{"id":2980,"date":"2026-08-25T18:12:55","date_gmt":"2026-08-25T18:12:55","guid":{"rendered":"https:\/\/benefits.aecom.com\/us\/?page_id=2980"},"modified":"2026-09-03T17:20:33","modified_gmt":"2026-09-03T17:20:33","slug":"benefits-glossary","status":"publish","type":"page","link":"https:\/\/benefits.aecom.com\/us\/benefits-glossary\/","title":{"rendered":"Benefits Glossary"},"content":{"rendered":"\n
\n
\n

\u200bThe right benefits choice looks different for everyone. This glossary is designed to help you understand key benefits terms and what they mean in real life, so you can confidently evaluate your options and select the coverage that’s right for you and your family.<\/p>\n\n\n\n

This glossary provides general explanations of common benefits and financial wellness terms used in Open Enrollment and AECOM Benefits. Definitions may vary by plan, carrier, program, or applicable regulations. For plan-specific details, please refer to the applicable plan documents, carrier resources, or official government resources linked.<\/em> <\/p>\n\n\n\n

Jump to:<\/h4>\n\n\n\n

<\/p>\n\n\n\n

\n
\n
\n
Healthcare<\/strong><\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n
\n
\n
Retirement<\/strong><\/a><\/div>\n<\/div>\n<\/div>\n\n\n\n
\n
\n
HSAs and FSAs<\/strong><\/a><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

<\/p>\n\n\n\n

Healthcare<\/h3>\n\n\n\n
Term<\/th>Definition<\/th>Why it matters<\/th><\/tr><\/thead>
Annual deductible<\/strong><\/td>The amount you pay for covered healthcare services each year before your health plan starts sharing the cost.<\/td>Plans with lower premiums often have higher deductibles. Consider how much healthcare you expect to use when choosing a plan. <\/td><\/tr>
Benefits<\/strong><\/td>The healthcare services, treatments, and medications your plan covers.<\/td>Understanding what’s covered helps you avoid unexpected costs and choose the plan that best fits your needs. <\/td><\/tr>
Claims administrator \/ carrier<\/strong><\/td>The company that manages your health plan and processes claims.<\/td>You’ll contact the UHC\/Surest\/Kaiser\/HMSA for questions about coverage, claims, providers, and costs.<\/td><\/tr>
Coinsurance<\/strong><\/td>Your share of the cost of a covered service, usually expressed as a percentage (for example, you pay 20% and the plan pays 80%).<\/td>Even after meeting your deductible, you may still pay coinsurance. Knowing the percentage can help estimate healthcare expenses. <\/td><\/tr>
Copayment (copay)<\/strong><\/td>A fixed amount you pay for certain services, such as a doctor’s visit or prescription.<\/td>Copays are predictable and can make it easier to budget for routine care. <\/td><\/tr>
Covered health care services<\/strong><\/td>Medical services, supplies, and prescriptions that your health plan agrees to pay for when eligibility requirements are met.<\/td>Services that aren’t covered may require you to pay the full cost, so it’s important to know what’s included in your plan. <\/td><\/tr>
Covered person<\/strong><\/td>Anyone enrolled in the health plan, including employees and eligible dependents.<\/td>Coverage only applies to people who are enrolled in the plan. <\/td><\/tr>
Dependent<\/strong><\/td>An eligible family member, such as a spouse, domestic partner, or child, who can be covered under your plan.<\/td>If you need coverage for family members, confirm who qualifies as a dependent before enrolling. <\/td><\/tr>
Designated provider<\/strong><\/td>A doctor, specialist, or facility selected by the health plan for certain treatments or conditions.<\/td>Using designated providers may provide access to specialized care and help reduce costs for certain services. <\/td><\/tr>
Enrolled dependent<\/strong><\/td>A dependent who has been officially enrolled in the plan.<\/td>Eligible dependents are not covered unless they are enrolled during enrollment or after a qualifying life event. <\/td><\/tr>
Medicaid<\/strong><\/td>A government healthcare program for eligible individuals and families with limited income.<\/td>Employees or family members who qualify may have additional healthcare coverage options. <\/td><\/tr>
Medicare<\/strong><\/td>A government health insurance program primarily for people age 65 and older and certain individuals with disabilities.<\/td>If you or a dependent are eligible for Medicare, it may affect your coverage choices and enrollment decisions. <\/td><\/tr>
Network provider<\/strong><\/td>A doctor, hospital, or healthcare provider that has agreed to offer services at negotiated rates through your health plan.<\/td>Staying in-network usually lowers your out-of-pocket costs and may provide greater coverage. <\/td><\/tr>
Out-of-network benefits<\/strong><\/td>Coverage available when you receive care from providers who are not part of the plan’s network.<\/td>Out-of-network care is often more expensive and may not be covered by all plans. Consider this if you want flexibility in choosing providers.<\/td><\/tr>
Out-of-pocket limit<\/strong><\/td>The most you’ll pay for covered healthcare expenses in a plan year before the plan pays 100% of covered costs.<\/td>This provides financial protection if you experience a serious illness, injury, or high healthcare costs.<\/td><\/tr>
Specialist<\/strong><\/td>A doctor with advanced training in a specific area of medicine, such as cardiology, dermatology, or orthopedics.<\/td>If you regularly see specialists, compare plan costs and referral requirements carefully. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

Retirement<\/h3>\n\n\n\n
Term<\/th>Definition<\/th>Why it matters<\/th><\/tr><\/thead>
After-tax contributions<\/strong> <\/td>Additional retirement plan contributions made after taxes have already been paid.  <\/td>Provides another way to increase retirement savings beyond traditional pre-tax or Roth contributions. <\/td><\/tr>
Beneficiary<\/strong> <\/td>The person or people you designate to receive your RSP account balance if you pass away. <\/td>Keeping beneficiary information current helps ensure your savings are distributed according to your wishes. <\/td><\/tr>
Catch-up contributions<\/strong> <\/td>Additional contributions to your 401(k) available to eligible participants who meet IRS age requirements  <\/td>Helps employees nearing retirement accelerate their savings. <\/td><\/tr>
Company match<\/strong> <\/td>Contributions AECOM may make to eligible employees’ RSP accounts based on employee contributions and plan provisions.   <\/td>AECOM matches 50% of the first 6% of pre-tax or Roth 401(k) contributions. <\/td><\/tr>
Distribution<\/strong> <\/td>A payment taken from your retirement account after retirement, termination, disability, death, or another qualifying event.   <\/td>Understanding when and how distributions are available is an important part of retirement planning. <\/td><\/tr>
Eligible compensation<\/strong> <\/td>The compensation used to determine contributions and certain plan benefits.  <\/td>Helps you understand how contribution and matching amounts are calculated. See the SPD<\/a> for what this specifically includes. <\/td><\/tr>
Employee Stock Purchase Plan (ESPP)<\/strong><\/a><\/td>AECOM’s program that allows employees to purchase AECOM stock through payroll deductions at a discounted price. <\/td>Eligible employees can purchase shares at a 12% discount, helping employees share in the company’s success.  <\/td><\/tr>
In-plan Roth conversion<\/strong> <\/td>Moving eligible assets within the RSP into a Roth account.  <\/td>May provide future tax-free withdrawal opportunities, although taxes may apply at conversion. <\/td><\/tr>
Investment elections<\/strong> <\/td>Your choices for how your retirement contributions are invested among the plan’s available investment options.  <\/td>Your selections can have a significant impact on long-term account growth. <\/td><\/tr>
Pre-tax contributions <\/strong> <\/td>Contributions made before federal income taxes are deducted from your paycheck.  <\/td>Can lower your taxable income today while helping you save for retirement. <\/td><\/tr>
Retirement & Savings Plan<\/strong> (RSP) – 401(k)<\/strong><\/a> <\/td>AECOM’s retirement savings plan that allows you to contribute a portion of your paycheck toward retirement.<\/td>Saving through the plan can help build long-term financial security and includes employer contributions.  <\/td><\/tr>
Rollover contribution<\/strong> <\/td>Money transferred into the RSP from another eligible retirement plan or IRA. <\/td>Allows you to consolidate retirement savings and continue tax-advantaged growth. <\/td><\/tr>
Roth 401(k) contributions<\/strong> <\/td>Contributions made after taxes are deducted from your paycheck. Qualified withdrawals in retirement are generally tax-free.  <\/td>Can provide tax-free income during retirement and may be beneficial if you expect higher taxes in the future. <\/td><\/tr>
Tax-advantaged account<\/strong> <\/td>Saving through accounts that provide special tax benefits. For example, with a Traditional 401(k), contributions are made before taxes are deducted from your paycheck, which can reduce your taxable income today. With a Roth 401(k), contributions are made after taxes are deducted, but qualified withdrawals in retirement are generally tax-free. <\/td>Understanding the tax advantages of each option can help you decide whether it’s more beneficial to save on taxes now with a Traditional 401(k) or potentially enjoy tax-free income later with a Roth 401(k). Many employees choose one option or a combination of both based on their financial goals and expected future tax situation. <\/td><\/tr>
Vesting<\/strong> <\/td>The process of earning ownership of employer contributions made to your retirement account. <\/td>Your contributions are always vested. Matching contributions vest gradually over three years based on your eligible years of service. <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
\n\n\n\n

<\/p>\n\n\n\n

<\/p>\n\n\n\n

Health Savings Account (HSA)<\/strong><\/a> and <\/strong>Flexible Spending Account (FSA<\/strong>)<\/a><\/h3>\n\n\n\n
Term<\/strong><\/th>Definition<\/th>Why it matters<\/strong><\/th><\/tr><\/thead>
Contribution election<\/strong><\/td>The amount you choose to contribute to an HSA or FSA during enrollment.<\/td>Choosing the right amount can help maximize tax savings and minimize unused balances.<\/td><\/tr>
Dependent Care FSA<\/strong><\/td>A tax-advantaged account used for eligible childcare or eldercare expenses that enable you or your spouse to work, look for work, or attend school.<\/td>Can help reduce the cost of caring for eligible dependents<\/td><\/tr>
Flexible Spending Account (FSA)<\/strong><\/td>A tax-advantaged account that allows you to set aside pre-tax money for eligible expenses.<\/td>Reduces taxable income while helping you manage out-of-pocket costs.<\/td><\/tr>
FSA reimbursement<\/strong><\/td>A claim payment from your FSA for eligible expenses you have incurred.<\/td>Understanding reimbursement rules helps you access your funds efficiently.<\/td><\/tr>
Healthcare FSA<\/strong><\/td>A type of FSA used for eligible medical, dental, vision, and prescription expenses.<\/td>Can help pay for healthcare costs using pre-tax dollars. <\/td><\/tr>
Health Savings Account (HSA)<\/strong><\/td>A tax-advantaged account available to employees enrolled in an eligible high deductible health plan (HDHP). Funds can be used for qualified healthcare expenses.<\/td>Helps you save and pay for healthcare expenses using tax-advantaged dollars.<\/td><\/tr>
High deductible health plan (HDHP)<\/strong><\/td>A medical plan with a higher deductible that meets IRS requirements and allows eligible employees to contribute to an HSA.<\/td>Required for HSA eligibility and often comes with lower payroll contributions.<\/td><\/tr>
Limited Purpose FSA<\/strong><\/td>A type of FSA that generally covers eligible dental and vision expenses and can be paired with an HSA.<\/td>Allows you to preserve HSA funds for future healthcare expenses while still using pre-tax dollars for eligible dental and vision costs.<\/td><\/tr>
Qualified healthcare expenses<\/strong><\/td>Eligible medical, dental, vision, and prescription expenses that can be paid for or reimbursed through an HSA or FSA.<\/td>Understanding eligible expenses helps maximize tax savings. <\/td><\/tr>
Triple tax advantage<\/strong><\/td>A unique HSA feature where contributions are made tax-free, earnings grow tax-free, and qualified healthcare withdrawals are tax-free.<\/td>Makes an HSA one of the most tax-efficient savings vehicles available.<\/td><\/tr>
Use-it-or-lose-it rule<\/strong><\/td>An IRS rule stating that any unused funds are forfeit at the end of the plan year.<\/td>Important to consider when estimating your annual FSA contributions.<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n\n\n
\n
<\/span>
\n

Related links<\/h3>\n\n\n\n

Healthcare<\/strong><\/p>\n\n\n\n