LO3 & LO4- Voluntary Benefits & Retirement Security Benefits

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Cards (14)

Voluntary benefits 
Life & Health Insurance
Disability Insurance
Salary Continuation
Retirement Security
Paid Time-Off Benefits
Employee Service
Life Insurance 
almost universally offered by Canadian companies for their employees
Disability Insurance 
If an employee misses a few days because of illness, it is usually not crucial from a financial point of view since most employers grant paid sick leave for a limited time.
Health-related insurance 
Supplemental health coverage for prescriptions, dental care, paramedical, ambulance services, vision care, travel insurance, etc.
Disability insuranc
Salary continuation for short-term and long-term disability
Retirement Security 
originally designed to reward long-service employees.
Registered Pension Plans (RPP) 
Defined Benefits (DB) Plans
Defined Contribution (DC) Plans
Defined Benefits (DB) Plans 
upon retirement the employee receives a fixed dollar amount as a pension, depending on age and length of service.
Two problems administering pension plans:
If employers go out of business – plan is left unfunded
Some companies minimize their pension costs by having very long vesting periods
Pension Benefits Standards Act 
regulates pension plans and requires that pension funds be held in trust for members and that the funds not be held under the complete custody and control of either the employer or the employees.
Group RRSPs 
typically administered by an insurance company or investment firm, and may have limited investment
selections for the individual employee.
Paid Time-Off 
On-the-job breaks (e.g., rest breaks, meal breaks)
Paid sick leave
Holidays and vacations
Employee Services
Educational assistance (e.g., tuition refund)
Financial services (e.g., employee discount plans)
Social services
Employee Assistance Programs (EAPs)
Relocation programs
Caregiver programs
Types of Benefits
Legally required benefits
Voluntary benefits
Flexible benefits