Employee Benefits
board of directors compensate executives
A phantom stock plan is characterized by which of the following? -board of directors compensate executives -there are no specific conditions for converting these into shares -there are no tax advantages -retirees' income tax is higher
true
A summary of material modifications might include changes in plan eligibility rules. true or false
employers cannot exclude qualified employees with disabilities from participating in its disability retirement plans
According to ADA guidelines, which of the following is true? -employers cannot exclude qualified employees with disabilities from participating in its disability retirement plans -employers can require a longer pre-eligibility period for employees with disabilities -employers must include cost-of-loving adjustments on its disability benefits -employers must offer the same benefits to all under its disability retirement plans
welfare plans
According to ERISA, these types of programs are established for the purpose of providing assistance for its participants or their beneficiaries, through the purchase of insurance.
30 days
According to FMLA guidelines, employees must give how much notice for a scheduled unpaid leave?
travel time driving to work
According to the Fair Labor Standards Act, employers must compensate employees for duties and activities indispensable to performing principal work activities. Which of the following is not a compensable nonproduction time? -preparation time -rest periods shorter than 20 minutes -cleanup time -travel time driving to work
provide program evaluation results
According to the IRS, educational assistance programs may qualify for tax benefits if the employer meets three additional requirements. Which of the following is NOT one of those requirements? -describe the program in a separate written document -satisfy nondiscrimination requirements -offer the program exclusively for the benefit of employees -provide program evaluation results
highly compensated employee
According to the Internal Revenue Code, this person was a five percent owner at any time during the year or the preceding year; or, for the preceding year, the employee had compensation in excess of $120,000 in 2017 and was in the top paid group of employees. -highly compensated employee -high policymaker -key employee -bona fide executive
6-24 months
After an injury, claims to workers compensation for rehabilitative services usually have to be submitted in what time frame?
health maintenance organizations, preferred provider organizations and point of service plans
Common forms of managed care plans.
fee-for-service plans, alternative managed care plans, consumer-driven health care plans
Companies can choose from which of the following ways to provide health-care coverage? -fee-for-service plans, alternative managed care plans, consumer-driven health care plans -point-of-service plans, fee-for-service plans, managed care plans -self-funded plans, managed care plans, point-of-service plans -indemnity plans, health savings account, fee-for-service plans
noncontributory, contributory, employee financed, a combination of them all
Companies can generally choose from what for programs for financing their discretionary benefits plans?
true
Consortium EAPs establish contracts with sets of numerous small employers. true or false
90 days
ERISA requires that employees receive a summary plan description within how many days of becoming a plan participant? -120 days -60 days -90 days -30 days
210
ERISA requires that material modification summaries must be sent to the Department of Labor within how many days after the end of the plan year in which the change occured?
mandatory bargaining subjects
ERISA, Title I, contains provisions for all of the following EXCEPT. -fiduciary responsibilities -mandatory bargaining subjects -continuation coverage -group health plan portability
no increase
Effective 2016, what was the annual increase in Social Security benefits?
true
Employee benefits act as a tool for recruiting and retaining desired employees for companies. true or false
false
Employee benefits need to be considered as economic exchange between employer and employee rather than social exchange relationships. true or false
there is a strong employee initiative about EAP programs
Employees may judge participation negatively in all BUT which of these? -there is a strong employee initiative about EAP programs -a number of employees may hold the view that personal problems are just that-problems not to be shared in the workplace -some employees may mistrust employer sponsorship of EAPs -some employees may simply feel strong shame about their problems to the point of denial
Worked 1250 hours in a 12 month time span
Employees of covered employers qualify for FMLA leave when they meet the following qualifications.
government mandates
Employer choice of discretionary benefits does NOT depend on what?
Employee Retirement Income Security Act (ERISA)
Employer-sponsored disability insurance plans generally supplement legally required benefits established by which law?
false
Employers and employees both receive tax benefits on health risk appraisals. true of false
true
Employers can offer health-care plans using fully insured or self-funded plans. true or false
true
Employers that use referral EAPs usually do NOT have a contractual relationship with service providers. true of false
false
Excess benefit plans generally have longer vesting periods than SERPs. true or false
requires that companies disclose substantial information about the economic value and cost of retiree health-care plans
FAS 106 does NOT do which of the following? -requires that companies disclose substantial information about the economic value and cost of retiree health-care plans -post-retirement benefits are part of employee's compensation package -reduces the amount of net profit companies list on balance sheets -benefits such as health care coverage establish an exchange between the employer and employee
1.1 million
In 2014, around how many occupational injuries and illnesses within US private industry required recuperation away from work beyond the day of the incident?
false
In 2015, employers generally paid $700 annually per private sector employee for workers compensation protection.
$83
In 2015, on average, employers spent how much annually per employee to provide life insurance coverage?
$125
In 2015, on average, employers spent how much annually per employee to provide short term disability insurance?
false
In 2015, on average, holiday benefit costs were higher than vacation benefits costs. true or false
6.9%
In 2015, private industry employer costs for paid leave benefits was what percentage of total compensation?
True
In 2015, private industry paid leave benefit costs were highest for management, professional, and related occupations, accounting for 8.4% of total compensation. true of false
around 5.7 billion
In 2015, the PBGC paid total benefits of approximately how much?
72% full-time, 13% part-time
In 2015, what percentage of full-time and part-time employees received employer-sponsored life insurance?
true
Insurers may conduct concurrent utilization reviews shortly after hospital admission. true or false
false
Long-term disability insurance plans used to cover partial disabilities but ceased due to high costs. true or false
450%
Medical care has risen about how much since 1984?
true
Medigap insurance supplements Medicare Parts A & B and is available from private insurance companies. true of false
50-70% after 6-12 months
Most long-term disability insurance plans pay how much after a waiting period of how long?
50-67%
Most short-term disability insurance plans pay employees around how much of their regular pay?
false
NAFTA regulates labor conditions in North America? true or false
Title VII of the Civil Rights Act
NOT allowing a Jewish employee to observe Hanukah would be a direct violation of what law?
excess benefit plans and supplemental executive retirement plans
Nonqualified retirement plans for executives are generally divided into these two broad classes. -top hat plans and supplemental executive retirement plans -excess benefit plans and supplemental executive retirement plans -target benefit plans and supplemental executive retirement plans -offset benefit plans and supplemental executive retirement plans
they are awarded at discounted prices
Nonstatutory stock options are characterized by which of the following features? -they are awarded at discounted prices -they qualify for favorable tax treatment -executives do not have any ownership control over the disposition of the stock for 5 to 10 years -executives pay taxes in the future when they choose to exercise their nonstatutory stock options
$118,500
OASDI taxes are subject to a taxable wage base. What was the taxable wage base for everyone in 2016?
false
Once the social exchange is set between employer and employee, it does not change over time. true of false
false
Only ERISA Title I holds provisions setting minimum standards required to qualify pension plans for favorable tax treatment. true or false
$100,000
The Drug-Free Workplace Act applies to companies who hold federal contracts worth at least how much money or any federal grant?
False
The EEOC requires employers to pay employees for time-off to observe religious holidays. true of false?
minimum wage, overtime pay, child labor
The FLSA of 1938 contains provisions concerning which three topics?
12 work weeks of unpaid leave during any 12 month period
The Family and Medical Leave Act (FMLA) permits employees what?
true
The Internal Revenue Code and ERISAs Title I and Title II provisions set 13 minimum standards to determine whether retirement plans are qualified or nonqualified. true or false
false
The Medicare tax is subject to a taxable wage base. true or false
false
The Revenue Act of 1921 instituted retirement plans as a mandatory bargaining subject between unions and management. true of false
work performed full-time
The Social Security Administration defines "gainful" work activity as all of the following EXCEPT. -work intended for profit, whether or not a profit is realized -work performed for pay or profit -work performed full-time -work of a nature generally performed for pay or profit
equal payments, proportional payments based on salary, proportional payments based on their contributions to profits
The benefits distributed from profit sharing plans are usually allocated using what ways?
whether or not the employee is a manager
The degree to which an increase in benefit costs is passed along to employees in the form of lower cash wages generally does NOT depend on which of the following factors? -the cash value employees place on the benefits -the degree to which employers will increase or decrease their hiring when the market compensation level decreases or increases -whether or not the employee is a manager -whether the benefit cost increases for all employers in a market or for a particular employer
Federal Insurance Contributions Act (FICA)
The federal government funds the Social Security Old-Age, Survivor and Disability Insurance Program using which tax?
true
The largest share of FICA tax funds OASDI programs. true or false
false
The national federal-state unemployment insurance program provides weekly income to individuals who become unemployed for any reason.
defined contribution plans, defined benefits plans, hybrid plans
There are the three main types of retirement programs that companies can offer.
social security integration
There are three possible contribution sources for defined contribution plans. Which of the following is NOT one of those sources? -employer contributions -social security integration -employee contributions -forfeitures
fee for service plans, alternative managed care plans, point of service plans, consumer driven plans
These are the four main classes of health insurance programs that employers have to choose from to offer its employees.
salary reduction, modular, core plus option, mix and match
These are the four most common types of cafeteria plans.
dental fee-for-service, dental service corporations, dental maintenance organizations
These are the three main types of dental plans. -dental fee-for-service, dental savings accounts, dental maintenance organizations -dental fee-for-service, dental service corporations, dental maintenance organizations -dental savings accounts, dental maintenance organizations, dental service plans -dental preferred provider organizations, dental maintenance organizations, dental service corporations
prospective, concurrent, retrospective
These are the three types of utilization reviews.
golden parachutes
These clauses in the employment agreement provide pay and benefits to executives after a termination that results from a change in ownership or corporate takeover. -golden parachutes -top hat -mandatory retirement -platinum parachutes
mortality tables
These indicate yearly probabilities of death based on such factors as age and sex.
outplacement assistance
These programs provide technical and emotional support to employees who are being terminated.
offset provisions
These reduce company sponsored benefits by subtracting a particular percentage of these disability benefits from workers compensation and Social Security disability plans.
carve-out plans
These types of insurance plans are set up to cover things like dental care, vision care and prescription drugs
fee-for-service plans
These types of insurance plans provide protection against health care expenses in the form of cash benefits paid to the insured or directly to the provider after the services are rendered.
false
This IRS limits the annual benefit amounts for defined benefit plans to lesser of $185,000 in 2017. true of false
Medicare Part B
This Medicare program offers voluntary supplemental medical insurance.
Older Workers Benefit Protection Act
This amendment contains the equal benefit or equal cost principle and bans termination of an employee's long-term disability benefits for active employees based on age.
modular
This cafeteria plan allows a single mother employee to select a benefits package designed to meet the particular needs of single mothers.
pretax salary reduction plans
This cafeteria plan allows employees to exclude allocated income from federal income tax to pay for the benefits.
flexible spending accounts
This consumer-driven health care option allows employees to contribute pre-tax wages annually to pay for qualified medical expenses, but they will lose the balance not used at year's end.
health savings account
This consumer-driven health care option contains contributions made my employers and the balance can be carried-over to the next year. -flexible savings account -health savings account -flexible spending account -health reimbursement arrangements
Title VII of the Civil Rights Act of 1964
This equal employment opportunity law prohibits illegal discrimination against protected class individuals in employment.
Women's Health and Cancer Rights Act
This federal law requires group health plans to provide medical and surgical benefits for mastectomies.
ERISA
This federal law was established to regulate the establishment and implementation of discretionary benefits practices.
constructive confrontation
This involves discussing incidents of poor performance with the troubled employee, citing the necessity of improving job performance within a designated period.
pre-paid plans
This plan pays medical service providers a fixed amount based on the number of people enrolled, regardless of services received.
integrated paid time-off
This policy allows employees to schedule time-off without having to justify the reasons.
medical reimbursement plan
This prescription drug plan is usually associated with indemnity plans, pays benefits after the employee has met the deductible and tends to charge the most for filling the prescriptions.
125
This section of the IRC permits an employer to offer employees the choice between taxable income or to allocate some of their income to purchase qualified benefits through a cafeteria plan. -125 -152 -127 -172
401(k) plan
This type of defined contribution plan, also know as a CODA, permits only private sector or tax exempt employers employees to tax defer part of their compensation to the trust of a qualified plan.
rabbi trust
This type of executive retirement plan is unfunded and can be issues upon retirement, termination, or death, but the assets must be released to creditors if the company files for insolvency or bankruptcy. -rabbi trusts -corporate-owned life insurance -employee-owned annuities -secular trusts
multiple employer trust
This type of group insurance plan is an arrangement made for employers with relatively small workforces. A single master trust holds each employers contributions and premiums are paid from the trust.
target benefit plan
This type of hybrid plan is based on income and years of service, uses individual accounts, passes IRSs cross testing rules and the total benefits are based on the investment performance of the plans assets.
concurrent
This type of utilization review judges whether additional inpatient hospitalization is medically necessary. -certification -retrospective -concurrent -prospective
false
To more effectively communicate a benefits package to employees, more companies are having new employees meet one on one with benefits counselors. true or false
10
To qualify as a group term life insurance policy, it must insure at least how many full-time employees?
uniform allocation formula or uniform points allocation formula
To qualify as a nondiscrimination defined contribution plan, it must meet which two safe harbors?
72%
US companies offered life insurance to what percentage of full time employees in 2015?
mandatory, permissive, illegal
Under NLRA, subjects for collective bargaining fall into one of which three categories?
whole capitation
Under provider payment systems, agreements may include one or more cost saving features. Which of the following is NOT one of these cost saving features? -percentage discounts -whole capitation -partial capitation -capped fee schedules
true
Under the Americans with Disabilities Act of 1990, an employer cannot refuse to hire a person with a disability. true or false
compensable factors
Under the Equal Pay Act of 1963, what are skills, effort, responsibility and working conditions referred to as?
full capitation
Under this provider payment system, managed care plans hold primary care physicians accountable for the cost of services rendered to each assigned patient. -semi capitation -partial capitation -full capitation -full capitation plus
partial capitation
Under this provider payment system, primary care physicians are paid a fixed dollar amount for each patient.
70%
Using the ratio percentage tax benefit qualification, what does the percentage of non-highly compensated employees to highly compensated employees in the plan have to be?
true
Utilization reviews are used to evaluate the quality of specific health care services. true or false
person focused pay
What adjustment to core compensation rewards employees for acquiring new knowledge and skills through designated curricula sponsored by an employer?
the benefits are based on a percentage of the employees final average wage or salary, are based on the employees last 3-4 years of service and are determined using a flat amount formula or a flat percentage formula
What are the characteristics of the flat benefit formula used in defined benefits plans?
COLAs, seniority pay, merit pay, incentive pay, person focused pay
What are the five core compensation adjustment elements?
distributive, procedural, informational and interpersonal
What are the four types of justice perceptions outlined in the text?
protection programs, paid time off, accommodation and enhancement programs
What are the three fundamental roles that characterize discretionary benefits?
employers have a cost advantage, the benefits help in recruiting and retaining workers and the company gets tax incentives to offer them
What are the three main reasons that employers offer discretionary benefits?
staff model HMO's, group model HMO's and network model HMO's
What are the three specific forms of prepaid group practices? -universal model HMO's, group model HMO's and staff model HMO's -group model HMO's, network model HMO's and universal model HMO's -staff model HMO's, group model HMO's and network model HMO's -network model HMO's, universal model HMO's and staff model HMO's
reneging and in-congruence
What are the two basic causes for psychological contract violations?
backing in and top down
What are the two possible approaches that can be used in strategic benefits planning?
benefits exceed the balance in the account
What factor does NOT determine the accrual rate in defined contribution plans? -benefits exceed the balance in the account -benefits equal the balance in the account -company cannot set maximum age limits for discontinuing contributions -companys contribution cannot be reduced because of employee age
people who join together to buy a group insurance policy
What is an insurance pool?
the percentage of covered expenses paid by the insured
What is coinsurance?
violation of an affirmative duty
What is it called when an employer intentionally fails to reveal the exposure of a worker to harmful substances?
a process where employees provide their past medical history to insurers
What is medical underwriting?
nondiscrimination in defined benefits plans
What is the 3% rule used to determine?
banking hours feature
When considering flexible work arrangements, what term enables employees to vary the number of daily work hours, as long as they maintain the regular number of work hours on a weekly basis?
a company's employee benefits practices do not influence employees' satisfaction
When discussing organizational citizenship behavior, which of the following statements is NOT true? -a company's employee benefits practices do not influence employees' satisfaction -satisfied employees engage in good citizenship behavior -citizenship behaviors tend to go beyond the formal job requirements -organizational citizenship behavior is discretionary
impairment
When paying permanent partial disability benefits, for unscheduled injuries, this approach bases the amount on the physical or mental loss associated with the injury to a bodily function
IV
Which ERISA title contains terms for pension insurance programs and includes the establishment of the Pension Benefit Guarantee Corporation?
eligibility provisions
Which common feature of a benefits plan allows companies to limit benefits participation to current employees?
workforce demographics
Which internal environment factor is used for strategic benefits planning?
press coverage
Which is NOT a factor associated with the decision to fund a nonqualified plan? -costs -shareholder expectations -press coverage -liability management
funding
Which of the following ERISA Title I parts does not apply to nonqualified plans? -reporting and disclosure -funding -administration and enforcement -fiduciary responsibility
Medicare Part A
Which of the following Medicare coverage would cover physical therapy, occupational therapy, and speech-language therapy ordered by a doctor? Medicare Part A Medicare Part B Medicare Part D Medicare Part E
self employed individuals
Which of the following are eligible for OASDI? -10 year railroad employees -children under 18 -federal government workers -self employed individuals
adverse selection
Which of the following can be avoided by using experience ratings? -adverse selection -medical underwriting -insurance pooling -economies of scale
concentration
Which of the following compares the nontaxable benefits provided to key employees to the nontaxable benefits provided to all employees? -concurrent reviews -prospective reviews -concentration -eligibility
providing specialist diagnosis
Which of the following does NOT fall within the scope of the role of a primary care physician? -deciding what treatment is warranted -making initial diagnosis and evaluation of patient's condition -identifying applicable treatment protocols and practice guidelines -providing specialist diagnosis
Civil Rights Act
Which of the following does NOT mandate legally required employee benefits? -Family and Medical Leave Act -Civil Rights Act -Patient Protection and Affordable Care Act -Social Security Act
accommodation and enhancement benefits
Which of the following employee benefit is more relevant for relational psychological contracts? -life insurance -accommodation and enhancement benefits -promotions -legally required benefits
retirement
Which of the following employee benefit might fulfill both transactional and relational expectations of employees? -retirement -accommodation and enhancement benefits -legally required benefits -life insurance
funding
Which of the following is NOT a feature of excess benefits plans? -funding -administration and enforcement -reporting and disclosure -continuation coverage
proceeding without a second surgical opinion
Which of the following is NOT a feature of prospective reviews or precertification reviews? -judging whether or the proposed treatment is medically appropriate -verifying a patients coverage -proceeding without a second surgical opinion -determining whether the health plan covers the treatment
leadership
Which of the following is NOT a fundamental employee goal? -leadership -safe working conditions -high wages -job security
NLRB
Which of the following is NOT a government agency that shares responsibility for the administration of ERISA provisions? -IRS -PBGC -US Department of Labor -NLRB
high risk policy holders are driven away
Which of the following is NOT a reason why insurance rates decrease as group size increases? -high risk policy holders are driven away -it is easier to predict cost of insurance -there is lesser risk in providing insurance -the administrative cost is reduced
profit sharing
Which of the following is NOT a type of stock option plan? -phantom stock plans -profit sharing -stock appreciation rights -restricted stock units
average benefit test
Which of the following is NOT an accrual criteria? -average benefit test -fractional rule -113 1/3 rule -3% rule
workers compensation
Which of the following is NOT an example of a discretionary benefit? -life insurance -retirement plans -workers compensation -paid vacations
vacation buy back
Which of the following is NOT an example of a personal problem covered under EAP programs? -vacation buy back -domestic violence -depression -drug abuse
disability insurance
Which of the following is NOT an example of an accommodation and enhancement program? -disability insurance -tuition reimbursement -family assistance -stress management
hospitalization
Which of the following is NOT covered by Medicare Part B? -outpatient care -hospitalization -laboratory services -health screenings
increased insurance claims
Which of the following is NOT one of the factors believed to have hastened the deterioration of the OASDI and Medicare trust funds? -longer life expectancy -increased insurance claims -high levels of unemployment -immigration
total compensation
Which of the following is NOT one of the fundamental roles characterizing benefits programs? -protection programs -accommodation and enhancement -paid time off -total compensation
compensating for long term employment
Which of the following is NOT one of the objectives of SERP? -use of SERPs as a tool in executive level succession planning -rewarding substantially higher retirement benefits -compensating for long term employment -compensating for older new hires
a percentage of the average monthly wages earned during the base period
Which of the following is NOT one of three methods states use to calculate weekly unemployment benefit amounts? -a percentage of the average monthly wages earned during the base period -a percentage of annual wages -a percentage of the average weekly wage earned during the base period -a fraction of the highest wages for a calendar quarter earned during the base period
coinsurance usually 70%
Which of the following is NOT true for medical reimbursement plans? -coinsurance usually 70% -reimburses employees totally or partially -usually associated with self-funded or independent indemnity plans -deductibles must be met
the social security system went into affect only in 2001
Which of the following is NOT true of protection benefits in Brazil? -there is a unified healthcare system -comprehensive benefits are provided to all workers -medical services are provided directly to patients -the social security system went into effect only in 2001
the tax will equal 60% of the amount that exceeds certain stated limits
Which of the following is NOT true of the Cadillac tax? -the tax will equal 60% of the amount that exceeds certain stated limits -cost limits are subject to change from year to year -its implementation has been delayed until 2020 -the tax will apply to high-cost employer-sponsored health plans
employee pays for most or the entire premium
Which of the following is NOT true of the endorsement approach under the split dollar insurance plan? -employer has the right to borrow against the cash value of the policy for business purposes -employer names itself as beneficiary executive reimburses the employer for a portion of the premium cost -employee pays for most or the entire premium
employees have to had worked 1250 hours in the previous 12 months to qualify
Which of the following is true concerning the Family and Medical Leave Act? -guarantees paid leave -employees have to have worked 1250 hours in the previous 12 months to qualify -applies to companies with less than 50 employees -spouses at same employer both get 12 weeks leave for the same incident
Fair Labor Standards Act
Which of the following laws in NOT mentioned as having a major influence on company-sponsored disability insurance plans? -American with Disabilities Act -Employee Retirement Income Security Act -Fair Labor Standards Act -Age Discrimination in Employment Act
do the benefits of EAPs equal costs
Which of the following questions is NOT used in evaluating EAP effectiveness? -based on available information, should the EAP be modified in any particular ways, offered as is or dropped altogether? -do coworkers and supervisors understand the importance of and procedures for referring troubled employees to EAPs? -do the benefits of EAPs equal the costs? -are trouble employees aware of their employers EAP?
social service leave
Which of the following sabbaticals allows employees with the opportunity to undertake significant public service, either in the local community or in other areas important to the company? -social service leave -voluntary leaves to meet business needs -extended personal leave -personal growth leave
employee benefits can be both implicit and explicit
Which of the following statements about employee attitudes and employee benefits is correct? -employment can be explicit, such as psychological contracts -all benefits must be explicit -employment can be implicit, such as documented job offer -employee benefits can be both implicit and explicit
fee for service plans generally contain this feature to control the costs of health care
Which of the following statements concerning provider payment systems is NOT true? -provider payment systems negotiate acceptable payment amounts to participating doctors, hospitals and pharmacies for the duration of the contract. -a partial capitation system applies to primary care physicians. -fee for service plans generally contain this feature to control the costs of health care -a percentage discount reduces the amount of a health care providers usual charge.
The FLSA established guidelines for companies to honor employee wishes to observe religious holidays
Which of the following statements is NOT true of companies treatment of religious holidays? -denying an employee the right to observe a religious holiday violates Title VII of the Civil Rights Act -Christmas is currently the only federally recognized religious holiday -it is imperative that companies treat the observance of religious holidays uniformly as pair or unpaid time off -The FLSA established guidelines for companies to honor employee wishes to observe religious holidays
when holidays fall on a weekend day, the employee receives two days of holiday pay
Which of the following statements is NOT true of holiday time-off practices? -private-sector employers usually follow the same holiday practices as those for federal government employees -when holidays fall on a weekend day, the employee receives two days of holiday pay -some companies add one or two days off with pay to the list of regularly scheduled holidays -floating holidays allow employees to take paid time off to observe any holiday not included as a recognized holiday
telecommuting is an option only for full-time employees
Which of the following statements is NOT true of telecommuting? -nearly 4 million people telecommute -telecommuting is an option only for full-time employees -telecommuting is appropriate for work activities that do not require regular, direct interactions with other workers -telecommuters spend part of their time working in the office and other times working at home
oversleeping is the most socially acceptable reason for an unscheduled absence
Which of the following statements is NOT true of unscheduled absences? -unscheduled absences can impair productivity and increase costs -companies may require medical certification for unscheduled absences -unscheduled absences may create hardship on the employer -oversleeping is the most socially acceptable reason for an unscheduled absence
the perceived degree to which the employer values the employees contributions and well-being
Which of the following statements is the definition for perceived organizational support? -the perceived fairness about how rewards are distributed -the perceived degree to which the employer values the employees contributions and well-being -the perceived fairness of the accounts given for certain procedures -the perceived fairness of processes
Flexible work arrangements create the flexibility for employees to balance work and nonwork demands or interests
Which of the following statements is true of flexible work arrangements? -there are more disadvantages than advantages to flexible work arrangements -flexible work arrangements create the flexibility for employees to balance work and nonwork demands or interests -about a third of companies offer some type of flexibility to its employees -compressed workweek schedules and telecommuting are the most commonly used practices
many private-sector companies require employees to contribute a portion of health-care premiums because of their considerable cost
Which of the following statements is true of health care costs? -the premium for fully insured plans is likely to decrease -many private-sector companies require employees to contribute a portion of health-care premiums because of their considerable cost -employees contributed 42% of the cost for single coverage and 62% for family coverage -the highest paid workers contribute the most towards the cost of their health insurance
outsourcing refers to an employer transferring responsibility to a third party provider to manage one or more benefits
Which of the following statements is true of outsourcing benefits functions? -companies outsource roughly one-tenth of all their benefits functions -outsourcing refers to an employer transferring responsibility to a third party provider to manage one or more benefits -outsourcing agreements are on a monthly basis -outsourcing some or all benefits administration is decreasing
tuition reimbursement plans qualify as working condition fringe benefits when instruction or training is required by law for employees to work in their jobs
Which of the following statements is true of tuition reimbursement? -pay for knowledge programs is another name for tuition reimbursement programs -tuition programs have a set curricula and award pay increases upon successful completion of all courses in the curricula -pay increases are directly associated with tuition reimbursement programs -tuition reimbursement plans qualify as working condition fringe benefits when instruction or training is required by law for employees to work in their jobs
worker's compensation pays for medical care for work-related injuries
Which of the following statements is true when comparing workers' compensation with Social Security disability and survivors' benefits? -worker's compensation pays for medical care for work-related injuries -worker's compensation does not pay for permanent partial or permanent total disability -Social Security payments do not have a waiting period -Social Security pays benefits for permanent partial or permanent total disability
human development index (HDI)
Which on of the following is not an important concept or measure when referencing employee benefits in all countries? -GDP per capita -per capita expenditure on health care -human development index (DHI) -gross domestic product (GDP)
employee pays the cost of the annuity
Which one of the following is NOT a characteristic of employee owned annuities? -not subject to ERISA provisions -employee pays the cost of the annuity -third party vendors are involved -offers financial security
127
Which section of the IRC pertains to educational assistance programs?
insurance is less risky to provide, the threat of high risk individuals driving out low risk ones is less, administrative costs are lower
Why does health insurance become less expensive when the size of the insurance group increase?
South Africa
In this country, "unfair labor practice" is used as a term applying to individual employment contracts, as opposed to collective contracts found in the US. -Australia -Japan -South Africa -India
Australia
In this country, employment contracts are affected by awards or industrial agreements that detail working condition and various employee benefits, including paid time off, training, etc. -Japan -The People's Republic of China -Australia -South Africa
industrial expansion in the early 1900s
In which social context were workers compensation laws enacted?
external market and internal company
Information for strategic benefits planning comes from these two environments.
false
Premium only payment systems refer to payment arrangements between managed care insurers and health care providers. true or false
30-54
Prime age workers are in what age group?
incentive pay
Profit sharing payments are examples of which type of core compensation package?
false
Public organizations may offet both 401(k) and 403(b) plans, but private tax exempt organizations are prohibited from offering 401(k) plans. true or false
employee pays the cost of the annuity
Rabbi trusts are characterized by which one of the following features? -employee pays the cost of the annuity -not subject to ERISA provisions -third party vendors are involved -offers financial security
lumps sums, annuities, periodic payments
Retirement benefits are generally distributed in one of these three way.
employee contributions are taxed at the individuals tax rate, upon retirement employee withdrawals are not taxed
Roth 401(k) plans differ from 401(k) plans in which two ways?
the company has fewer than 100 employees, the employees preceding years compensation totaled at least $5000, the company has no other employer sponsored retirement plan
Savings incentive match plans for employees (SIMPLEs) have what characteristics?
permanent partial disability
Scheduled and unscheduled injuries are categories used to determine benefits for which type of disability income?
exclusion provisions
Self-inflicted wounds and drug dependency are generally considered as what in most short-term disability insurance plans?
62
At what age are retirees first eligible for Social Security benefits?
economies of scale
Being able to spread the administrative costs to larger groups of employees, to reduce the health insurance cost per employee, is referred to as what?
30.3%
Benefits accounted for what percentage of total compensation costs in the private sector?
nondiscriminatory rules
Benefits qualify for tax deductibility when what is followed?
false
Business necessity is not a legally admissible defense against charges of employment discrimination. true or false
the program qualifies as a welfare plan under ERISA and qualifies as a health care plan by providing counseling for a medical condition
COBRA applies to EAPs if these two conditions are met.
ERISA
COBRA is an amendment to which federal law (Title I: Protection of Employee Rights)?
false
Canada has one state pension plan for all its residents. true of false
true
Canadian employment laws for the province of Quebec are separate from the rest of the country. true or false
summary of material modifications
Changes in benefits plans must be described and distributed to employees using one of these. -summary plan modifications -summary plan changes -summary of benefit changes -summary of material modifications
false
Despite increasingly diverse workforce in the US workplace, traditional benefits practices assuming similarity among workers can still work well for todays organizations. true or false
fair play rules
Determining whether jobs are exempt from the FLSA overtime pay provision has become even more complex since the US Department of Labor introduced revised guidelines known as what?
protect health and income, allow for paid time off, provide accommodation and enhancement benefits
Discretionary benefits can be categorized into programs that...
child abuse and neglect only
EAPs service providers must universally release information about employees concerning what?
true
ERISA Title I specifies minimum standards for participation and vesting protections for participants and beneficiaries. true or false
120
ERISA requires employers to distribute new summary plan descriptions to the Department of Labor within how many days? -120 -180 -210 -90
true
Employer-sponsored disability insurance is more encompassing than workers compensation because its benefits generally apply to both work related and nonwork related illnesses and injuries.
false
FLSA requires employers to pay exempt status employees additional compensation for on-call time. true or false
true
Family assistance programs include day care, elder care and childcare. true of false
choose which benefits they want and at what level
Flexible benefits allow employees to do what?
pre-tax salary deduction
Flexible spending accounts and premium only plans are version of what cafeteria plan?
$255
For employer-subsidized parking, employees may deduct a monthly maximum of what amount for the 2016 tax year?
true
Forfeitures come from the accounts of employees who terminate their employment prior to earning vesting rights. true of false
Federal Insurance Contributions Act (FICA)
Funding for OASDI and Medicare programs requires equal employer and employee contributions under what Act?
one-half
Health care premiums are quite high, often amounting to much of annual benefit costs?
32 million
Health care reform aims to reduce the uninsured US residents by how much in 2016?
90
How many days of maternity leave are women entitled to in China? -60 -90 -100 -120
120
How many days of maternity leave is paid for by social security in Brazil? -120 -90 -60 -45
$5250
How much can employees exclude from their annual gross income for educational assistance programs?
informational justice
If a company eliminates a benefit then intentionally or unintentionally fails to educate their employees about the elimination, employees may judge the employers decision as unfair. This example is a type of what?
core plus option
If all employees are offered health insurance and retirement benefits, but then get to select the rest of their benefits package, then they're being offered what type of cafeteria plan?
permanent partial disability
If an employee suffers a disability that limits the kind of work an individual can perform on an enduring basis, she would qualify for what type of disability income under workers compensation?
adults aged 65 and over
In 2013, which age group had the highest average total medical expenditures?
$1,135
In 2015, what was the annual monthly benefit for all retired workers?
51%
In 2015, what was the percentage of full time employees who had access to EAPs?
122 million
In 2016, about how many million persons were employed by private sector companies?
$2,680
In 2016, approximately, what was the average monthly survivor benefit for a widowed and two children?
$1,260
In 2016, how much did an employee have to make to earn a credit for OASDI?
$1,166
In 2016, what was the average monthly disability benefit for all disabled workers?
$215,000
In 2017, the IRC set the maximum annual benefits of defined benefits plans at what amount?
35
In Argentina, more than 20 years of seniority entitles workers to how many days of paid vacations? -35 -30 -40 -25
A$5,000
In Australia, mandatory pension requires voluntary employee contributions which are tax deductible up to a maximum of what amount? -A$5,000 -A$4,000 -A$3,000 -A$6,000
false
In Brazil, the legal principal of continuity applies only to written employment contracts. true or false
2%
In Canada, the amount of vacation pay is equal to what percentage of the employee's pay for the preceding year per week of vacations. -5% -3% -5.5% -2%
0
In Japan, legal provisions grant workers how many paid holidays each year? -3 -8 -0 -5
the tendency of an insurance pool to disproportionately attract "bad risk" employees and discourage "good risk" employees
In insurance terms, what does adverse selection refer to?
false
In most companies, employees cannot use floating holidays to extend vacation leave. true or false
false
In short-term disability insurance plans, the exclusion period spans from the initial date of hire to the date of eligibility for coverage. true or false
elimination period
In short-term disability insurance plans, this term refers to the minimum amount of time an employee must wait after becoming disabled before disability insurance payments begin.
false
The US Department of Labor enforces HIPAA. true of false
true
The Unemployment Compensation Act of 2008 expanded the EUC benefits to 20 weeks nationwide. true or false
preexisting condition
This is a mental or physical disability for which medical advice, diagnosis, care or treatment was received, during a designated period preceding the beginning of disability insurance coverage.
Newborn's and Mother's Health Protection Act
This law sets minimum standards for the length of hospital stays for mothers and newborns.
Employee Assistance Professionals Association
This organization developed an evaluation system for EAPs.
sabbatical leave
This paid time-off policy is generally used by employees for professional development activities.
stock appreciation rights
This provides income to executives at the end of a designated period and executives never have to exercise their stock rights to receive income. -restricted stock plan -nonstatutory stock options -stock appreciation rights -phantom stock plan
a top heavy plan
This provides non-key employees with a minimum benefit if it is a defined benefit plan or a minimum contribution if it is a defined contribution plan.
Cash-out
This provision pays employees an amount equal to the unused vacation days based on regular daily earnings.
Carryover provisions
This term is used to describe policies that allow employees to take unused vacation time at a later time.
top hat plan
This term refers to an unfunded deferred compensation plan for a select group of highly compensated employees.
Title II
This title of ERISA has the IRC provisions pertaining to the taxation of employee benefits and pension plans.
consortium EAPs
This type of EAP establishes contracts with sets of numerous smaller employers.
cash balance plan
This type of hybrid plan defines benefits for each employee by reference to the amount of the employees hypothetical account balance.
false
Trust funds and insurance contracts do not secure an employers promise to make future payments. true or false
10
Typically, the number of paid holidays in Canada ranges from 6 to___ -10 -18 -7 -14
50
Under the Patient Protection and Affordable Care Act of 2010, employers with at least how many employees are required to offer affordable health insurance to full time employees?
1.45%
What is the amount of contribution employer and employees must make to the Medicare tax which supports Medicare Part A?
30 days
What is the maximum limit for rollover duration from the previous calendar year for paid leave in India? -20 days -30 days -45 days -15 days
5 weeks
What is the minimum amount of paid leave guaranteed to workers under French law after one year of employment? -2 weeks -3 weeks -5 weeks -4 weeks
7 - 14 days
What is the recommended range of paid time off in PRC? -10-15 days -7-14 days -2-5 days -15-20 days
workforce demographics, collective bargaining agreements
What makes up the internal environmental factors?
$270,000
What was the IRS limit for annual earnings amount for determining qualified plan benefits in 2017? -$200,000 -$270,000 -$150,000 -$170,000
false
When companies determine vacation time according to hours worked, it usually applies to workers who are exempt to FLSA regulations. true or false
long term relationship
Which of the following is NOT closely associated with the nature of transactional psychological contracts? -long term relationship -economic and extrinsic focus -close-ended, specific -narrow scope
no coverage for citizens residing abroad
Which of the following is NOT true of the protection benefits in Japan? -national pension program -flat rate benefit for all residents -national health insurance program -no coverage for citizens residing abroad
paid time off
Which of the following is a mandatory collective bargaining subject? -paid time off -workers compensation -retiree benefits -minimum vesting standards
government laws
Which of the following is not a condition that lead to the inclusion of outplacement programs in EAPs? -mergers -plant closings -layoffs -government laws
stock option
Which of the following is not a hybrid plan? -target benefit -cash balance -money purchase -stock option
Parental leave
Which of the following is not a major revision to the FMLA? -military caregiver leave -qualifying exigency leave -parent leave -same-sex marriage eligibility
Ethiopia
Which of the following is not an African country making current economic progress? -Ghana -Nigeria -Kenya -Ethiopia
the waiting period before participation in employer-sponsored health care programs is limited to a maximum of 90 days
Which of the following is not an ERISA requirement pertaining to employer sponsored benefits plans? -employees must receive a summary plan description within 90 days of becoming a plan participant -written notices must be written for the "average" participant to understand -the waiting period before participation in employer-sponsored health care programs is limited to a maximum of 90 days -employers are obligated to distribute summary plan descriptions to employees within 120 days of the plan becoming subject to reporting and disclosure requirements
SUTA
Which of the following is the state unemployment tax? -FICA -SUTA -COLA -FUTA
the time-off is unpaid, but the medical insurance is continued
Which of the following is true concerning FMLA provisions? -the time-off is paid, but medical insurance is discontinued -the time-off is unpaid and the medical insurance is discontinued -the time-off is unpaid, but medical insurance is continued -the time-off is paid and medical insurance is continued
true
The Revenue Act of 1921 led to the increase in discretionary benefits such as pensions. true or false
retirement income and unemployment insurance
The Social Security Act of 1935 set up which two programs?
true
The Social Security Act was amended in 1965 to create the Medicare program. true of false
true
A miner who develops black lung disease is eligible for workers compensation benefits. true or false
fiduciary
A person with this title manages employee benefits plans and pension plan funds to ensure the welfare of participants and beneficiaries while defraying reasonable plan expenses.
false
Social exchange is one where the nature of exchange has been specified at the time of employment. true of false
true
Staff model HMO's own the medical facilities and employ the medical and support staff. true or false
India
State governments arrange for the provision of medical care on behalf of the Employees' State Insurance Corporation is which country? -Brazil -The People's Republic of China -Canada -India
employers self-funded plans
State health instructor laws address all BUT which of the following? -length of time coverage must be available to employees who terminate employment -reimbursing recognized health-care providers for health care services -extending coverage to particular services, treatments or health conditions -employers self-funded plans
federal, state and local governments
Taxes fund programs for which of the following? -federal, state and local governments -federal and state governments -state and local government -local governments only
the annual accrual rate for defined benefits plans
The 133 1/3% rule refers to what?
an ammendment to ERISA Title I, applies to private sector companies with 20 or more employees, allow employees to continue group health insurance coverage if lost due to a qualifying event
The Consolidated Omnibus Reconciliation Act contains which three characteristics?
False
The Drug Free Workplace Act of 1988 applies to all workplaces. true or false
an experience rating
The state unemployment employer tax rate varies according to what system?
PBGC
The________ is a tax exempt, self financed corporation created to insure defined benefit pension plans.
employees do not pay taxes on their contributions
Which of the is a tax benefit associated with 401(k) plans? -investment gains are taxed -employees pay taxes on their contribution -employees cannot deduct their contributions from taxable income -employees do not pay taxes on their contributions
employers use it to recover cost of qualified plans
Which one of the following is NOT a feature of corporate owned life insurance? -designated amount paid to designated beneficiaries of deceased -the goal is to purchase policies that match the amount of deferred compensation promised to executives -employers use it to recover cost of qualified plans -using it does not create a funded plan
National Insurance Contributions
Which one of the following is NOT a plan that workers can use in the UK to supplement their state provided pensions? -National Insurance Contributions -Stakeholder Pension -State Second Pension -Personal Pension
executives always have to exercise their stock rights to receive income
Which one of the following is NOT true about stock appreciation rights? -provide income to executives at the end of a designated period, much as with restricted stock options -executives always have to exercise their stock rights to receive income -the company simply awards payment to executives based on the difference in stock price between the time the company granted the stock rights at fair market value to the end of the designated period, permitting the executives to keep the stock -neither the employee nor employer pays taxes when stock appreciation rights are granted
females are entitled to 6 weeks on a mandatory holiday
Which one of the following is NOT true of paid time off benefits in Mexico? -workers get double pay for working on a mandatory holiday -workers are entitled to paid time off during public holidays -females are entitled to 6 weeks of maternity leave with full pay
blue collar workers contribute 75% of the premiums for health insurance
Which one of the following is NOT true of protection benefits in Germany? -blue collar workers contribute 75% of the premiums for health insurance -highly paid employees can opt out of state insurance plans -employees have three different sources of pensions -the German Social Security system is analogous to the one in the US
secular trusts
Which one of the following is a funded plan? -general asset approach -corporate life insurance -rabbi trusts -secular trusts
cash balance plan
Which one of these is NOT a defined contribution plan? -ESOPs -cash balance plan -profit sharing -SIMPLEs