An act outlining federal criteria concerning pension plans, including participation requirements, financial responsibility, and financing.
Insurance Encyclopedia
Employee Retirement Income Security Act of 1974 (ERISA)
Federal law that affects pension and profit-sharing plans. Among other provisions, this law specifies a published summary plan must be distributed to participants within 120 days after adoption of the plan and within ninety days after an employee becomes a participant. The law requires that a summary plan description be issued every five years.
employee stock ownership plan (ESOP)
Qualified employee-benefit plan that invests some or all plan assets in employer stock. Under ERISA, an ESOP is a qualified stock bonus plan or a combination qualified stock bonus plan and defined contribution pension plan that invests in employer securities. The employer’s contributions are tax deductible for the employer and tax deferred for the employee.
Employee stock ownership plan (Pensions)
An employee plan under which qualified employees are offered part ownership in the company they are employed by. Under this type of plan, stock certificates are produced and maintained in trust for the employee.
Employee trustees
Employees appointed as trustees of their employer’s occupational pension scheme. Dismissal or redundancy is treated as unfair if prompted by the performance of their trustee duties. They do not have to be member-nominated employees to benefit from the protection under the Employment Rights Act 1996.
Employee welfare benefit plan (Pensions)
Any employer-maintained plan, offering policyholders and their dependents services or benefits upon illness, death, or unemployment. These may include medical care or other benefits.
Employee-pay-all plan
Group insurance plan in which the employees pay all of the premium.
Employee-selected physician
In workers’ compensation cases, a physician or medical facility chosen by the employee more than 30 days from the date of when the injury is reported.
Employee’s cost basis
In a retirement plan, an amount that is subtracted from the total amount of distribution to the plan to determine the amount of the distribution subject to federal tax. Cost basis is the amount on which an employee has already been taxed. It includes the amount of nondeductible contributions made to the plan by the participant, cost of plan-provided life insurance reported as taxable income by the participant, and amount of employer contributions previously taxed as income to the participant.
Employee’s Compensation Insurance
The Policy protects the employers against their legal liability to their employees for payment of compensation arising as a result of death or disablement of the employees arising out of and in the course of employment. This liability may arise under the Workmen’s Compensation Act, 1923; the Fatal Accidents Act, 1855 or at Common Law. (1) The Workmen’s Compensation (Amendment) Act, 2009 is now renamed as The Employee’s Compensation (Amendment) Act, 2009 and wherever “workman” or “workmen” is mentioned in the entire Act the same needs to be read as “Employee”…(2) The compensation payable on death from the injury, is (i) minimum of Rs. 80000 is increased to Rs. 120000 or (ii) 50% of the monthly wages of deceased multiplied by the relevant factor. (3) The compensation payable on Permanent Total Disablement from the injury, is (i) minimum of Rs. 90000 is increased to Rs. 140000 or (ii) 60% of the monthly wages of deceased multiplied by the relevant factor. Table ‘A’ cover: Provides indemnity against legal liability under The Employee’s Compensation (Amendment) Act, 2009 Act, Fatal Accidents Act and Common Law. This may be issued for only those employees who come within the purview of the definition of ‘employee’ under the Act. Table ‘B’ cover: Provides indemnity against legal liability under the Fatal Accidents Act and Common Law. This may be issued to cover only those employees who are not ‘employee’ within the meaning of the term under the Employees Compensation (Amendment) Act, 2009.