Benefit Statement Glossary

Accelerated Life Insurance Benefits - This is when benefit payments from life insurance or long-term benefit plans are increased to cover expenses for a chronically ill individual.

Annual Enrollment - designated time frame when new benefits and plan changes are communicated to employees; and they can make benefit changes or new elections for the upcoming plan year.

Base Pay - an amount or a rate of compensation for a specified position of employment or activity excluding any other payments or allowances.

Benefit Statement - customized to the employer and personalized to each employee showing the value of their total compensation and company-provided benefits; may include current benefit elections and a variety of other information. Typically provided on annual basis.

Current Benefit Statement - indicates the benefit statement has been produced by taking data from a specific, current date and then annualized.

Flexible Benefits Plan - nontaxable plans and permissible taxable benefits, including cash. May be limited to a health and welfare plan that offers the choice of pre-tax premium deductions, or as grand as selection among various benefits, with pre- or post-tax deductions, various levels of benefits, spending accounts, or cash. Also referred to as Cafeteria Plan.

Flexible Spending Account (FSA) - an account by which an employee uses pre-tax deductions to accumulate funds for reimbursement of eligible expenses.

Historical Benefit Statement - indicates the benefit statement has been produced using 12-month historical information regarding compensation and benefits.

Mandated Benefit - a benefit that is required by law to provide. Examples include Social Security and Medicare, Federal and State unemployment insurance taxes, and workers' compensation.

Total Compensation Statement - newer term for benefit statement that encompasses total compensation. Also referred to as Total Rewards Statement.