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A benefits program impacts many facets of an organization. It affects morale, motivation
and retention of employees and also impacts administrative efficiencies that affect the
bottom line of the business. Benefit programs are viewed as assets that contribute to the
organization's profitability. A successful benefits program is strategic, proactive, uses
current technology, and is communicated effectively.
K. Gordon & Associates can assist with your organization's benefit strategy. We
architect the Group Life and Health programs. We analyze and plan accordingly to ensure
the desired results are achieved. We can design benefit programs from the initial design
including funding and administration. We ensure that the maximum value is achieved through
benefit programs.
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A Benefit plan requires long-term service and management. Benefit programs have numerous
legislative governing requirements that are often changed or are being proposed to change.
Benefit plan sponsors must keep up with legislative changes governing plans, monitor and
report on the feasibility of changing trends in benefit planning, review and disclose plan
changes, and communicate to employees.
K. Gordon & Associates can manage benefit programs for you, keeping abreast of
legislative or proposed changes. We keep up to date with all changes affecting benefit
programs and advise on trends within the marketplace. We assist with communication to
employees and keep in close contact with insurance providers. We work with insurance
carriers and third party providers to ensure your plans are priced competitively. We
provide value added advise during the annual renewal process and when faced with tendering
for a benefit provider. K. Gordon & Associates can provide you with the knowledge and
resources necessary for you to make changes and manage the complexities of benefit
programs.
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Pensions are complex and sometimes difficult to achieve employee understanding. Pensions
are expensive and dollars should be spent wisely. There are numerous options available
when implementing a retirement program.
A defined benefit program is extremely costly but provides a fixed promise to employees at
retirement. Whether or not an employee contributes towards a defined benefit pension plan,
the company bears all the financial risk.
A defined contribution program tends to be less complex, easier for employees to
understand and can be less costly on an ongoing basis for a company. The onus is with the
employees regarding financial risk for defined contribution plans; however, the onus is
with the employer to ensure that the employees are educated, especially when the employee
has investment choices.
A group RRSP works in a similar way, as does a defined contribution pension plan, however,
there are fewer legislative concerns with group RRSP's which can be more favorable to an
organization. A concern regarding group RRSP's is that once an employee is terminated, the
funds in the RRSP do not need to be used by the employee for retirement purposes.
No matter which option is best for an organization, an analysis will ensure the best
option is chosen and fits with both the business strategy and compensation strategy.
K. Gordon & Associates can architect a retirement program for you. We analyze and plan
ensuring the desired results are achieved. We establish plan design provisions and long
term objectives to determine the appropriate options. We tender and select the resources
required for providing a successful retirement program and evaluate carriers,
administrators, administration systems, plan actuaries, or any other required supplier.
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Pension and benefit programs are perceived as complex. This can lead to confusion amongst
plan participants. Employee communication sessions are the foundation for a successful
benefit program. Communication vehicles must be clear and comprehensive. They detail the
existing and/or new plan and address the plan and any changes.
K. Gordon & Associates can provide you with a benefit or retirement communication
strategy that uses a variety of media sources. We ensure that the programs are
communicated to employees in a clear and concise manner that addresses all the facets of
the plan that are crucial for employee understanding. We can also provide an overview of
government sponsored retirement programs, such as Canada Pension and Old Age Security.
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The limits set by Canada Revenue Agency (CRA) with respect to retirement plans; have an
impact on pensions for senior employees who earn over a threshold amount. This amount
varies according to the specifics of the retirement plan. There are options for
organizations to increase retirement income. Supplemental Executive Retirement Plans
(SERPS) allow organizations to provide the employee with retirement income that is close
to what the employee would have received without the limits imposed by CRA. SERPs are not
as tax advantageous for the organization as registered plans are but they are becoming
more widely used as retention and attraction tools as salaries continue to rise and CRA
limits remain constant.
K. Gordon & Associates can recommend the options of implementing SERPS or other
options to ensure that the retirement income of highly paid employees is close to desired
levels. We determine the need to provide an additional vehicle to employees to maximize
deferrals above amounts that can be placed in registered plans. This enables employees to
defer taxes, with the organization promising to pay at a later date. This provides
additional resources for employees at retirement.
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Other benefit programs are sometimes offered to employees that are known as perquisites or
perks. Perks assist with employee recognition and ensure competitiveness within a
marketplace. They are used as wellness initiatives or to maintain work life balance. These
can include company automobiles, automobile allowances, fitness memberships or the sale of
company products to employees. Regardless of the program, perks are growing rapidly in
organizations and are commonly used as retention tools.
K. Gordon & Associates can create programs that complement the existing benefit
program and fit within the culture and strategy of the organization. We implement programs
that motivate employees, are competitive and attractive.
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