Comp And Benefits (Ch 6) - Part 4

Front 1

Qualified domestic relations orders (QDRO)

Back 1

Legal orders issued by state courts or other state agencies to require pension payments to alternate payees. An alternate payee must be a spouse, former spouse, child, or other dependent of a plan participant.

Front 2

Qualified plan

Back 2

Meets ERISA requirements and provides tax advantages for both employees and employers. It can't provide additional benefits for officers, shareholders, executives, supervisors, or other highly compensated employees—all employees in the organization must be eligible for all plan benefits.

Front 3

Ranking method

Back 3

Requires evaluators to compare the value of jobs to one another. It is a subjective method for evaluating jobs

Front 4

Red circle

Back 4

Pay falls above the maximum of the salary range

Front 5

Reduced FMLAleave schedule

Back 5

A leave in which the employee’s regular work schedule is reduced for a period of time. This can mean a reduction in the hours worked each day or in the number of days worked during the week.

Front 6

Reporting premium

Back 6

When employees arrive at work for their regularly scheduled shift but there is no work to be done, they may be paid for a minimum number of hours based on employment agreements or state laws. Reporting pay is not required by the FLSA.

Front 7

Restricted stock

Back 7

Common stock offered to employees, typically executives or employees who demonstrate outstanding performance. Restricted stocks are actual shares, not the option to buy shares, like stock options. Usually follows a vesting schedule designed to reward retention.

Front 8

Retirement Equity Act (REA)

Back 8

Lowered age limits for participation and vesting in pension plans. It also required written approval from a spouse if the participant did not want to provide survivor benefits in the plan and placed restrictions on the conditions that could be placed on survivor benefits. (1984)

Front 9

Salary surveys

Back 9

Allow organizations to gather compensation and benefits data that reflects current trends in the labor market.

Front 10

Scanlon plan

Back 10

One of the earliest pay for performance plans. Created to increase productivity and decrease costs through employee involvement. Employees receive a portion of cost savings achieved through productivity gains and cost savings.

Front 11

Section 125 plans AKA FSA

Back 11

Allows employees to set aside pretax funds for medical expenses they plan to incur during the calendar year. Funds left in the account after all expenses for the year have been paid will be forfeited and may be used by the employer to pay the administrative costs of the plan

Front 12

Self-funded plan

Back 12

A plan in which the employer creates a claim fund and pays all claims through it.

Front 13

Seniority-based compensation

Back 13

Making pay decisions based on the length of time employees have been in a position and on years of related experience. Representative of an entitlement compensation philosophy.

Front 14

Service contract act

Back 14

Requires any federal service contractor with a contract exceeding $2,500 to pay its employees the prevailing wage and fringe benefits for the geographic area in which it operates, provide safe and sanitary working conditions, and notify employees of the minimum allowable wage for each job classification, as well as the equivalent federal employer classification and wage rate for similar jobs. (1965)

Front 15

Shift

Back 15

Any scheduled block of time during the work week when employees perform job-related duties.

Front 16

Shift premium

Back 16

Additional compensation provided for employee who work other than the day shift. May be paid as a percentage of base pay or may be factored into the hourly rate

Front 17

Small Business Job Protection Act

Back 17

To relieve the costs of administering qualified plans for small businesses, this act simplified ADP tests for 401(k) plans and redefined highly compensated employees. In addition, it detailed minimum participation requirements and made changes to disclosure requirements for qualified plans. (1996)

Front 18

State unemployment insurance (SUI)

Back 18

Localized responsibility for the administration and distribution of this program was established by the SSA act of 1935. This program can have varying rates and based on location and employer.

Front 19

Stock option

Back 19

The right to purchase an employer’s stock at a certain price (the strike-price), at a future date, within a specified period of time.

Front 20

Stop-loss insurance

Back 20

Stop-loss insurance is purchased by sell-funded employers to prevent a single catastrophic claim from devastating the claim fund. The employer agrees upon a preset maximum coverage amount that will be paid from the claim fund for each participant before the insurance company begins to pay the claim.

Front 21

Strike price

Back 21

Also known as the grant price, the strike price is the price at which stock options may be purchased or sold by the holder of the options when they are exercised.

Front 22

Summary plan description (SPD)

Back 22

Provides plan participants with information about the provisions, policies, and rules established by the plan and advises them on actions they can take in utilizing the plan.

Front 23

Swing shift

Back 23

Shift work hours from 4 p.m. to 12 a.m.

Front 24

Target benefit plan

Back 24

Instead of using a fixed percentage of employee salaries to determine annual contribution amounts, actuarial formulas calculate the contribution amount needed to reach a predetermined benefit amount at retirement. This amount rakes into consideration the current age of each employee, so different amounts will be contributed for employees with equal compensation packages.

Front 25

The Mental Health Parity Act

Back 25

Requires insurers to provide the same limits for mental health benefits in their plans as they provide for other health benefits. (1996)

Front 26

Third-party administrator (TPA)

Back 26

An organization that processes insurance claims or certain aspects of employee benefit plans for a separate entity

Front 27

Time-and-a-half

Back 27

Time-and-a-half is the overtime rate specified by the FLSA for non-exempt employees who work more than 40 hours per week.

Front 28

Total rewards philosophy

Back 28

a high-level mission statement used to guide the development and implementation of compensation and benefit programs that attract, motivate, and retain employees.

Front 29

Total rewards strategy

Back 29

used to determine how the resources available for rewards programs can he used to best advantage in attracting, motivating, and retaining employees

Front 30

Unemployment Compensation Amendments

Back 30

This act reduced rules for rolling over lump-sum distributions of qualified retirement plans into other plans and subjected some distributions to 20 percent Income tax withholding. (1992)

Front 31

Variable compensation

Back 31

Programs that reward employees for individual and/or organizational results. Also known as "Pay for performance" and "Incentive pay"

Front 32

Vesting

Back 32

The point at which employees own the contributions their employer has made to the pension plan whether or not they remain employed with the company.

Front 33

Wage compression

Back 33

Occurs when new employees are hired at a rate of pay greater than that earned by incumbent employees for similar skills, education, and experience.

Front 34

Wage garnishments

Back 34

Funds employers may be required by a court order or tax levy to withhold from employee paychecks. Issued to satisfy a debt owed by the employee.

Front 35

Waiting to be engaged

Back 35

Example: waiting for work to start - non-compensable

Front 36

Walsh Healy public contracts act

Back 36

Requires government contractors with contracts exceeding $10,000 (for other than construction work) to pay their employees the prevailing wage for their local area as established by the secretary of labor. (1936)