Deck 11: Employee Benefits

Question 1

In a defined-contribution pension plan,the amount an employee is to receive upon retirement is specifically set forth.

Answer 1

False

Question 2

Legally required benefits amount to 50 percent of the benefits packages that Canadian employers provide.

Answer 2

False

Question 3

Some benefits are now considered rights to which employees are entitled,rather than a gift of the employer.

Answer 3

True

Question 4

People who have been resident in a Canadian province for three months are eligible to receive health care benefits.

Question 5

Canadian organizations are expected to continue to implement a wider variety of employee benefits and services.

Question 6

Online benefits programs allow employees self-service freedom and availability virtually any time.

Question 7

Childcare,eldercare and extended leave policies are all examples of employee services.

Question 8

The declining cost of health care benefits provides Canadian organizations opportunities to reduce employee benefit costs.

Question 9

Since provincial health care benefits cover basic health care services,very few employers offer supplementary health benefits.

Question 10

Many firms outsource their cafeteria plans to a professional vendor because of the complexity of administering the system.

Question 11

The Canada and Quebec Pension Plans both require employer and employee contributions.

Question 12

Many employers provide unneeded and unwanted types of medical benefits to their employees.

Question 13

Canadian employees may retire at age 45 and begin drawing a reduced pension from CPP/QPP and other sources such as RRSPs.

Question 14

Employee assistance programs and wellness programs cannot help organizations cut the costs of health care benefits.

Question 15

To reflect the social changes Canada is facing,employers are increasingly tailoring their benefits programs to be family friendly.

Question 16

Severance pay is a one-time payment to employees who have been terminated.

Question 17

Employee benefits are a form of indirect compensation.

Question 18

It would be desirable for employers to enlist employee participation in modifying a benefits program.

Question 19

Employer health plans are generally restricted to medical,surgical,and hospital expenses.

Question 20

In addition to paid holidays,some employers give workers additional personal use days.

Question 21

Benefits programs should be based on specific objectives in line with the organization's strategic compensation plan.

Question 22

Flexible benefits plans are also known as "cafeteria" plans.

Question 23

At the present time,employers are required to provide pension plans to all full-time employees.

Question 24

Because of added expenses and complicated governmental rules,defined-benefit pension plans are falling out of use.

Question 25

It is primarily the responsibility of the employee to remain informed about the benefits he or she receives.

Question 26

Employees who resign from a position or who are terminated for cause may not be eligible to collect employment insurance (EI).

Question 27

In the past two decades,more and more employees have been receiving dental care insurance as a benefit.

Question 28

Benefit packages of any kind still help employers attract and retain quality employees.

Question 29

Employment insurance benefits are available for illness,injury,maternity,parental,and adoption leave.

Question 30

Most of the pension plans in privately held organizations are contributory.

Question 31

When organizations need to reduce their workforce,"silver handshakes" are sometimes used to encourage employees to retire before they had originally planned.

Question 32

Workers' compensation insurance is based on a system of individual liability.

Question 33

CPP and QPP have universal portability-that is,an employee has the right to claim benefit credits wherever they are employed in Canada.

Question 34

The growth in health care costs can be attributed to a number of factors,including the greater need for health care by an aging population.

Question 35

In Canada,the higher the household income,the lower the retirement age.

Question 36

Once employees have two years of service,they are considered,in terms of their pension fund,fully vested and locked in.

Question 37

In a defined-benefit plan,the retirement benefit is determined according to a predetermined formula.

Question 38

Long-term disability plans normally provide a disabled employee with 90-100 percent of their pre-disability income.

Question 39

Health care benefits are considered "discretionary" because employers are not required by law to provide them.

Question 40

Once extremely popular,group life insurance for employees has steadily declined in use.

Question 41

Which of the following statements does NOT describe management concerns about benefits?

A)Management is concerned with promoting a shift in mindset from self-responsibility to entitlement.
B)Management is concerned with the escalating cost of health care benefits.
C)Management is concerned with tax consequences.
D)Management is concerned with union demands.

Question 42

Which type of pension plan with fixed payouts is experiencing a decline in its use in Canada?

A)defined-benefit plan
B)defined-contribution plan
C)contributory plan
D)registered retirement savings plan (RRSP)

Question 43

Which of the following is related to the recent use of employee assistance programs (EAPs)in Canada?

A)They are increasing in use.
B)They are decreasing in use.
C)They add no costs to the employer.
D)They are not geared for dealing with emotional problems.

Question 44

Many employers now offer additional health care benefits such as dental and prescription drug coverage.

Question 45

Only employees contribute to the Employment Insurance (EI)fund.

Question 46

With contributory pension plans,contributions are made jointly by employers and the government.

Question 47

The Meat Shop,one of Canada's best employers according to a recent survey,is considering ways to contain its rising benefits costs.Which of the following is NOT a wise option for the Meat Shop?

A)making contribution changes,such as deductibles
B)putting dollar limits on some benefits
C)instituting flexible benefits
D)making cuts to mandatory benefits

Question 48

The Conference Board of Canada has concluded that it is not possible to contain the cost of employee benefit programs.

Question 49

Management at ABC Inc.wants to introduce a new benefit that is not required by law.What should it do first?

A)develop an HRIS system to help with its administration
B)establish that there is a need for it
C)lobby the government to make it mandatory
D)hire a consulting firm to roll it out

Question 50

A primary objective of most benefits programs is to increase turnover.

Question 51

Which of the following benefits must be provided by employers in Canada because it is legally required?

A)dental benefits
B)employment insurance
C)vision care
D)out-of-country medical assistance

Question 52

Which of the following is a fast,convenient,and interactive way employees can learn about or change their benefits?

A)employee self-service (ESS)systems
B)personal benefit profiles
C)bulletin boards in the workplace
D)benefits information packets

Question 53

Employee benefits typically represent 40 percent of total payroll costs to employers.

Question 54

Approximately one-third of Canadians have eldercare responsibilities.

Question 55

"Payment for time not worked" includes statutory holiday pay,time off for bereavement,military duty,vacation pay,jury duty,rest periods,coffee breaks,and maternity leave (which usually involves some form of salary continuance).

Question 56

Employee assistance programs (EAPs)help employees mainly with relocation costs.

Question 57

Company-sponsored preretirement programs force employees to think about what their lives will be like after they leave the organization.

Question 58

What is an important reason why employers need to communicate the extent and value of the benefits they provide?

A)Such communication is required by the law.
B)The HR department needs this information for its communication outlets.
C)It immediately reduces the overall costs.
D)Employees generally underestimate the value of the benefits offered.

Question 59

Tommy Lee is recovering from a drug addiction problem.His employer has offered him services to help him with the recovery process.What is this service an example of?

A)an employee assistance program
B)an outplacement service
C)a defined-benefit plan
D)a defined contribution plan

Question 60

Both employees and employers make contributions toward a workers' compensation fund.

Question 61

Susie Jones has definite preferences in terms of the benefits offered by her employer.Susie will be able to select the benefits she values highly and avoid those she does not need or want if her employer offers which benefit format?

A)an employee selection plan
B)a flexible benefits plan
C)a benefit pool
D)a modified benefits system

Question 62

What are the two critical factors considered when determining the amount of employment insurance to be paid to unemployed applicants?

A)their education and experience
B)the number of hours worked and their education
C)the number of hours worked in the past year and regional unemployment rates
D)the size of the firm and the salary of the employee

Question 63

Logan Wolverine works for RAY Vision Inc.The employer deducts money every month from Logan's paycheque for his pension plan.RAY Vision matches this amount for his pension.What type of plan is this?

A)a defined-benefit plan
B)a defined-contribution plan
C)a contributory plan
D)a noncontributory plan

Question 64

Omar Morales,an older employee,is considering an early retirement package that his employer has offered; it includes improved benefits and cash bonuses.What do we call this type of inducement?

A)a silver handshake
B)a golden parachute
C)a platinum cushion
D)a severance pay

Question 65

Most pension plans are now viewed as providing deferred income that employees accumulate during their working life and that belongs to them after a specified number of years of service.What view is this based on?

A)provincial law
B)a pay-as-you-go philosophy
C)a reward philosophy
D)an earnings philosophy

Question 66

A large portion of an organization's total payroll is devoted to employee benefits and this figure has risen over the past few decades.Which of the following has NOT contributed to this increasing cost?

A)additional benefits offered voluntarily by organizations
B)legislation forcing employers to establish some benefits
C)the use of online,interactive benefits programs
D)employers trying to match the competition

Question 67

How are childcare programs and eldercare programs similar?

A)Under both programs,most of the caregivers are men.
B)Both types of programs typically offer on-site care facilities.
C)Both programs are on the decline in Canada.
D)Both programs help to maintain or increase employee productivity.

Question 68

From a pension perspective,what is a key issue concerning the aging of baby boomers in Canada?

A)There are more demands for dental benefits.
B)Baby boomers are leaving management,thus there is a loss to the HR managers who oversee this benefit.
C)There are fewer contributions to the pension fund by younger generations and more withdrawals for funding pensions for baby boomers,thus putting the fund at risk of depletion.
D)Younger generations are demanding reduced pensions for those leaving the workforce.

Question 69

What are two of the largest health care costs in Canada for employers?

A)administrative and infrastructure costs
B)drugs and administrative costs
C)drug and hospital costs
D)administrative and hospital costs

Question 70

In Canada,registered retirement savings plans (RRSPs)have grown significantly over the past few years.What is a key reason for this growth?

A)Minimum wage earners now have more disposable income and they are contributing.
B)The funds accumulate tax-free until they are withdrawn.
C)The rich-poor gap is narrowing,thus people have more money to invest.
D)RRSPs are a part of stock plans,which are growing.

Question 71

The collective bargaining agreement between ACME Inc.and the union CUPA 1003 Local requires the employer to provide a limited vision care package.Workers are demanding more.Who will determine any new package?

A)the union and the government
B)the government
C)the employer and the union
D)the employer

Question 72

Canada has experienced a growth in the proportion of part-time workers (versus full-time)over the past decade.What is a key reason for this growth?

A)Employers tend to save on compensation and benefits costs.
B)The government is forcing firms to hire on a part-time basis.
C)Unions prefer workers to have part-time jobs.
D)Many full-time jobs are outsourced overseas.

Question 73

ABC Corporation allows employees the opportunity to try out retirement with a leave program,or gradually reduce their work hours as they approach retirement age.What is this an example of?

A)retirement leave
B)CPP/QPP
C)family-friendly benefits
D)a preretirement program

Question 74

What's a major problem facing the Canada Pension Plan?

A)the aging population
B)public disapproval
C)decreased subsidies from government
D)employer resistance

Question 75

James Callaghan has worked full-time for BC Metals for four years.He has learned from the HR manager that his earned pension benefits cannot be revoked by the employer.Why is this so?

A)because the employer expects him to work until retirement
B)because the benefits are vested
C)because the union would strike if they are revoked
D)because the benefits are defined

Question 76

Which of the following is an example of a family-friendly benefit that is increasingly being used?

A)defined benefits
B)tuition reimbursements
C)eldercare
D)defined contributions

Question 77

What is an important factor in determining the effectiveness of benefits programs in organizations?

A)level of competition
B)employee motivation
C)state of the broader economy
D)effective administration

Question 78

Which of the following statements is most applicable to the benefits costs to employers in Canada and the United States?

A)Benefits costs are higher in Canada.
B)Benefits costs are higher in the United States.
C)Benefits costs are the same in Canada and the United States.
D)Benefits costs are both negligible in Canada and the United States.

Question 79

What's a major disadvantage of cafeteria benefit plans?

A)They increase the complexity of the administration of the plans.
B)They are rejected by most workers.
C)Unions oppose them.
D)They increase government costs.

Question 80

In terms of childcare provisions,which of the following is considered the most visible and desired solution?

A)short time-off for mothers
B)on-site or near-site daycare centres
C)short time-off for fathers
D)grandparents to provide care