Topic 11

Question 1

Benefit Benchmark Survey

Answer 1

A tool that helps organizations better understand how employee benefits may impact their ability to attract and retain qualified employees.

Question 2

Benefit Level Strategy

Answer 2

Refers to the level of each benefit type provided as well as the overall company expenditure.

Question 3

Benefit Mix Strategy

Answer 3

Refers to the particular combination of benefit types that an organization offers.

Question 4

Co-pay Policy

Answer 4

A policy that requires employees to pay a set amount for each time any service is used.

Question 5

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Answer 5

An Act which established that employees have a right to continue their employer-sponsored health care plan, at the employees’ expense, for up to 18 months.

Question 6

Cost-sharing

Answer 6

An approach in which the insurance only pays for a portion of medical expenses.

Question 7

Deductible

Answer 7

The full amount of medical expenses up to a set amount, that must be paid by the employee.

Question 8

Defined Benefit

Answer 8

A plan in which an organization uses a time-based formula to calculate how much pension an employee has earned, and upon retirement the organization pays the employee a guaranteed amount per year throughout retirement.

Question 9

Employee Benefit Preference Survey

Answer 9

A survey used to ask employees directly about their benefit preferences.

Question 10

Employee Retirement Income Security Act (ERISA)

Answer 10

An Act that regulates retirement plans offered by organizations.

Question 11

Employer Mandate

Answer 11

A Mandate which states that organizations with 50 or more employees are required to either offer health insurance to their employees or pay an additional tax for not having done so.

Question 12

Employer Matching

Answer 12

When an organization matches an employee’s contribution to a retirement account, typically up to 3-5% of an employee’s salary.

Question 13

Employment-based Reward

Answer 13

Rewards that are only contingent on an employee maintaining employment with the organization.

Question 14

Exclusive Provider Organization (EPO) Plan

Answer 14

A plan in which any expenses an employee incurs outside of the network are not reimbursed.

Question 15

Family and Medical Leave Act (FMLA)

Answer 15

An Act which specifies that employees are entitled to up to 12 weeks of time off to recuperate from medical conditions or to handle qualified family needs such as the birth of a child or to care for an elderly relation.

Question 16

Flexible Benefit Plans

Answer 16

Flexible benefit plans provide employees options in which benefits they receive.

Question 17

Flexible Spending Accounts

Answer 17

Employee accounts used to set aside pre-tax funds from their wages that can then be drawn upon to receive reimbursement for health related expenses.

Question 18

Geographic Pay

Answer 18

Connects to the total reward philosophy and global compensation by providing employees a high pay rate for taking assignments in less desirable or inconvenient locations.

Question 19

Hazard Pay

Answer 19

Provides employees a premium increase in pay for jobs that involve a higher degree of risk to the employee.

Question 20

Health Insurance Portability and Accountability Act (HIPAA)

Answer 20

An Act which restricts the use of preexisting condition clauses from being used to deny new employees coverage for a particular medical condition that was previously covered under an insurance policy.

Question 21

Health Maintenance Organization (HMO)

Answer 21

An organization that creates a more restricted network than the PPO and creates pre-paid services contracts with those health services providers.

Question 22

Health Savings Accounts

Answer 22

Organizational or employee accounts where pretax funds are deposited, upon which employees can draw for medical expense reimbursement.

Question 23

Holiday Pay

Answer 23

Pay provided for many federally-recognized holidays.

Question 24

Indemnity Plans

Answer 24

A plan that allows employees to go to any physician and create costs for the organization only when health services are utilized.

Question 25

Life Insurance

Answer 25

Provides a payout to survivors of the employee upon his or her death. The amount of coverage paid for by the organization is often limited to a percentage of the employee’s salary, but many organizations provide employees the option of purchasing higher amounts of coverage.

Question 26

Long-term Disability Policy

Answer 26

A policy that will replace a portion of an employee’s salary if injuries prevent them from returning to work for a longer period of time, up to 3 months.

Question 27

Managed Care Plans

Answer 27

Plans that are adopted by organizations trying to slow the increasing cost of healthcare.

Question 28

On-call Pay

Answer 28

Compensates employees for being available to work based on short notice from the organization.

Question 29

Paid Leave

Answer 29

Refers to various forms of pay for time not worked.

Question 30

Paid Time Off Bank

Answer 30

A bank of hours in various forms of paid leave, from which the employee can draw time from for any purpose.

Question 31

Patient Protection and Affordable Care Act (ACA)

Answer 31

An Act whose objectives are to reduce the cost of health insurance and expand its coverage to all Americans.

Question 32

Perquisites

Answer 32

There are an almost unlimited number of ways that employers can provide value to the employees through unique forms of benefits. Often referred to as Perquisites, or Perks, many of these are not ‘standard benefits’ that employees necessarily expect.

Question 33

Personal Days

Answer 33

Days which the employee is free to not come into work, even if they are not sick.

Question 34

Point-of-Service Organization (POS)

Answer 34

A plan similar to the PPO with the exception that the plan specifies a medical services point of contact for employees.

Question 35

Preferred Provider Organization (PPO) Plan

Answer 35

A plan in which the organization or health benefits provider establishes a network of health services providers with whom they have negotiated cost-saving terms in exchange for inclusion in the network.

Question 36

Premium Sharing Policies

Answer 36

A policy in which the employer does not pay the full premium for the health insurance.

Question 37

Psychological Contract

Answer 37

Refers to the informal expectations and agreements between an employee and an organization.

Question 38

Shift Differential Pay

Answer 38

Employees working the evening or night shift receive a high pay rate.

Question 39

Short-term Disability Policy

Answer 39

A policy that will replace a portion of an employee’s salary if injuries prevent them from returning to work for a relatively short period of time (e.g., three weeks).

Question 40

Sick Days

Answer 40

Days that an employee is paid even though they do not attend work, with the expectation that an employee is actually unwell when the days are used.

Question 41

Social Security

Answer 41

Enacted in 1935, it is a program that provides a retirement safety net for retiring employees who are of approved retirement age and have worked for a specified number of years.

Question 42

Unemployment Compensation

Answer 42

Provides temporary income to employees who have lost employment.

Question 43

Unemployment Insurance

Answer 43

A program in which organizations pay an unemployment tax at a rate that is partially determined by the organization’s history of employment practices that contribute to unemployment (such as layoffs).

Question 44

Vacation Time Off

Answer 44

A break from work, with no constraints on how the employee wants to use the time.

Question 45

Workers’ Compensation

Answer 45

Laws that require employers to make provisions for employees who are injured at work.