N/A N/A. Yes. Students are expected to review and understand all areas of the course outline.

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1 Course Outline School: Department: Course Title: Business Graduate Studies Pensions & Benefits Course Code: HRPD 711 Course Hours/Credits: 42 Prerequisites: Co-requisites: Eligible for Prior Learning, Assessment and Recognition: Originated by: N/A N/A Yes Sheldon Shiewitz, Jim McVittie, Anne Marie Callender Creation Date: Summer 2014 Revised by: Sheldon Shiewitz, Jim McVittie, Alan Dryden, Anne Marie Callender Revision Date: Summer 2014 Current Semester: Summer 2015 Approved by: Chairperson/Dean Students are expected to review and understand all areas of the course outline. Retain this course outline for future transfer credit applications. A fee may be charged for additional copies. This course outline is available in alternative formats upon request.

2 Course Description Pensions and benefits are forms of indirect compensation received by employees and an integral part of an organization s overall compensation strategy. One of the greatest challenges faced by organizations is to develop approaches to manage the rapidly increasing costs of employee benefits, particularly in the areas of health care, dental insurance and long-term disability costs. Moreover, with the imminent retirement of baby boomers in large numbers, pensions and pension related issues have assumed increasing importance. This course introduces students to the varied and complex area of pensions and benefits. Program Outcomes Successful completion of this and other courses in the program culminates in the achievement of the Vocational Learning Outcomes (program outcomes) set by the Ministry of Training, Colleges and Universities in the Program Standard. The VLOs express the learning a student must reliably demonstrate before graduation. To ensure a meaningful learning experience and to better understand how this course and program prepare graduates for success, students are encouraged to review the Program Standard by visiting For apprenticeship-based programs, visit Course Learning Outcomes The student will reliably demonstrate the ability to: Develop pension and benefit strategies that are equitable and meet the needs of diverse communities. Assess the role played by employers, employees and government in pensions and benefits. Analyze the range of indirect payments and services that may be provided as benefits. Explain a defined benefit pension plan and recognize the circumstances under which it would be appropriate. Explain a defined contribution pension plan and recognize the circumstances under which it would be appropriate. Analyze the investment strategies to fund a pension plan. Analyze the liabilities of a pension plan that must be funded including the basic actuarial assumptions that form the foundation of the liabilities. Critically assess the main legislative requirements concerning pensions and benefits, specifically: the minimum benefit levels or funding requirements specified in Pensions Benefits Acts and the maximums specified in Income Tax Act rules regarding tax deductibility. Evaluate the goals of taxation policy with respect to pension plans, registered retirement savings plans and defined profit sharing plans. Analyze the major classes of insured benefits, both public and private. Analyze how an organization contracts with an insurance company to purchase benefits for its employees. Evaluate the relationship between premiums and the cost of benefits provided. Evaluate various methods of cost control for insured benefit plans. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 2

3 Essential Employability Skills (EES) The student will reliably demonstrate the ability to*: 1. Communicate clearly, concisely and correctly in the written, spoken, and visual form that fulfills the purpose and meets the needs of the audience. 2. Respond to written, spoken, or visual messages in a manner that ensures effective communication. 3. Execute mathematical operations accurately. 4. Apply a systematic approach to solve problems. 5. Use a variety of thinking skills to anticipate and solve problems. 6. Locate, select, organize, and document information using appropriate technology and information systems. 7. Analyze, evaluate, and apply relevant information from a variety of sources. 8. Show respect for diverse opinions, values belief systems, and contributions of others. 9. Interact with others in groups or teams in ways that contribute to effective working relationships and the achievement of goals. 10. Manage the use of time and other resources to complete projects. 11. Take responsibility for one's own actions, decisions, and consequences. *There are 11 Essential Employability Skills outcomes as per the Ministry Program Standard. Of these 11 outcomes, the following will be assessed in this course. Global Citizenship and Equity (GC&E) Outcomes N/A Text and other Instructional/Learning Materials Online Resource(s): resources Provincial legislation via: Federal legislation via: Material(s) required for completing this course: to be supplied by instructor Scheme Assignment 1: Done in Week 4 Individual assimilates week 1-3 content either an in-class assignment or quiz- Mid term test: Covers to date Selection of MC, SA, definitional, Case based questions Group Project: Group Project Assigned in week 2, due Week 8 An analysis of government programs and employer pension plans and provide recommendations - full detail to be provided in-class and posted on ecentennial Assignment 2: Done in Week 11 Individual assignment requiring assimilation of week 7-10 content either an in-class assignment or quiz THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 3

4 Assignment 3: Done in Week 13 Individual assignment requiring assimilation of week content either an in-class assignment or quiz Final Exam: In-class - Week 14 Covers all course Name CLO(s) EES Outcome(s) Assignment 1 1, 2, 3, 4, 5 1, 2, 4, 5, 10, 11 Mid term test 1, 2, 3, 4, 5, 1, 2, 3, 4, 6, 7 5, 10, 11 Group Project 1, 2, 3, 4, 5, 1, 2, 3, 4, 6, 7, 8, 9 5, 6, 7, 8, 9, 10, 11 Assignment 2 9, 10, 11 1, 4, 5, 6, 7, 10, 11 Assignment 3 9, 10, 11, 12 1, 4, 5, 6, 7, 10, 11 Final Exam 1, 2, 3, 4, 5, 1, 2, 3, 4, 6, 7, 8, 9, 10, 5, 6, 7, 8, 11, 12, 13 9, 10, 11 GCE Outcome(s) Weight/100 Total 100% If students are unable to write a test they should immediately contact their professor or program Chair for advice. In exceptional and well documented circumstances (e.g. unforeseen family problems, serious illness, or death of a close family member), students may be able to write a make-up test All submitted work may be reviewed for authenticity and originality utilizing Turnitin. Students who do not wish to have their work submitted to Turnitin must, by the end of the second week of class, communicate this in writing to the instructor and make mutually agreeable alternate arrangements. When writing tests, students must be able to produce official College photo identification or they may be refused the right to take the test or test results will be void. Student Accommodation It is College Policy to provide accommodation based on grounds defined in the Ontario Human Rights Code. Accommodation may include modifications to standard practices. Students with disabilities who require academic accommodations must register with the Centre for Students with Disabilities. Students requiring accommodation based on other human rights grounds should talk with their professors as early as possible. Please see the Student Accommodation Policy. Use of Dictionaries Any dictionary (hard copy or electronic) may be used in regular class work. Dictionary use is not permitted in test or examination settings. Program or School Policies THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 4

5 N/A Course Policies Pensions and Benefits is a mandatory course for several professional designations which mandate certain elements, such as content, and required grade achievement by students. HRPA and other professional bodies require students to attain a minimum grade of 65% or 70%. HRPA Standards requires at least 50 percent of the final grade to be based on an assessment of individual learner attainment of the learning outcomes (rather than group work). Students are urged to check with any professional body from whom they wish to receive a professional designation about further requirements. College Policies Students should familiarize themselves with all College Policies that cover academic matters and student conduct. All students and employees have the right to study and work in an environment that is free from discrimination and harassment and promotes respect and equity. Centennial policies ensure all incidents of harassment, discrimination, bullying and violence will be addressed and responded to accordingly. Academic honesty is integral to the learning process and a necessary ingredient of academic integrity. Academic dishonesty includes cheating, plagiarism, and impersonation. All of these occur when the work of others is presented by a student as their own and/or without citing sources of information. Breaches of academic honesty may result in a failing grade on the assignment/course, suspension or expulsion from the college. For more information on these and other policies, please visit Students enrolled in a joint or collaborative program are subject to the partner institution's academic policies. PLAR Process This course is eligible for Prior Learning Assessment and Recognition (PLAR). PLAR is a process by which course credit may be granted for past learning acquired through work or other life experiences. The PLAR process involves completing an assessment (portfolio, test, assignment, etc.) that reliably demonstrates achievement of the course learning outcomes. Contact the academic school to obtain information on the PLAR process and the required assessment. This course outline and its associated weekly topical(s) may not be reproduced, in whole or in part, without the prior permission of Centennial College. THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 5

6 Topical Outline (subject to change): Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Name 1 Overview of Retirement Income Arrangements 2 Employer Pension Plans: Terms and Conditions 3 Government Pension Programs Administration and Communication of Pension Plans Describe the evolution of the retirement income system Explain how the three pillars of Canada s retirement income system work together to support employee retirement income needs and the major programs under each pillar Identify legislation relevant to the retirement income system in Canada Outline factors impacting retirement income needs and the role of an income replacement ratio Differentiate between registered and nonregistered retirement plans. Explain the basic structure of employersponsored retirement plans, the employer s role and basic plan design considerations Evaluate key differences between defined benefit (DB) plans and defined contribution (DC) plans Explain the purpose and significance of the pension plan text/document Explain typical eligibility provisions in registered pension plans (RPPs) Explain pension formula approaches for defined contribution compared to various types of defined benefit plans Outline possible retirement dates in RPPs Describe pensionable or credited service Describe normal and optimal forms of pension Describe typical preretirement and postretirement death benefits Describe typical termination benefits Describe typical disability benefits Identify the general categories of government-sponsored benefits and the general purpose of each Explain the general legislative and regulatory environment in which government-sponsored programs operate Date THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 6

7 Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Name Describe the eligibility requirements for payment of Old Age Security (OAS), Guaranteed Income Supplement (GIS), Allowance and Survivor Allowance Explain the role of international social security agreements Explain how Canada/Quebec Pension Plan (C/QPP) is funded including contributions, contributory period and pensionable employment Explain the role of C/QPP in income security Identify the tax treatment of C/QPP contributions and benefits Date Outline roles and responsibilities of the plan administrator in plan governance Describe the process of establishing a registered pension plan Explain the role and responsibilities of various service providers in plan governance Outline various activities entailed in administering a retirement savings or pension plan Outlie key considerations in plan communication 4 Financial Management of Pension Plans 5 Pension Fund Investment Identify and discuss Funding Policy Issues/Methods Describe the role and significance of financial accounting as it relates to pension plans Outline implications of the Canadian Institute of Chartered Accountants (CICA) Handbook, Section 3461 for defined benefit plans and defined contribution pension plans Differentiate between pay-as-you-go and advance funding Explain the role and responsibilities of an actuary in the pension and insurance field Outline typical actuarial assumptions used to determine funding levels Explain the role and significance of the statement of investment policy within the Assignment 1 week 4 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 7

8 Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Name Management investment management function Describe considerations in fund manager selection, monitoring and termination Outline types of investments, traditional vs. alternative Explain the concept of liability-driven investing Identify measures of investment return Assess investment strategies based on their social responsibility 6 Registration of Pension Plans under the Income Tax Act and Taxation of Retirement Benefits 7 Pension Standards Legislation and Case Law Affecting Pension Plans 8 Supplementary Pension Arrangements Other Retirement Income, Savings and Deferred Compensation Outline the history of registration of pension plans Explain how the comprehensive savings limit applies to registered pension plans (RPPs), group deferred profit-sharing plans (DPSPs) and group registered retirement savings plans (RRSPs) Calculate pension adjustments (PAs) for RPPs, DPSPs and RRSPs Describe the purpose of Pension Adjustment reversal Outline Canada Revenue Agency registration rules as they apply to all pensions, defined benefit pension plans and defined contribution pension plans Outline allowable transfers among registered savings arrangements and taxation Outline the history of pension standards legislation Describe key minimum standards applicable under pension standards legislation Explain the role of the Canadian Association of Pension Supervisory Authorities (CAPSA) Examine financial issues related to the funding of pension plans and related case law Explain reasons for the emergence and prevalence of supplementary retirement arrangements Explain the rationale for funding vs. Not funding a supplementary retirement arrangement Explain issues to address in designing a supplementary retirement arrangement Date Mid Term Test Week 7 Group Project THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 8 week 8

9 Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Name Arrangements Differentiate between a Tax Free Savings Account (TFSA) and a Registered Retirement Savings Plan (RRSP) Identify key characteristics of an employee profit-sharing plan Identify key characteristics of Deferred Compensation Arrangements 9 Overview of Employee Benefits Provincial Hospital and Medical Insurance Plans 10 Hospital, Medical, Drug and Vision Care Plans 11 Disability Benefits and Income Plans Group Life and Accident Insurance Explain the evolution of employee benefits coverage and government programs Identify and discuss legislation relevant to health benefits Identify and discuss scope of coverage for hospital and medical services Discuss the source of financing for health care Discuss the Income Tax Act and taxable benefits Identify and discuss features and terminology related to Extended Health Care Plans Discuss coverage available under Provincial Plans and Extended Health Care Plans Discuss Income Tax on Health Plans Identify and discuss the sources of disability benefits and income protection programs Explain and identify plan design issues related to employee disability benefits and income programs Explain the Management of Disability Claims Issues and the treatment of tax as it relates to employee disability benefits and income programs Describe the various types of Group Life and Accidental Death and Dismemberment coverage available Explain how coverage is structured Identify the governing guidelines for group life insurance in Canada Explain Death Benefits provided under Government plans Date Assignment 2 Week 11 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 9

10 Week Topics Readings/Materials Weekly Learning Outcome(s) Instructional Strategies Name Date 12 Post-Retirement / Employment Benefits Assignment 3 Week 12 Administration of Employee Benefits Financial Management Administration of Employee Benefit Plans Identify the main types of Post- Retirement/Employment Benefits Evaluate strategies used to control costs for employee benefits and Retiree Post- Retirement Cost Containment Examine the Legal Issues arising from changing the Terms of Post-Retirement Plans Explain taxation, accounting and funding aspects of post-retirement and postemployment benefits Explain key administration tasks in benefits administration Describe and discuss tools and trends in benefits administration Explain the financial aspects of benefit plan stewardship and the alternatives available to plan sponsors 13 Flexible Benefits 14 Final In-class Exam Cumulative - all covered in the course Review the evolution of flexible benefits Discuss the design and implementation steps of flexible benefits Describe strategies used in the Administration and Communication of flexible benefits Selection of multiple choice, short answer, definitional, case based questions Final exam Week 14 THIS COURSE ADHERES TO ALL COLLEGE POLICIES (See College Calendar) 10