Chapter 13 Flashcards
are benefits taxed?
no
benefit administration is often outsourced to?
third-party administrators
general types of benefits include what 5 things?
- security
- health care
- retirement, financial
- family oriented
- time off
major legally required benefits include what 4 things?
- social security
- medicare
- workers compensation
- unemployment compensation
retirement programs are governed by several federal laws. specifically what two?
ERISA and ADEA
employers are managing their heal benefit costs more aggresively by?
- increasing employee copayments and contributions
- limiting spousal coverage
- using managed care
- switching to consumer-driven health (CDH) plans
family oriented benefits including complying with what act and what benefits (3)
Family and medical leave act (FMLA) of 1993 benefits: 1. adoption benefits 2. child care assistance 3. elder-care assistance
benefit?
tangible indirect reward provided to an employee or group of employees for organizational membership
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 options established by the employer
adverse selection
situation in which only higher-risk employees select and use certain benefits
open enrollment
a time when employees cam change their participation level in various benefit plans and switch benefit options
third party administrator
a vendor that provides enrollment, record keeping, and other administrative services to an organization
self service
technology that allows employees to change their benefit choices, track their benefit balances, and submit questions to HR staff members and external benfit providors
cafeteria benefit plans
employees are given a budget and can purchase the bundle of benefits most important to them from the “menu” of options offered by the employer
the social security act of 1935 did what?
established a system to provide old age, survivor’s, disability, and retirement benfits
the federal insurance contributions act (FICA) did what?
was passed to facilitate payroll contributions in support of both programs
workers compensation?
security benefits provided to workers who are injured on the job
no fault insurance
an injured worker receives benefits even if the accident was the employees fault
exclusive remedy
workers compensation benefits are the only benefits injured workers may receive from the employer to comepnsate for work-related injuries
three-legged stool
a model showing the three sources of income to fund an employees retirement which are social security, retireee savings and employee funded retirement plan/defined contribution
vesting
a benefit that cannot be taken away
portability
a retirement pkan feature that allows employees to move their retirement benefits from one employer to another
retirement plan?
a program established and funded by the employer and or employees to fund employees retirement years
defined benefit plan
retirement program in which employees are promised a pension amount based on age and years of service
defined contribution plan?
retirement program in which the employer and or employee makes an annual payment to an employees retirement account
401(k) plan
plan allows for a percentage of an employees pay to be withheld and invested in a tax deffered account
auto enrollment
process by which employee contributions to a 401k plan are started automatically when an employee is eligible to join the plan
cash balance plan
retirement program in which benefits are based on accumulated annual company contributions, expressed as a percentage of pay, plus interest credited each year
what was the Employee Retirement Income Securtiy Act (ERISA) in 1974 established for
this law is to ensure that private pension plans and other plans governed by ERISA meet minimum standards
according to a 1986 ammendment to the Age discrimination in employment act (ADEA) what cannot be forced?
employees to retire at a specific age
what was established and enacted in 1990 as an ammendment to the ADEA?
older workers benefit protection ACt
patient protection and accordable care act (PPACA)?
has many provision intended to provide affordable health care to all citizens
deductible
money paid by an insured individual before a health plan pays for medical expenses
copayment
the portion of medical expenses paid by an insured individual for medical treatment
managed care
approaches that monitor and reduce medical costs through restrictions and market system alternatives
consumer driven health (CDH) plans
health plan that provides employer financial contributions to employees to help cover their health related expenses
the consolidated omnibus budget reconciliation act (Cobra) requires what?
that most employers with 20 or more full time and or part time employees offer extended health care coverage to certain groups of plan participants
qualifying event
an event that causes a plan particpant to lose group health benefits
the health insurance portability and accountability act (HIPAA) of 1996 allows what?
employees to switch their health insurance plans when they change employers and to enroll in health coverage with the new company regardless of pre-existing health conditions
what are the 4 most common types of insurance benefits?
- life insurance
- disability insurance
- long-term car insurance
- legal insurance
what is a credit union?
a unin sponsored by te emplyer that provides savings, checking, lending, and other financial services for employees
purchase discounts?
allow employees to buy goods or services from their company at reducred prices
worker adjustment and retraining notification act of 1988 (WARN) does what?
requries employers to give 60 days notice of mass layoff or plant closings
family and medical leave act of 1993 does what?
provides for unpaid leaves of abscence
serious health conditions
an illness or injury that requires inpatient care or continuing treatment by a health car eprovidor for medical problems that exist beyond 3 days
paid time off plans (PTO plans)
plans that combine all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay
