Vocabulary 2

Use your dictionary to look up any new words.

1. Write the following words in the correct column.

benefit (2) cost (2) associate (3) account (2) approximately vary mandatory protection optional retirement security contribute earnings survivor disability earn income related unemployment fund (2) tax (2) prompt (2) injure regardless fault (2) holiday1 vacation sick leave (2) total (3) mandate (2) offer (2) health insurance feature (2) widely coverage extent inclusion dental mental care (2) additionally elect stock (2) ownership profit (2) share (2) counselling drug (2) abuse (2) rare exception bear (2) define length contribution regular investment

Nouns (40)	Verbs (26)	Adjectives (11)	Adverbs (4)
benefit	benefit

2. Working in pairs, form as many noun phrases as possible, combining a word in A with a word in B.

E.g. protection program, mandatory program, optional program, federal program, health program, exercise program, etc.

A B

alcohol average child dental drug earned educational exercise expensive fast-rising federal health investment labour major mandatory mental old-age optional pension personal prompt protection regular related retirement social total

costs categories program plan law security benefit survivor income compensation leave market insurance services health care assistance abuse payment contributions fund

Reading

1. Read text 23 about such an important part of the American compensation system as benefits. Fill each gap in the text with one of these words.

law rare contributed counselling per earned fault investment vary expensive disability length approximately total required major costs

TEXT 23

BENEFITS

Among the fastest-rising (a) ______ in organizations are those associated with benefits for employees. In the 1940s, benefits accounted for approximately 5 percent of the compensation given to employees. By 1990, the cost of benefits was (b) ______ 40 percent of compensation. Although benefits vary among organizations, the (c) ______ categories are mandatory protection programs, pay for time not worked, optional protection programs, and private retirement plans¹.

Mandatory Protection Programs. Mandatory protection programs are those (c) ______ by federal law. For many employers, Social Security is the most (d) ______ benefit. In 1994, employee and employer each (e) ______ 7.65 percent of each employee’s earnings. Of this percentage, 1.45 percent goes toward Medicare², and 6.20 percent to old-age survivors and (f) ______. The 6.20 percent applies to the first $60.600 of earned income, and the 1.45 percent to all (g) ______ income. A related benefit is unemployment compensation, which is funded by employers through a tax on a portion of the (h) ______ compensation of a company’s employees. A third mandatory benefit is workers’ compensation, which provides prompt benefits for workers who are injured on the job regardless of (i) ______.

Pay for Time Not Worked. This benefit includes pay given employees for holidays, vacation, sick leave, and personal leave. This can total up to 45 days (j) ______ year, depending on the organization’s policies.

Optional Protection Programs. Optional protection plans are benefits not mandated by (k) ______ but offered to make the organization competitive in the labor¹ market. A major programme is health insurance. The features of such programs (l) ______ widely among employers, such as the amount paid by the employee, the limits of coverage, and the extent of inclusion of dental services and mental health care. Additionally, companies may elect to offer benefits such as stock-ownership and other profit-sharing plans, exercise programs, educational assistance, child care, and (m) ______ for drug or alcohol abuse.

Private Retirement Plans. In most cases, employees and employers share the cost of funding pension plans. In (n) ______ exceptions, the employer bears the total cost. There are two major types of pension plans: Under the defined benefit plan, the retirement payment depends on a formula that includes (o) ______ of service and average income. Under the defined contribution plan, regular contributions are made to an (p) ______ fund.

2. Comprehension check.

Are the following statements true or false? Correct the false ones.

1. There is a growing tendency for benefit costs to increase.

2. It is a crucial feature of the US compensation system that main benefit categories are identical in all organizations.

3. Providing social security, unemployment compensation and workers’ compensation is obligatory for all organizations.

4. To finance unemployment compensation, a company’s employees have to pay a special tax.

5. Workers’ compensation is given to employees who are not responsible for injuries sustained on the job.

6. The annual length of time not worked can be different at different organizations.

7. Trying to be more successful in the labour market, organizations undertake optional protection programs.

8. According to health insurance programs, employees are entitled to receive dental services free of charge.

9. Pension plans are always funded by employers.

10. Both length of work and income may be important in calculating retirement payment.

Discussion

Work in small groups.

Discuss what you have learned about a compensation system and the purpose it serves within an organization.