Chart of Key Employee Benefit Plans and Programs

Type

Summary

Cafeteria Plan:

Provides employees with a choice of different benefits.

Defined Benefit Pension Plan:

A pension plan that provides employees with a specific amount of payment upon retirement, depending on the employee’s length of service and level of compensation.

Defined Contribution Pension Plans:

A pension plan that provides that the employer will contribute a prescribed amount into a pension plan each year.

Disability Plan:

Provides employees with certain payments on disability.

Health and Medical Plan:

A plan which provides employees coverage for certain health, medical and accident occurrences.

Life Insurance Plan:

Provides for group-term life insurance for employees.

Phantom Stock Plans:

Gives employees the economic advantages (without actually issuing stock) of stock in the employer if the stock appreciates.

Profit Sharing Program:

A program where the employees share a percentage of the profits from the business.

Retention Agreements:

Provides for cash bonuses or other payment if the employee stays employed for a designated period of time.

Section 401(k) Plan:

A form of retirement plan that employees or employers can contribute to the plan, and the buildup in the employee’s rights under the plan are not taxed until withdrawal or at certain age levels.

SIMPLE Plan:

A simple form of pension plan for companies with...