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Glossary of Terms

This glossary is provided to help you better understand the key terms and acronyms used within this website.

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Benefit terms can sometimes feel complex or unfamiliar, so we've included simple explanations of the most common words you'll encounter in plan documents, statements, and discussions. Having a clear understanding of these terms will make it easier for you to navigate your benefits and make informed decisions.

General benefit terms:

  • Active Participant ~ A person enrolled in a Plan, and accruing or entitled to benefits.

  • Beneficiary ~ The person(s) you name to receive benefits when you pass away, or who are entitled to receive benefits.

  • Collective Bargaining Agreement (CBA) ~ The contract between employer association (MCASF) and local union (Local 725) which sets forth wages, benefits, and work rules and conditions.

  • Contribution ~ The amount paid by employers on behalf of employees for each Plan and job classification as agreed to in the CBA.

  • Employee Retirement Income Security Act (ERISA) ~ Federal law that protects workers' retirement and health benefits by setting standards and requirements.

  • Fiduciary ~ A person or entity legally required to manage the plan responsibly and in participants' best interests.

  • Multiemployer Plan ~ Benefit plan contributed to by multiple employers (such as the contractor members of MCASF), typically under a CBA.

  • Non-signatory employer ~ A non-union employer performing work of the trade and in the geographical area covered by the CBA.

  • Qualified Plan ~ Retirement plan meeting IRS rules for tax advantages.

  • Qualified Domestic Relations Order (QDRO) ~ Court order dividing retirement benefits in a divorce or legal separation.

  • Summary Annual Report (SAR) ~ Simplified yearly summary of the plan's financial status sent to participants.

  • Summary Plan Description (SPD) ~ A key document that explains the plan's rules, benefits, and rights in simple language.​

  • Trustee ~ An individual serving on the Board of Trustees, serving as a fiduciary, managing plan assets and acting in the best interests of the participants as a whole.

Health Plan Terms

  • Claims administration ~ When a plan contracts with a third party, such as Florida Blue, to review and manage claims, making sure they align with plan documents.

  • Consolidated Omnibus Budget Reconciliation Act (COBRA) ~ A federal law that allows you (and your family) to temporarily continue your employer-sponsored group health insurance coverage after a qualifying event.

  • Coinsurance: A percentage of costs you pay after meeting your deductible.

  • Copayment ~ A fixed dollar amount you pay for specific services, like a doctor visit.

  • Deductible ~ The amount you pay for covered services before insurance starts paying.

  • Eligibility ~ Requirements (like hours worked)  as a prerequisite to begin, or continue to receive coverage.

  • Hour Bank ~ A simple account of accrued hours that an employee may use when they work fewer than the required hours in a month for coverage. MCASF Local 725 Health coverage requires 100 worked hours per month.

  • In-Network Provider ~ A doctor or facility contracted with your health plan for lower costs.

  • Out-of-Network Provider ~ A doctor or facility not contracted with your health plan, usually having higher costs.

  • Out-of-Pocket Maximum ~ Yearly cap on what you pay for health care services.

  • Preferred Provide Organization (PPO) ~ A plan, such as this Health Plan, that offers lower costs for in-network providers but allows out-of-network care.

  • Pre-Authorization/Prior Authorization ~ When plan approval is required before certain services or treatments are received by you.

  • Qualified Medical Child Support Order (QMSCO) ~ A state ordered decree under ERISA requiring an employer-sponsored health plan to cover a child, usually following a divorce or separation.

  • Self-Insured ~ When a plan, such a this Health Plan, pays for all claims using the plan's assets and the plan controls the plan design.

  • Fully Insured ~ When covered services are insured by a third party, like Blue Cross, United Health, etc. that pays for all claims and limits plan design changes.

Retirement Plans Terms

  • Accrued Benefit ~ The amount pension benefit you have earned based on plan rules.

  • Annuity ~ Regular (usually monthly) from a retirement savings, often of life.

  • Catch-Up Contribution ~ An extra, voluntary contribution allowed for workers age 50 + to boost retirement savings.

  • Defined Benefit Plan (DB) ~ A pension plant that promises a specific monthly benefit ate retirement, based on a formula. 

  • Defined Contribution Plan (DC) ~ A retirement plan where contributions are made regularly, but the final amount depends on investment performance.

  • Elective Contribution ~ A voluntary contribution a worker can contribute to the DC Plan from their wages, thereby reducing hourly taxable income but boost retirement savings.

  • Lump Sum ~ A one-time payment of the entire retirement benefit instead of ongoing payments.

  • Pension ~ A non-union employer performing work of the trade and in the geographical area covered by the CBA.

  • Required Minimum Distribution (RMD) ~ The minimum amount you must withdraw from your retirement account annually after reaching age 73.

  • Rollover ~ Moving of retirement savings from one qualified plan/account to another without taxes or penalty.

  • Vesting ~ The process of earning a right to benefits over time that cannot be taken away.

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