Deck 1: Introducing Employee Benefits

Question 1

The Federal Insurance Contributions Act (FICA)helps support the Old-Age,Survivor,and Disability Insurance (OASDI). (Government Regulation of Employee Benefits)

Answer 1

True

Question 2

The Social Security Act was enacted due to the effects of WWII. (The Social Security Act of 1935)

Answer 2

False

Question 3

Workers' compensation insurance programs,run by the federal government,are designed to cover employee expenses incurred in work-related accidents and injuries. (State Compulsory Disability Laws (Workers' Compensation))

Answer 3

False

Question 4

Defined benefits plans,defined contribution plans and hybrid plans are types of health insurance funding plans. (Income Protection Programs)

Question 5

The Fair Labor Standards Act first legitimized bargaining for employee benefits. (Origins of Employee Benefits)

Question 6

Nonmonetary compensation includes protection programs,paid time off and services. (Employee Benefits in the Total Compensation Scheme)

Question 7

Strategic benefit plans emphasize short-term changes in how a company's benefit plan operates. (Basic Strategic Planning Concepts)

Question 8

Health insurance is a legally required benefit for all private sector employers? (Health Protection Programs)

Question 9

Strategic decisions support the fulfillment of tactical decisions. (Basic Strategic Planning Concepts)

Question 10

Flexible work schedules are considered part of accommodation and enhancement benefits packages. (Defining Employee Benefits)

Question 11

Employer-sponsored disability insurance is less encompassing than workers' compensation. (Disability Insurance)

Question 12

The top-down approach to strategic benefits planning is a reactive process that evaluates the benefits program only after problems arise. (Approaches to Strategic Benefit Planning)

Question 13

Cost-of-living adjustments (COLAs)are based on changes in prices as indexed by the consumer price index. (Adjustments to Core Compensation)

Question 14

Employees' knowledge and skills are said to generate human capital for firms and are the basis for incentive-pay. (Adjustments to Core Competition)

Question 15

Total compensation represents both monetary and nonmonetary rewards. (Employee Benefits in the Total Compensation Scheme)

Question 16

Cafeteria plans enable employees to choose from among a set of benefits and different levels of these benefits. (Basic Design Considerations for Discretionary Benefits)

Question 17

Merit-pay rewards employees according to their job performance. (Adjustments to Core Compensation)

Question 18

Core compensation is another name for monetary rewards. (Employee Benefits in the Total Compensation Scheme)

Question 19

Unemployment insurance is funded solely by the Federal Unemployment Tax Act (FUTA). (Government Regulation of Employee Benefits)

Question 20

Incentive-pay rewards employees for completely attaining predetermined work objectives. (Adjustments to Core Compensation)

Question 21

The existence of labor union has limited the use of welfare practices by companies. (Origins of Employee Benefits)

Question 22

Life insurance programs protect employees' families in the event of untimely illness. (Income Protection Programs)

Question 23

Employer choice of discretionary benefits does not depend on: (Government Regulation of Employee Benefits)

A)Economic considerations
B)Adequacy of legally required benefits
C)Employee expectations
D)Government mandates

Question 24

In financing discretionary benefits,employers always pay the total cost incurred. (Basic Design Considerations for Discretionary Benefits)

Question 25

These two federal laws form the basis for legally required benefits. (Legally Required Benefits)

A)Social Security Act & Civil Rights Act
B)Family and Medical Leave Act & Civil Rights Act
C)Social Security Act & Family and Medical Leave Act
D)Equal Employment Act & Social Security Act

Question 26

Benefits are a central strategy in attracting and retaining desired employees. (Basic Strategic Planning Concepts)

Question 27

Incentive-pay is a permanent increase of compensation based on individual goal achievement. (Adjustments to Core Compensation)

Question 28

Union workers cannot negotiate paid time off benefits. (Paid Time-Off)

Question 29

Vacations are a type of accommodation benefit. (Paid Time-Off)

Question 30

The Family and Medical Leave Act (FMLA)permits employees which of the following? (The Family and Medical Leave Act of 1993)

A)12 work weeks of paid leave during any 12-month period
B)10 work weeks of paid leave during any 12-month period
C)12 work weeks of unpaid leave during any 12-month period
D)10 work weeks of unpaid leave during any 12-month period

Question 31

Discretionary benefits can be categorized into programs that (Discretionary Benefits)

A)Protect health and income, provide job security, provide accommodation and enhancement benefits
B)Provide job security, protect health and income, allow for paid time-off
C)Protect health and income, allow for paid time-off, provide accommodation and enhancement benefits
D)Provide job security, allow for paid time-off, provide accommodation and enhancement benefits

Question 32

Protection programs provide health benefits. (Health Protection Programs)

Question 33

Workers' compensation laws are state laws. (State Compulsory Disability Laws (Workers' Compensation))

Question 34

Compensation levels are established based on employee age. (Adjustments to Core Compensation)

Question 35

Since the 1940s,companies have expanded their discretionary benefits as an alternative to wage increase or as a motivational tool. (Origins of Employee Benefits)

Question 36

Which is the following is NOT the reason for companies to adopt various benefits plans? (Defining and Exploring Employee Benefits)

A)Government regulation/mandates
B)Favorable tax treatments
C)Attracting and retaining best employees
D)Reducing labor cost

Question 37

Benefits are defined as compensation that includes wages and salary as well as other services. (Defining Employee Benefits)

Question 38

ERISA does not apply to public sector retirement plans. (Legal and Regulatory Influences on Discretionary Benefits Practices)

Question 39

Employees are most likely to endorse benefits that fulfill their needs. (Basic Design Considerations for Discretionary Benefits)

Question 40

What is another name for a pay-for-knowledge plan? (Adjustments to Core Compensation)

A)Merit-pay
B)Person-focused pay
C)Seniority-pay
D)Incentive-pay

Question 41

Which of the following are the three main types of retirement programs that companies can offer? (Income Protection Programs)

A)Employee-financed plans, defined benefits plans, hybrid plans
B)Hybrid plans defined contribution plans employee-financed plans
C)Defined contribution plans, employee-financed plans, defined benefits plans
D)Defined contribution plans, defined benefits plans, hybrid plans

Question 42

In which social context were workers' compensation laws enacted? (State Compulsory Disability Laws (Workers' Compensation))

A)Post Depression
B)Post WWII
C)Industrial expansion in the early 1900s
D)Turn of the 20th century

Question 43

Which of the following is not a fundamental employee goal? (Legal and Regulatory Influences on Discretionary Benefits Practices)

A)High wages
B)Leadership
C)Job security
D)Safe working conditions

Question 44

Briefly describe various legal and regulatory influences on discretionary benefits. (Legal and Regulatory Influences on Discretionary Benefits Practices)

Question 45

When the employee bears the entire costs of discretionary benefits it is referred to as which type of financing? (Basic Design Considerations for Discretionary Benefits)

A)Noncontributory
B)Contributory
C)Employee-financed
D)Employee-focused

Question 46

Commission payments are examples of which type of core compensation package? (Adjustments to Core Compensation)

A)Incentive pay
B)Merit pay
C)Person-focused pay
D)Seniority pay

Question 47

What are the four main classes of health insurance programs that employers have to choose from to offer its' employees? (Health Protection Programs)

A)Fee-for-service plans, managed care plans, point-of-service plans, consumer-driven plans
B)Consumer-driven plans, point-of-service plans, managed care plans, fee-for-service plans, person-focused plans
C)Fee-for-service plans, person-focused plans, point-of-service plans, point-of-service plans
D)Point-of-service plans, consumer-driven plans, managed care plans, person-focused plans

Question 48

Which of the following are considered the five core compensation elements? (Adjustments to Core Compensation)

A)COLAs, seniority pay, merit pay, incentive pay, person-focused pay
B)Merit pay, seniority pay, COLAs, incentive pay, base pay
C)Seniority pay, person-focused pay, incentive pay, base pay, COLAs
D)Base pay, person-focused pay, merit pay, incentive pay, seniority pay

Question 49

Which of the following factors are used for strategic benefits planning? (External Environment)

A)Government regulations
B)Economic conditions
C)Labor force changes
D)All of the above

Question 50

Which of the following is not an example of features of a benefit plan? (Basic Design Considerations for Discretionary Benefits)

A)Flexible benefits
B)Eligibility
C)Waiting period
D)Employee choice

Question 51

In 2011,what was the average total employer compensation costs for private industry workers? (Employer Costs for Compensation and Benefits)

A)$30.11
B)$20.91
C)$35.50
D)28.24

Question 52

Information for strategic benefits planning comes from these two environments. (Information Used in Strategic Benefit Planning)

A)External company & internal market
B)External market & internal company
C)Internal market & external market
D)Internal company & external company

Question 53

Briefly describe the origins of employee benefits in the US. (Origins of Employee Benefits)

Question 54

The Social Security Act of 1935 set up which two programs? (The Social Security Act of 1935)

A)Retirement income & unemployment insurance
B)Medicare & disability insurance
C)Disability insurance & retirement income
D)Unemployment insurance & Medicare

Question 55

Companies can generally choose from which four programs for financing their discretionary benefits plans. (Basic Design Considerations for Discretionary Benefits)

A)Noncontributory, contributory, employee-financed, a combination of the other three
B)Managed care, contributory, employee-financed, a combination of the other three
C)Employee-financed, contributory , managed care, a combination of the other three
D)Managed care, contributory, employee-financed, noncontributory

Question 56

In 2011,about how many million persons were employed by private-sector companies? (Legal and Regulatory Influences on Discretionary Benefits Practices)

A)90 million
B)109 million
C)118 million
D)125 million

Question 57

Which two make up the internal environmental factors? (Internal Environment)

A)Labor force demographics, governmental regulations
B)Mergers and acquisitions, labor force demographics
C)Governmental regulations, collective bargaining agreements
D)Workforce demographics, collective bargaining agreements

Question 58

Which three are the three fundamental roles that characterize discretionary benefits? (Discretionary Benefits)

A)Protection programs, paid time-off, retirement programs
B)Protection programs, paid time-off, accommodation and enhancement programs
C)Paid time-off, accommodation and enhancement programs, retirement programs
D)Retirement programs, protection programs and accommodation and enhancement programs

Question 59

Discuss the influence of external economic conditions on strategic benefits planning of companies. (External Environment)

Question 60

Flexible benefits allow employees to do which of the following? (Basic Design Considerations for Discretionary Benefits)

A)Choose which benefits they want and at what level
B)Only choose the level of benefits they want
C)Only choose which benefits they want
D)Choose whether they want all base pay or pay and benefits

Question 61

Discuss the impact of recent demographic changes in labor markets (e.g.,influx of female,ethnic minority,or older workers)on the benefit strategy of companies. (Changing Demographics of the Labor Force)