Origins and Prospects for Employee Life and Health Trusts in Canada
Estates, Trusts & Pensions Journal, Vol. 45, p. 419, 2015
5 Pages Posted: 9 Aug 2015 Last revised: 21 Aug 2015
Date Written: August 18, 2015
Abstract
A discussion of the events and factors behind the establishment of pre-funded health benefit plans in Canada with reference to the experience of voluntary employee benefit associations in the United States and the auto sector restructuring in North America during 2008-2009. It is argued that "employee life and health trusts" are used in effect to defease legacy cost liabilities of employers and only likely to be used in the context of restructuring of a workplace or industry. their structure is compared to other target benefit programs currently being proposed in Canada and elsewhere. The key issues in their negotiation and administration are summarized.
Keywords: Employee benefits, labour relations, trusts, restructuring, tax
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