Chapter 11: Employee Benefits

backup care program
a benefit program whereby an employer provides or subsidizes temporary care for its employee’s elders or children when their regular arrangements fall through
contributory plan
a pension plan in which contributions are made jointly by employees and employers
defined benefit plan
a pension plan in which the amount an employee is to receive on retirement is specifically set forth
defined contribution plan
a pension plan that establishes the basis on which an employer will contribute to the pension fund
disease management programs
programs that provide patients and their caregivers with information on monitoring and treating medical conditions, while coordinating communication between them, their health care providers, employers, and insurers
elder care
care provided to an elderly relative by an employee who remains actively at work
employee assistance program (EAP)
services provided by employers to help workers cope with a wide variety of problems that interfere with the way they perform their jobs
flexible benefits plan (cafeteria plans)
benefit plans that enable individual employees to choose the benefits that are best suited to their particular needs
health maintenance organization (HMO)
organizations of physicians and health care professionals that provide a wide range of services to subscribers and dependents on a prepaid basis
high-deductible health insurance plan (HDHP)
a medical insurance plan characterized by high deductibles but lower premiums for workers and a health spending account to which employers contribute funds employees can keep should they leave the organization
noncontributory plan
a pension plan in which contributions are made solely by the employer
phased retirement
a program that allows its employees to gradually cut their hours before retiring
preferred provider organization (PPO)
a network of physicians who establish an organization that guarantees lower health care costs to employers and their employees
sabbatical
an extended period of time in which an employee leaves an organization to pursue other activities and later returns to his or her job
severance pay
a one-time payment sometimes given to an employee who is being involuntarily terminated
supplemental unemployment benefits (SUBs)
a plan that enables an employee who is laid off to draw, in addition to state unemployment compensation, weekly benefits from the employer that are paid from a fund created for this purpose
vesting
a guarantee of accrued pension benefits to participants at retirement age, regardless of their employment status at that time
wellness programs
employer-sponsored programs designed to encourage employees to maintain and improve their health and well-being by getting regular checkups, eating properly, exercising, and managing their stress levels so as to prevent costly and protracted illneses
workers’ compensation insurance