Fundamentals of Human Resource Management Sixth Edition Chapter 14

Employee Benefits (P424)

Compensation in forms other than cash

Social Security (P426)

The federal Old Age, Survivors, Disability, and Health Insurance (OASDHI) program, which combinese old age (retirement) insurance, survivor's insurance, disability insurance, hospital insurance (Medicare Part A), and supplementary medical insurance (Medicare Part B) for the elderly

Unemployment Insurance (P427)

A federally andated program to minimize the hardships of unemployement through payments to unemployed workers, help in finding new jobs, and incentives to stabilize employment

Experience Rating (P428)

The number of employees a company has laid off in the past and the cost of providing them with unemployment benefits

Workers' Compensation (P428)

State programs that provide benefits to workers who suffer work-related injuries or illnesses, or to their survivors

Family and Medical Leave Ace (FMLA) (P429)

Federal law requiring organizations with 50 or more employees to provide up to 12 weeks of unpaid leave after childbirth or adoption; to care for a seriously ill family member or for an employee's own serious illness; or to take care of urgent needs that arise when a spouse, child, or parent in the National Guard or Reserve is called to active duty.

Patient Protection and Affordable Care Act (P429)

Health care reform law passed in 2010 that includes incentives and penalties for employers providing health insurance as a benefit

Consolidated Omnibus Budget Reconciliation Act (COBRA) (P434)

Federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying eent, such as a layoff, reduction in hours, or the employee's death

Health Maintenance Organization (HMO) (435)

A health care plan that requires patients to receive their medical care from the HMO's health care professionals, who are often paid a flat salary, and provides all services on a prepaid basis

Preferred Provider Organization (PPO) (P435)

A health care plan that contracts with health care professionals to provide services at a reduced fee and gives patient financial incentives to sue network providers

Flexible Spending Account (P435)

Employee-controlled pretax earnings set aside to pay for certain eligible expenses, such as health care expenses, during the same year

Employee Wellness Program (P436)

A set of communications, activities, and facilities designed to change health-related behaviors in ways that reduce health risks

Short-Term Disability Insurance (P436)

Insurance that pays a percentage of a disabled employee's salary as benefits to the employee for six months or less

Long-Term Disability Insurance (P436)

Insurance that pays a percentage of a disabled employee's salary after an initial period and potentially for the rest of the employee's life

Contributory Plan (P437)

Retirement plan funded by contribution s from the employer and employee

Noncontributory Plan (P437)

Retirement plan funded by contributions from the employer and employee

Defined-Benefit Plan (P438)

Pension plan that guarantees a specified level of retirement income

Employee Retirement Income Security Act (ERISA) (P438)

Federal law that increased the responsibility of pension plan trustees to protect retirees, established certain rights related to vesting and portability, and created the Pension Benefit Guarantee Corporation

Pension Benefit Guarantee Corporation (PBGC) (P438)

Federal agency that insures retirement benefits and guarntees retirees a basic benefit if the employer experiences financial difficulties

Defined-Contrubution Plan (P438)

Retirement plan in which the employer sets up an individual account for each employee and specifies the size of the investment into that account

Cash Balance Plan (P440)

Retirement plan in which the employer sets up an individual account for each employee and contributes a percentage of the employee's salary; the account earns interest at a predefined rate

Summary Plan Description (SPD) (P442)

Report that describes a pension plan's funding, eligibility requirements, risks, and other details.

Cafeteria-Style Plan (P446)

A benefits plan that offers employees a set of alternatives from which they can choose the types and amounts of benefits they want