Supplementary Benefits for Alberta Employers: Customize Your Benefits Package
Supplementary benefits are additional benefits that employers can offer to employees to enhance a core benefits package. They go above and beyond the legally mandated benefits included in traditional group insurance packages to provide extra support and coverage. Supplementary benefits help round out an employee benefits offering and provide more comprehensive protection for employees.
These additional voluntary benefits act as a supplement to core benefits like health insurance, disability insurance, retirement plans, and paid time off. Core benefits form the foundation of an employee benefits package, while supplementary benefits offer customization and flexibility to meet specific needs. The key difference is that supplementary benefits are elective and voluntary at the employer-level, whereas core benefits tend to be standard offerings.
The main advantage of supplementary benefits is enhancing the core benefits package to improve employee satisfaction, engagement, retention and recruitment. They allow employers to cater to diverse employee needs and provide more comprehensive support. Employees see these extra voluntary options as an investment in their wellbeing.
Income Support Benefits
Alberta offers income support benefits through two main programs - Assured Income for the Severely Handicapped (AISH) and Alberta Works.
AISH provides financial and health benefits to eligible Albertans with permanent disabilities that severely limit their ability to earn a living. To qualify for AISH, individuals must be 18+ years old, be a Canadian citizen/permanent resident, and meet income and asset limits. AISH recipients get a monthly living allowance, health benefits like prescriptions and dental, and other support.
Alberta Works provides temporary financial assistance to those without jobs and in financial need. It offers a core essential services benefit for housing, food, and other basic needs. Additional benefits may include child care, health benefits, and job/training supportsupports. Eligibility is based on income, assets, and specific life circumstances.
Health Benefits
Alberta provides two main health benefits programs for low-income residents - the Alberta Adult Health Benefit and the Alberta Child Health Benefit.
Alberta Adult Health Benefit
The Alberta Adult Health Benefit provides prescription drug, dental, optical, ambulance, and emergency medical coverage for low-income adults without coverage. To qualify, individuals must be Alberta residents between 18-64 years old with a net income below program thresholds. The benefit covers costs like:
Prescription drugs
Eyeglasses
Dental care
Ambulance services
Essential diabetic supplies
There are no deductibles or copays required. The program aims to cover costs so low-income adults can maintain health.
Alberta Child Health Benefit
The Alberta Child Health Benefit provides coverage for health services and prescriptions for low-income families with children under 18 years old. It covers costs like:
Prescriptions
Dental
Optical
Ambulance
Essential diabetic supplies
Emergency medical
To receive the child health benefit, families must meet income requirements. There are no deductibles or copaysco-pays for children covered under the program.
Alberta Supports
Alberta Supports is a program that provides access to over 30 programs and 120 services focused on supporting seniors, people with disabilities, job seekers, parents, and families in Alberta. It acts as a centralized hub to connect Albertans to applicable programs and benefits.
Some of the key offerings through Alberta Supports include:
Disability-related supports - Funding for medical equipment, home modifications, specialized therapies and more based on assessed needs.
Caregiver benefits - Respite care services and financial assistance for caregivers.
Employment and training programs - Funding and resources for skills training, job search, career counseling and starting a business.
Child care subsidy - Financial assistance for qualifying lower-income families to access licensed daycare.
Child intervention services - Support services for families facing challenges in caring for their child's safety and development.
Alberta Supports advisors work with individuals and families to determine eligibility and connect them to suitable programs. Services can be accessed online, by phone, or through in-person offices across the province.
Prepaid Cards
Prepaid cards are a type of payment card that can be loaded with funds for employees to pay for eligible expenses. Unlike debit or credit cards, prepaid cards have a set amount loaded on them each month or year to cover expected healthcare costs or other benefits.
For employers, prepaid benefit cards offer a streamlined way to provide supplemental benefits to employees. Funds are loaded onto the cards upfront, and employees simply use the cards to pay for eligible expenses. This eliminates paperwork and reimbursement processes.
Some key benefits of prepaid benefit cards include:
Convenience - Employees don't have to pay out of pocket and then file claims.
Flexibility - Cards can be used for a range of benefits like medical, dental, vision, dependent care, commuter costs, etc.
Efficiency - Automates administration rather than manual claims.
Cost Savings - Can reduce administrative costs for employers.
Controlled Spending - Funds cannot be used for ineligible expenses.
Overall, prepaid benefit cards make it simpler for employers to provide supplemental benefits to employees in a streamlined, controlled way. Employees also appreciate the convenience of paying for eligible expenses directly with the cards.
Funeral Benefits
The Alberta government provides financial assistance to help cover funeral costs for lower-income individuals. There are two main programs:
Income Support Funeral Benefit - Provides up to $5,421 in coverage for Income Support recipients. Covers costs for burial or cremation up to $4,421 and funeral ceremony costs up to $1,000.
AISH Funeral Benefit - Also provides up to $5,421 in coverage for AISH recipients. Same coverage details as the Income Support Funeral Benefit.
There are also funeral benefits available for lower-income Albertans not on Income Support or AISH, providing up to $2,500 in coverage. Eligibility is based on an income and asset test.
Overall, these programs aim to ease the financial burden of final arrangements for lower-income households. The benefits can be combined with other funeral funding sources such as life insurance.
Child Support
The main child support benefit available in Alberta is the Alberta Child Benefit (ACB). The ACB provides monthly payments to low and middle-income families with children under 18 years old to assist with the costs of raising children.
Some key details on the ACB (Alberta Child and Family Benefit):
Provides up to $150 per month per child
Eligibility is based on family net income and number of children
Payments start being reduced once family net income exceeds $25,921
No application is needed - based on tax returns
Payments made monthly along with federal Canada Child Benefit
The ACB can provide substantial financial assistance for working families in Alberta. Offering supplementary child benefits along with core benefits can help employees manage child care costs and improve satisfaction.
Benefits for Employers
Offering supplementary benefits can provide a number of advantages for employers in Alberta. Most notably, these additional benefits can lead to improved employee retention and make a company more attractive to job candidates.
Because supplementary benefits allow customization of offerings based on specific employee needs and demographics, they enable employers to tailor benefits packages. This shows employees that the company cares about their overall wellbeing beyond just standard medical/dental coverage.
Additionally, adding supplementary benefits is a relatively low cost way to enhance an existing benefits package, especially compared to expanding core insurance coverages. Things like income support and prepaid cards have minimal premiums. Overall, supplementary benefits can provide a high return on investment in terms of employee satisfaction and retention.
In a competitive job market, a customized and robust benefits package can give employers an edge in attracting top talent. Promoting the availability of supplementary benefits allows companies to stand out and show they care about employee wellbeing.
Considerations for Adding Supplementary Benefits
There are a few key considerations for employers looking to add supplementary benefits to their offerings:
First, it's important to assess employee demographics and needs to determine which supplementary programs are most relevant and impactful. Surveying employees directly can provide helpful insights. Offerings like child benefits and income supports will be most meaningful for lower income workers. Health benefits for families may also be valued.
Second, evaluate any costs associated with premiums for benefits like health benefits and funeral assistance. While costs are typically low, they should be factored into budgets and proposals to leadership.
Finally, streamlining enrollment and ongoing administration of supplementary benefits is key for a smooth rollout. Leveraging HRIS systems can automate much of the eligibility verification, enrollment, and data tracking required. Clear communication to employees and defined processes will also help support the change.
By carefully considering demographics, costs, and administration, HR managers can implement the most impactful supplementary benefits tailored to their workforce's needs and realities.
Implementation Tips
When adding supplementary benefits, it's important to roll them out thoughtfully. Here are some tips for successful implementation:
Survey employees to gauge interest. Before committing to new offerings, survey your staff to understand which benefits they would value most. This ensures you target the supplementary benefits that will have the biggest impact.
Start small with 1 or 2 targeted offerings. Don't overwhelm your benefits program right away. Carefully select 1 or 2 supplementary benefits to begin with, ideally ones that survey results showed strong interest in.
Promote offerings during the renewal period, as well as at optimal times mid-year. This is the ideal time to educate employees and encourage enrollment.
Monitor usage and satisfaction. Track utilization rates and regularly survey employees on their satisfaction with the supplementary benefits. This allows you to refine offerings over time based on real data.
About Benefluent Advisory
Benefluent Advisory is a leading employee benefits consulting firm dedicated to crafting innovative strategies tailored for the modern workforce. With decades of combined experience, our experts provide guidance to maximize the value of your benefits program.
Our services include:
Strategic benefits planning
Cost containment strategies
Plan design and administration
Vendor analysis and selection
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To learn more about how Benefluent Advisory can optimize your benefits program, contact us today:
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Email: hello@benefluent.ca
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Our team of experienced consultants look forward to helping you provide exceptional benefits that empower your workforce.