Chapter 13: Providing Employee Benefits
Terms in this set (24)
A benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want
Cash balance plan
Retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predefined rate.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff, reduction in hours, or the employee's death.
Retirement plan funded by contributions from the employer and employee
Pension plan that guarantees a specified level of retirement income
Retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account
Compensation in forms other than cash
Employee Retirement Income Security Act (ERISA)
Federal law that increased the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the Pension Benefit Guarantee Corporation
Employee Wellness Program (EWP)
A set of communications, activities, and facilitates designed to change health-related behaviors in ways that reduce health risks
The number of employees a company has laid off in the past and the cost of providing them with unemployment benefits
Family and Medical Leave Act (FMLA)
Federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption, to care for a seriously ill family member, or for an employee's own serious illness
Flexible spending account
Employee-controlled pretax earnings set aside to pay for certain eligible expenses such as health care expenses during the same year
Health maintenance organization (HMO)
A health care plan that requires patients to receive their medical care from the HMO's health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis
Long-term disability insurance
Insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life
Retirement plan funded entirely by contributions from the employer
Patient Protection and Affordable Care Act
Health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit
Pension Benefit Guarantee Corporation (PBGC)
Federal agency that insures retirement benefits and guarantees a basic benefit if the employer experiences financial difficulties
Preferred provider organization (PPO)
A healthcare plan that contracts with healthcare professionals to provide services at a reduced fee and gives patients financial incentives to use network providers
Short-term disability insurance
Insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less
The federal Old Age, Survivors, Disability, and Health Insurance (OASDHI) program, which combines old age (retirement) insurance, survivor's insurance, disability insurance, hospital insurance (Medicare Part A) and supplementary medical insurance (Medicare Part B) for the elderly.
Summary plan description (SPD)
Report that describes a pension plan's funding, eligibility requirements, risks, and other details
A federally mandated program to minimize the hardships of unemployment through payments to unemployed workers, help in finding new jobs, and incentives to stabilize employment.
Guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer.
State programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors.