Offer Glossary
General Benefits
| Term | Description |
|---|---|
| Paid Time Off (PTO) | Sick, vacation, and personal days that you can take off with pay. Policies vary by company, including how days are accrued and whether they roll over or expire. |
| Flex Time / Telecommuting | Some jobs allow flexible hours or remote work options to help balance your work and personal life. |
| Tuition Reimbursement | Employers may cover all or part of tuition for job-related courses. Some also cover books, supplies, or unrelated courses. |
| Family Medical Leave Act (FMLA) | Eligible employees can take unpaid leave for major life events such as childbirth, adoption, or caring for a seriously ill family member. |
Health Insurance
| Term | Description |
|---|---|
| Premium | The monthly amount you pay for health insurance. |
| Deductible | The amount you pay out of pocket for healthcare before your insurance kicks in. |
| Copay | A fixed fee you pay for covered services, typically at the time of care. |
| Coinsurance | The percentage you pay for services after meeting your deductible. |
| Out-of-Pocket Maximum | The most you’ll pay in a plan year for covered services before your plan pays 100%. |
| Out-of-Pocket: Costs That Count | Deductibles, copayments, and coinsurance for in-network care and services. |
| Out-of-Pocket: Costs That Don’t Count | Premiums, out-of-network care, uncovered services, and charges above allowed amounts. |
| In-Network vs. Out-of-Network | In-network providers have contracts with your insurer (lower cost); out-of-network providers do not (higher cost). |
| Open Access Health Plan | Lets you see specialists without referrals, usually with higher premiums and copays. |
| Flexible Spending Account (FSA) | Pre-tax account for medical expenses. Use it by year-end or lose it. |
| Health Savings Account (HSA) | Pre-tax savings for medical expenses that roll over and can earn interest. Only available with high deductible plans (HDHPs). |
| Open Enrollment Period | The annual window to enroll in or change medical, dental, or vision plans. |
| Qualifying Life Event (QLE) | Life changes (e.g., marriage, birth, job change) that let you adjust your health plan outside Open Enrollment. |
| Dependent | Spouse, children, or other eligible individuals covered under your plan. |
Retirement Plans
| Term | Description |
|---|---|
| Vesting | The length of time you need to work to keep employer contributions to your retirement plan. |
| Pre-Tax Contribution | Money added to retirement accounts before taxes, lowering your taxable income. |
| 401(k) / 403(b) | Employer-sponsored retirement accounts. 403(b) plans are for nonprofit and public sector employees. |
| Traditional IRA / Roth IRA | Personal retirement accounts with tax advantages. Traditional: taxed later. Roth: taxed now, tax-free withdrawals later. |
| Employer Contribution | Money an employer adds to your retirement account, such as matching your contributions. |
| Contribution Limit | The maximum amount you can add to retirement accounts each year, set by the IRS. |
Life, AD&D, and Disability Insurance
| Term | Description |
|---|---|
| Life Insurance | Provides a payout to your beneficiaries if you pass away. Basic coverage is often free; additional coverage can be purchased. |
| AD&D Insurance | Accidental Death & Dismemberment insurance pays benefits for death or serious injury from accidents. |
| Short-Term Disability (STD) | Provides partial income for temporary inability to work (e.g., illness, injury, surgery). |
| Long-Term Disability (LTD) | Provides income if you're unable to work for an extended period due to serious illness or injury. |
| Beneficiary | The person or organization you choose to receive your benefits in the event of your death. |