Discover definitions for key terms in employee benefits, enrollment technology, and more.

terms & definitions

401(k) Plan

A type of retirement savings account in the U.S. allowing workers to save and invest a portion of their paycheck before taxes are taken out.

403(b) Plan

A retirement savings plan similar to a 401(k) but offered to employees of non-profit organizations, public schools, and certain religious organizations.

Benefit Enrollment Company

A company specializing in managing the benefits enrollment process for other businesses.

Benefits Administration

The process of designing, managing, and updating an organization's employee benefits program.

Benefits Advisor

A professional who provides guidance on employee benefits, helping employees understand their benefit options and make informed decisions.

Benefits Broker

A third-party company helping employers and employees choose and enroll in benefits plans.

Benefits Compliance

The process of ensuring an organization's benefits program adheres to all relevant local, state, and federal laws and regulations.

Benefits Consultant

A professional who helps employers design and implement benefits programs and assists employees with benefits education and enrollment.

Benefits Consultation

The process of guiding employees about their benefits options, helping them make informed choices based on their specific needs.

Benefits Decision Support

Software and tools helping employees make informed decisions about their benefits options, often considering factors like income, family needs, and health status.

Benefits Enrollment

The process of enrolling employees in benefits plans.

Benefits Enrollment Platform

An online system where employees can view and manage their benefits, learn about their options, and make changes during open enrollment periods.

Benefits Package

The combination of benefits offered by an employer, which may include health insurance, retirement plans, paid time off, and other perks.

Benefits Technology

The software or tools used to manage and deliver employee benefits, automated benefits enrollment and management processes.

Benefits Utilization

The degree to which employees make use of the benefits offered to them.


A federal law allowing employees to temporarily continue their health coverage after leaving a job or reducing their work hours.

COBRA Administration

The process of managing continuation of health coverage under COBRA law for employees who have lost their job-related benefits.

Cafeteria Plan

A written plan maintained by an employer for employees meeting the specific requirements and regulations of Section 125 of the Internal Revenue Code. It provides participants an opportunity to receive certain benefits on a pretax basis.


The percentage of the cost of covered services an employee must pay after having met the deductible.


A flat fee an employee must pay for covered services.

Critical Illness Insurance

Insurance that pays a benefit to the insured when diagnosed with a covered critical illness.


The amount of money an employee must pay out-of-pocket before their insurance plan will start paying for covered services.

Defined Benefit Plan

A type of retirement plan where the employer guarantees a specified payout at retirement, based on salary and length of service.

Defined Contribution Plan

A type of retirement plan where the employer, employee, or both make regular contributions to an account funding their retirements.

Dependent Care FSA

A pre-tax benefit account used to pay for eligible dependent care services, such as preschool, summer day camp, before or after school programs, and child or elder daycare.

Dependent Coverage

Insurance coverage extending to an employee's qualified dependents.

Disability Insurance

Insurance that pays a benefit to the insured when unable to work due to a qualified sickness or injury resulting in a disability.

Employee Assistance Program (EAP)

A workplace program designed to help employees deal with personal problems that might adversely impact their work performance, health, and well-being.

Employee Benefit Software

Software designed to manage employee benefits; providing features such as benefits administration, enrollment management, and compliance tracking.

Employee Benefits Communication

The practice of informing employees about their benefits options, often using personalized messaging and educational resources.

Employee Benefits Education

An employer provides benefits contributing to an employee's education, such as tuition assistance or access to training programs.

Employee Benefits Strategy

A company's plan for using benefits to attract and retain employees is often designed with the help of an employee benefits consultant.

Employee Engagement

The communication tactics used in order to educate and inform employees throughout the enrollment period.

Employee Retention

An organization's ability to retain its employees and prevent turnover.

Employee Self-Service

Technology enabling employees to manage their own benefits, typically through an online portal.

FMLA (Family and Medical Leave Act)

A US labor law requiring covered employers to provide employees with job-protected and unpaid leave for qualified medical and family reasons.

Flexible Spending Account (FSA)

A type of savings account allowing employees to set aside pre-tax dollars for certain out-of-pocket health care costs.

Group Insurance Plan

Insurance coverage to a group of members, usually comprised of company employees or members of an organization

HIPAA (Health Insurance Portability and Accountability Act)

Federal regulation designed to provide privacy standards to protect patients' medical records and other personal health information.

HRIS (Human Resource Information System)

An intersection of human resources and information technology through HR software allowing HR activities and processes to occur electronically.

Health Reimbursement Account (HRA)

Employer-funded accounts from which employees are reimbursed tax-free for qualified medical expenses.

Health Savings Account (HSA)

A type of savings account allowing employees to set aside pre-tax dollars for qualified medical expenses.

Health and Wellness Programs

Programs offered by an employer or insurance company focusing on promoting healthy lifestyles, and may include preventive care, weight loss programs, and exercise programs.

High-Deductible Health Plan (HDHP)

A health insurance plan with a higher deductible but lower premiums, often paired with a Health Savings Account (HSA).

Indemnity Plan

A type of health insurance allowing the policyholder to direct their own healthcare and visit almost any doctor or hospital.

Life Insurance

In insurance plan that, in exchange for regular premiums, pays out a sum of money upon the death of the insured.

Long-Term Disability Insurance

Insurance that provides income replacement for employees who are unable to work due to a long-term disability.

Managed Care

A system of healthcare delivery aiming to control costs and improve quality by coordinating healthcare services for patients.

Open Enrollment

The annual period of time during which employees can make changes to their benefits elections.

Open Enrollment Communication

Communication strategies used to inform employees about the current enrollment period and deadlines, benefits options, and how to enroll.

Out-of-Pocket Maximum

The maximum amount of money an employee will have to pay out-of-pocket for covered services in a given year.

PPO (Preferred Provider Organization)

A type of health plan that contracts with medical providers, such as hospitals and doctors, to create a network of participating providers.

Personalized Employee Benefits

Customizable benefits packages catering to the individual needs and preferences of each employee.

Pre-Tax Benefits

In accordance with an IRS Section 125 plan, employee benefits for which the cost is payroll deducted from the employee's paycheck before taxes are applied, reducing the employee's taxable income.


The monthly cost of an insurance plan.

Professional Development

Learning to earn or maintain professional credentials such as academic degrees to formal coursework, attending conferences, and informal learning opportunities situated in practice.

Short-Term Disability Insurance

Insurance that provides income replacement for employees who are unable to work due to a qualifying sickness or injury.


Technology allowing employees to consult with healthcare professionals over the phone or video call.

Total Compensation

The complete package of benefits an employer provides to an employee, including salary, bonuses, and non-cash benefits like health insurance, retirement plans, etc.

Tuition Reimbursement

A benefit in which an employer pays all or a part of an employee's tuition cost for education or training.

Virtual Enrollment

The practice of conducting benefits enrollments online, often using technology facilitated by a benefits consultant.

Vision insurance

Insurance that covers the cost of eye exams and glasses.

Voluntary Benefits

Supplemental benefits an employer can offer to employees, such as life insurance or disability insurance, which the employee can choose to opt into.

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