No perfect answer when it comes to post-retirement benefit settlements

48 per cent of companies still offering them to new employees
By Greg Durant and Nabil Merali
|Canadian HR Reporter|Last Updated: 05/22/2013

In today’s fiscally prudent economic environment, companies would generally not be looking to reward short- or long-service employees with retirement gifts in excess of $50,000 just because they worked for a number of years and achieved age 55 while employed.

They would be even less inclined to do so when they realized this retirement gift came with another six per cent to 16 per cent load of tax and administration expenses, and a need to maintain lifetime contact.

However, such gifts are still bestowed on new employees at almost 48 per cent of companies in the form of post-retirement benefits, according to the Aon Hewitt benefit database.