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National Committee on Quality Assurance (NCQA)
An independent, not-for-profit group of health professionals who develop quality standards to assess and measure the quality of HMOs and Veterans Affairs Medical Centers.
Negotiated plan
A plan established by collective bargaining between an employer or employers and an employee organization or organizations.
Noncancelable guaranteed renewable policy
An individual policy that the insured person has the right to continue in force until a specified age, such as age 65, by the timely payment of premiums. During this period, the insurer has no right to make any changes unilaterally in any provision of the policy while it is in force.
Noncash incentives
Incentive payments not readily exchangeable for cash, such as additional time off, merchandise awards, or memberships.
Noncontributory plan
An employee benefits plan under which the employees are eligible to participate and receive accrued benefits without making a contribution to the plan.
Nondisabling injury
An injury that may require medical care but does not result in loss of working time or income.
Nonelective contributions
Employer contributions to a pension plan that are not subject to a cash or deferred election (amounts a plan member could have received in cash but instead elected to defer). A matching contribution by an employer under a salary-reduction CODA is an example of a nonelective contribution.
Nonexempt employees
Employees subject to the minimum wage and overtime pay provisions of the Fair Labor Standards Act.
Nonforfeiture benefits
Benefits obtained by a pension plan participant or beneficiary that are legally enforceable against the plan; these benefits cannot be lost even if the participant terminates service with the employer before qualifying for full retirement benefits.
Nonforfeiture option
One of the choices available if the policyholder discontinues premium payments on a policy with a cash value. This value, if any, may be taken in cash, as extended term insurance, or as reduced paid-up insurance.
Nonmedical limit
The maximum face value of a policy that a given life insurance company will issue without the applicant’s taking a medical examination.
Nonoccupational policy
A contract that insures a person against off-the-job accidents or sickness. It does not cover disability resulting from injury or sickness covered by worker’s compensation. Group accident and sickness policies are frequently nonoccupational.
Nonparticipating insurance
A plan of insurance under which the policyholder is not entitled to share in the dividend distribution of the company.
Nonqualified deferred compensation plan
A plan that does not qualify under the Internal Revenue Code (see qualified pension plan) Nonqualified plans are usually set up as rabbi trusts or secular trusts.
Nonqualified plan
A benefits or pension plan that does not qualify for favorable tax treatment under statutory requirements.
Normal cost
Typically represents the contribution payable under a plan if the funding for the plan is exactly on target and the accrued actuarial liability is exactly covered by the assets accumulated in the pension fund. It is the present value of the pension deemed accrued for a particular year, or the annual cost of future benefits and administrative expenses assigned under an actuarial cost method to years subsequent to a particular valuation date.
Normal retirement age
The earliest age at which eligible participants are permitted to retire with full pension benefits, most commonly age 65. If an employee does not reach the normal retirement age specified by the terms of the pension plan before the employee’s sixty-fifth birthday or the tenth anniversary of the date the employee began participation in the plan, then the later of those two events is considered the normal retirement age.
Normal retirement benefit
The benefit under a pension plan that is payable to a participant of the applicable normal retirement age as set forth in the plan document.
Normal retirement date
The earliest date at which a participant qualifies for normal retirement under the provisions of a pension plan.
Normal service cost
See normal cost

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