Module 3 Flashcards
Plan where plan member must contribute to the cost of the benefits.
Contributory Plan
Plans with 100% participation and no contribution to cost by plan members.
Non-contributory benefit plan
Ratio of plan members participating in a plan to total permanent employees, or total eligible plan members.
Participation Ratios
Participation in a contributory plan when not a condition of employment.
Voluntary Participation
Participation in a benefit is a condition of employment.
Mandatory Participation
The balance of various elements including wages and salary, incentive plans and group benefits.
Plan Philosophy
Adoption of business policies regarding the general compensation of employees by employers.
Total Compensation Philosophy
Philosophy of relating benefits to the needs of plan members and their dependents.
Benefits/Need Oriented Philosophy
Philosophy of relating benefits primarily to compensations, service or both.
Compensation Service Oriented Philosophy
Length of service otherwise-eligible plan members must have before becoming eligible to participate in various types of benefits.
Waiting Periods
A systematic method for analyzing a plan sponsor’s benefits plan.
Functional Approach
Benefits that are a reward for long service.
Accumulation Oriented Benefits
Benefits that protect plan members against serious loss exposures that could create immediate financial consequences should they occur.
Protection Orientated Benefits
