BUS 258 Compensation and Benefits MINE

Americans with Disabilities Act (ADA)

(1990) Prohibits discriminatory employment practices against qualified individuals with disabilities.

equal employment opportunity (77)

(EEO) Related to federal laws prohibiting discrimination against various protected classes of individuals regarding all employment practices, including employee benefits.

flexible benefits plans (13)

(cafeteria plans) enable employees to choose from among a set of benefits and different levels of these benefits

fiduciary (105)

-a trustee fiduciaries Individuals who manage employee-benefits plans and retirement plan funds.

FAS 158 (163)

2005- established requirements to enhance further transparency through accounting practices for other postretirement employee benefits.

nonleveraged ESOPs (110)

A company contributes stock or cash to buy stock. The stock is then allocated to the accounts of participants. Nonleveraged plans are stock bonus plans.

carve-out plans (155)

A contract entered into between an insurance company and another company to provide special services such as prescription drugs or cancer treatment to its members or beneficiaries. Sometimes, carve-out plans are purchased to cover dental care, vision care, or mental and substance abuse services.

coinsurance (139)

A feature of health plans that refers to the percentage of covered expenses or a fixed dollar amount paid by the insured.

second surgical opinion (152)

A feature of many health insurance plans, reduces unnecessary surgical procedures and costs by encouraging an individual to seek an independent opinion from another doctor.

business necessity (82)

A legally acceptable defense against charges of alleged discriminatory employment practices in Title VII of the Civil Rights Act of 1964 and the Civil Rights Act of 1991 claims. Under the business necessity defense, an employer proves that the suspect practice prevented irreparable financial damage to the company.

National Association of Insurance Commissioners (NAIC) (141)

A nonprofit organization that addresses issues concerning the supervision of insurance within each state. Specifically, the NAIC has three main objectives: - maintaining and improving state regulation -ensuring the reliability of insurance companies in matters of financial condition -promoting fair, just, and equitable treatment of policyholders and claimants.

essential benefits (139)

A requirement of the Patient Protection and Affordable Care Act of 2010, include items and services within 10 categories, for example, ambulatory patient services, emergency services, and hospitalization.

defined benefit plan 69

A retirement plan that awards a monthly or annual sum equal to a percentage of a participant's preretirement pay multiplied by the number of years he or she has worked for the employer. Defined benefit plans are also referred to as pension plans.

defined benefit plans (99)

A retirement plan that awards a monthly or annual sum equal to a percentage of a participant's preretirement pay multiplied by the number of years he or she has worked for the employer. Defined benefit plans are also referred to as pension plans.

exclusive provider organization (EPO) (145)

A variation of preferred provider organizations (PPOs). EPOs do not offer reimbursement for services provided outside the established network of health-care providers. See preferred provider organization.

discretionary benefits

AKA choice benefits

Employee Benefits Security Administration (73)

Agency of the U.S. Department of Labor that possesses responsibility for enforcing Title I of ERISA. This agency conducts investigations through its 10 regional offices and 5 district offices located in major cities throughout the country.

permitted disparity rules (98)

Allow companies to explicitly take into account Social Security OASDI benefits when determining pension benefits. Subject to established limits, qualified plans may reduce benefits based on the benefits owed under the Social Security program. Companies rely on either the excess approach or offset approach to integration. Also known as Social Security integration.

six-year graduated schedule (96)

Allows workers to become 20 percent vested after two years and to vest at a rate of 20 percent each year thereafter until they are 100 percent vested after six years of service.

risk-of-loss rules (uniform coverage requirement) (155)

Alternatively, uniform coverage requirement; rules that require

Pregnancy Discrimination Act of 1978 (PDA) (80)

Amendment to Title VII of the Civil Rights Act of 1964. The PDA prohibits discrimination against pregnant women in all employment practices.

premium (129)

Amount of money an individual or company pays to maintain insurance coverage.

premium (168)

Amount of money an individual or company pays to maintain insurance coverage.

forfeitures (104)

Amounts from the accounts of employees who terminated their employment prior to earning vesting rights.

Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) (72)

An amendment to ERISA that provides employees and beneficiaries the right to elect continuation coverage under group health plans if they would lose coverage due to a qualifying event.

nonscheduled injuries (181)

As classified in workers' compensation programs, these are general injuries of the body that make working difficult or impossible. Examples of nonscheduled injuries include back or head damage.

fully insured plans (128)

Based on a contractual relationship with one or more insurance companies to provide health-related services for employees and their qualified dependents. Under fully insured arrangements, insurance companies assume the risk for paying medical claims, and insurers take responsibility for administering the plan.

Cadillac tax (140)

Based on a provision of the Patient Protection and Affordable Care Act of 2010, a tax that is (scheduled to be) collected from employers that offer high-cost employer-sponsored health plans.

preadmission certification (151)

Certification by a medical professional of a health insurance company may be necessary before a doctor can authorize hospitalization of a policy holder. Failure to ascertain preadmission certification may lead to denial of hospitalization benefits.

point-of-service (POS) plan (145)

Combine features of fee-for-service systems and health maintenance organizations. POS plans are almost identical to PPOs except, like HMOs, POS plans require the selection of a primary care physician.

profit-sharing pool (109)

Companies start profit-sharing plans by establishing a profit-sharing pool - the money earmarked for distribution. Maximum annual contributions are limited to the lesser of 25 percent of employee compensation or the annual limit, $54,000 in 2017.

Federal Employees' Compensation Act (179)

Created a workers' compensation program for federal civilian employees.

underwriting (129)

Decision process that insurance companies rely upon to decide whether to offer insurance.

FairPay Rules 66

Determining whether jobs are exempt from the FLSA overtime pay provision more complex since U.S. Department of Labor introduced revised guidelines FairPay Rules August 2004. Previously employee considered exempt under FLSA overtime pay provisions if he or she earned more than minimum wage and exercised independent judgment when working. Under new FairPay Rules, workers earning less than $47,476 per year or $913 per week guaranteed overtime protection,

defined contribution plan 69

Employees make contributions to their accounts based on a chosen percentage of annual pay. At their discretion, the company makes matching contributions, which are determined by a formula.

cliff vesting (96)

Enables employees to earn 100 percent vesting rights after no more than three years of service.

Patient Protection and Affordable Care Act of 2010 (24)

Enacted on March 23, 2010, a comprehensive law that mandates health insurance coverage and sets minimum standards for insurance

Patient Protection and Affordable Care Act (PPACA) (138)

Enacted on March 23, 2010, a comprehensive law that mandates health insurance coverage and sets minimum standards for insurance.

tax-deferred annuity (TDA) (111)

Established by Section 403 (b) of the Internal Revenue Code, the TDA is a type of qualified retirement plan for employees of nonprofit organizations such as churches, private and public schools and colleges, hospitals, and charitable organizations.

workers' compensation (178)

Established state-run insurance programs that are designed to cover medical, rehabilitation, and disability income expenses resulting from employees' work-related accidents. Also known as state compulsory disability laws.

morbidity tables (129)

Express annual probabilities of the occurrence of health problems. In general, insurance companies set insurance rates higher as the probability of death or the occurrence of health problems increases.

group coverage (128)

Extends health insurance coverage to a group of employees and their qualified dependents.

loss of wage earning capacity approach (182)

Factors in two important issues that are likely to affect an injured workers' ability to compete for employment: human capital (e.g. work experience, age, and education) and the type of permanent impairment.

tuition reimbursement benefits (46)

Fully or partially reimburse an employee for expenses incurred for education or training.

pension equity plans (112)

Hybrid retirement plans that are similar to cash balance plans, except that these plans credit employees' accounts with point based on years of service.

psychological contracts (35)

Implicitly establish terms of employment. This is in contrast to more explicit economic exchange agreements such as wage or salary levels.

rating manuals (180)

In workers' compensation programs, these manuals specify insurance rates based on classifications of businesses.

fiduciaries (72)

Inviduals who manage employee-benefits plans and retirement plan funds

compensable factors (78)

Job attributes that compensation professionals use to determine the value of jobs, and whether jobs are equal for the purposes of the Equal Pay Act of 1963. These factors pertain to skill, effort, responsibility, and working conditions.

formularies (158)

Lists of drugs proven to be clinically appropriate and cost effective. The basis for setting formularies varies for each insurance plan.

Federal Unemployment Tax Act (FUTA) (24)

Mandatory tax employers pay to fund state unemployment insurance programs

Federal Insurance Contributions Act (FICA) (24)

Mandatory taxes employees and employers pay to finance the Social Security Old-Age, Survivor, and Disability Insurance Program (OASDI)

savings incentive match plans for employees (SIMPLEs) (111)

May be the basis for individual retirement accounts or Section 401 (k) plans in small companies.

non-grandfathered plans (138)

New health plans (or preexisting plans that have been substantially modified after March 23, 2010, that is, the enactment date of the Patient Protection and Affordable Care Act of 2010.

dental service corporations (157)

Nonprofit corporations of dentists owned and administered by state dental associations.

401 (k) plans (109)

Nonqualified retirement plans for government employees; named after the section of the Internal Revenue Code that created them. These plans permit employees to defer part of their compensaton to the trust of a qualified defined contribution plan. Only private-sector or tax-exempt employers are eligible to sponsor 401 (k) plans.

National Labor Relatiosn Board (NLRB) 64

OVersees the enforcement of the NLRA

graduated first-dollar-of-profits formula (110)

One of three common formulas establsihes employer contributions. Uses a different percentage based on level of attained profits. ex: A company may choose to share 2 percent of the first $10 million of profits and 3 percent of the profits in excess of that elvel.

prescription card program (158)

Operates like an HMO by providing prepaid benfits with nominal copayments for prescription drugs.

distribution (98)

Payment of vested benefits to participants or beneficiaries.

cost-of-living adjustments (COLAs) (7)

Periodic base pay in creases that are based on changes in prices as indexed by the consumer price index (CPI). COLAs enable workers to maintain their purchasing power and standards of living by adjusting base pay for inflation.

dental HMOs (157)

Prepaid dental services.

temporary total disabilities (181)

Prevent individuals from performing meaningful work for a limited period. Individuals with temporary total disabilities eventually make full recoveries.

Americans with Disabilities Act (ADA) (174)

Prohibits discriminatory employment practices against qualified individuals with disabilities.

pension plans 69

Provide income to individuals and beneficiaries throughout their retirement.

yearly limits (152)

Refer to the maximum amount a plan would cover each year.

partial disabilities inclusion (172)

Refers to a provision of many company-sponsored long-term disability plans. Specifically, this provision offers supplemental benefits to cover a portion of income loss associated with part-time employment.

multiple tiers (159)

Specified copayment amounts an individual will pay for a specific prescription.

accrual rules (97)

Specify the rate at which participants accumulate (or earn) retirement benefits

leveraged ESOPs (111)

Stock option plans that borrow money from a financial institution to purchase company stock. Over time, the company makes principal and interest payments to the ESOP to repay the loan.

permissive bargaining subjects 64

Subjects on which neither the employer nor union is obligated to bargain. These subjects include administration of funds, retiree health benefits, and workers' compensation (wthin the limits of various state laws)

violations of an affirmative duty (183)

Such violations take place when an employer fails to reveal the exposure of one or more workers to harmful substances, or the employer does not disclose a medical condition typically caused by exposure.

Older Workers Benefit Protection Act (OWBPA) (173)

The 1990 amendment to the Age Discrimination in Employment Act of 1967.

Older Workers Benefit Protection Act (OWBPA) (80)

The 1990 amendment to the Age Discrimination in Employment Act of 1967.

deductible (139)

The amount an individual pays for services before health benefits become active.

annual addition (106)

The annual maximum allowable contribution to a participant's account in a defined contribution plan, including employer contributions allocated to the participant's account, employee contributions, and forfeitures allocated to the participant's account.

economies of scale (46)

The idea that it is more efficient or less costly to provide the same benefit to larger groups of individuals than to smaller groups of individuals.

nondiscrimination rules 65

These rules prohibit employers from discriminating in favor of highly compensated employees in contributions or benefits, availability of benefits, rights, or plan features. Also, employers may not amend pension plans to favor highly compensated employees.

deliberate and knowing torts (183)

Torts that entail an employer's deliberate and knowing intent to harm at least one employee.

indemnity plan (142)

Traditional health insurance plans in which the insurance company reimburses the patient or health-care provider a designated amount.

employer mandate (138)

Under the Patient Protection and Affordable Care Act of 2010, a requirement that companies with at least 50 employees offer affordable health insurance to its full-time employees work on average at least 30 hours per week or 130 hours per month.

individual mandate (138)

Under the Patient Protection and Affordable Care Act of 2010, a requirement that individuals who can afford to purchase health insurance must do so either by participating in an employer-sponsored plan or purchasing health insurance coverage independently.

death claim (181)

Workers' compensation claim for deaths that occur in the course of employment or that are caused by compensable injuries or occupational diseases.

top-down approach (18)

a proactive process for benefits planning. Companies regularly review the entire benefits program or particular parts of the program.

defined benefit plan (11)

a retirement plan that awards a monthly or annual sum equal to a percentage of a participant's preretirement pay multiplied by the number of years he or she has worked for the employer. Defined benefit plans are also referred to as pension plans

dental care (10)

benefits may cover routine preventative procedures and necessary procedures to help restore the health of teeth and gums

dental insurance (157)

benfits may cover routine preventative procedures (e.g. cleaning once every six months) and necessary procedures to promote the health of teeth and gums. Most dental plans do not include cosmetic procedures. Employers have options to choose dental benefits including fee-for-service plans and various managed care systems.

hybrid plans (112)

combine features of traditional defined benefit and defined contribution plans. 4 common hybrid plans 1. cash balance plans and pension equity plans 2. target benefit plans 3. money purchase plans 4. age-weighted profit-sharing plans

proportional payments to employees based on their contribution to profits (110)

companies disburse profits based on this. Some companies measure employee contributions to profits based on job performance. However, this approach is often not feasible because it is difficult to directly isolate each employee's contributions to profits.

contributory plans (176)

contributory financing (contributory plans) The company and its employees share the costs of discretionary benefits.

prescription drug plans (10)

cover a portion of the costs of and fitting of glasses

inpatient benefits (133)

covered expenses associated with hospital stays

outpatient benefits (133)

covered expenses for treatments in hospitals not requiring overnight stays

health care (10)

covers the cost of a variety of services that promote sound physical and mental health, including physical examinations, diagnostic testing (x-rays), surgery, and hospitalitzation. Companies can choose rely one or more of four broad approaches to providing health care: * Fee-for-service plans * Alternative manage-care plans * Point-of-service plans * Consumer-driven health care additional options: dental care vision care perscription drug plans mental health and substance abuse plans

incentive pay (7)

defined as compensation, other than base wages or salaries, that fluctuates according to employees' attainment of some standard such as pre-established formula, individual or group goals, or company earnings. Also known as variable pay.

single coverage (129)

extends health insurance benefits only to the covered employee

proportional payments to employees based on their annual salary (110)

most employers divide the profit-sharing pool among employees on a differential basis. Companies may disburse profits based on proportional payments to employees based on their annual salary. Presumably, Higher-paying jobs indicate the greatest potential to influence a company's competitive position.

noncontributory plans (176)

noncontributory financing (noncontributory plans) The company pays the total cost of designated discretionary benfits.

family coverage (129)

offers health insurance benefits to the covered employee and qualified dependents.

alternative managed-care plans (10)

one of four broad approaches to providing health care

consumer-driven health care (10)

one of four broad approaches to providing health care

point-of-service plans (10)

one of four broad approaches to providing health care

contributory financing (12)

or contributory plans The company and its employees share the costs of discretionary benefits

noncontributory financing (12)

or noncontributory plans the company pays the total cost of designated discretionary benefits

distributive justice (39)

perceived fairness about how rewards are distributed.

interpersonal justice (39)

perceived fairness of the interpersonal treatment people receive from others

vision insurance (158)

plans usually cover eye examinations, lenses, frames, and the fitting of glasses. Similar to dental protection, vision insurance benefits may be delivered through indemnity plans or managed care arrangements.

medical underwriting (44)

process by which employees provide information on their past medical history in a questionnaire or physical examination. because of riskier nature of individual and small group policies - more likely to be subject to medical underwriting

merit pay (7)

programs that reward employees with permanent increases to base pay according to differences in job performance

retirement plans (11)

provide income to individuals and beneficiaries throughout their retirement

fee-for-service plans (10)

provide protection against health-care expenses in the form of cash bebefits paid to the insured or directly to the health-care provider after receiving health-care services. These plans pay benefits on a reimbursement basis

Family and Medical Leave Act (FMLA) (10)

provides protection in cases of family or medical emergencies. FMLA permits eligible employees to take up to a total of 12 workweeks of unpaid leave during any 12-month period for family or medical emergencies

Taft-Hartley Plans Form 5500 (71)

see multiemployer plans

base pay (6)

the monetary compensation employees earn on a regular basis for performing their jobs. Hourly pay and salary are the main forms.

procedural justice (39)

the perceived fairness of processes

total compensation strategies (17)

the use of compensation and benefits practices that support both human resource strategies and competitive strategies

top-heavy (97)

top-heavy provisions - Apply to minimum benefits accrual and vesting rights. Plans are said to be top-heavy if the accrued benefits or account balances for key employees exceed 60 percent of the accrued benefits or account balances for all employees.

open-access HMOs (143)

type of HMO prepaid plans require use of network health-care providers with one exception. In open-access HMO plans, emergency care outside the network is covered, which is not the case for traditional HMO plans. HMOs generally do not cover expenses incurred in emergency room soutside the designated network unless deemed by medical experts as a life-or-death matter.

state compulsory disability laws (workers' compensation) (10)

workers' compensation

Social Security integration (98)

(see permitted disparity rules) Allow companies to explicitly take into account Social Security OASDI benefits when determining pension benefits. Subject to established limits, qualified plans may reduce benefits based on the benefits owed under the Social Security program. Companies rely on either the excess approach or offset approach to integration. Also known as Social Security integration.

organizational support (41)

- perceived organizational support is an employee's perception of the degree to which the employer values the employee's contributions and well-being. - Certain benefits signal organizational support. i.e. Wellnes programs or recognition and rewards. - Discretionary benefits generate perceptions of organizational support more than legally required benefits.

where do employee benefits derive from?

1. U.S. federal government requires most employers, employees, or both make contributions to ensure govt sponsored benefits provided to employees. - **legally required benefits** - laws i.e. Social Security Act of 1935 mandate programs designed provide income to retired workers, disability income, survivor benefits, health care older Americans. - other legally required benefits are workers' compensation insurance - employer purchases/administers - some cities/states have legislation enhance federal govt benefits i.e. educational benefits & retirement savings plans - legally required benefits focus on protection -companies may choose to offer additional protection programs enhance supply legally required benefits - i.e. discretionary disability protection added w/ Social Security disability insurance, could generate higher income stream than would otherwise be possible - prior to passage Patient Protection and Affordable Care Act of 2010 (mandates most companies provide health-care coverage, companies offered healthcare benefits on discretionary benefit - some companies still treat health care as a discretionary benefit - in lieu of offering health-care benefits willing to pay penalty to federal govt based on provisions of law - possible employer-sponsored health care return to discretionary benefit status b/c Trump promised to repeal f

Equal Pay Act of 1963 (77)

A federal EEO law requiring that companies pay women equally when performing work equal to that of men as defined by compensable factors. This act does specify permissible exceptions, allowing companies to pay women less than men for jobs of equal worth, based on seniority, merit, quantity of work, or other factors besides sex.

Title VII of the Civil Rights Act of 1964 (79)

A federal equal employment opportunity (EEO) law that makes it an unlawful employment practice for an employer to discriminate against any individual with respect to his compensation, terms, conditons, or privileges of employment, because of such individual's race, color, religion, sex, or national origin.

Age Discrimination in Employment Act of 1967 (ADEA) (79)

A federal equal-employment opportunity law that protects older workers age 40 and over from illegal discrimination in the workplace.

Mental Health Parity and Addiction Equity Act of 2008 (160)

A federal law that established parity requirements for mental health plans being offered in conjunction with a group health plan that contains medical and surgical benfits. This acts requires that any group health plan that includes mental health and substance use disorder benefits along with standard medical and surgical coverage must treat them equally in terms of out-of-pocket costs, benefit limits, and practices such as prior authorization and utilization review.

Civil Rights Act of 1991 (82)

A federal law that shifted the burden of proof of disparate impact from employees to employers, overturning several 1989 Supreme Court rulings. Previously, employees were responsible for indicating which employment discrimination suits, and for demonstrating how the employment practice created disparate impact (intentional discrimination).

stock bonus plan (110)

A kind of profit-sharing plan paid in employer stock instead of cash. Participants in stock bonus plans possess the right to vote as shareholders.

dual capacity (184)

A legal doctrine that applies to the relationship between employers and employees. Specifically, a company may fulfill a role for employees that is completely different from its role as employer.

preexisting condition (151)

A mental or physical disability for which medical advice, diagnosis, care, or treatment was received during a designated period preceding the beginning of disability or health insurance coverage.

preexisting condition (171)

A mental or physical disability for which medical advice, diagnosis, care, or treatment was received during a designated period preceding the beginning of disability or health insurance coverage.

annuities (98)

A series of payments for the life of the participant and beneficiary. Annuity contracts are usually purchased from insurance companies which make payments according to the contract.

experience ratings (129)

A system that establishes higher contribution (to fund insurance programs) for employers with higher incidences of claims (i.e. more people using the insurance)

experience rating (45)

A system that establishes higher contributions (to fund insurance programs) for employers with hgiher incidences of claims (i.e. more people using the insurance).

average benefit test (96)

A test for coverage requirements that determines whether qualified plans benefit a "nondiscriminatory classification" of employees and possess an "average benefit percentage" for non highly compensated employees that is at a minimum of 70 percent of the average benefit percentage for highly compensated employees covered by the plan

ratio percentage test (96)

A test for coverage requirements that determines whether qualified plans cover a percentage of non highly compensated employees that is at least 70 percent of the percentage of highly compensated employees covered by the plan

target benefit plans (119)

A type of hybrid retirement plan that calculates benefits in a fashion similar to defined benefit plans based on formulas that use income and years of service. However, these target benefits plans are fundamentally defined contribution plans, because the benefit amount at retirement may be more or less than the targeted benefit amount based on the investment performance of the plan assets.

cash balance plans (112)

A type of hybrid retirement plan that defines benefits for each employee by reference to the amount of the employee's hypothetical account balance.

money purchase plans (120)

A type of hybrid retirement plan that is a defined contribution plan because the benefit is based on the account balance (i.e. the employer contributions plus returns on investment of the employer contributions) at retirement. However, these plans possess the funding requirements of defined benefit plans because employers must make annual contributions according to the designated formula for the plan.

age-weighted profit-sharing plans (120)

A type of hybrid retirement plan; fundamentally a defined contribution plan because benefit amounts fluctuate according to how well the investments of plan assets perform. Consideration of age in these plans is similar to defined benefit plans because employers contribute disproportionately more to the accounts of older employees based on a projected hypothetical benefit at nromal retirement age.

preferred provider organization (PPO) (145)

A type of managed care plan that refers to a select group of health-care providers who agree to furnish health-care services to a given populatoin (for example, Company B's employees) at a higher level of reimbursement than under fee-for-service plans.

Health Insurance Portability and Accountability Act of 1996 (HIPAA) (73)

An amendment to ERISA, this act imposes requirements on group health and health insurance issuers relating to portability, increased access by limiting preexisting limitation rules, renewability, and health-care privacy.

vesting (72)

An employee's nonforfeitable rights to retirement plan benefits. There are two aspects of vesting: Employees acquire vesting rights on either a cliff vesting schedule or on a gradual vesting schedule.

vesting (96)

An employee's nonforfeitable rights to retirement plan benefits. There are two aspects of vesting: Employees acquire vesting rights on either a cliff vesting schedule or on a gradual vesting schedule.

economic exchange (33)

As with wages and salary, an agreement whereby the nature of the exchange has been specified at the time of employment. Economic exchanges can also be renegotiated at any time during employment, as with yearly pay raises. Explicit company policies and procedures help to ensure that eatch party (i.e., the employer and the employee) fulfills the obligations in the exchange relationship. In other words, in exchange for continued employments and wages, employees are obligated to work for the employer.

death benefits (182)

Awarded in two forms under workers' compensation; burial allowances and survivor benefits. Burial allowances reflect a fixed amount, varying by state.

impairment approach (182)

Bases workers' compensation benefit amounts on the physical or mental loss associated with an injury to a bodily function. This approach does not account for loss of future earnings because it ignores the physical and mental capacities necessary to perform the essential functions of one's job.

wage-loss approach (182)

Bases workers' compensation benefits on the actual loss of earnings that results directly from nonscheduled injuries. Application of this approach requires monitoring of an individual's income following an injury. The objective is to replace a part of or all of the earnings loss due to the injury.

Fair Labor Standards Act (FLSA) 66

Contains provisions for minimum wages, overtime pay, and child labor restrictions.

network model HMOs (145)

Contract with two or more independent physicians' practices. These HMOs usually compensate physicians according to a capped fee schedule.

insurance policy (129)

Contractual relationship between an insurance company and beneficiary that specifies the obligations of both parties. For example, a health insurance company specifies that it will cover the cost of physical examinations, and a life insurance company agrees to pay a spouse an amount equal to double of his deceased wife's annual salary.

insurance policy (168)

Contractual relationship between an insurance company and beneficiary that specifies the obligations of both parties. For example, a health insurance company specifies that it will cover the cost of physical examinations, and a life insurance company agrees to pay a spouse an amount equal to double of his deceased wife's annual salary.

prescription drug plans (158)

Cover a portion of the costs of legal drugs that state or federal laws require be dispensed by licensed pharmacists.

second-injury funds (180)

Cover a portion or all of the costs of a current workers' compensation claim associated with preexisting conditions from a work-related injury during prior employment elsewhere.

rehabilitative services (182)

Cover physical and vocational rehabilitation in workers' compensation. Rehabilitative services are available in all states.

accidental death and dismemberment insurance (AD&D) (177)

Covers death or dismemberment as a result of an accident. Dismemberment refers to the loss of two limbs or the complete loss of sight (i.e., blindness) Compared to life insurance, AD&D generally does not pay survivor benefits in the case of death by illness.

Longshore and Harbor-workers' Compensation Act (179)

Created a workers' compensaton program for maritime workers.

FAS 106 (162)

Created by the Financial Accounting Standards Board; a rule that changed the method of how companies recognize the costs of nonpension retirement benefits, including health insurance, on financial balance sheets. This rule effectively reduces a company's net profit amounts listed on the balance sheet.

underwriting (177)

Decision process that insurance companies rely upon to decide whether to offer insurance.

usual, customary, and reasonable charges (133)

Defined as not more than a physician's usual charge, within the customary range of fees charged in the locality, and reasonable, based on the medical circumstances.

dental maintenance organizations (157)

Deliver dental services through the comprehensive health-care plans of many health maintenance organizations (HMOs) and preferred provider organizations (PPOs).

primary care physicians (143)

Designated by HMOs to determine whether patients require the care of a medical specialist. This functions to control costs by reducing the number of medically unnecessary visits to expensive specialists.

Pension Protection Act (76) of 2006

Designed to strengthen employee rights as retirement plan participants. Is an amendment to ERISA.

mail-order prescription drug program (159)

Dispenses expensive medications used to treat chronic health conditions such as HIV infection or neurological disorders such as Parkinson's disease.

managed care plans (143)

Emphasize cost control by limiting an employee's choice of doctors and hospitals. They also provide protection against health-care expenses in the form of prepayment to health-care providers.

defined contribution plans (104)

Employees make contributions to their accounts based on a chosen percentage of annual pay. At their discretion, the company makes matching contributions, which are determined by a formula.

organizational citizenship behavior (39)

Employees' discretionary behavior, not explicitly or directly recognized by the formal reward system of the employer, but in aggregate promoting organizational effectiveness.

transactional psychological contracts (35)

Employees' expectations from the employer are more economic and extrinsic in nature

relational psychological contracts (35)

Employees' expectations from the that might be either economic or noneconomic, but are also emotional, subjective, and intrinsic in nature.

mandatory bargaining subjects 64

Employers and unions must bargain over these subjects if either constituent makes proposals about them. These subjects include disability pay, health care, paid time off, and retirement.

Patient Protection and Affordable Care Act of 2010 (77)

Enacted on March 23, 2010, a comprehensive law that mandates health insurance coverage and sets minimum standards for insurance.

minimum funding standards (98)

Ensure that employers contribute the minimum amount of money necessary to provide employees and beneficiaries promised benefits.

termination insurance (73) Plan Termination Insurance Title VII

Established the Pension Benefit Guarantee Corporation (PBGC) - OBGC pays monthly retirement benefits -Since 1974, the PBGC has provided payments to about 1.5 million workers in 4,800 failed plans - 2015 alone, paid $5.7 billion

**CH. 3 Regulating Employee Benefits** National Labor Relations Act of 1935 (NLRA) 63

Established the right of employees to bargain collectively with employers on such issues as wages, work hours, and working conditions.

dental fee-for-service plans (157)

Fashioned after general fee-for-service insurance programs, these plans provide protection against dental health care expenses in the form of cash benefits paid to the insured or directly to the dental care provider.

health savings accounts (HSAs) (154)

For employees who are enrolled in an HDHP to help pay for medical expenses. It is important to note that HSAs are not available for any other type of health-care plan.

short-term disability (170)

For the purposes of private disability insurance plans, an inability to perform the duties of one's regular job for a limited period (e.g. six months)

welfare plans 69

Generally refers to nonpension benefits for the purposes of ERISA.

three percent rule (103)

Guards against backloading in retirement plans. A participant's accrued benefit cannot be less than 3 percent of the normal retirement benefit, assuming the participant began participation at the earliest possible age under the plan and she or he remained employed without interruption until age 65 or the plan's designated normal retirement age.

133 1/3 perent rule (103)

Guards against backloading in retirement plans. The annual accrual rate cannot exceed 133 1/3 percent of the rate of accrual for any prior year.

fractional rule (103)

Guards against backloading in retirement plans. This rule applies to participants who terminate their employment prior to reaching normal retirement age. It also stipulates that benefit accrual upon termination be proportional to normal retirement benefits.

human resource strategies (17)

HR strategies (human resource strategies) specify the use of multiple human resource (HR) practices that are consistent with a company's competitive strategy

individual coverage (128)

Health insurance purchased outside the employment setting for herself and qualified dependents.

welfare practices (14)

Historical term for employee benefits: "anything for the comfort and improvement, intellectual or social, of the employees, over and above wages paid, which is not a necessity of the industry nor required by law"

exclusion provisions (171)

In insurance plans, a list of the particular conditions that are ineligible for coverage. For example, most disability insurance plans do not provide coverage for disabilities that result from self-inflicted injuries.

qualified domestic relations orders (QDROs) (99)

In qualified plans, QDROs permit a retirement plan to divide a participant's benefits in the event of divorce. Dividing a participant's benefits without a QDRO is a violation of ERISA and the IRC.

qualified joint and survivor annuity (QISA) (99)

In qualified plans, a QISA is an annuity for the life of the participant with a survivor annuity for the participant's spouse.

qualified preretirement survivor annuity (QPSA) (99)

In qualified plans, a QPSA provides payments for the life of the participant's surviving spouse if the participant dies before he or she has begun to receive retirement benefits.

flat benefit formula (100)

In retirement plans, it designates either a flat dollar amount per employee (flat amount formula) or dollar amount based on an employee's compensaton (flat percentage formula). Annual benefits are usually expressed as a percentage of final average wage or salary.

mortality tables (177)

Indicate yearly probabilities of death based on factors such as age and sex established by the Society of Actuaries. Insurance companies rely on these tables in the underwriting process.

mortality tables (129)

Indicate yearly probabilities of the occurrence of health problems. In general, insurance companies set insurance rates higher as the probability of death or the occurrence of health problems increases.

grandfathered plans (138)

Individual and group health plans already in existence prior to March 23, 2010, which is the enactment date of the Patient Protection and Affordable Care Act of 2010.

temporary partial disabilties (181)

Individuals may perform limited amounts of work until making a full recovery.

Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (154)

Led to changes in the Medicare program by adding prescription drug coverage and recognizing health savings accounts (HSAs)

**CH 4 Employee-Sponsored Retirement Plans** coverage requirements (95)

Limit an employer's freedom to exclude employees from qualified plans. Tests to determine whether coverage requirements are met include the ratio percentage test and the average benefit test.

permanent partial disabilities (181)

Limit the kind of work an individual performs on an enduring basis.

staff model HMOs (144)

Medical facilities owned by the HMO that employ medical and support staff on the premises. These practices compensate physicians on a salary basis. Staff physicians treat only HMO members.

elimination period (171)

Minimum amount of time an employee must wait after becoming disabled before disability insurance payments begin. Elimination periods follow the completion of the pre-eligibility period.

matching contributions (105)

Money the employer deposits into an employee's defined contribution account contingent on the employee making contributions first.

copayments (139)

Nominal payments an individual makes as a condition of receiving services.

Financial Accounting Standards Board (FASB) (162)

Nonprofit company responsible for improving standards of financial accounting and reporting in companies.

backloading (103)

Occurs whenever benefits accrue at a substantially higher rate during the years close to an employee's eligibility to earn retirement benefits. The Internal Revenue Service discourages backloading; employers must follow one of three rules to ensure regular accumulation of retirement benefits: three percent rule, 133 1/3 percent rule, or fractional rule.

profitability threshold formulas (110)

One of three common formulas establishes employer contributions. fund profit-sharing pools only if profits exceed a predetermined minimum level but have a maximum payout level. Companies establish minimums to guarantee a return to shareholders before they distribute profits to employees and maximums because they attribute any profits beyond this level to factors other than employee productivity or creativity, such as technological innovation. ex: a company may choose to share the increment of profits between 2 and 4 percent. There would be no payout below 2 percent or above 4 percent of profits.

fixed first-dollar-of-profits formula (110)

One of three common formulas establishes employer contributions. Uses a specific percentage of either pretax or after-tax annual profits (alternatively, gross sales or some other basis), contingent upon the successful attainment of a company goal. ex: Company might establish that the profit-sharing fund will equal 1 percent of corporate profits.

individual practice associations (IPAs) (145)

Partnerships of independent physicians, health professionals, and group practices. IPAs charge lower fees to designated populations of employees (e.g. Company A's workforce) than fees charged to others. Physicians who participate in this type of HMO practice from their own facilities and continue to see HMO enrollees and patients who are not HMO enrollees.

whole life insurance (175)

Pays an amount to the designated beneficiaries of the deceased employee. Unlike term life insurance, whole life plans do not terminate until payment to beneficiaries.

prepaid plan (142)

Pays health-care providers a fixed amount according to the number of individuals covered by the plan.

multiemployer plans 70

Pension or welfare plans for workers in industries in which it is common to move from employer when work becomes available, such as in the skilled trades (for example, carpentry). The Labor Management Relations Act of 1947, also known as the Taft-Hartley Act, spurred the growth of multiemployer plans in the private sector. These plans are also referred to as Taft-Hartley plans.

salary reduction agreements (104)

Permit an employer to defer a specified amount of pay, often expressed as a percentage of pay, into the employee's defined contribution retirement account each pay period.

flexible spending accounts (FSAs) (155)

Permit employees to pay for certain health-benefits expenses or to pay the premium or cost for at least one of these benefits.

qualified individual with a disability (174)

Person who possesses the necessary skills, experience, education, and other job-related requirements and, regardless of reasonable accommodation, can perform the essential functions of the job, related to the ADA.

permanent total disabilities (181)

Prevent individuals from ever performing any work.

group model HMOs (145)

Primarily use contracts with established practices of physicians that cover multiple specialties. Each group model HMO contracts exclusively with one practice of physicians at a time. These HMOs do not employ physicians directly. Instead, they compensate physicians according to a pre-established schedule of fees for each service, or on a capitation basis by setting monthly amounts per patient.

Health Maintenance Organization Act of 1973 (HMO Act), (131)

Promoted company use of health maintenance organizations by providing HMOs with financial incentives subject to becoming federally qualified.

illegal bargaining subjects 64

Proposals for contract revisions that are either illegal under the National Labor Relations Act or violate federral or state law.

Genetic Information Nondiscrimination Act of 2008 (GINA) (83)

Protects job applicants, current and former employees, labor union members, and apprentices and trainees from discrimination based on their genetic information by making unlawful the misuse of genetic information to discriminate in health insurance and employment.

life insurance (175)

Protects the families of employees by paying a specified amount upon the employee's death. Most policies pay some multiple of the employee's salary.

fee-for-service plans (143)

Provide protection against health-care expenses in the form of cash benefits paid to the insured or directly to the health-care provider after receiving health-care services. These plans pay benefits on a reimbursement basis.

employee stock option plans (ESOPs) (110)

Provide shares of company stock to employees. It can be thought of as stock bonus plans that use borrowed funds to purchase stock.

long-term disability insurance (168)

Provides benefits for extended periods of time anywhere between six months and life.

short-term disability insurance (168)

Provides income benefits for limited periods of time, usually less than one year.

Family and Medical Leave Act of 1993 (160)

Provides protection in cases of family or medical emergencies. FMLA permits eligible employees to take up to a total of 12 workweeks of unpaid leave during any 12-month period for family or medical emergencies.

universal life insurance (176)

Provides protection to employee's beneficiaries based on the insurance feature of term life insurance and a more flexible savings or cash accumulation plan than is found in whole life insurance plans.

unit benefit formulas (100)

Recognize length of service in retirement plans. Typically, employers decide to contribute a specified dollar amount per years worked by an employee. Alternatively, they may choose to contribute a specified percentage amount per years of service.

ratemaking service organizations (180)

Recommend rates that states charge companies to provide workers' compensaton insurance.

offset provisions (174)

Reduce company-sponsored retirement, disability, or life insurance by subtracting a particular percentage of these benefits from workers' compensation or Social Security disability plans.

multiple-payer system (129)

Refers to a system in which more than one party is responsible for covering the cost of health care, including the government, employers, labor unions, employees, or individuals not currently employed (e.g. retirees, the unemployed, and employees whose employers do not pay for health-care coverage)

continuation coverage (75)

Refers to extended healthcare plan participation mandated by COBRA up to 36 months following a qualifying event.

long-term disability (172)

Refers to illnesses or accidents that prevent an employee from performing his or her own occupation over a designated period, oftentimes up to two years.

lifetime limits (152)

Refers to the maximum amount a plan would cover

out-of-pocket maximum (139)

Refers to the maximum amount a policyholder must pay per calendar year or plan year.

equal payments (110)

Reflect a belief that all employees should share equally in the company's gain to promote cooperation among employees.

health reimbursement arrangements (HRAs) (154)

Reimburse employees for health-care expenses.

election period (75)

Relating to the Consolidated Omnibus Budget Reconciliation Act, refers to the period that begins on or before the occurrence of the qualifying event, and it extends for at least 60 days.

high-deductible health insurance plans (152)

Require substantial deductibles compared to managed care plans and traditional fee-for-service plans.

Women's Health and Cancer Rights Act of 1998 (137)

Requires group health plans to provide medical and surgical benefits for mastectomies.

Worker Adjustment and Retraining Notification (WARN) Act 65

Requires that management give at least a 60-day advance notice of a plant closing or mass layoff. An employer's failure to comply with the requirement of the WARN Act entitles employees to recover pay and benefits for the period for which notice was not given, typically up to a maximum of 60 days.

state compulsory disability laws (178)

See workers' compensation

Americans with Disabilities Act of 2008 (ADAAA) Amendments Act of 2008 (ADAAA) (81)

September 25,2008 President George W. Bush signed ADAAA making important changes to definition of the term disability - making it easier for an individual seeking protection under the ADA to establish that he or she has a disability. EEOC - Congress found persons with impairments - epilepsy, diabetes, multiple sclerosis, major depression, bipolar disorder had been unable to bring ADA claims b/c didn't meet ADA's definition of disabilty - Congress felt these & other impairments should be covered. ADAAA explicitly rejected certain Supreme Court interpretations of term disability and a portion of hte EEOc regulations found had in appropriately narrowed definition of disabilty - ADA applies to same organizations as Title VII of the Civil Rights Act - EEOC enforces ADA

profit-sharing plans (109)

Set up by companies to distribute a portion of profits to employees

Newborns' and Mothers' Health Protection Act of 1996 (161)

Sets minimum standards for the length of hospital stays for mothers and newborn children, and prohibits employers and all insurers (independent and self-funded indemnity plans as well as managed care plans) from using financial incentives to shorten hospital stays.

lump sum distributions (98)

Single payments of benefits. In defined contribution plans, lump sum distributions equal the vested amount (sum of all employee and vested employer contributions, and interest on this sum).

wearaway (117)

Some (usually older) employees do not accrue benefits for a period of time following converson of a defined benefit plan to a cash balance plan, while other (usually younger) employees do not experience an interruption in accruing benefits.

pre-eligibility period (171)

Spans from the initial date of hire to eligibility for coverage in a disability insurance program.

plan termination rules (99)

Specifications set forth by the Pension Benefit & Guaranty Corporation regarding the discontinuation of an employer's defined benefit pension plan.

fiduciary responsibilities (72)

The duties of managrs of employee-benefits programs and pension plan funds. Established by ERISA to ensure prudent choices in managing and administering pension or welfare plans that are in the best interest of participating employees. Fiduciaries can be insurance companies, employee-benefits professionals, or others who are deemed qualified to make prudent decisions.

golden handcuffs (112)

The idea that defined benefit pension plans provide strong financial incentive for employees to build seniority because pension income is much more generous for these individuals (compared to those who leave the company after a few years)

hospitalization benefits (133)

The items that a health plan will provide coverage for, related to stays in the hospital such as the cost of the room and necessary medical supplies.

scheduled injuries (181)

The loss of a member of the body, including an arm, leg, finger, hand, or eye, as classified in workers' compensation programs.

**CH. 2 The Psychology and Economics of Employee Benefits** social exchange (32)

The most basic concept explaining social behavior. All social behavior can be seen as an exchange of activity (work effort), tangible (visible performance) or intangible (motivation and commitment), and more or less rewarding or costly (pay and benefits), between at least two persons (employee and employer)

term life insurance (175)

The most common type of life insurance offered by companies; provides protection to an employee's beneficiaries only during a limited period based on a specified number of years or maximum age. After that, insurance automatically expires.

consumer-driven health care plan (CDHP) (152)

The objective of helping companies maintain control over costs whle also enabling employees to make greater choices about their health care. CDHPs combine a pretax payment account with a high-deductible health plan.

accumulated benefit obligation (102)

The present value of benefits based on a designated date. Actuaries determine a defined benefit plan's accumulated benefit obligation by making assumptions about the return on investment of assets and characteristics of the participants and their beneficiaries including expected length of service and life expectancies.

Internal Revenue Code IIRC) 65

The set of federal government regulations pertaining to taxation in the United States, for example: sales tax, company (employer) income tax, individual (employee) income tax, and property tax.

adverse selection (45)

The tendency of an insurance pool to disproportionately attract "bad risks" and discourage the participation of "good risks."

nondiscrimination rules (97)

These rules prohibit employers from discriminating in favor of highly compensated employees in contributions or benefits, availability of benefits, rights, or plan features. Also, employers may not amend pension plans to favor highly compensated employees.

qualified plans 69

Welfare and pension plans that meet various requirements set forth by the Employee Retirement Security Act of 1974; these plans entitle employees and employers to favorable tax treatment by deducting the contributions from taxable income. Qualified plans do not disproportionately favor highly compensated employees.

occupational disease claim (180)

Workers' compensation claims for disabilities caused by ailments associated with particular industrial trades or processes.

injury claim (180)

Workers' compensation claims for disabilities that have resulted from accidents such as falls, injuries from equipment use, or physical strains from heavy lifting.

backing-in approach (18)

a reactive process for making possible changes to benefits. Companies evaluate the benefits program only when unexpected problems arise

CH. 1 Introduction to Employee Benefits employee benefits (5)

compensation other than hourly wage or salary refer to compensation other than an hourly wage or salary. - paid vacation, health-care coverage, tuition reimbursement

mental health and substance abuse plans (10)

cover the costs for treating mental health ailments such as clinical depression and alcohol or chemical substance abuse

**Chapter Five Employer-Sponsored Health-Care Plans** health-care plans (128)

cover the costs of services that promote sound physical and mental health, including physical and mental health, including physical examinations, diagnostic testing, surgery, hospitalization, psychotherapy, dental treatments, and corrective prescription lenses for vision deficiencies.

strategic benefit plans (17)

detail different scenarios that may reasonably affect the company, and these plans emphasize long-term changes in how a company's benefit plans operate

total compensation (5)***

employee benefits are part represents both core compensation (wages, salaries, and adjustments), and employee benefits represent compensation other than wages or salaries compensation professionals establish core compensation programs to reward employees according tot heir job performance levels or for acquiring job-related knowledge or skills - at the heart of core compensation is monetary compensation

defined contribution plan (11)

employees make contributions to their accounts based on a chosen percentage of annual pay. At their discretion, the company makes matching contributions, which are determined by a formula

employee-financed benefits (12)

employers do not contribute to the financing of discretionary benefits because employees bear the entire cost

strategic planning (16)

entails a series of judgments, under uncertainty, that companies direct toward achieving specific goals. Companies base strategy formulation on environmental scanning activities. The main focus of environmental scanning id discerning threats and opportunities

Social Security Act of 1935 (9)

established four main types of legally required benefits: unemployment insurance, retirement income, benefits for depends, and medical insurance (Medicare)

workers' compensation (10)

established state-run insurance programs that are dewsigned to cover medical, rehabilitation, and disability income expenses resulting from employees' work-related accidents Also known as state compulsory disability laws

informational justice (39)

fairness of the accounts given for certain procedures

person-focused pay (8)

general rewards to employees for acquiring job-related competencies, knowledge, or skills rather than for demonstrating successful job performances

Section 457 plans (112) **only employees contribute**

nonqualified retirement plans typically for local or state government employees. Until 2002, Section 457 plans were less generous than either 401 (k) or 403 (b) plans, because maximum annual contributions were substantially lower. since then, Section 457 plans have the same limits as 401 (k) or 403 (b) plans. However, unlike 401 (k) and 403 (b) plans, only employees may contribute to Section 457 plans.

medical reimbursement plans (158)

one of three prescription drug plans companies choose to provide benefits to employees reimburse employees for some or all of the cost of prescription drugs. Usually associated with self-funded or independent indemnity plans. Similar to indemnity plans, medical reimbursement plans pay benefits after an employee has met an annual deductible for the plan. After employee met deductible, these plans offer coinsurance, usually 80 percent of prescription drug cost, and the employee pays the difference. Maximum annual and lifetim ebenefits amounts vary based on the provisons set forth in the plan.

vision care (10)

plans usually cover eye examinations, prescription lenses, frames, and fitting of glasses

paid time off (5)

policies that compensate employees when they are not performing their primary work duties under particular circumstances such as vacation or illness. companies offer most paid time off as a matter of custom, particularly paid holidays, vacations, and sick leave

paid time-off policies (11)

policies that compensate employees when they are not performing their primary work duties. Companies offer most paid time off as a matter of custom, particularly paid holidays, vacations, and sick leave

equal benefit or equal cost principle (80)

practice that when costs differ significantly employer may legally reduce benefit for older workers ONLY if the costs for providing those benefits significantly greater than cost of ryounger workers. Can reduce to point paying just as much per older worker (with lower coverage) as for younger workers (with higher coverage)

Old-Age, Survivor, and Disability Insurance (OASDI) (9)

programs that provide retirement income, income to the survivors of deceased workers, and income to disbaled workers and their family members under the Social Security Act of 1935

Medicare (9)

programs that serve nearly all U.S. citizens aged at least 65 or disabled Social Security beneficiaries by providing insurance coverage for hospitalization, convalescent care, and major doctor bills

accommodation and enhancement benefits (5)

promote opportunities for employees and their families such as educational scholarships and transportation services - employers may choose to offer one or more of these benefits, including wellness programs, flexible work schedules, and educational assistance.

termination insurance (105)

protects against the loss of vested pension benefits when plans fail. Employees are assessed charges by the PBGC to cover possible plan terminations. Insurance premiums are set by Congress for employers according to the number of covered employees and to whether a pension plan covers employees of just one company (single-employer plans) or a collective bargaining agreement maintains a pension plan to which more than one employer contributes (multiemployer plans)

life insurance (11)

protects the families of employees by paying a specified amount upon the employee's death. Most policies pay some multiple of the employee's salary employer-sponsored life insurance protects family members by paying a specified amount upon the employee's death. Most policies pay some multipl;e fo the employee's salary - i.e. benefits paid at twice the employee's annual salary. Employees usually have option of purchasing additional coverage frequently employer-sponsored life insurance plans also include accidental death and dismemberment claims, which pay additional benefits if death was the result of an accident or if the insured incurs accidental loss of a limb

protection programs (5)

provide family benefits, promote health, and guard against income loss caused by catastrophic factors such as unemployment, disability, and serious illnesses

qualifying beneficiary (74)

qualified beneficiary - For the purposes of the Consolidated Omnibus Budget Reconciliation Act, any individual who is a beneficiary under the group health plan such as the spouse of the covered employee or dependent child of the covered employee. Qualified beneficiaries include the covered employee when the qualifying event is termination of employment (other than by reason of misconduct) or a reducton in work hours.

nonqualified plans 69

qualified plans meet all of minimum standards of ERISA nonqualified plans fail to meet at least one minimum standard.

qualified events (74)

qualifying events - Pertain to an employee's right to elect continuation coverage under the Consolidated Ommnibus Budget Reconciliation Act. Qualifying events include the death of the covered employee, termination or reduction in hours of employment (other than by reason of misocnduct), divorce or legal separation, dependent child ceasing to meet the health plan's definition of a dependent child, and eligibility for Medicare benefits under the Social Security Act.

self-funded plans (129)

refer to health plans that pay benefits directly from an employer's assets.

single-payer system (130)

refers to a health-care system in which the government regulates the health care and uses taxpayer dollars to fund health care such as in Canada and some other economically developed countries. Single-payer systems are often referred to as universal health-care systems because the government ensures that all its citizens have access to quality health care regardless of ability to pay

universal health care systems (130)

refers to systems in which the government ensures that all its citizens have access to quality health care regardless of ability to pay

Employment Retirement Income Security Act of 1974 (ERISA) 67

regulates the establishment and implementation of several employee-benefits practices. These include medical care, life and disability isnurance programs, and retirement programs. Deficiencies in the private-sector pension system, which undermined workers' retirement security, prompted the law's passage. * years of service determinant in participation of company's retirement plan - employer's best interest to set high min age or years of service to qualify since older workers have fewer years of employment than younger workers - years of service criterion important in determining retirement benefits

FAS 132 (162)

requires that companies disclose substantial information about the economic value and costs of retiree health-care programs.

collective bargaining agreements (26)

specify terms of unemployment, including pay, benefits, and working conditions. These agreements arise out of negotiations between management and labor unions that represent some or all employees in a company.

voluntary benefits (13)

supplemental benefits that companies offer on an employee-financed basis, whereas flexible benefits provide employees with a choice from a menu of benefits, which follow contributory or noncontributory financing approaches

seniority pay (7)

systems employees rewarded with permanent additions to base pay periodically according to employees' length of service performing their jobs

competitive strategy (16)

the planned use of company resources - technology, capital, and human resources - to promtoe and sustain competitive advantage.

benefits strategies (17)

the use of benefits practices that support total compensation strategies, human resource strategies, and competitive strategies