What is a common feature of salary continuation plans in Employee Benefit Plans?

In the context of salary continuation plans within Employee Benefit Plans, the primary function is to provide an income stream for employees after they retire. This type of plan is designed to supplement the retirement income that employees receive from other sources, such as Social Security or pensions. By ensuring that employees have a consistent income after they retire, salary continuation plans help maintain their standard of living during retirement.

The focus on providing income continuity aligns with the broader objective of employee benefits to support employees not only while they are actively working but also in their post-employment years. This benefit is particularly important in encouraging employees to remain with the company until retirement, fostering loyalty and reducing turnover.

Other features that address specific aspects of employee benefits do not align with the core purpose of salary continuation plans. For example, transferring benefits to beneficiaries or providing health insurance are geared towards different aspects of employee needs and typically are not the focus of salary continuation plans. In this way, the correct choice highlights the essential role of these plans in ensuring financial security for employees in retirement.