Benefits

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					Getting the benefit from benefits



       by Toronto Training and HR

               May 2011
           3-4      Introduction to Toronto Training and
                    HR
Contents   5-6
           7-8
                    Why have an employee benefits plan
                    Most common employee benefits
                    provided
           9-14     What is typical?
           15-21    Critical illness insurance
           22-24    Employee assistance programs
           25-26    Drill
           27-30    Retirement plans
           31-36    What do people REALLY think about
                    pensions?
           37-38    Ethical pensions
           39-44    Outsourcing benefits
           45-48    Overtime…for managers?
           49-50    Benefits communication
           51-52    Selecting a benefits provider
           53-54    Making benefits effective
           55-58    Case studies
           59-60    Conclusion and questions
                   Page 2
Introduction




     Page 3
Introduction to Toronto Training
            and HR
• Toronto Training and HR is a specialist training and human
  resources consultancy headed by Timothy Holden
• 10 years in banking
• 10 years in training and human resources
• Freelance practitioner since 2006
• The core services provided by Toronto Training and HR are:
              - Training course design
              - Training course delivery
              - Reducing costs
              - Saving time
              - Improving employee engagement & morale
              - Services for job seekers

                            Page 4
Why have an employee
   benefits plan?




         Page 5
  Why have an employee benefit
             plan?
EMPLOYERS PROVIDE BENEFITS TO EMPLOYEES:
Comply with provincial and government regulations
Motivate and support existing workers, particularly the
high-performers that are important to retain
Help attract new employees
Strengthen the long-term commitment of employees
to the organization
Reduce stress associated with health and financial
difficulties
Improve the mental and physical health of employees


                        Page 6
Most common employee
  benefits provided




         Page 7
 Most common employee benefits
          provided
Medical insurance
Dental insurance
Vision care
Group-term life insurance
Disability insurance
Critical illness
Employee assistance plan




                      Page 8
What is typical…medical
       insurance




          Page 9
What is typical…medical insurance
Prescription or prescribed drugs
Prescription eye glasses
Contact lenses
Professional services and paramedical practitioners
Semi-private hospital room
Out of province and out of country hospital and medical
expenses
Ambulance, lab charges
Hearing aids
Medical supplies
Prosthetics, appliances and medical equipment

                        Page 10
What is typical…dental
      insurance




         Page 11
 What is typical…dental insurance
Diagnostic and preventative treatment
Minor restorative treatments
Major restorative treatments
Orthodontics




                     Page 12
What is typical…vision
         care




         Page 14
     What is typical…vision care
Prescription eye glasses
Contact lenses
Laser eye surgery




                       Page 6
Critical illness insurance




           Page 15
   Critical illness insurance 1 of 6
WHY IS IT IMPORTANT?
Disability insurance replaces income but is insufficient for
the added burden of medical expenses
Group health coverage has restrictive limitation and
maximums
Social medical care is eroding and cannot be relied upon
Personal and retirement savings have intended purposes
other than medical expenses
Most critical illness victims make a full recovery after a
lengthy expensive treatment period


                          Page 16
   Critical illness insurance 2 of 6
CANADIAN STATISTICS
1 in 2 will contract heart disease
1 in 2 heart attack victims are under age 65
1 in 3 will develop some form of life threatening cancer
1 in 4 currently suffer from cardiovascular disease
70% of open heart surgery operations each year are
coronary bypasses
1 in 4 will suffer kidney failure
1 in 20 run the risk of having a stroke before age 70
1 in 500 people will suffer from multiple sclerosis


                         Page 17
   Critical illness insurance 3 of 6
CANADIAN STATISTICS
Heart attack, cancer and stroke are the three most
common diseases
1 in 4 will contract cancer or heart disease before they
retire
Two-thirds of the cost of cancer treatment is not covered
by provincial medical plans
30% of cancer victims are completely cured
75% of stroke victims survive the initial occurrence
95% of heart attack victims survive the initial occurrence


                         Page 18
   Critical illness insurance 4 of 6
CONDITIONS THAT COULD BE COVERED
Cancer (life-threatening)
Heart attack stroke (cerebrovascular incident)
Coronary artery by-pass surgery
Multiple sclerosis
Kidney failure (end-stage renal disease)
Major organ transplant
Paralysis (two or more limbs)



                      Page 19
  Critical illness insurance 5 of 6
CONDITIONS THAT COULD BE COVERED
Deafness
Blindness
Parkinson‟s Disease
Alzheimer‟s Disease
Motor Neurone Disease
Permanent total disability
Severe burns



                 Page 20
   Critical illness insurance 6 of 6
WHAT TO LOOK FOR IN CRITICAL ILLNESS
COVERAGE
Clear definitions (medical terminology)
No restrictions at the time of claim, for instance
HIV exclusions
Comprehensive scope of coverage
Lump sum benefit payment for claims




                       Page 21
Employee assistance
    programs




        Page 22
Employee assistance programs 1 of 2
Absenteeism
Productivity
Attrition
Disability




               Page 23
Employee assistance programs 2 of 2
FEATURES TO LOOK FOR
Direct access
Quick response
Professional
Confidentiality
Off site
Direct treatment
Appropriate coverage



                 Page 24
Drill




 Page 25
Drill




Page 26
Retirement plans




      Page 27
       Retirement plans 1 of 3
DEFINED BENEFITS PLANS
Advantages
Disadvantages
DEFINED CONTRIBUTIONS PLANS
Advantages
Disadvantages
GROUP REGISTERED RETIREMENT SAVINGS PLANS
Advantages
Disadvantages


                  Page 28
        Retirement plans 2 of 3
WHICH PLAN IS BEST FOR OUR ORGANIZATION?
Amount to spend
Internal resources and people available to manage
and administer the plan
Risk of guaranteeing a set pension (Defined
Benefit) or leaving the responsibility for the
performance of the retirement funds (Defined
Contribution)



                     Page 29
          Retirement plans 3 of 3
POINTS TO REMEMBER
Changes in life expectancy, the economic downturn and
mobility in the labour market have contributed to the shift
from defined benefit (DB) to defined contribution (DC)
schemes
Many employees perceive DB plans to be of greater value
than DC, but this is not necessarily so-low DB accrual rates
may produce a lower return than good contribution levels
to a DC plan
Employers should clearly explain the good points of moving
to a DC plan, such as the employer contributions


                          Page 30
What do people REALLY
think about pensions?




         Page 31
What do people REALLY think about
         pensions? 1 of 5
It is a valuable recruitment tool
It is a valuable retention tool
As an organization, they feel responsible for
employees„ long-term financial wellbeing
There is too much regulation involved in running a
pension scheme
They have to offer a pension scheme because
competitors do



                    Page 32
What do people REALLY think about
         pensions? 2 of 5
Pension schemes have become too expensive to
run
Pensions are the benefit that most employees
want above all other benefits
Employees have lost trust in employer-provided
pension schemes
Most employees would prefer to forgo the pension
scheme and have more basic pay



                   Page 33
What do people REALLY think about
         pensions? 3 of 5
REASONS PEOPLE DON‟T JOIN
Affordability
Other financial demands and interests
Apathy/inaction
Lack of understanding about pensions generally
Lack of interest
Lack of awareness about pensions
Lack of trust in pensions
Not seen as a good investment

                   Page 34
What do people REALLY think about
         pensions? 4 of 5
ENSURING PEOPLE HAVE AN ADEQUATE PENSION IN
RETIREMENT
Actively encourage pension scheme membership
Ensure employer contributions are adequate
Actively encourage employees to make adequate
contributions
Proactively educate employees on pensions
Offer access to independent financial advice
Include pensions as part of total reward statements
Operate compulsory minimum contributions for employer
and employees

                      Page 35
What do people REALLY think about
         pensions? 5 of 5
MEASURING RETURN ON INVESTMENT
No action taken
By looking at pension scheme take-up
By including it in a staff satisfaction survey
By looking at retention
By looking at recruitment
By including it in a staff engagement survey
They do not but plan to in the future



                     Page 36
Ethical pensions




      Page 37
                Ethical pensions
Ethical investment funds enable people to invest pension
contributions in companies that have ethical practices
More employers are offering an ethical pension fund
option
A fund can actively seek to invest in organizations
considered to be ethical, or screen out those considered
to be involved in unethical activities
Positive criteria include environmental conservation,
equal opportunities and animal welfare. Negative criteria
can include health and safety breaches, poor relations
with employees and customers, and nuclear power

                         Page 38
Outsourcing benefits




        Page 39
   Outsourcing benefits 1 of 5
COSTS GETTING REDUCED
Maturing industry
Increased competition
Offshoring

COST OF INTERNAL ADMINISTRATION
Internal administrative people
IT expenses



                 Page 40
    Outsourcing benefits 2 of 5
RISK CONSIDERATIONS
Maturing industry
Increased competition
Offshoring

COST OF INTERNAL ADMINISTRATION
Staffing risk
Systems risk
Database risk
Error risk


                        Page 41
     Outsourcing benefits 3 of 5
ADMINISTRATION OPTIONS
Online sites providing access to tools and resources
Expanded capacity to ensure consistent service
CHALLENGES TO INTERNAL BENEFITS ADMINISTRATION
Plan design and security changes that impact
administration requirements
New employer groups or plans added through acquisition
High transaction volumes driven by a reduction
in force or location closure
Administrative changes driven by new legislative or
regulatory compliance


                        Page 42
     Outsourcing benefits 4 of 5
IS OUTSOURCING RIGHT FOR YOUR ORGANIZATION?
Employee numbers are limited, so they struggle to keep up
during annual enrolment or when other new changes are
implemented
One or two people on the HR team hold much of the
historical knowledge
The system (or worksheet) currently used is out
of date and difficult to modify
It‟s difficult to get support from the IT department
Records are not centralized—some in paper files,
some in other databases


                         Page 43
     Outsourcing benefits 5 of 5
IS OUTSOURCING RIGHT FOR YOUR ORGANIZATION?
The organization struggles to keep administration
consistent with the most recent law changes
Calculation or administration errors have led to costly
legal settlements
It is desirable for employees to have online tools so they
could model their own pension estimates instead of
calling HR
Employees can‟t get daily work done because of
participant calls


                         Page 44
Overtime…for managers?




         Page 45
 Overtime…for managers? 1 of 3
Supervision of other employees
Role in running the organization
How much the individual earns




                      Page 46
 Overtime…for managers? 2 of 3
IN SUMMARY-employees may still have a right to receive
overtime even if they‟re considered managers under the
employment standards laws if:

they‟re covered by the mandatory overtime provisions of
the employment standards law; and/or
overtime is required under the terms of the employment
contract or collective agreement.

Consider not just what the employment
standards law says but what the contract requires


                         Page 47
Overtime…for managers? 3 of 3
POSITION IN ONTARIO
Person “whose only work is supervisory or
managerial in character and who may perform
non-supervisory or non-managerial tasks on an
irregular or exceptional basis” exempt from
overtime; and
regulations don‟t define “supervisory or
managerial” (Exemptions, Special Rules & Est. of
Minimum Wage Reg., Sec. 8(b)).


                     Page 48
Benefits communication




         Page 49
       Benefits communication
Old approach
New approach

People get distracted and forget; repetition, across
time, is vital
Targeting fuels motivation and improves outcomes
Wants are more important than needs
Your “hero” is the customer, not the plan or
program


                       Page 50
Selecting a benefits
     provider




        Page 51
   Selecting a benefits provider
AT THE MEETING
Assess your organization and needs so that they
can recommend an appropriate benefits structure
Explain in detail the costs, detailed benefits and
admin options available
Help you to implement the benefits plan




                      Page 52
Making benefits effective




           Page 53
     Making benefits effective

Consider your objectives
Tune into employees
Agree your main message
Develop a strong campaign concept
Make it personal
Communicate clearly and concisely
Ensure data is up to
Build momentum and launch with a bang!
Follow up and send reminders

                  Page 54
Case study A




    Page 55
Case study A




    Page 56
Case study B




    Page 57
Case study B




    Page 58
Conclusion & Questions




         Page 59
            Conclusion
Summary
Questions




               Page 60

				
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posted:10/20/2011
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