Work Benefits Terms and Vocabulary

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Work BenefitsTerms and Vocabulary

• Career Connection
• The Ohio State University
• 1640 Neil Avenue, Second Floor
• Younkin Success Center
• Columbus, OH 43201-2333
• [phone]
• http//www.careerconnection.osu.edu

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Benefits

• Medical Benefits
• Dental Benefits
• Vision Care Benefits
• Life Insurance Benefits
• Disability Benefits
• Bonuses

• Paid time off
• Unpaid leave
• Sick leave
• Personal leave
• Bereavement leave
• Maternity leave
• Child care

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Insurance Vocabulary

• Premium- the amount paid for insurance monthly,
  quarterly, semi-annually, yearly
• Benefit- amount of money the policy pays
• Beneficiary- person, persons, or organizations
  receiving the benefit
• Lump Sum an option for paying benefits to the
  beneficiary
• Multiple Payment Option an option for recurring
  payments of benefits to the beneficiary, payments
  are called sometimes called annuities
• Riders- additional conditions added to the
  insurance contract providing additional benefits
• Term- length of time a policy is effective
• Maturity Date- the date the face amount of a
  policy becomes payable

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Other Types of Insurance

• Disability a policy designed to pay benefits if
  the policy holder becomes disabled with the
  intent of the beneficiary using the benefits for
  living and medical costs until the policy holder
  is able to resume work
• Workmans comp a public fund designed to pay
  settlements to injured workers
• Long-term care a policy intended to help pay the
  high costs of long term care (such as hospital,
  nursing home, or in-home care)
• Medical, Dental, Hearing, Vision

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Types of Life Insurance

• (Note Life insurance may require a physical
  before an insurance company will extend coverage)
• Short-term
• Insurance that lasts for a specified number of
  years and no longer
• Premiums are usually guaranteed not to increase
  for the length of the policy
• Meets temporary needs (such as child care)
• Renewable some policies may be renewed after the
  term has expired
• Conversion portions of some policies may be
  changed over to permanent insurance

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Types of Life Insurance

• Long-term
• Insurance that lasts either for the life of the
  policy-holder or until the policy-holder attains
  100 years of age
• Premiums may be paid for a set term or
  indefinitely

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Types of Life Insurance

• Long-Term/Whole-Life
• May accumulate interest (which can be tax free)
  may be used as collateral for loans (if the
  policy holder dies before the loans are paid, the
  balance is usually deducted from the benefit paid
  to the beneficiary)
• Types
• Fixed- Life insurance policy wherein benefits are
  worth a set value
• Variable- Life insurance policies wherein
  premiums are invested the total values of these
  policies change with the performance of the stock
  market

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Retirement Plans

• 457 plan Retirement plan provided to federal
  government employees
• 401k plan Retirement plan provided to private
  sector employees
• 403b plan Retirement plan provided to state
  employees
• IRA Private retirement plan that individuals
  contribute to independently
• Annuities Retirement benefits provided through
  insurance plans

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Retirement Plans- Information

• Money may be withdrawn
• Termination of employment
• In-service withdrawal
• If you become permanently disabled
• Death of the participating employee
• Money withdrawn early may be subject to a heavy
  tax penalty
• Distributions can be received upon retirement
• Early retirement is upon 55th birthday
  retirement is upon 65th birthday

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Retirement Plans- Vocabulary

• Pre-tax contributions- contributions made to a
  retirement account that are deducted from the
  paycheck before earnings are subject to income
  tax
• Compounding- when earnings from the retirement
  contributions are re-invested in the retirement
  funds
• Inflation- increase in the price of goods or
  services

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Retirement Plans- Vocabulary

• Discretionary matching- employer contributions to
  a retirement plan that matches employee
  contributions up to a certain percentage
• Vested- to become fully entitled to the
  contributions your employer has made to your
  retirement plan, including matching and
  discretionary contributions, after a certain
  period of service with the employer
• Profit-sharing contributions- elective employer
  contributions to a retirement plan designed to
  share company profits with employees a type of
  incentive program

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Additional Benefits

• Relocation expenses / cost of living adjustments
• Severance packages
• Professional membership dues
• Tuition reimbursement

• Education
• Training programs
• Desirable office
• Technology or special equipment (ie- computers)
• Company car

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Questions to Ask About Benefits

• Can (medical/dental/vision) coverage be extended
  to non-married partners?
• What kind of leave am I entitled to if I take
  time off to care for a sick family member?
• Do you offer paternity leave?
• How does leave/vacation impact my productivity
  requirements?
• Do you offer any benefits specific/unique to your
  company?

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Additional Resources

• http//finance.yahoo.com/education
• http//search.morningstar.com/Glossary/glossary_A_
  B.html?wsectionglossary

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• If youre at a place where youre stuck then
  thats called a job if youre at a place where
  you can constantly grow, thats a career.
• Everest Institute