insurance (EI) fund.

Company-sponsored preretirement programs force employees to think about what their lives will be like after they leave the organization.

Which statement best describes flexible benefit plans?

Management at ABC Inc. wants to introduce a new benefit that is not required by law. What should it do first?

Scenario 11.2 Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "Generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and Work-Life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs. -Refer to Scenario 11.2. Which of the following is NOT a family-friendly benefit that will help BPBI develop and maintain Work-Life balance?

Canada's workforce is becoming increasingly diverse. How is this having an impact on benefits programs?

Scenario 11.2 Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "Generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and Work-Life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs. -Refer to Scenario 11.2. BPBI would like to also set up an employee assistance program (EAP) to help employees solve their personal problems, or at least prevent those problems from turning into crises that are likely to affect their ability to work productively. Which of the following are programs offered by EAPs in today's organizations?

In Canada, women are retiring at a younger age compared to men.

What is the key reason why employers' benefits costs are less in Canada versus the United States?

What's a major problem facing the Canada Pension Plan?

Online benefits programs allow employees self-service freedom and availability virtually any time.