Question 1

An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer:

Accepted Answer

A)  full vesting after three years. 
B)  full vesting after six years. 
C)  full vesting after seven years. 
D)  to offer portability rights. 
A)  full vesting after three years. 
B)  full vesting after six years. 
C)  full vesting after seven years. 
D)  to offer portability rights. A

Question 2

Compare defined benefit plans and defined contribution plans.

Accepted Answer

In a defined benefit plan,an employer agrees to provide a specific level of retirement pension,which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase)with years of seniority in the company.Defined contribution plans require specific contributions by an employer,but the final benefit that will be received by employees is unknown;it depends on the investment success of those charged with administering the pension fund.

Question 3

What is a cash-balance plan?

Accepted Answer

Cash balance plans are defined benefit plans that look like a defined contribution plan.Employees have a hypothetical account (like a 401[k])into which is deposited what is typically a percentage of annual compensation.The dollar amount grows both from contributions by the employer and from some predetermined interest rate.

Question 4

An employer seeking to use pensions to reduce turnover is likely to prefer:

Accepted Answer

A)  fully vested after three years. 
B)  vesting 20 percent after 2 years and 20 each year thereafter. 
C)  fully vested after two years. 
D)  vesting schedules are unlikely to affect turnover. 
A)  fully vested after three years. 
B)  vesting 20 percent after 2 years and 20 each year thereafter. 
C)  fully vested after two years. 
D)  vesting schedules are unlikely to affect turnover.

Question 5

In a _____ plan an employer agrees to provide a specific level of retirement pension,which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase)with years of seniority in the company.

Accepted Answer

A)  defined benefit 
B)  noncontributory benefit 
C)  401 (k) 
D)  shared-benefit 
A)  defined benefit 
B)  noncontributory benefit 
C)  401 (k) 
D)  shared-benefit

Question 6

A 401K is an example of a defined benefit plan.

Accepted Answer

A) True 
 B)False

Question 7

A major problem with social security is a rising number of retirees without a corresponding increase in contributors.

Accepted Answer

A) True 
 B)False

Question 8

_____ percent of employers offer health benefits to domestic partners.

Accepted Answer

A)  42 
B)  31 
C)  18 
D)  8 
A)  42 
B)  31 
C)  18 
D)  8

Question 9

An account set up to cover part of a high health care deductible is a:

Accepted Answer

A)  POS. 
B)  flexible spending account. 
C)  PCA. 
D)  PPO. 
A)  POS. 
B)  flexible spending account. 
C)  PCA. 
D)  PPO.

Question 10

Advantages of defined contribution plans versus defined benefit plans include all of the following except:

Accepted Answer

A)  vesting is usually faster. 
B)  pre-retirement contributions are smaller. 
C)  pension costs are more predictable. 
D)  employee mobility is facilitated. 
A)  vesting is usually faster. 
B)  pre-retirement contributions are smaller. 
C)  pension costs are more predictable. 
D)  employee mobility is facilitated.

Question 11

The majority of defined benefit plans calculate average earnings over the last _____ years of service for a prospective retiree.

Accepted Answer

A)  2 to 4 
B)  3 to 5 
C)  6 to 8 
D)  7 to 9 
A)  2 to 4 
B)  3 to 5 
C)  6 to 8 
D)  7 to 9

Question 12

Roughly _____ of all employees have access to paid life insurance.

Accepted Answer

A)  three-fourths 
B)  half 
C)  one-third 
D)  a quarter 
A)  three-fourths 
B)  half 
C)  one-third 
D)  a quarter

Question 13

In 48 states,employers are not allowed to self-insure their workers' compensation program but must participate in the state's program.

Accepted Answer

A) True 
 B)False

Question 14

The first question to ask in determining how much retirement income an employer should provide is:

Accepted Answer

A)  Should Social Security payments be considered? 
B)  How should seniority be factored into the payout formula? 
C)  What level of retirement compensation should be provided? 
D)  Should other,non-Social Security income sources be considered? 
A)  Should Social Security payments be considered? 
B)  How should seniority be factored into the payout formula? 
C)  What level of retirement compensation should be provided? 
D)  Should other,non-Social Security income sources be considered?

Question 15

What are the areas covered as part of the no-fault insurance under workers' compensation?

Accepted Answer

As a form of no-fault insurance,workers'

Question 16

The Employee Retirement Security Act states that employers must offer a retirement plan to their employees if they work at least 1250 hours per year.

Accepted Answer

A) True 
 B)False

Question 17

Of the many benefit claims,temporary total disability is the most frequent.

Accepted Answer

A) True 
 B)False

Question 18

Today,_____ percent of the workforce is covered under the pension plan coverage by their employers.

Accepted Answer

A)  sixty-four 
B)  fifty-eight 
C)  fifty-six 
D)  forty-three 
A)  sixty-four 
B)  fifty-eight 
C)  fifty-six 
D)  forty-three

Question 19

Under the Economic Growth and Tax Reconciliation Act of 2001,employers have three vesting schedule options.

Accepted Answer

A) True 
 B)False

Question 20

Jim was a full-time student for four years,but could not find a job after graduating.Jim is likely eligible to collect unemployment insurance.

Accepted Answer

A) True 
 B)False

An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer:

Compare defined benefit plans and defined contribution plans.

What is a cash-balance plan?

An employer seeking to use pensions to reduce turnover is likely to prefer:

In a _____ plan an employer agrees to provide a specific level of retirement pension,which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase)with years of seniority in the company.

A 401K is an example of a defined benefit plan.

A major problem with social security is a rising number of retirees without a corresponding increase in contributors.

_____ percent of employers offer health benefits to domestic partners.

An account set up to cover part of a high health care deductible is a:

Advantages of defined contribution plans versus defined benefit plans include all of the following except:

The majority of defined benefit plans calculate average earnings over the last _____ years of service for a prospective retiree.

Roughly _____ of all employees have access to paid life insurance.

In 48 states,employers are not allowed to self-insure their workers' compensation program but must participate in the state's program.

The first question to ask in determining how much retirement income an employer should provide is:

What are the areas covered as part of the no-fault insurance under workers' compensation?

The Employee Retirement Security Act states that employers must offer a retirement plan to their employees if they work at least 1250 hours per year.

Of the many benefit claims,temporary total disability is the most frequent.

Today,_____ percent of the workforce is covered under the pension plan coverage by their employers.

Under the Economic Growth and Tax Reconciliation Act of 2001,employers have three vesting schedule options.

Jim was a full-time student for four years,but could not find a job after graduating.Jim is likely eligible to collect unemployment insurance.

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, mix, and Pay Structures

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters

Exam 13: Benefit Options

An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer:

Compare defined benefit plans and defined contribution plans.

What is a cash-balance plan?

An employer seeking to use pensions to reduce turnover is likely to prefer:

In a _____ plan an employer agrees to provide a specific level of retirement pension,which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase)with years of seniority in the company.

A 401K is an example of a defined benefit plan.

A major problem with social security is a rising number of retirees without a corresponding increase in contributors.

_____ percent of employers offer health benefits to domestic partners.

An account set up to cover part of a high health care deductible is a:

Advantages of defined contribution plans versus defined benefit plans include all of the following except:

The majority of defined benefit plans calculate average earnings over the last _____ years of service for a prospective retiree.

Roughly _____ of all employees have access to paid life insurance.

In 48 states,employers are not allowed to self-insure their workers' compensation program but must participate in the state's program.

The first question to ask in determining how much retirement income an employer should provide is:

What are the areas covered as part of the no-fault insurance under workers' compensation?

The Employee Retirement Security Act states that employers must offer a retirement plan to their employees if they work at least 1250 hours per year.

Of the many benefit claims,temporary total disability is the most frequent.

Today,_____ percent of the workforce is covered under the pension plan coverage by their employers.

Under the Economic Growth and Tax Reconciliation Act of 2001,employers have three vesting schedule options.

Jim was a full-time student for four years,but could not find a job after graduating.Jim is likely eligible to collect unemployment insurance.

The Pay Model

Strategy: The Totality of Decisions

Defining Internal Alignment

Job Analysis

Job-Based Structures and Job Evaluation

Person-Based Structures

Defining Competitiveness

Designing Pay Levels, mix, and Pay Structures

Pay-For-Performance: the Evidence

Pay-For-Performance Plans

Performance Appraisals

The Benefit Determination Process

Compensation of Special Groups

Union Role in Wage and Salary Administration

International Pay Systems

Government and Legal Issues in Compensation

Management: Making It Work

Filters