Chapter 13 HRM

33) The simplest approach to reducing health benefit costs is to increase the amount of health care costs paid by: A) employees. B) smokers. C) the federal government. D) provincial governments. E) workersʹ compensation plans.

A) employees.

30) Canadian employers pay about ________% of all health care expenses in Canada, most of which is for prescription drugs. A) 50 B) 30 C) 36 D) 40 E) 25

B) 30

43) A Harvard University study projects that, by 2020, ________ will become the biggest source of lost workdays in developed countries. A) occupational illness B) work-related illness C) depression D) anxiety attacks E) psychiatric illness

C) depression

51) In a contributory pension plan, contributions are made by: A) both the employer and the employee. B) the employer only. C) the government and the employer. D) the government and the employee. E) the employee only.

A) both the employer and the employee.

5) A government-sponsored program that provides weekly income benefits if a person is unable to work through no fault of his/her own is usually called: A) employment insurance. B) strike pay. C) severance pay. D) sick pay. E) termination pay.

A) employment insurance.

14) An employer tactic to minimize the problem of employeesʹ excessive use of sick days would include the following EXCEPT: A) increasing the number of sick days for employees. B) aggressively investigating all absences. C) holding cash prize lotteries for employees with perfect attendance. D) buying back unused sick leave at the end of the year. E) calling the absent employees at their homes.

A) increasing the number of sick days for employees

25) Employers provide supplementary health care/medical insurance to provide protection for employees against the following costs EXCEPT: A) physicianʹs fees. B) medical supplies. C) private duty nursing. D) prescription drugs. E) physiotherapy.

A) physicianʹs fees.

55) 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 employerʹs pension plan is: A) portability. B) a non-locked-in provision. C) flexible pensions. D) vesting. E) non-funding.

A) portability.

68) To date, the evidence regarding the actual effects of employer -sponsored child care on employee absenteeism, turnover, productivity, recruitment, or job satisfaction is: A) positive, with respect to reducing obstacles in coming to work and improving workersʹ attitudes. B) negative, in respect to employeesʹ attitudes. C) neutral, with some positive and some negative effects. D) positive, with respect to increasing obstacles in coming to work. E) positive, without consideration of obstacles or attitudes toward work.

A) positive, with respect to reducing obstacles in coming to work and improving workersʹ attitudes.

13) A benefit that provides pay to an employee when he/she is out of work because of a non -work related injury or illness is called: A) short-term disability/sick leave. B) workersʹ compensation. C) unemployment pay. D) hospitalization benefits. E) severance pay.

A) short-term disability/sick leave

15) The amount of time off provided for bereavement leave varies by jurisdiction, and also depends on: A) the closeness of the relationship between the employee and the deceased. B) the location of the funeral. C) the employeeʹs length of service. D) family circumstances. E) the reason for the death.

A) the closeness of the relationship between the employee and the deceased.

26) Common health-related insurance plans other than supplementary health care/medical insurance include the following: A) vision care; hearing aids; dental care. B) vision care; physiotherapy. C) group legal insurance. D) vision care; psychological counseling; dental insurance. E) chronic illness benefits; vision care; dental care.

A) vision care; hearing aids; dental care

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

B) defined contribution pension plan

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

B) defined contribution pension plan.

44) Many companies are trying to reduce the cost of psychiatric disabilities in the following ways EXCEPT: A) peer support groups. B) employment testing. C) prevention programs. D) early intervention programs. E) psychiatric counseling.

B) employment testing

34) Approaches to health care benefit cost reduction include the following EXCEPT: A) increase the amount of health care costs paid by employees. B) increasing government subsidies. C) publish a restricted list of drugs that will be paid for under the plan. D) risk-assessment programs. E) health promotion.

B) increasing government subsidies.

59) Employers must pay careful attention to their obligation to educate plan members about pension investment. They must also: A) provide sessions. B) inform. C) provide quarterly bulletins. D) advise. E) cousel.

B) inform.

3) The following factor(s) is/are expected to increase the cost of benefits: A) employee services. B) looming labour shortage. C) baby boomers. D) advances in dental care. E) pension plans.

B) looming labour shortage.

67) Based on survey data, the following are benefits to employers who institute subsidized day care centres EXCEPT: A) lower turnover. B) lower performance appraisals. C) enhanced recruitment. D) increased productivity. E) lowered absenteeism.

B) lower performance appraisals.

36) Executive perquisites are usually provided to: A) executives with base salaries of $100,000 or more. B) only a few top executives. C) head office executives. D) the CEO and the president. E) all executives

B) only a few top executives.

57) Family-friendly benefits options include the following EXCEPT: A) subsidies for paid parental leave. B) outsourcing benefits administration. C) a casual dress code. D) alternative transportation options. E) telecommuting.

B) outsourcing benefits administration.

58) 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 investments. C) pension portability. D) pension vesting. E) early retirement incentives.

B) pension investments.

60) The looming labour shortage when baby boomers start retiring is resulting in employers seeking to retain older employees. Melʹs organization is experiencing this issue. One program to support this issue is: A) supplemental employee retirement plans. B) phased retirement. C) RRSPs. D) defined contribution pension plans. E) defined benefit pension plans.

B) phased retirement.

45) Unlike government-provided retirement benefits, employer -sponsored pension plans are: A) easily managed. B) pre-funded. C) invested in foreign securities. D) restricted to deferred profit sharing. E) formalized.

B) pre-funded.

6) The EI benefit is generally 55% of average earnings during the last 14 to 26 weeks of the: A) benefit period. B) qualifying period. C) previous 52 weeks. D) previous calendar year. E) probationary period.

B) qualifying period.

62) The following are counseling services employers are providing to their employees EXCEPT: A) financial counseling. B) real-estate counseling. C) family counseling. D) career counseling. E) preretirement counseling.

B) real-estate counseling

8) The three types of benefits provided under the Canada/Quebec Pension Plan are: A) disability, survivor, old age security. B) retirement, disability, survivor. C) retirement, survivor, health care. D) retirement, vacation, disability. E) retirement, survivor, old age security.

B) retirement, disability, survivor.

17) 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) severance pay C) notice pay D) terminal pay E) exit pay

B) severance pay

31) A ʺgolden parachuteʺ is an executive perk in the form of a salary guarantee in the following circumstances: A) death of the executive in a work-related accident. B) targeting of the company for acquisition or merger. C) termination of employment. D) divorce from spouse. E) overseas transfer.

B) targeting of the company for acquisition or merger.

21) Group life insurance is usually provided in the amount of: A) $100,000. B) two yearsʹ salary. C) one yearʹs salary. D) $25,000. E) five yearsʹ salary.

B) two yearsʹ salary.

54) In most provinces, employer pension plan contributions must be vested once the employee has completed ________ years of service. A) 5 B) 4 C) 2 D) 3 E) 1

C) 2

16) One or more of parental, paternity, and adoption leaves are provided in each Canadian jurisdiction. These leaves range from ________ weeks to ________ weeks. A) 2, 15 B) 12, 24 C) 8, 52 D) 9, 25 E) 6, 12

C) 8, 52

10) All parties agree that the best way to manage workersʹ compensation claims over the long term is: A) reducing benefits. B) instituting employee premiums. C) accident prevention. D) better claims monitoring. E) privatization of workersʹ compensation.

C) accident prevention

22) 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) health insurance. C) accidental death and dismemberment insurance. D) survivorsʹ benefit. E) dental coverage.

C) accidental death and dismemberment insurance

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

C) defined benefit pension plan

42) The most common psychiatric disability is: A) schizophrenia. B) obsessive-compulsive disorder. C) depression. D) multiple personality disorder. E) anxiety attacks.

C) depression.

11) Abacus Trucking Ltd. has experienced a rise in workers compensation claims over the past year. You are the Human Resources professional who has been asked what the company can do to reduce the number of claims. You respond that the following are steps the company should take EXCEPT: A) institute effective health and safety programs. B) comply with government safety standards. C) discipline workers who have more than one workersʹ compensation claim. D) provide career counseling to guide employees into less strenuous or stressful jobs. E) institute rehabilitation programs for injured or ill workers.

C) discipline workers who have more than one workersʹ compensation claim

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

C) eldercare.

63) A formal employer program for providing employees with counseling and/or treatment programs for problems such as mental health issues, marital/family problems, legal problems or stress is called a(n): A) rehabilitation program. B) employee services benefit. C) employee assistance program. D) legal aid benefits. E) AA and NA program.

C) employee assistance program

1) Any indirect financial payments given to employees are known as: A) commissions. B) stock options. C) employee benefits. D) financial incentives. E) perquisites.

C) employee benefits.

12) Individualized benefit plans allowed by some employers in order to accommodate employee preferences for benefits are known as: A) family-friendly benefits. B) perquisite benefits plans. C) flexible benefits programs. D) constrained benefits plans. E) individualized benefits plans.

C) flexible benefits programs

29) The main reasons for increasing health care benefit costs are: A) psychiatric disabilities and AIDS. B) rising drug utilization and expensive new drugs. C) increasing use of expensive new drugs, rising drug utilization, and ʺcost cuttingʺ reductions in provincial health care plans. D) increasing workersʹ compensation claims for occupational illness, and expensive new drugs. E) ʺcost cuttingʺ in provincial health care plans, and the AIDS epidemic.

C) increasing use of expensive new drugs, rising drug utilization, and ʺcost cuttingʺ reductions in provincial health care plans.

50) Group RRSP/DPSP combinations are popular in Kerrieʹs company and commonly popular in Canada. Kerrie found this out because: A) they increase severance payments. B) membership is automatic upon beginning employment. C) no tax is paid until money is received from the plans at the time of employeeʹs death. D) no tax is paid at all. E) employerʹs provide contribution to them.

C) no tax is paid until money is received from the plans at the time of employeeʹs death.

66) The following are various social and recreational opportunities extended to the employees EXCEPT: A) athletic events. B) craft activities. C) pre-retirement counseling. D) annual summer picnics. E) parties.

C) pre-retirement counseling.

39) One of the most common approaches to returning a worker with a disability to work is: A) providing additional compensation. B) providing termination pay. C) reduced work duties. D) prevention programs. E) early assessment and intervention.

C) reduced work duties.

40) Costs associated with mental health problems relate to: A) younger workers. B) short-term disability and increased drug usage. C) short- and long-term disability. D) increased drug usage. E) long-term disability and increased drug usage.

C) short- and long-term disability.

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

C) the employee is being fired for just cause.

32) The percentage of expenses (in excess of the deductible) that are paid for by the insurance plan is called the: A) insured amount. B) assessment. C) uninsured amount. D) coinsurance level. E) premium.

D) coinsurance level.

49) A pension plan in which a certain amount of profit is credited to each employeeʹs account, payable at retirement, termination, or death, is a: A) group pension plan. B) group RRSP. C) defined contribution plan. D) deferred profit-sharing plan. E) defined benefit pension plan.

D) deferred profit-sharing plan

20) A type of life insurance providing for lower rates than for individual insurance, and including all employees, regardless of health or physical condition, is called: A) whole life insurance. B) term insurance. C) endowment insurance. D) group life insurance. E) universal life insurance.

D) group life insurance.

35) Employers can reduce the cost of retiree benefits in the following ways EXCEPT: A) tightening eligibility requirements. B) increasing deductibles. C) increasing retiree contributions. D) increasing costs paid by workersʹ compensation. E) reducing maximum payouts.

D) increasing costs paid by workersʹ compensation.

28) The biggest issue facing benefits managers in Canada today is: A) workersʹ compensation costs. B) AIDS coverage. C) pension funding. D) increasing health care benefit costs. E) retiree benefits

D) increasing health care benefit costs.

52) Defined benefit plans are expected to remain in large organizations with a norm of: A) layoffs. B) high turnover. C) unionization. D) long tenure. E) early retirement incentives.

D) long tenure.

41) The fastest growing occupational disabilities are: A) chronic fatigue. B) back problems. C) repetitive strain injuries. D) psychiatric. E) HIV/AIDS-related.

D) psychiatric.

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

D) to supplement EI benefits by receiving a combined benefit closer to the actual working wage.

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

D) vesting.

9) Workersʹ 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) ʺno faultʺ E) ʺno costʺ

D) ʺno faultʺ

4) The average cost of benefits, as a percentage of payroll, is approximately: A) 50%. B) 25%. C) 10%. D) 30%. E) 37%.

E) 37%

61) The following are personal services that most employees need at one time or another EXCEPT: A) employee assistance plans. B) credit unions. C) social/recreational opportunities. D) counseling. E) clerical services.

E) clerical services

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

E) coverage providing a lump-sum benefit to an employee who is diagnosed with a life-threatening illness.

65) The number of EAPs in Canada is growing because they are a proactive way for organizations to reduce: A) disciplinary costs. B) counseling costs. C) supervisory training costs. D) employee services costs. E) disability costs.

E) disability costs.

38) Effective disability management programs include: A) remedial programs. B) a required company medical. C) monitoring sick leave plans. D) monitoring workerʹs compensation. E) early and safe return-to-work policies

E) early and safe return-to-work policies

2) Outsourcing benefits administration to a third-party expert has the following advantage(s): A) reduced cost and enhanced service. B) increased employee understanding of benefits. C) reduced cost. D) fewer benefit claims. E) greater efficiency and consistency, and enhanced service.

E) greater efficiency and consistency, and enhanced service.

24) The benefits that form the cornerstone of almost all benefits programs are: A) life insurance and long-term disability. B) life insurance and supplementary health care/medical insurance. C) long-term disability and pension plan. D) life insurance and pension plan. E) life insurance, long-term disability, and supplementary health care/medical insurance.

E) life insurance, long-term disability, and supplementary health care/medical insurance

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

E) proactive, employer-centred process that coordinates activities of the employer, the insurance company, and health care providers.

56) Once an employee is vested, he or she will not receive any benefit from the pension plan until: A) 30 years of service. B) termination. C) changing jobs. D) disability. E) retirement.

E) retirement.

27) The amount of health/dental expenses an employee must pay before insurance benefits will be paid is called: A) workersʹ compensation. B) dental coverage. C) coinsurance. D) life insurance. E) the deductible.

E) the deductible.

19) Some provinces require additional termination pay when mass layoffs occur. The amount of additional pay depends on: A) the employeeʹs length of service. B) the level of unemployment in the region. C) the reasons for the layoff. D) the time of year. E) the number of employees being laid off.

E) the number of employees being laid off.