Noe Chapter 14 Flashcards
Social security
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
Unemployment insurance
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)
Experience rating
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
Workers compensation
Required by law.
State programs that provide benefits to workers who suffer work related injuries or illnesses, or to their survivors.
Family and medical leave act (FMLA)
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.
Patient protection and affordable care act
Required by law.
Health care reform law passed in 2010, that includes incentives and penalties for employers providing health insurance as a benefit
Paid leave
Ex. Vacations, holiday and sick leave
Consolidated Omnibus Budget Reconciliation Act ( COBRA)
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
Health Maintenance Program (HMO)
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
Preferred provider organization (PPO)
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,
Flexible spending account
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
Medical savings account
Employees use their pretax savings to pay for qualified health care expenses.
Employee wellness program (EWP)
A set of communications, activities and facilities designed to change health-related behaviors in ways that reduce health risks.
Disability insurance
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.
Contributory retirement plan
Funded by contributions from the employer and employee
Noncontributory retirement plan
Funded entirely by confine buttons from the employer.
Defined-benefit plan
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,
ERISA- employee retirement income security act
Law that increase the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability.
Created by PBGC.
PBGC- pension benefit guarantee corporation
A federal agency that insures retirement benefits and guarantees retirees a basic benefit if employer is having financial difficulties.
Defined- contribution plan
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.
Cash balance plans
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.
Vesting rights
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.
SPD- summary plan description
Report that describes a pension plan’s funding, eligibility requirements, risks and other details.
Cafeteria-style plans
A benefit plan that offers employee a set of alternative from which they can chose the types and amount of benefits they want,
Employee benefits
Compensation informs other than cash
Goal is to attracting, retaining and motivating employees
401(k)
- 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
What’s the difference between flexible spending account and health saving account ?
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
Put three kinds of health care benefits in order from lowest cost to highest
HDHP, HMO, PPO
