Noe Chapter 14

Question 1

Social security

Answer 1

Required by law
OASDH,the federal old age, survivors, disability and health insurance.
Combines old age(retirement) insurance, survivor’s insurance, disability insurance, hospital insurance and supplementary medical insurance for the elderly,.
Covers 90% of US employees

Question 2

Unemployment insurance

Answer 2

Required by law.
A federally mandated program to minimize the hardship of unemployment through payments to unemployed workers, help in finding new jobs and incentives to stabilize employment.
(Established by the coal security act of 1935)

Question 3

Experience rating

Answer 3

Under the unemployment  insurance .
# of employees a company has laid off in the past and the money of proving them with unemployment benefits. 
Ex. Lay off more = higher tax

Question 4

Workers compensation

Answer 4

Required by law.

State programs that provide benefits to workers who suffer work related injuries or illnesses, or to their survivors.

Question 5

Family and medical leave act (FMLA)

Answer 5

Required by law.
Organization with (50 or more employees to provide up to 12 weeks of unpaid leave after child birth or adoption; or care for a serious I'll family member; own serious illness; urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty.

Question 6

Patient protection and affordable care act

Answer 6

Required by law.
Health care reform law passed in 2010, that includes incentives and penalties for employers providing health insurance as a benefit

Question 7

Paid leave

Answer 7

Ex. Vacations, holiday and sick leave

Question 8

Consolidated Omnibus Budget Reconciliation Act ( COBRA)

Answer 8

Federal ,aw that requires employers to permit employees or their dependents to extend their health insurance coverage at group Estes for up to 36 mo hrs after events like layoff, reduction in hours, or the employee’s death

Question 9

Health Maintenance Program (HMO)

Answer 9

Health care plan that requires patients to receive their medical from the HMO’s health care professional; often paid a flat salary, and provides all services on a prepaid basis.

• premiums paid for the HMO cover all visits and procedures
• $ is less than a traditional health care

Question 10

Preferred provider organization (PPO)

Answer 10

Health care plan that contacts with health care professionals to provide services at a reduced fee and gives patients financial incentives to use network providers,

Question 11

Flexible spending account

Answer 11

Employee set aside a portion of pretax earnings to pay for eligible expenses.
There is a limit of how much you can take out within a year

Question 12

Medical savings account

Answer 12

Employees use their pretax savings to pay for qualified health care expenses.

Question 13

Employee wellness program (EWP)

Answer 13

A set of communications, activities and facilities designed to change health-related behaviors in ways that reduce health risks.

Question 14

Disability insurance

Answer 14

Short term - pays a % of a disabled employee’s salary as benefits to the employee for 6 months or less.
Long term- pays a % of a disabled employee’s salary as benefits after an initial period and potentially for the rest of employee’s life.

Question 15

Contributory retirement plan

Answer 15

Funded by contributions from the employer and employee

Question 16

Noncontributory retirement plan

Answer 16

Funded entirely by confine buttons from the employer.

Question 17

Defined-benefit plan

Answer 17

Pension plan that guarantees a specified level of retirement income
Ex. It can be based on your years of service, age, earning level and etc
ERISA goes under this plan,

Question 18

ERISA- employee retirement income security act

Answer 18

Law that increase the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability.
Created by PBGC.

Question 19

PBGC- pension benefit guarantee corporation

Answer 19

A federal agency that insures retirement benefits and guarantees retirees a basic benefit if employer is having financial difficulties.

Question 20

Defined- contribution plan

Answer 20

Retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into threat account. It can be money purchase plan(annuity pay out, %of salary) or profit sharing and employee stock ownership plans.

Question 21

Cash balance plans

Answer 21

Retirement plan in which the employer sets up an individual account for each employee and contribute a % of the employee’s salary; the account earn interest at a predefined rate,
Ex. 401(k) plan.

Question 22

Vesting rights

Answer 22

Guarantee that when employees become participants in a pension plan and work a specified # of years, they will receive a pension at retirement ages regardless of whether they remained with the employer.

Question 23

SPD- summary plan description

Answer 23

Report that describes a pension plan’s funding, eligibility requirements, risks and other details.

Question 24

Cafeteria-style plans

Answer 24

A benefit plan that offers employee a set of alternative from which they can chose the types and amount of benefits they want,

Question 25

Employee benefits

Answer 25

Compensation informs other than cash

Goal is to attracting, retaining and motivating employees

Question 26

401(k)

Answer 26

• it’s good because you don’t to have to pay tax or lower rate
• heavy tax if take out before retirement
• 401k match plan, the amount you put in, company will put that amount in for you too

Question 27

What’s the difference between flexible spending account and health saving account ?

Answer 27

Flexible-does not rolled over; you can join no matter which health care you have.
Health saving- need to be in HDHP able to join

Question 28

Put three kinds of health care benefits in order from lowest cost to highest

Answer 28

HDHP, HMO, PPO