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EMPLOYEE BENEFITS (retirement benefits (pension plans Plans that provide a…
EMPLOYEE BENEFITS
retirement benefits
pension plans Plans that provide a fixed sum when employees reach a predetermined retirement age or when they can no longer work due to disability.
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portability Instituting policies that enable employees to easily take their accumulated pension funds when they leave employer.
defined contribution plan A plan in which the employer s contribution to employees retirement savings funds is specified.
supplemental pay benefits Benefits for time not worked such as unemployment insurance, vacation and holiday pay, and sick pay
unemployment insurance (or compensation) Provides benefits if a person is unable to work through some fault other than his or her own
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supplemental unemployment benefits Provide for a guaranteed annual income in certain industries where employers must shut down to change machinery or due to reduced work. These benefits are paid by the company and supplement unemployment benefits
workers compensation Provides income and medical benefits to work-related accident victims or their dependents regardless of fault.
health maintenance organization (HMO)
A prepaid health care system that generally
provides routine round-the-clock medical
services as well as preventive medicine in a
clinic-type arrangement for employees, who
pay a nominal fee in addition to the fixed
annual fee the employer pays.
preferred provider organizations (PPOs) Groups of health care providers that Contract with employers, insurance companies, or third-party payers to provide medical care services at a reduced fee.
group life insurance Provides lower rates for the employer or employee and includes all employees, including new employees, regardless of health or physical condition.
Social Security Federal program that provides three types of benefits retirement income at the age of 62 and thereafter, survivor s or death benefits payable to the employee s dependents regardless of age at time of death, and disability benefits payable to disabled employees and their dependents. These benefits are payable only if the employee is insured under the Social Security Act.
Pension Benefits Guarantee Corporation (PBGC) Established under ERISA to ensure that pensions meet vesting obligations; also insures pensions should a plan terminate without sufficient funds to meet its vested obligations
flexible benefits plan/cafeteria benefits plan Individualized plans allowed by employers to accommodate employee preferences for benefits.
deferred profit-sharing plan .A plan in which a certain amount of profits is credited to each employee s account, payable at retirement, termination, or death.
Employee Retirement Income Security Act (ERISA) Signed into law by President Ford in 1974 to require that pension rights be vested and protected by a government agency, the PBGC.
cash balance plans Plans under which the employer contributes a percentage of employees current pay to employees pension plans every year, and employees earn interest on this amount
savings and thrift plan Plan in which employees contribute a portion of their earnings to a fund; the employer usually matches this contribution in whole or in part.
employee stock ownership plan (ESOP) A qualified, tax-deductible stock bonus plan in which employers contribute stock to a trust for eventual use by employees.
early retirement window A type of offering by which employees are encouraged to retire early, the incentive being liberal pension benefits plus perhaps a cash payment.
employee assistance program (EAP) A formal employer program for providing employees with counseling and/or treatment programs for problems such as alcoholism, gambling, or stress.
family-friendly (or work life) benefits Benefits such as child care and fitness facilities that make it easier for employees to balance their work and family responsibilities.
Co-payment Strategy requiring employees to pay a portion of the cost of insurance premiums, medical care, and prescription drugs.
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Consumer-driven health (CDH) plan Health plan that provides employer financial contributions to employees to help cover their own health-related expenses.