25 terms

Human Resource Management Ch 13

Valentine Mathis Jackson chapter 13 Managing Employee Benefits
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Terms in this set (...)

gross up
to increase the net amount of what the employee receives to include the taxes owed on the amount
flexible benefits plan
program that allows employees to select the benefits they prefer from groups of benefits established by the employer
adverse selection
situation in which only higher-risk employees select and use certain benefits
open enrollment
a time when employees can change their participation level in various benefit plans and switch between options
third party administrator
a vendor that provides administrative services to an organization
self service
technology that allows employees to change their benefits, track benefits balances, and submit questions to HR staff members and external benefits providers
cafeteria benefit plan
employees are given a budget plan and can purchase the bundle of benefits most important to them from the menu of options offered by the employer
workers compensation
security benefits provided to workers who are injured on the job
no fault insurance
injured workers receive benefits even if the accident was their fault
exclusive remedy
workers compensation benefits are the only benefits injured workers may receive to compensate for work-related injuries
three legged stool model
a model showing the three sources of income to fund an employee's retirement (social security, retiree savings, employee-funded)
vesting
right of employees to receive certain benefits from their pension plan
portability
a pension plan feature that allows employees to move their pension benefits from one employer to another
retirement plan
retirement program established and funded by the employer and employee
defined benefit plan
retirement program in which employees are promised a pension amount based on age and service
defined contribution plan
retirement program in which the employer makes an annual payment to an employee's pension account
401k plan
agreement in which a percentage of an employee's pay is withheld and invested in a tax-deferred account
auto-enrollment
employee contributions to a 401k plan are started automatically when an employee is eligible to join
cash balance plan
retirement program in which benefits are determined on the basis of accumulation of annual company contributions plus interest credited each year
deductible
money paid by an insured individual before a health plan pays for any medical expenses
copayment
the portion of medical expenses paid by the insured individual
managed care
approaches that monitor and reduce medical costs through restrictions and market system alternatives
customer driven health care plan
health plan that provides employer financial contributions to employees to help cover their health-related expenses
qualifying event
an event that causes a plan participant to lose group health benefits
paid time off plan
plan that combines all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay