HR MGMT 332 Ch. 13
Terms in this set (29)
Indirect financial and nonfinancial payments employees receive for continuing their employment with the company.
Supplemental pay Benefits
Benefits for time not worked such as unemployment insurance, vacation and holiday pay, and sick pay.
Unemployment Insurance (Or Compensation)
Provides benefits if a person is unable to work through some fault other than his or her own.
Provides pay to an employee when he or she is out of work because of illness.
A one-time payment some employers provide when terminating an employee.
Supplemental Unemployment Benefits
Provide for a "guaranteed annual income" in certain industries where employers must shut down to change machinery or due to reduced work. These benefits are paid by the company and supplement unemployment benefits.
Provides income and medical benefits to work-related accident victims or their dependents regardless of fault.
Health Maintenance Organization (HMO)
A prepaid health-care system that generally provides routine round-the-clock medical services as well as preventive medicine in a clinic-type arrangement for employees, who pay a normal fee in addition to the fixed annual fee the employer pays.
Group Life Insurance
Provides lower rates for the employer or employee and includes all employees, including new employees, regardless of health or physical condition.
Federal program that provides three types of benefits: retirement income at the age of 62 and thereafter, survivor's or death benefits payable to the employee's dependents regardless of age at time of death, and disability benefits payable to disabled employees and their dependents. These benefits are payable only if the employee is insured under the Social Security Act.
Plans that provide a fixed sum when employees reach a predetermined retirement age or when they can no longer work due to disability.
Defined Benefit Pension Plan
A plan that contains a formula for determining retirement benefits.
Defined Contribution Pension Plan
A plan in which the employer's contribution to employees' retirement savings funds is specified.
Instituting policies that enable employees to easily take their accumulated pension funds when they leave an employer.
A defined contribution plan based on section 401(k) of the Internal Revenue Code.
Savings And Thrift Plan
Plan in which employees contribute a portion of their earnings to a fund; the employer usually matches this contribution in whole or in part.
Deferred Profit-Sharing Plan
A plan in which a certain amount of profits is created to each employee's account, payable at retirement, termination, or death.
Employee Stock Ownership Plan (ESOP)
A qualified, tax-deductible stock bonus plan in which employers contribute stock to a trust for eventual use by employees.
Cash Balance Plans
Plans under which the employer contributes a percentage of employees' current pay to employees' pension plans every year, and employees earn interest on this amount.
Employee Retirement Income Security Act of 1975 (ERISA)
Signed into law by President Ford to require that pension rights be vested and protected by a government agency, the PBGC.
Pension Benefits Guarantee Corporation (PBGC)
Established under ERISA to ensure that pensions meet vesting obligations; also insures pensions should a plan terminate without sufficient funds to meet its vested obligations.
Early Retirement Window
A type of offering by which employees are encouraged to retire early, the incentive being liberal pension benefits plus perhaps a cash payment.
Employee Assistance Program (EAP)
A formal employer program for providing employees with counseling and/or treatment programs for problems such as alcoholism, gambling, or stress.
Family-Friendly (Or Work-Life) Benefits
Benefits such as child-care and fitness facilities that make it easier for employees to balance their work and family responsibilities.
Flexible Benefits Plan/Cafeteria Benefits Plan
Individualized plans allowed by employers to accommodate employee preferences for benefits.
A work schedule in which employee's workdays are built around a core of midday hours, and employees determine, within limits, what other hours they will work.
Schedule in which employee works fewer but longer days each week.
Allows two or more people to share a single full-time job.
Refers to a temporary reduction in work hours by a group of employees during economic downturns as a way to prevent layoffs.