The very thought of Employee Benefit programs is akin to watching paint dry in the minds of many – until a serious claim occurs – which sharpens the attention of both employees and employers.
It may come as a surprise to learn that employees repeatedly across Canada have indicated preference for a benefit plan or plan enhancement over a raise of greater financial heft. Why is this so? Because the perception of the value of the security and peace of mind created by benefit programs is greater than mere wages.
Burdened by a plethora of direct and indirect taxes, Canadian employers should take heart from the concept of pooling benefit programs amongst organizations with a measure of common ownership.
This principle is known as an Insurance Purchasing Cooperative (IPC).
It allows the insurance carrier to spread the risk over a larger pool of employees which in turn allows a lesser unit rate benefit cost and greater offering of benefit choice.
The former makes the benefit and administrative costs more affordable and the latter raises the ceiling on such things as non-medical maximum benefits; higher overall limits and greater range of benefit choices.
The IPC can accommodate an employer’s preference for different plan designs amongst their various corporate entities in respect of geographical; cultural or historic benchmarks or indeed could grandfather existing plan designs.
The benefit plan consultant appointed by the employer would bring a third party administrator to the partnership with a high bar of communication and claims turnaround experience.
The IPC is an idea that can positively enhance the cost/benefit ratios of something proven to be very meaningful to employees in situations of multiple corporate ownership which are themselves generally undertaken because of opportunities for economies of scale.
In the words of Dr. Rod Gilbert: “It’s all right to have butterflies in your stomach; just get them to fly in the same formation”.
Brian Etherington is the Chairman at Etherington Generations; a risk management firm that specializes in family life insurance and estate planning. He was appointed a Member of the 
Order of Canada in 2004 and a recipient of The Queen’s Golden Jubilee Medal in 2002 for community service, as well as The Queen’s Diamond Jubilee Medal in 2012. He is a Founding Chair of the Special Olympics Canada Foundation and a chair on the advisory council for the 2019 International Youth Games presented by Special Olympics Ontario.
