Management and Organizational Studies 3361A/B Lecture Notes - Lecture 19: Omers

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3361A/B
• Professor: Michelle Loveland

Document Summary

Benefit plans: pension and other post retirement benefits, i. e. health care insurance, post employment benefit plans, use event accrual method to accrue full cost and liability, i. e. severance, long term disability, compensated absences, expense when absence is taken, i. e. parental leave, sabbatical. Pension plans: defined contribution, pension expense = employer"s required contribution, pension benefit unknown & employee assumes economic risks, i. e. uwo, defined benefit, pension expense does not equal cash contribution, employer assumes economic risks, pension benefits are defined but cost of plan is unknown, omers, hoopp, otpp. Pension variables: probability factors, investment earnings, future salary increases, future inflation rates, employee turnover, mortality rates, life expectancy after retirement, funding vs. accounting. Methods of measuring obligation: vested benefit obligation, minimal amount based on current wages and vested employees only, accumulated benefit obligation, based on current wages and vested/unvested employees, projected benefit obligation, maximum amount based on future wages.