Mature offerings

The tight labour market has made attracting and retaining workers 50 and over an attractive recruitment option. Can pension and benefits plans be tailored for mature workers? It’s up to HR to assess the affordability of entitlements on the older-worker wish list.
By John Hobel
|Canadian HR Reporter|Last Updated: 03/30/2001

Just when gearing pension and benefits offerings for mature workers is emerging as a strategy for HR, new accounting procedures have come along to throw a spanner in the works.

New accounting regulations, implemented by the Canadian Institute of Chartered Accountants and effective as of Jan. 1, 2000, require employers to carry future post-retirement benefits as a liability on ledgers. Previously, firms claimed such expenses as they were paid out. The result is that companies are now reluctant to place these liabilities on their books.

“Employers are in a catch-22 situation,” said Gren MacDonald, vice-president of sales and marketing with health and dental benefit giant Green Shield Canada.