W14: Benefits - Mandatory/Non-Mandatory & Retirement/Time-off Flashcards
What are benefits?
Non-wage compensatory items in addition to regular pay
What are 3 examples of some benefits?
-adoption assistance
-long term care insurance
-vacation
-health insurance
-gym membership
-counseling services
-life insurance
-company stock
-pet insurance
-sick days
-401k
-flexible work schedules
What is a primary difference between compensation and benefits?
Benefits are entitlement and conditionally guaranteed
while
compensation are performance and more at risk
Employers look to _ employees needs and the _ to the organization.
balance, cost
Employees are concerned and look for _ _ in time of need, adequate retirement financial security & time off.
cash security
What are some mandatory plans?
Income Protection Plans
-unemployment insurance
-workers compensation
-social security
-state disability
What are some non-mandatory (voluntary) plans?
Income Protection Plans
-health & welfare plans
-retirement & investment plans
Paid Time Off Plans
What is the purpose of ERISA?
protect the interests of plan participants and beneficiaries
-governs private retirement, pension, and health insurance plans
What income protection plan is paid for by both the employer and employees?
social security
What income protection plan is paid for by the employer?
unemployment insurance
workers compensation
Defined Benefit…
is a monetary benefit an employer promises to an employee after attaining a specified age meeting length of service requirements
Defined Contribution…
employees contribute a percentage of salary into different investment funds offered by employer through a third party
-not taxed until withdrawn
what is an example of a defined contribution?
401k
What is an example of a defined benefit?
pension plan
T/F: Time off plans are not regulated by the government and are covered under company policy
true
