Download - Beneplan: Presentation for EO Ottawa Nov 18 2014 - Employee Benefits in Ontario

Beneplan.ca All rights reserved Beneplan Inc 2014

EO Ottawa — The Beneplan Co-operative !

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Managing employee benefits like a F500 co.

��1November 2014

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Who are we?

Bayview Glen School

Perennial

Audit Committee


Agenda !

- Strategy - Structure - Reducing premiums w/o cutting benefits - Morale boosters


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Why do you even have a benefit plan? !

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Why not give ees cash?


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Which plan which will attract the best talent? !

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��5 Photo credit Richard Pardon / 500px !

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Teachers want travel insurance !

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��6 Photo credit Lori Denehy 500px !

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White collar needs psychologists (but wont’ ask for it) !

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��7 Photo credit Jesus Municio/ 500px !

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Depends on your industry. !

Teachers want travel insurance. !

Truckers want disability insurance. !

Fitness pros want physiotherapy. !

New immigrants want dental. !

White collar needs psychology (but won’t tell you).


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Which benefits do employees want? !

The young want DEN/PAR/VSN The old want DRG/LTD Regardless of the industry.


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How do you please them all?��10

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Should you ask your employees which benefits they want? !

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Never.


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The CRA invented our industry. !

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First, you must understand that all you are doing is hiring an insurance co to pay your claims.


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Insurance companies are paranoid. !

They think that we are trying to take advantage of them. !

When really, we think it’s the other way around!


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!Our industry is the only one where you can give someone $100k and

they are by law not allowed to show you where that money went!

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To what extent should employees share the cost of the plan? !

Employees should never pay a portion of the premium (Disability excluded) - tax inefficient.


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Instead: !

Share costs at POS.


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Driving down premiums.

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Where did your $3,000 per employee go?


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How insurers set premiums. !


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Group benefits are not insurance. !

They are the opposite of insurance.


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Premiums are set in the same way that your hydro bill is calculated. !

Usage == Premiums.

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The Jargon. !

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TLR !

IBNR !

Trend / Inflation !

Broker commissions


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Refunds on… !

Life Insurance Stop-Loss Premiums


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Ask for annual refunds of premiums if claims < premiums. !

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Ask if claims > premiums, can they absorb that risk?


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Retail Sales Tax Rebate


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Drug Rebates from Manufacturers (Reformulary)


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Oral chemo !

Biologic Drugs !

Trillium Drug Program !

Drug co-insurance / caps


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Patient assistance programs


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What do you do when an employee needs to take a sick leave?


Never pay their full payroll. Top up EI if you can afford it.

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EI Premium Reduction Program


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http://www.servicecanada.gc.ca/eng/cs/prp/010.shtml

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Discount (multiply x payroll)

New multiplier (Instead of 1.4)

http://www.servicecanada.gc.ca/eng/cs/prp/0300/0300_170.shtml

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E.x. !

$1 million in payroll x 0.33% discount = $3,300 annual savings


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http://www.servicecanada.gc.ca/eforms/forms/sc-nas5022(2014-07-004)e.pdf

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Avoiding over-insuring the LTD benefit


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CPP Disability

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Instead of: “66.67% of salary to a max of $6,000” !

Use: “66.67% of the first $2,250, 50% of the remainder, to a max of $6,000”


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Owners’ LTD - the dilemma !

“85% all source maximum”


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Boosting Morale !

…at little cost


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• Formed in 2000 based on customer demand

• 250+ member-owners

• Members are Ontario SMEs w/ 20-200 employees

• Annual growth rate 35%

• 60% blue-collar industries; 40% white collar

• The only benefits co-operative in Canada of its kind

The Beneplan Co-operative

http://beneplan.ca


• On average, 10% of premiums are refunded as patronage dividends

• 80% of members receive dividends

• Other 20% of members have deficits (claims > premiums) absorbed by co-op

• $8 million in distributions since 2000 as of CY2013

• Source of dividends: health, dental, life ins premiums, tax rebates

• Future sources: drug rebates, paramedical rebates

Patronage Dividends

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“As an auto-parts supplier, business has been tough. The $30,000 dividend we received in 2009 helped us through payroll.”

Clover Tool Manufacturing

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“Our teachers pay half the premium. We used our $38,000 dividend to subsidize gym memberships for them.”

Bayview Glen School

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An Engaged & Active Board of Directors

2013 Board at the AGM

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• 100% Transparency

• Full accountability

• Decision making focused on members first

• Helping small business owners

• Low premiums enabled by mutual ownership

Our Co-operative Values

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Who Runs Beneplan?

A small business, co-operative member, 10 employees, since 1989

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Thank You !!

Yafa Sakkejha General Manager

[email protected] !

The Beneplan Co-operative 150 Ferrand Drive Suite 500

Toronto Ontario M3C 3E5 1.800.387.1670

beneplan.ca

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