Savings Plan – Also known as a "thrift plan," a defined contribution plan allowing participants to make voluntary contributions up to a specified limit and allowing employers to contribute, usually in the form of a percentage match of employee contributions. Participant contributions are usually made with after-tax dollars, a distinction between a cash or deferred arrangement.

Second Opinion – A medical opinion provided by a second physician or medical expert, when one physician provides a diagnosis or recommends surgery to an individual. Individuals are encouraged to obtain second opinions whenever a physician recommends surgery or presents and individual with a serious medical diagnosis.

Second Surgical Opinion – An opinion provided by a second physician, when one physician recommends surgery to an individual. Second surgical opinions are now covered under standard benefits in many health insurance plans.

Section 125 Plan – Synonymous with flexible benefit plans. Refers to the IRS code which defines such plans and establishes that employee contributions may be made with pre-tax dollars.

Section 403(b) Plan – In the United States, a type of employee retirement plan established by certain tax-exempt organizations (i.e., hospital, charities, churches) and education organizations. Section 403(b) plans were created by Congress to serve as an incentive for tax-exempt organizations (who could not benefit from the tax advantages of qualified pension plans) to offer their employees some form of retirement compensation.

Self-Administered Group Insurance Plan – Under this type of group insurance plan, the group policyholder rather than the insurer performs most of the administrative work for the plan. The policyholder maintains detailed records of group membership, processes routine requests, such as requests for beneficiary changes and name and address changes, prepares its own premium statements, and in some cases prepares certificates for new group members.

Self-Insurance – (1) A program for providing group insurance with benefits financed entirely through the internal means of the policyholder, in place of purchasing coverage from commercial carriers. (2) A form of risk financing through which a firm assumes all or a part of its own losses.

Short-Term Disability Income Insurance – The provision to pay benefits to a covered disabled person as long as he/she remains disabled up to a specified period not exceeding two years.

Simplified Employee Pension (SEP) – In the United States, a pension plan in which an employer contributes money to an individual retirement account (IRA) for each employee covered by the plan. The IRA is owned by the employee and not the employer. A SEP is especially useful to employers who cannot afford the time or money needed to administer and maintain a more complicated pension plan. SEP’s may also be used by self-employed persons.

Social Security Disability Income (SSDI) – In the United States, a long-term disability income program that provides benefits to disabled workers who are under age 65 and who have paid a specified amount of Social Security tax for a prescribed number of quarter-year periods.

Social Security Option – An option under which the employee may elect that monthly payments of an annuity before a specified age (62 or 65) be increased, and that payments thereafter be decreased to produce, as nearly as practical, a level total annual annuity to the employee, including Social Security benefits when they become due.

Split-Dollar Insurance – Life insurance polices in which the employer and employee share in premiums, ownership and death benefits.

State Disability Plan – A plan for accident and sickness, or disability insurance required by state legislation of those employers doing business in that particular state.

Step-Up in Basis – An increase in the tax basis of property to the value claimed in the taxable estate of a descendent.

Substandard (Impaired Risk) – A risk that cannot meet the normal health requirements of a standard health insurance policy. Protection is provided in consideration of a waiver, a special policy form, or a higher premium charge. Substandard risks may include those persons who engage in certain sports and persons who are rated because of poor habits or morals.

Summary Plan Description – A detailed description of all benefits offered to an employee as part of the employers benefit package. A required document for all person covered by self-insured plans.

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