A tangible indirect reward provided to an employee

A tangible indirect reward provided to an employee 

Benefit

·         A tangible indirect reward provided to an employee or group of employees for organizational membership.

Gross-Up

·         To increase the net amount of what the employee receives to include the taxes owed on the amount.

Flexible Benefits Plan

·         Program that allows employees to select the benefits they prefer from options established by the employer.

Adverse Selection

·         Situation in which only higher-risk employees select and use certain benefits.

Open Enrollment

·         A time when employees can change their participation level in various benefit plans and switch between benefit options.

Third-Party Administrator (TPA)

·         A vendor that provides enrollment, record keeping, and other administrative services to an organization.

Self-Service

·         Technology that allows employees to change their benefit choices, track their benefit balances, and submit questions to HR staff members and external benefit providers.

Cafeteria Benefit Plan

·         Employees are given a budget and can purchase the bundle of benefits most important to them from the "menu" of options offered by the employer.

Workers' Compensation

·         Security benefits provided to workers who are injured on the job.

No-Fault Insurance

·         An injured worker receives benefits even if the accident was the employees' fault.

Exclusive Remedy

·         Workers' compensation benefits are the only benefits injured workers may receive from the employer to compensate for work-related injuries.

Three-Legged Stool

·         A model showing the three sources of income to fund an employee's retirement.

Vesting

·         A benefit that cannot be taken away.

Portability

·         A retirement plan feature that allows employees to move their retirement benefits from one employer to another.

Retirement Plan

·         A program established and funded by the employer and/or employees to fund employees' retirement years.

Defined Benefit Plan

·         Retirement program in which employees are promised a pension amount based on age and years of service.

401(k) Plan

·         Plan allows for a percentage of an employee's pay to be withheld and invested in a tax-deferred account.

Auto-Enrollment

·         Process by which employee contributions to a 401(k) plan are started automatically when an employee is eligible to join the plan.

Cash Balance Plan

·         Retirement program in which benefits are based on accumulated annual company contributions, expressed as a percentage of pay, plus interest credited each year.

Deductible

·         Money paid by an insured individual before a health plan pays for medical expenses.

Copayment

·         The portion of medical expenses paid by an insured individual for medical treatment.

Managed Care

·         Approaches that monitor and reduce medical costs through restrictions and market system alternatives.

Consumer-Driven Heal (CDH) Plan

·         Health plan that provides employer financial contributions to employees to help cover their health-related expenses.

Qualifying Event

·         An event that causes a plan participant to lose group health benefits.

Serious Health Condition

·         An illness or injury that requires inpatient care or continuing treatment by a health care provider for medical problems that exist beyond three days.

Paid-Time-Off (PTO) Plans

·         Plans that combine all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay.