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HR Ch. 15
Frear HR Ch. 15
Term | Definition |
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Employee Benefits | Rewards that employees receive for being members of the org. and for their positions in the org.; usually not related to employee performance. |
Social Security | Federally administered insurance system designed to provide funds upon retirement or disability or both and to provide hospital and medical reimbursement to people who have reached retirement age. |
Unemployment Compensation | Form of insurance designed to provide funds to employee who have lost their jobs and are seeking other jobs. |
Workers Compensation | Form of insurance that protects employees from loss of income and extra expenses associated with job-related injuries or illness. |
Private Plans | Employee benefits that provides a source of income to people who have retired; funded either entirely by the org. or jointly by the org. and employee during employment. |
Defined-Benefit Plan | Pension plan under which an employer pledges to provide a benefit determined by a definite formula at the employee's retirement date. |
Defined-Contribution Plan | Pension plan that calls for a fixed or known annual contribution instead of a known benefit. |
Vesting | Right of the employees to receive money paid into a pension or retirement fund on their behalf by their employer if they leave the org. prior to retirement. |
Employee Retirement Income Security Act (ERISA) | Federal law passed in 1974 designed to give employees increased security for their retirement and pension plans and to ensure the fair treatment of employees under pension plans. |
Retirement Equity Act | Act passed in 1984 the liberalized eligibility requirements, vesting provisions, maternity/paternity leaves, and spouse survivor benefits of retirement plans. |
Ameneded Age Discrimination Employment Act (ADEA) | Forbids mandatory retirement at any age for all companies employing 20 or more people in the private sector and in the federal government. |
Individual Retirement Accounts (IRA) | Individual pension plan for employees not covered by private pension plans. |
SEP-IRA | Retirement plan that allows small businesses and sole proprietors to make deductible contributions. |
Roth IRA | Retirement plan that allows individuals to make nondeductible contributions and tax-free withdrawals with certain restrictions. |
Health Maintenance Org. (HMO) | Health services org. that contracts with companies to provide certain basic medical services around the clock, seven days a week, for a fixed cost. |
Preferred Provider Org. (PPO) | Formed by contracting with a group of doctors and hospitals to provide services at a discount or otherwise attractive prices. Such providers are designated as "preferred" providers of care. |
Disability Insurance | Designed to protect employees who experience long-term or permanent disability. |
Floating Holiday | Holiday that is observed at the discretion of the employee or employer. |
Flexible-Benefit Plan (Cafeteria Plan) | Benefit plan that allows employees to select from a wide range of options how their direct compensation and benefits will be distributed. |