Deck 13: Benefit Options

Question 1

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.

Answer 1

A

Question 2

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

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

Answer 2

D

Question 3

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-nine

Answer 3

D

Question 4

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 5

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 6

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

A) 36 months
B) 24 months
C) 18 months
C)O.B.R.A. how long can Larry continue his coverage through Steve's Company?
D) 0 months

Question 7

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

Question 8

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 9

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.

Question 10

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 11

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 12

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.

Question 13

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 14

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 15

_____ 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 16

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

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

Question 17

Data from WellPoint shows that __ percent of its customers' accounts for over 60 percent of its medical costs.

A) 7
B) 17
C) 27
D) 37

Question 18

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 19

The time of benefit provided by the largest percent of both large and small firms is

A) health insurance
B) retirement
C) long-term disability
D) paid time off

Question 20

_____ relieve an employer's liability when a pre-employment 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) Pre-employment fund

Question 21

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 22

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 23

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 24

)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 25

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 26

The type of health insurance requiring covered employees to use designated doctors and facilities is __________.

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

Question 27

_____ 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 28

Employer 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 29

_____ 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 30

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 31

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 32

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 33

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 34

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 35

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 36

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 37

_____ 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 38

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

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

Question 39

Which of the following is not a defined contribution plan?

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

Question 40

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

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

Question 41

Substance abuse is not an allowed disability under social security.

Question 42

A recent survey found benefits ranked below work/life balance and communication between employees and management as contributors to job satisfaction.

Question 43

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

Question 44

Medicare is not part of social security.

Question 45

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

Question 46

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 47

Workers' compensation is covered federal laws.

Question 48

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

Question 49

In 47 states,employers are not allowed to self-insure their workers' compensation program but must participate in the state's program.

Question 50

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

Question 51

Worker's compensation costs have been declining since 2005 due in part to employer safety programs.

Question 52

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

Question 53

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 54

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

Question 55

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

Question 56

Approximately _____ percent of employers who offer child care also offer elder care.

A) 10
B) 30
C) 50
D) 60

Question 57

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 58

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 59

A McKinsey survey of CEOs found nearly 90 percent believe benefits are very important for attracting and retaining employees,but almost 60 percent have not examined if they help meet the organization's strategic goals.

Question 60

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 61

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

Question 62

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 63

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

Question 64

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

Question 65

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

Question 66

A qualified deferred compensation plan offers tax advantages to employers.

Question 67

Which are the benefits required by statutory law?

Question 68

Employees are required to make contributions to cash balance plans.

Question 69

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

Question 70

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

Question 71

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 72

An advantage to employees of defined contribution (DC)plans over defined benefit is DC plans tend to vest faster.

Question 73

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

Question 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

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

Question 79

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

Question 80

Small private employers have recently begun reducing the number of paid holidays.