Group benefits language gets easier when the terms are clear, the examples are practical, and the definitions connect to the real decisions employers are trying to make.
Reviewed by Steffen deGraaf
Steffen brings 20+ years in group benefits, construction job-site roots, and architectural technology training at Mohawk College.
This glossary is designed to answer the language questions that show up during quote reviews, renewal conversations, comparison shopping, and employee plan education.
Reviewed by Steffen deGraaf
Construction is in Steffen's blood: job sites as a teenager, architectural technology at Mohawk College, and 20+ years in group benefits for Ontario employers.
Meet Steffen and learn how AEC Benefits worksAccidental death and dismemberment coverage that pays a benefit when a covered accident causes death or a qualifying serious injury.
Construction-context example
Construction employers often review AD&D alongside life and disability because job-site risk makes accident protection more visible to employees.
Administrative services only funding, where the employer funds claims while an insurer or administrator handles processing and plan administration.
Construction-context example
An ASO structure can look attractive for some groups, but small construction employers need to understand cash-flow and claims-volatility risk before using it.
A plan year that resets on January 1 rather than on a policy anniversary date.
Construction-context example
Employees often assume all benefits reset in January, which is why calendar-year versus policy-year education matters.
A benefits eligibility class used to group employees with similar roles or coverage needs inside one plan.
Construction-context example
A company may separate office leadership and field crews into different eligibility classes when benefits objectives are different.
The percentage of an eligible claim the plan pays after any deductible is applied.
Construction-context example
An 80 percent drug card means the employee still pays the remaining 20 percent through coinsurance.
Canada Pension Plan payroll contributions that affect the real employer cost of compensation decisions.
Construction-context example
When an owner compares a raise to benefits, CPP is part of why a cash increase costs more than the sticker amount.
The amount an employee pays before the plan begins reimbursing a covered expense.
Construction-context example
A family may notice a deductible most clearly when the first drug or paramedical claims are submitted early in the year.
The contract wording that determines when a person qualifies for disability benefits and how ongoing eligibility is judged.
Construction-context example
For trades employers, the definition of disability matters because a person may be unable to perform physical duties long before they are unable to do any work at all.
A life insurance benefit that covers a spouse or dependent child for a smaller amount than the employee’s own life coverage.
Construction-context example
Dependent life is usually inexpensive, but it should still be considered deliberately instead of added automatically without explanation.
The list of prescription medications a plan covers, often with rules around generics, prior authorization, or exclusions.
Construction-context example
Employers usually feel formulary design most acutely when employees ask about newer or higher-cost medications.
Employee assistance program support for counselling, practical life support, and related well-being services.
Construction-context example
In construction, an EAP only has value if crews trust it, understand it, and can actually access it in real life.
Ontario Employer Health Tax, a payroll cost that larger employers should consider when evaluating compensation strategy.
Construction-context example
EHT is one of the reasons total compensation planning should go beyond the face value of a wage increase.
A benefits funding structure where the insurer takes on the claims risk in exchange for a premium.
Construction-context example
Many small employers start fully insured because it is simpler and more predictable than self-funded alternatives.
A fixed employer-funded reimbursement account employees can use for eligible health and dental expenses.
Construction-context example
An HSA can be useful when a company wants flexibility without overbuilding a traditional insured plan.
Incurred but not reported claims, meaning claims that have happened but have not yet been submitted or paid.
Construction-context example
IBNR matters more in self-funded or ASO discussions because it affects the real cost picture beyond the claims already visible.
A group benefit that pays a lump sum to a named beneficiary when the covered employee dies.
Construction-context example
Basic life is often included in even modest plans because it is familiar, inexpensive, and easy for employees to understand.
Income replacement that begins after a waiting period and can continue for years when an employee cannot work because of illness or injury.
Construction-context example
For physically demanding trades, LTD is often one of the most important protections in the plan even though it is not the most visible benefit day to day.
The maximum amount an employee pays before the plan increases or completes reimbursement for certain covered expenses.
Construction-context example
This matters most when families use significant prescription or paramedical benefits during the year.
A common shorthand question about whether a plan covers semaglutide-based treatment and under what rules or restrictions.
Construction-context example
Questions about Ozempic often reveal a bigger issue: whether the drug coverage structure still matches what employees actually need.
Practitioner services such as physiotherapy, massage therapy, chiropractic care, and similar health services.
Construction-context example
Paramedicals are especially visible in construction because physical work makes physio, massage, and chiropractic use more common.
Preferred or participating provider network language sometimes used to describe contracted provider access or pricing arrangements.
Construction-context example
PAR details matter when a plan tries to steer members toward preferred pharmacies, clinics, or practitioner networks.
The structure of benefits, coverage levels, waiting periods, classes, and funding decisions that determine how a group plan actually works.
Construction-context example
Good plan design is how an employer moves from just checking boxes to building a benefits package that helps attract and retain top talent.
A benefits year that resets on the plan’s anniversary rather than on January 1.
Construction-context example
If an employee misunderstands the policy year, they can miss out on unused benefits they thought would carry into January.
A process where the insurer requires additional approval before certain medications or treatments are covered.
Construction-context example
Prior authorization questions often come up when employers compare standardized plans to more tailored solutions.
A funding arrangement where certain claim surpluses or deficits are tracked and reconciled over time.
Construction-context example
Refund accounting can look appealing, but employers should understand cash-flow and renewal implications before using it as a selling point.
The annual process where pricing, claims experience, and plan changes are reviewed and updated for the next benefits year.
Construction-context example
A good renewal is not just signing the increase. It is pressure-testing whether the structure still fits the team and the budget.
Income replacement that covers an employee during the earlier stage of a disability before long-term disability begins.
Construction-context example
STD is highly visible in physical industries because even a shorter recovery can create immediate financial stress for a worker.
A common abbreviation for short-term disability benefits.
Construction-context example
Some employers know the acronym but still need help understanding whether the waiting period and percentage are right for their workforce.
The length of time an employee must wait before a disability or similar benefit begins.
Construction-context example
The waiting period affects both premium cost and how quickly income support starts after an injury or illness.
Employer-paid income support that supplements Workplace Safety and Insurance Board benefits after a workplace injury.
Construction-context example
Construction employers sometimes use a top-up strategy to support key workers more effectively after an incident.
Because employers and employees both search for benefits language directly, and a strong glossary makes the site easier to understand, easier to cite, and easier to trust.
No. They are practical explanations meant to make benefits language easier to understand before a real quote, plan review, or policy check.
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AEC Benefits can turn glossary definitions into clear advice on plan design, costs, comparisons, and what actually fits your workforce.