Deck 13: Benefit Options

Question 1

Jennifer is hurt at work while driving a forklift.Her employer claims that she was driving too fast and therefore she is responsible for her own injury and is not eligible for workers' compensation.What will be the outcome of the employer's challenge to her worker's compensation claim?

A) She will likely receive workers' compensation benefits.
B) She will get nothing.
C) Jennifer and her employer will share the blame and split the costs.
D) The employer has the final word in determining Jennifer's eligibility.

Answer 1

A

Question 2

Experts attribute the decline in dollar cost of workers' compensation cost after 2005 to:

A) increased variable component.
B) devaluation of the dollar.
C) employer safety programs.
D) relaxed federal regulations.

Answer 2

C

Question 3

Which of the following benefits is a federally administered program?

A) Workers' compensation
B) Social Security
C) Unemployment insurance
D) Occupational Safety and Health Act

Answer 3

B

Question 4

_____ was designed to reduce an employer's ability to deny coverage to an employee based upon a preexisting condition.

A) COBRA
B) OSHA
C) HIPPA
D) FMLA

Question 5

Which of the following types of workers are generally not covered by workers' compensation?

A) State government employees
B) Coal miners
C) Railroad employees
D) Farm workers

Question 6

All of the following are benefits under Social Security except:

A) lump-sum death payments.
B) medical expenses for work-related injuries.
C) benefits for dependents of retired workers.
D) benefits for surviving family members of deceased workers.

Question 7

A comparison of employee benefits for private and state and local government sector reveals that:

A) private sector pays out better benefits in the long run.
B) both wages and benefits are higher in the state and local governments.
C) private sector paid out better wages than state and local governments.
D) state and government sector paid out better wages but benefits were relatively lesser.

Question 8

The rising costs of Social Security have been covered by:

A) increases in the maximum earnings base and the tax rate at which it is taxed.
B) reduction in Social Security benefits by providing market-driven options.
C) progressive reduction in the coverage.
D) welfare grants and annual supplements from Congress.

Question 9

Approximately _____ percent of social security benefits go to retirees and their dependants.

A) 20
B) 40
C) 50
D) 70

Question 10

All of the following are ways to control unemployment taxes except:

A) dismiss employees "for just cause" rather than by layoffs.
B) implement good human resource planning.
C) step up enforcement of sanctions against fraudulent claims.
D) monitor claimant behavior after termination.

Question 11

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

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

Question 12

Unemployment insurance is usually financed by:

A) joint contributions by employee and employer.
B) employer,employee,and state contributions.
C) federal,state,and employee contributions.
D) employer taxes paid to both federal and state funds.

Question 13

Which of the following acts has caused HR and information technology staff considerable difficulty regarding compliance and privacy?

A) COBRA
B) HIPPA
C) FMLA
D) ERISA

Question 14

Steve has a small company with 12 employees.One of his employees,Larry,has been laid off because his work has been outsourced.Larry had health coverage through Steve's company and he wants to continue that coverage after being laid off.According to C.O.B.R.A.how long can Larry continue his coverage through Steve's Company?

A) 36 months
B) 24 months
C) 18 months
D) 0 months

Question 15

_____ relieve an employer's liability when a preemployment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone.

A) Collateral funds
B) Second-injury funds
C) Insolvency fund
D) Preemployment fund

Question 16

For an employee to gain lifetime coverage under Social Security,they must have worked for_____ quarters during which they were covered by the Act.

A) 20
B) 30
C) 40
D) 50

Question 17

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

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

Question 18

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

Question 19

Which of the following is not a benefit that is required by statutory law?

A) Workers' compensation
B) Social Security
C) Pension and retirement benefits
D) Unemployment compensation

Question 20

_____ has been described as a major cost of doing business.

A) Social Security
B) Unemployment insurance
C) FMLA
D) Workers' compensation

Question 21

_____ plans are more favorable to long-term than to short-term employees.

A) 401 K
B) Cash balance
C) Profit sharing
D) Traditional defined benefit

Question 22

The major reasons motivating U.S.corporations to provide domestic partner benefits include all of the following except:

A) Fairness to all employees regardless of their sexual orientation or marital status
B) Market competition
C) Diversity in today's tight labor market
D) Federal legislation mandating these provisions

Question 23

_____ is a hybrid health plan combining features of HMO and _____.

A) Point-of-service,preferred provider organization
B) POS,Blue-Cross
C) Managed care,POS
D) Consolidated health,PPO

Question 24

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

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

Question 25

Which of the following is not a defined contribution plan?

A) 401 K
B) ESOP
C) Cash-back
D) Profit sharing

Question 26

The most prevalent practice these days,in place of short-term sick leave is:

A) paid time off.
B) short-term disability.
C) accumulated medical leaves.
D) incentives for non-usage of sick leave.

Question 27

)
Which of the following is not an example of a method to control health care costs by changing the structure of health care delivery systems?

A) HMO
B) No health care plan offered
C) POS
D) In-house medical teams

Question 28

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

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

Question 29

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

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

Question 30

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

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 31

Dental insurance is provided by _____ percent of all employers with above 500 employees.

A) 30
B) 90
C) 70
D) 85

Question 32

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

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

Question 33

Contingent workers receive _____ benefits than regular workers;contingent workers' benefits cost employers _____ than regular workers.

A) more,less
B) fewer,more
C) more,more
D) fewer,less

Question 34

_____ represent a variation on health-care delivery in which there is a direct contractual relationship between and among employers,health-care providers,and third-party payers.

A) PSOs
B) HMOs
C) Traditional coverage plans
D) PPOs

Question 35

_____ percent of employers offer health benefits to domestic partners.

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

Question 36

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

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 37

All of the following are examples of methods to motivate employees to change their demand for health care except:

A) using intranet allowing employees access to medical information.
B) promotion of preventive health plans.
C) co-pays.
D) setting maximum benefit levels.

Question 38

A type of general health care plan in which health services are provided for a fixed fee at a specific site is:

A) a PPO.
B) an HMO.
C) a POS.
D) the traditional health care.

Question 39

An employee who changes jobs four or more times during their career will likely experience a pension approximately _____ as that of an employee whose working career is spent with one employer.

A) twice as large
B) the same size
C) one fourth the size
D) half the size

Question 40

The general health care plan that uses a direct contractual relationship between employers,health-care providers and third-party payers is:

A) the traditional coverage plan.
B) an HMO.
C) a PPO.
D) a POS.

Question 41

An eligible unemployed person may collect unemployment insurance benefits for 36 weeks in most states.

Question 42

Work-related injuries are covered by workers' compensation but not industrial diseases such as black lung and asbestosis.

Question 43

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.

Question 44

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

Question 45

Companies are turning away from 401K type pension plans because they require putting money in "up front" rather than when workers retire.

Question 46

Workers' compensation covers the costs of both medical expenses and rehabilitation for work-related injuries.

Question 47

Workers' compensation disability payments are tied directly to the nature of the loss and not factors such as the employee's earnings or number of dependents.

Question 48

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

Question 49

)
Medicare is not part of social security.

Question 50

Employers who have frequent layoffs pay higher unemployment rates than those with few layoffs.

Question 51

Workers' compensation is covered federal laws.

Question 52

Most employers prefer defined contribution pension plans to defined benefit plans.

Question 53

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

Question 54

To be eligible for FMLA,an employee has to have worked for an employer at least 1,250 hours in the previous year.

Question 55

Substance abuse is not an allowed disability under social security.

Question 56

As benefit costs have skyrocketed,especially health care,the popularity of employee benefits have declined.

Question 57

The majority of those receiving social security benefits are disabled workers and their dependents and survivors of deceased beneficiaries.

Question 58

If a man's wife died while driving a truck for her employer,and if she was responsible for the accident,the husband is not eligible to receive compensation for the loss.

Question 59

The two generic types of pension plans are contributory plans and noncontributory plans.

Question 60

The basic purpose of social security is to provide basic financial security for Americans and their families.

Question 61

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

Question 62

What are the three types of defined contribution plans?

Question 63

Employees have greater choice of doctors in an HMO than in a PPO.

Question 64

Which are the benefits required by statutory law?

Question 65

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

Question 66

What is the central challenge of social security payments? How are they tackled?

Question 67

Compare defined benefit plans and defined contribution plans.

Question 68

Employers have recently begun reducing the number of paid holidays.

Question 69

What is the purpose of the HIPAA?

Question 70

Explain the eligibility for unemployment insurance.

Question 71

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

Question 72

Explain the coverage of the FMLA.

Question 73

A qualified deferred compensation plan offers tax advantages to employers.

Question 74

Employees are required to make contributions to cash balance plans.

Question 75

The Pension Benefit Guarantee Corporation protects vested benefits of people in terminated pension plans.

Question 76

Requiring a second opinion prior to surgery is an example of a method to reduce employee demand for health care.

Question 77

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.

Question 78

Vesting is the amount of time an employee must work for an employer to be entitled to their employer's contributions to a pension.

Question 79

What is a cash-balance plan?

Question 80

An IRA is retirement savings plan that is not managed by an employer.