Survey of 69 employers by AON Consulting Inc.
Toronto (17 June 2007) - More than half of Canadian employers are considering cuts to post-retirement benefits, says a survey by AON Consulting Inc.
Based on interviews with 69 employers, the survey found that benefits like prescription drugs plans and dental plans are targeted for all classes of retired workers except hourly non-unionized employees, who have few retirement benefits to begin with.
Overall, 55% of employers are considering cuts to benefits while another 22% say they are considering reducing the contributions they make toward such benefits.
The survey, reported by the Globe and Mail, also found more than 40% of companies are considering reducing life insurance coverage for retired executive and salaried employees. Most are also trying to contain their benefits costs for non-retired employees, it determined.
A common trend is the creation of 'flexible' plans that allow employees to choose which the benefits they most want to receive, as well as creation of spending accounts assign workers a maximum amount that can be spent on benefits.
By the end of 2007, 60% of salaried workers and almost 75% of executives will have health spending accounts, the survey found. NUPGE
Digg
Reddit
Facebook
Twitter
Google
