Compensation Flashcards
Paid Time Off PTO 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.
Serious Health Condition
Health condition requiring in-patient, hospital, hospice, or residential medical care or continuing physician care.
Qualifying Event
An event tat causes a plan participant to lose group health benefits.
Consumer Drive Health Plan (CDH)
Health plan that provides employer financial contributions to employees to help co er ther health related expenses.
Managed Care
Approaches that monitor and reduce medical costs through restrictions and market system alternatives.
Copayment
The portion of medical expenses payed by the insured individual.
Deductible
Money paid by an insured individual before a health plan pays for any medical expense.
Cash balance plan
Retirement program in which benefits are determined on the basis of accumulation of annual company contributions plus interest credited each year.
Auto-enrollment
Employee contributions to a 401(k) plan are started automatically when an employee is eligible to join the plan.
401(k) Plan
Agreement in which a percentage of an employee’s pay is withheld and invested in a tax-deferred account.
Defined Contribution (DC) plan
Retirement program in which the employer makes an annual payment to an employee’s pension account.
Defined Benefit (DB) Plan
Retirement program in which employees are promised a pension amount based on age and service.
Retirement Plan
Retirement program established and funded by the employer and employees.
Portability
A pension plan feature that allows employees to move their pension benefits from one employer to another.
Vesting
Right of employees to receive certain benefits from their pension plans.
Three-legged Stool
A model showing the three sources of income to fund an employee’s retirement.
Exclusive Remedy
Workers’ compensation benefits are the only benefits injured workers may receive to compensate for a work related injury.
No-fault insurance
Injured workers receive benefits even if the accident was their fault.
Workers’ Compensation
Security benefits provided to workers who are injured on the job.
Cafeteria Benefit Plan
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.
Self-service
Technology that allows employees to change their benefits choices, track their benefits balances, and submit questions to HR staff members and external benefits providers.
Third-Party Administrator (TPA)
A vendor that provides adminstrative services to an organization.
Open enrollment
A time when employees can change their participation level in various benefit plans and swithc between benefit options.
Adverse Selection
Situation in whihc only higher risk employees select and use certain benefits.
