Deck 9: Employee Benefits and Services

Question 1

Employers provide supplementary health care/medical insurance to provide protection for employees against all of the following costs EXCEPT

A)medical supplies.
B)prescription drugs.
C)physiotherapy.
D)physician's fees.
E)private duty nursing.

Answer 1

D

Question 2

The benefit that provides a fixed lump-sum benefit in addition to life insurance benefits when death is accidental is

A)major medical insurance.
B)dental coverage.
C)survivors' benefit.
D)accidental death and dismemberment insurance.
E)health insurance.

Answer 2

D

Question 3

A government-sponsored program that provides weekly income benefits if a person is unable to work through no fault of his or her own is usually called

A)strike pay.
B)employment insurance.
C)severance pay.
D)termination pay.
E)sick pay.

Answer 3

B

Question 4

The three types of benefits provided under the Canada/Quebec Pension Plan are

A)disability,survivor,and old age security.
B)retirement,vacation,and disability.
C)retirement,survivor,and old age security.
D)retirement,disability,and survivor.
E)retirement,survivor,and health care.

Question 5

A type of life insurance that provides lower rates than individual insurance,and includes all employees,regardless of health or physical condition,is called

A)whole life insurance.
B)group life insurance.
C)endowment insurance.
D)term insurance.
E)universal life insurance.

Question 6

Group life insurance is usually provided in the amount of

A)$100,000.
B)five years' salary.
C)two years' salary.
D)$25,000.
E)one year's salary.

Question 7

Any indirect financial payments given to employees are known as

A)financial incentives.
B)stock options.
C)perquisites.
D)commissions.
E)employee benefits.

Question 8

Employees in Ontario and the federal jurisdiction may be eligible for ________ in certain termination situations,in addition to pay in lieu of notice.

A)unemployment pay
B)notice pay
C)exit pay
D)severance pay
E)terminal pay

Question 9

The EI benefit is generally 55% of average earnings during the last 14 to 26 weeks of the

A)qualifying period.
B)previous calendar year.
C)probationary period.
D)previous 52 weeks.
E)benefit period.

Question 10

A benefit that provides pay to an employee when he or she is out of work because of a non-work related injury or illness is called

A)severance pay.
B)unemployment pay.
C)workers' compensation.
D)short-term disability/sick leave.
E)hospitalization benefits.

Question 11

The purpose of an SUB plan is

A)to supplement EI benefits by receiving a combined benefit closer to the actual working wage.
B)to provide benefits separate from EI so that employees can better maintain their standard of living during periods of unemployment.
C)to supplement maternity leave.
D)the result of collective bargaining.
E)to facilitate an agreement between an employer and the employees.

Question 12

The amount of time off provided for bereavement leave varies by jurisdiction and also depends on

A)the employee's length of service.
B)family circumstances.
C)the location of the funeral.
D)the closeness of the relationship between the employee and the deceased.
E)the reason for the death.

Question 13

Outsourcing benefits administration to a third-party expert has which of the following advantage(s)?

A)greater efficiency and consistency and enhanced service
B)reduced cost and enhanced service
C)fewer benefit claims
D)reduced cost
E)increased employee understanding of benefits

Question 14

An employer is required to provide advance notice to an employee whose employment is being terminated,unless the employee is working on a short-term contract or

A)the company is shutting down.
B)a mass layoff is occurring.
C)the employee is eligible for early retirement.
D)the employee works outdoors.
E)the employee is being fired for just cause.

Question 15

The average cost of benefits,as a percentage of payroll,is approximately

A)30%.
B)37%.
C)50%.
D)25%.
E)10%.

Question 16

Some provinces require additional termination pay when mass layoffs occur.The amount of additional pay depends on

A)the level of unemployment in the region.
B)the employee's length of service.
C)the time of year.
D)the number of employees being laid off.
E)the reasons for the layoff.

Question 17

Individualized benefit plans allowed by some employers,in order to accommodate employee preferences for benefits,are known as

A)perquisite benefits plans.
B)flexible benefits programs.
C)individualized benefits plans.
D)constrained benefits plans.
E)family-friendly benefits.

Question 18

Critical illness insurance is

A)coverage providing a lump-sum benefit to an employee who is diagnosed with a life-threatening illness.
B)coverage for prescription drugs.
C)a deductible expense per year that gives money for expensive new drugs.
D)money for an employee paid in incrementals for critical illness.
E)coverage providing a fixed lump-sum benefit in addition to life insurance benefits when death is accidental.

Question 19

The benefits that form the cornerstone of almost all benefits programs are

A)life insurance and supplementary health care/medical insurance.
B)life insurance,long-term disability,and supplementary health care/medical insurance.
C)long-term disability and pension plan.
D)life insurance and pension plan.
E)life insurance and long-term disability.

Question 20

Workers' compensation is,in effect,a ________ insurance plan to help employees with work-related injuries or illnesses get well and return to work.

A)pension
B)bureaucratic
C)guaranteed
D)"no cost"
E)"no fault"

Question 21

A type of pension plan that contains a formula for determining retirement benefits so that the actual benefits to be received are defined ahead of time is called a

A)money purchase pension plan.
B)defined contribution pension plan.
C)defined benefit pension plan.
D)deferred profit-sharing plan.
E)retirement plan.

Question 22

The simplest approach to reducing health benefit costs is to increase the amount of health care costs paid by

A)employees.
B)the federal government.
C)workers' compensation plans.
D)smokers.
E)provincial governments.

Question 23

Effective disability management programs include

A)monitoring worker's compensation.
B)early and safe return-to-work policies.
C)remedial programs.
D)monitoring sick leave plans.
E)a required company medical.

Question 24

Many companies are trying to support employees with eldercare with the all of following initiatives EXCEPT

A)maternity leave policies.
B)compassionate care leaves.
C)education programs.
D)flex time.
E)access to programs such as senior recreation.

Question 25

The most common psychiatric disability is

A)schizophrenia.
B)depression.
C)obsessive-compulsive disorder.
D)anxiety attacks.
E)multiple personality disorder.

Question 26

The amount of health/dental expenses an employee must pay before insurance benefits will be paid is called

A)life insurance.
B)coinsurance.
C)workers' compensation.
D)dental coverage.
E)the deductible.

Question 27

Unlike government-provided retirement benefits,employer-sponsored pension plans are

A)restricted to deferred profit sharing.
B)easily managed.
C)invested in foreign securities.
D)pre-funded.
E)formalized.

Question 28

The percentage of expenses (in excess of the deductible)that are paid for by the insurance plan is called the

A)insured amount.
B)uninsured amount.
C)co-insurance level.
D)premium.
E)assessment.

Question 29

A golden parachute is an executive perk in the form of a salary guarantee in which of the following circumstances?

A)overseas transfer
B)targeting of the company for acquisition or merger
C)termination of employment
D)death of the executive in a work-related accident
E)divorce from spouse

Question 30

Executive perquisites are usually provided to

A)executives with base salaries of $100 000 or more.
B)only a few top executives.
C)the CEO and the president.
D)head office executives.
E)all executives.

Question 31

Costs associated with mental health problems relate to

A)younger workers.
B)short- and long-term disability.
C)short-term disability and increased drug usage.
D)long-term disability and increased drug usage.
E)increased drug usage.

Question 32

Common health-related insurance plans,other than supplementary health care/medical insurance,include

A)vision care and physiotherapy.
B)chronic illness benefits,vision care,and dental care.
C)vision care,hearing aids,and dental care.
D)vision care,psychological counseling,and dental insurance.
E)group legal insurance.

Question 33

One of the most common approaches to returning a worker with a disability to work is

A)prevention programs.
B)reduced work duties.
C)providing termination pay.
D)early assessment and intervention.
E)providing additional compensation.

Question 34

The biggest issue facing benefits managers in Canada today is

A)workers' compensation costs.
B)pension funding.
C)AIDS coverage.
D)retiree benefits.
E)increasing health care benefit costs.

Question 35

The fastest-growing occupational disability category is

A)repetitive strain injuries.
B)back injuries.
C)eye strain and injuries.
D)falls from a height (including ladders).
E)psychiatric disabilities.

Question 36

Approaches to health care that benefit cost reduction include all of the following EXCEPT

A)increasing government subsidies.
B)increase the amount of health care costs paid by employees.
C)risk-assessment programs.
D)health promotion.
E)publishing a restricted list of drugs that will be paid for under the plan.

Question 37

Canadian employers pay about ________% of all health care expenses in Canada,most of which is for prescription drugs.

A)36
B)25
C)40
D)30
E)50

Question 38

The fastest growing occupational disabilities are

A)HIV/AIDS-related.
B)back problems.
C)psychiatric.
D)chronic fatigue.
E)repetitive strain injuries.

Question 39

Disability management is a

A)proactive,employer-centred process that coordinates activities of the employer,the insurance company,and health care providers.
B)proactive,employer-centred process.
C)reactive,employer-centred process.
D)proactive,employee-centred process.
E)process that coordinates the activities of employer and employee.

Question 40

Employers can reduce the cost of retiree benefits in any of the following ways EXCEPT

A)increasing deductibles.
B)increasing retiree contributions.
C)increasing costs paid by workers' compensation.
D)tightening eligibility requirements.
E)reducing maximum payouts.

Question 41

The EI program is funded solely by contributions from eligible employees.

Question 42

Based on survey data,the following are all benefits to employers who institute subsidized day-care centres EXCEPT

A)lowered absenteeism.
B)enhanced recruitment.
C)lower performance appraisals.
D)lower turnover.
E)increased productivity.

Question 43

A type of pension plan that specifies what contribution the employer will make to a retirement or savings fund set up for the employee is called a

A)government-sponsored plan.
B)defined contribution pension plan.
C)defined benefit pension plan.
D)retirement plan.
E)deferred profit-sharing plan.

Question 44

A formal employer program for providing employees with counselling and/or treatment programs for problems such as mental health issues,marital/family problems,legal problems,or stress is called a(n)

A)employee assistance program.
B)legal aid benefits.
C)AA and NA program.
D)rehabilitation program.
E)employee services benefit.

Question 45

A job-related services benefit that is designed to help employees who must help elderly parents or relatives who are not fully able to care for themselves is known as

A)personal care.
B)eldercare.
C)aging care.
D)family medical care.
E)on-site eldercare.

Question 46

A pension plan in which a certain amount of profit is credited to each employee's account,payable at retirement,termination,or death,is a

A)group pension plan.
B)defined benefit pension plan.
C)defined contribution plan.
D)deferred profit-sharing plan.
E)group RRSP.

Question 47

Employers who offer a defined contribution pension plan must pay careful attention to their obligation to educate and inform plan members about

A)pension benefits formula.
B)pension vesting.
C)early retirement incentives.
D)pension investments.
E)pension portability.

Question 48

Employers must pay careful attention to their obligation to educate and ________ plan members about pension investment.

A)advise
B)inform
C)counsel
D)provide quarterly bulletins to
E)provide sessions to

Question 49

A pension provision whereby employees who change jobs can transfer the lump sum value of the pension they have earned to a locked-in RRSP or their new employer's pension plan is

A)non-funding.
B)vesting.
C)a non-locked-in provision.
D)flexible pensions.
E)portability.

Question 50

Defined benefit pension plans pay out a benefit at retirement

A)that is defined by the amount that the employee contributes to the pension plan.
B)that is defined by the amount that the employer contributes to the pension plan.
C)that is based on years of service and final earnings.
D)that is defined by the amount that both the employee and employer have contributed.
E)as defined by the union agreement.

Question 51

Employee benefits are available to specific employees and do not include health and life insurance,vacations,and child-care facilities.

Question 52

The number of EAPs in Canada is growing because they are a proactive way for organizations to reduce

A)disability costs.
B)employee services costs.
C)counselling costs.
D)supervisory training costs.
E)disciplinary costs.

Question 53

A provision in pension plans referring to the money contributed by the employer that has been placed in a pension fund and cannot be forfeited for any reason is

A)vesting.
B)stockholder equity.
C)non-funding.
D)investing.
E)bonding.

Question 54

Once an employee is vested,he or she will not receive any benefit from the pension plan until

A)changing jobs.
B)retirement.
C)30 years of service.
D)disability.
E)termination.

Question 55

Unemployment benefits are meant for workers who are unable to work through no fault of their own.

Question 56

The looming labour shortage based on when baby boomers start retiring is resulting in employers seeking to retain older employees.Mel's organization is experiencing this issue.One program to support this issue is

A)RRSPs.
B)supplemental employee retirement plans.
C)defined benefit pension plans.
D)phased retirement.
E)defined contribution pension plans.

Question 57

To date,the evidence regarding the actual effects of employer-sponsored childcare on employee absenteeism,turnover,productivity,recruitment,or job satisfaction is

A)positive,without consideration of obstacles or attitudes toward work.
B)neutral,with some positive and some negative effects.
C)positive,with respect to increasing obstacles in coming to work.
D)positive,with respect to reducing obstacles in coming to work and improving workers' attitudes.
E)negative,in respect to employees' attitudes.

Question 58

The Canada/Quebec Pension Plan provides three types of benefits: retirement income,survivor benefits,and disability benefits.

Question 59

In a contributory pension plan,contributions are made by

A)the government and the employee.
B)the employer only.
C)the government and the employer.
D)both the employer and the employee.
E)the employee only.

Question 60

A type of retirement plan that does not guarantee the eventual pension benefit an employee will receive at retirement,but only what the employee and employer contributions to the plan will be,is called a

A)government-sponsored plan.
B)defined contribution pension plan.
C)deferred profit-sharing plan.
D)retirement plan.
E)defined benefit pension plan.

Question 61

Eligibility requirements for vacations (in excess of the legislated minimum amount)vary from firm to firm.

Question 62

Carlos has noticed that employees in his organization don't really value the benefits package his organization has designed for them.The workforce in Carlos' organization is quite diverse in age and other demographic variables.Give Carlos some advice about flexible benefits-describe what they are and be sure to tell him about at least two key advantages and disadvantages of flexible benefits.

Question 63

A defined benefit pension plan contains a formula.

Question 64

Eldercare is designed to help older employees who are not fully able to care for themselves.

Question 65

Unpaid leaves of absence are costless for employers.

Question 66

Some employers provide subsidized employee transportation.

Question 67

Employers are not required to disclose liabilities related to retiree benefits.

Question 68

Accidental death and dismemberment coverage provides annuity payments in addition to life insurance benefits when death is accidental.

Question 69

Most group life insurance plans contain a provision for including all employees regardless of health or physical condition.

Question 70

Identify and describe 5 different voluntary employer-sponsored benefits.

Question 71

Briefly describe five government-sponsored employee benefits in Canada.

Question 72

Employees who work during the notice period provided by the employer before employment is terminated receive a lump sum payment called "pay in lieu of notice."