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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Top Heavy Plans

A qualified plan in which the share of benefits allocable to key employees is more than 60%. The plan may be subject to special accelerated vesting provisions and minimum contribution rates.

Top Hat Plans
Top-Down Budgeting

Planning Compensation Incentives That Maximize Workforce Engagement

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Planning Global Compensation Budgets for 2024 - March Updated

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About ERI

ERI Economic Research Institute was founded over 30 years ago to provide compensation applications for private and public organizations. ERI Economic Research Institute compiles the most robust salary, cost of living, and executive compensation survey data available, with updated market data for more than 1,100 industry sectors. ERI collects salary survey data from internal surveys, third-party salary surveys, and public sources to calculate geographic salary differentials and assist with compensation planning.

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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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