Scenario 11.1
Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost non-existent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.
-Refer to Scenario 11.1. Some of Canadian Fasteners' employees have been around since its inception and are well into their late 40s. Which of the following pension plans would be most effective in allowing employees to have a decent pension when they retire?

Question

Quizplus · Accepted Answer

A contributory plan, where both the employer and employees contribute to the pension fund, is most effective in ensuring employees have a decent pension upon retirement. This approach encourages shared responsibility and often results in a larger pension fund due to contributions from both parties.

Scenario 11.1 Canadian Fasteners Is a Mississauga-Based Packing Firm That Packages Nuts