Glossary

ERI Economic Research Institute is pleased to provide an expanded and updated glossary of commonly used compensation terms and formulas for your ongoing reference.

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One-year Level Term

This life insurance dividend option is also known as the 5th dividend option. This option uses any distributed dividends to pay for a one-year term policy equal to the guaranteed cash value. This option is often selected when a policy owner has an outstanding loan on their policy. Any excess dividend is used to buy paid-up additions, accumulate at interest, gets paid in cash, or it can be used to pay the loan down.

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Common Compensation Terms and Formulas

  • Includes the latest updates: Compensable factors, defined benefit plan, job leveling, lead differential, shift differential and more.
  • Salary structure formulas and strategies
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