Terms in this set (25)

  • 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