ADM 2337 Lecture Notes - Lecture 11: Pension, Plans, Deferred Income

• School: University of Ottawa
• Department: Administration
• Course: ADM 2337
• Professor: Magda Donia

Document Summary

Hinges on two factors: selecting bene t that target important employee needs while promoting strategic organizational objectives, and effective administration of bene ts programs. Exible bene ts plans or cafeteria plans enable individual employees to choose the bene ts that are best suited to their particular needs. Employees select bene ts to match their individual needs. Poor employee bene ts selection results in unwanted nancial costs. There are certain added costs to establishing and maintaining the exible plan. Employees may choose bene ts of high use to them that might increase employer premium costs changing (diversi ed) workforce. Employees gain greater understanding of the bene ts offered to them and the costs incurred. Employers maximize the psychological value of their bene ts program by paying only for the highly desired bene ts. Employers limit bene t costs by allowing employees to buy bene ts only up to a maximum de ned amount.