BU354 Chapter Notes - Chapter 10: Basic Income, Life Insurance, Global Atmosphere Watch
Document Summary
To solve social problems and provide security for interdependent wage earners. Employers can deduct the costs of benefits as a business expense. Benefits and services give many employees financial security against illness, disability, and retirement. Must offer benefits to recruit and retain. Help reduce fatigue and may enhance productivity. Primary objectives may be to obtain benefits and services. Insurance benefits: life insurance almost a universal benefit, health-related insurance, salary continuation plans for short-term and long-term disability. Registered pension plans (rpp: defined benefits (db) plans, defined contribution (dc) plans. 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. Social services: employee assistance programs (eaps, relocation programs. Problems in administration: lack of employee involvement, failing to recognize individual differences and needs, workers may be unaware of all their benefits. Traditional remedy has been to increase employee awareness.
