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Abbott-Langer & Associates Business Glossary

This glossary of business definitions contains over 2,000 business terms used in compensation and benefits administration. Continually updated, this specialized business dictionary focuses on definitions of Human Resources terms and business terms.

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Validity

The quality of a measuring device that refers to its relevance.

Valuation Date

Designated time of closing (monthly, quarterly, etc.) for determination of account balances in a defined-contribution or defined benefit plan.

Valuation Mortality Tables

Mortality tables developed and published as industry-wide standards for computing the values of policy reserves.

Valuation Premium

The net annual premium used to calculate reserves.

Value Added Services

Custom training needs and or analysis.

Valued Contract

A contract under which the amount of the benefit is set in advance.

Variable Annuity

Annuity expressed in terms of benefit units instead of fixed dollar amounts. Annuity in which the amount of each periodic payment fluctuates according to some variable factor. Under an equity annuity plan, payments vary according to the value of a specific portfolio of common stocks and similar investments. Under a cost-of-living plan, benefits are adjusted to reflect variations in a specific index, such as the Consumer Price Index of the Bureau of Labor Statistics. An insured variable` annuity is one under which the benefit varies according to the investment results of an insurance company's separate account.

Variable Life Insurance

A form of whole life insurance under which the death benefit and the cash value of the policy fluctuate according to the investment performance of a separate account fund. Most variable life insurance policies guarantee that the death benefit will not fall below a specified minimum. A minimum cash value is seldom guaranteed. Because the policy owner assumes investment risk under variable life insurance policies, these products are considered securities contracts. In the United States, variable life insurance policies must be registered with the Securities and Exchange Commission (SEC), and only agents who have passed the National Association of Securities Dealers (NASD) examination may sell this product. In Canada, variable life insurance policies are considered life insurance contracts, and agents do not need a special license to sell these products. See also investment-sensitive life insurance.

Variable Pay

Rewards based on performance rather than rewards based on time spent on the job or the value of the job.

Variable Premium Life Insurance

A type of nonparticipating whole life insurance that allows premium rate modifications throughout the life of the policy and guarantees that the premium rate will never exceed a stated maximum rate.

Variable Universal Life Insurance

A form of life insurance (also called Universal Life II or flexible life) offering a guaranteed death benefit that combines the flexible premium features of universal life with the investment component of variable life.

Variance

A measure of variability based on squared deviations of individual observations from the mean value of the distribution. Its square root is the standard deviation.

Venture Capital Firm

An organization that provides funding for new ventures and business ideas, typically by offering funds in the form of a loan that can be converted to equity.

Vested Benefit

Accrued benefits of a participant that have become nonforfeitable under the vesting schedule adopted by the plan.

Vested Benefit Obligation (VBO)

The actuarial present value of vested benefits.

Vested Terminees

An employee who has a full vested right to benefits under one or more pension/capital accumulation plans payable at a later date, whose employment has been discontinued.

Video Conferencing

A discussion between two or more groups of people who are in different places but can see and hear each other using electronic communications. The telecommunication network carries pictures and sound and such conferences can take place across the world.

Video On Demand (VOD)

A system by which viewers can watch video programs on their own television sets at the time they choose. The programs are supplied by cable or ISDN.

Virtual Classroom

Where online learning takes place and where learners and instructors interact.

Virtual Community

A virtual community is a community of people sharing common interests, ideas, and feelings over the Internet or other collaborative networks.

Virtual Private Network (VPN)

A network which has the appearance and functionality of a dedicated line, but which is really like a private network within a public one, because it is still controlled by the telephone company, and its backbone trunks are used by all customers.

Virus

A program that infects a computer by attaching itself to another program, and propagating itself when that program is executed. A computer can become infected by files downloaded over a network, or by the installation of new software or floppy disks that are infected with viruses. Some viruses are only pranks, and perform harmless actions like displaying a screen with a joke message on it. Others can destroy files or wipe out a hard drive.

Virus Detection Program

A software program that scans, detects, and cleans computer viruses.

Vision Care Benefits

An insurance plan that provides participants with eye examinations, lenses, frames, and fitting of glasses.

Vocational Rehabilitation

Providing a disabled or laid-off individual with training in a specific trade to prepare them for alternate employment.

Vocational Rehabilitation Act of 1973

This act is intended to promote job access for qualified individuals with disabilities.

Voice Over IP (VOIP)

Any technology providing voice telephony services over IP connections.

Void Contract

A contract that is not valid.

Voir Dire

Voir dire questions deal with challenges to your suitability for acceptance by the court as a person qualified to give expert testimony.

Voluntary Benefits

Specific benefits that the employer administers and the employees pay for. Commonly used for benefits that employee's want but which the employer views as nonessential to the business.

Voluntary Employee Benefit Association

Usually covered by IRC Section 501(c)(9), it serves as the base of an employer-sponsored employee benefit plan. It is a tax-exempt fund that pays death, health, accident or other benefits to members, their dependents and/or beneficiaries.

Voluntary Exit Incentive Program

The plan provides an incentive for employees close to retirement to retire early.

Voluntary Plan Termination

The termination of a pension plan with the curtailment or termination being initiated by the plan sponsor.

Vortal

A vortal is a portal - the posh word for a gateway to the Internet - which specializes in one industry. In the jargon of the business schools, a site like this is vertically integrated, hence vertical portal, or vortal.