Module 1 Flashcards
A benefit philosophy that ties salary or pay levels of employees to their tenure
Compensation/Service Oriented Philosophy
A legally mandated benefit paid by the employer that is excluded in the narrow view
Social Security (including OASDI), Medicare, Unemployment, Workers Comp
An alternative name for the Labor Management Relations Act
Taft Hartley Act
A 1948 NLRB legal case that stipulated the duty to bargain in good faith over wages; also included insurance and fringe benefits such as pensions
Inland Steel
Any form of compensation other than direct wages that results from the employment relationship that is not underwirten or paid by the government
Narrow View of employee benefits
A stipulation of categories of individuals that will be covered in a benefit plan. Categories can be based on employment status and dependent status
Categories of persons covered by employee benefit plans
A benefit funding approach where the employer and employees share the cost
Contributory benefit plans
A program that includes all types of employer oferred compensation, long term incentives and employee benefits
Total Compensation Philosophy
A benefit philosophy where the employer focuses on the needs of the participants
Benefits/Needs oriented approach
The formula used to determine the level of retirement or disability pay an employee may receive expressed as a percentage
Replacement Ratio
What type of orientation do pension plan, profit sharing plans, and other savings type plans that reward employees for length of service have?
Accumulation Oriented Benefits
Benefits that are provided to protect employees and dependents against financial loss including life insurance and disability income have this type of orientation
Protection Oriented Benefits
Disability, death, and property damage insurance can be provided to employees to prevent what?
Serious Loss Exposures
Any form of compensation other direct wages paid to employees
Broad View of Employee Benefits
A systematic method of analysis of an employer’s benefits program that analyzes the program’s ability to meet participants’ needs, manage exposures, and fit compensation and cost parameters
Functional approach
