MHR 749 Lecture Notes - Lecture 9: Defined Benefit Pension Plan, Pension, Employee Benefits
8 May 2017
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Document Summary
Employee benefits: part of the total compensation package, other than pay for time worked, provided to employees in whole or in part by employer payments, such as life insurance, pension plan, worker"s compensation, vacation etc. For unions: better total compensation package for their membership. For employer: rewards loyalty, motivate and retain talents, remain competitive, satisfy ee needs, increase productivity. For government: provide minimum income upon unemployment or retirement. Contributory benefits: method of financing benefit plans that allows costs to be shared between employer and employee. Employee-financed: employee pays total costs for some benefits. Perceived fairness is a factor that relates to employee preference in determining desirable components of a benefits package. Employee handbook: most frequent used method of communicating benefits to employees. Vesting: waiting period for entitlement to the employer-paid portion of pension benefits. Role of benefits in attraction, retention, motivation. Employer factors: equity and personal needs linked to age, sex, dependents, marital status.
