Unit 12
Adapted from Nelson
1. Identify the major categories of
employee benefits and the specific
types of benefits included in each
category.
2. Discuss the advantages and
disadvantages of fixed vs. flexible
benefits plans and the
circumstances in which each would
be most appropriate.
3. Describe the issues that must be
addressed in designing a benefits
system.
2
Copyright (c) 2010 by Nelson Education Ltd
3
Copyright (c) 2010 by Nelson Education Ltd
1.
andatory benefits
2.
¥tirement income
3.
%alth benefits
4.
!y for time not worked
5.
mployee services
6.
iscellaneous benefits
4
Copyright (c) 2010 by Nelson Education Ltd
5
Copyright (c) 2010 by Nelson Education Ltd
defined benefit plans :
provide retirement income
based on a proportion of the
employeeàpay at the time
of retirement
defined contribution plans:
provide retirement income based
on the accrued value of employer
and employee contributions to the
plan
6
Copyright (c) 2010 by Nelson Education Ltd
Supplemental health insurance
dental insurance
disability insurance
Life & accident insurance
health care spending accounts
7
Copyright (c) 2010 by Nelson Education Ltd
8
Copyright (c) 2010 by Nelson Education Ltd
Vacations,
Holidays, and
Rest Breaks
Sickness,
Compassionate
, and Personal
Absences
Supplemental
Unemployment
Benefits
Parental Leaves
Educational and
Sabbatical
Leaves
Severance Pay
9
Copyright (c) 2010 by Nelson Education Ltd
Employee
Assistance
Programs
(EAPé
Wellness
Programs
and
Recreational
Services
ChildCare/ElderCare
Services
Work)fe
Balance
Programs
Financial or
Legal
Services
Food
Services
Outplacement
Services
10
Copyright (c) 2010 by Nelson Education Ltd
? Which of the following is a company pension
plan that guarantees a certain benefit to
retirees regardless of market conditions?
a. Defined benefit plan
b. Money purchase plan
c. Defined contribution plan
d. Canada Pension Plan
11
Copyright (c) 2010 by Nelson Education Ltd
?
an employee benefit
plan that provides a
standard set of
benefits to all those
covered by the plan
fixed benefit system
?
an employee benefit
plan that allows
employees to allocate
employer-provided
credits to purchase the
benefits of most value
to them
flexible benefit system
12
Copyright (c) 2010 by Nelson Education Ltd
?
For
?
Against
– Changing demographics
– Less costly
– Family plans/spousal
benefits; two persons being
employed in a family
– employees understand
traditional benefits; have
more experience
– employers lose economies
of scale
– Traditional benefits appear
to be more equitable
– Administration and
communication of new plan
For
Against
13
Copyright (c) 2010 by Nelson Education Ltd
1.
2.
3.
%termine the role of indirect pay
èoose the process for plan design
dentify the benefits system and benefits to be included
%termine the structure of each benefit
4.
5.
ïverage, funding, eligibility
%velop procedures for administering, communicating, and evaluating
14
Copyright (c) 2010 by Nelson Education Ltd
? Which one of the following items is included
in most benefit plans?
a. Child care
b. Parental leave
c. Health care spending accounts
d. Life and accident insurance
15
Copyright (c) 2010 by Nelson Education Ltd
? To find out the latest requirements for
mandatory benefits (see the benefits tab),
check the Employment and Social
Development Canada website at:
? https://www.canada.ca/en/employmentsocial-development.html
16
Copyright (c) 2010 by Nelson Education Ltd
1.
%fined contribution pension plans are
nothing more than an attempt by
employers to shift risk from themselves to
employees, who are much less able to
bear this risk. o you agree or disagree
with this statement? Discuss why.
17
Copyright (c) 2010 by Nelson Education Ltd
Three firms are described briefly below. For each firm, identify
the role (if any) that you believe indirect pay should play in the
compensation system, and the specific benefits that it would
make most sense to offer. Explain why.
?
?
?
A company offers lawn maintenance and yard clean-up services
in the summer and snow removal services in the winter. It
employs about 600 people at peak season (in the summer) and
has branches in major cities across the Prairies.
A retail clothing chain offers personalized service and caters to
upscale customers. It is located in major cities across Canada
and employs approximately 600 sales staff.
A computer software firm develops customized software for
various specialized applications for individual clients. Located
near Ottawa, it employs about 1000 people.

Purchase answer to see full
attachment