BUSI 1250 Lecture Notes - Lecture 8: Canada Pension Plan, Life Insurance, Sick Leave
Document Summary
They are frequently forms of insurance plans i. e. someone pays regular premiums so that when an employee needs the benefit it is available at a cost that is fully or partly paid by the insurer. The premiums have to be paid by someone there are three options for this: 100% employer paid, 100% employee paid, shared cost formulas. Note: cost of benefits i. e. premiums increase with # of people covered. Actuaries determine the risk i. e. how many of those people do they expect will use how much of the benefit. Premiums = cost + profit of the insurer. Traditionally rewarded loyalty; now used to attract and retain. Benefits aligned with business strategy can help attract and retain the right people . Note: this # includes pay for time not worked and statutory premiums. Employers pay for significant amounts of time not worked: You are the hr officer at best buy.
