HR Final Chapter 13

In which of the following ways may staffing practices change in response to benefit cost controls?

Classifying employees as contractors rather than employees

Which is true about private group insurance?

Concern for employee security explains the prevalence of employer-sponsored insurance plans.

SHELBY has been laid off due to downsizing. She is worried about her health coverage as she has just found out she is pregnant.

Consolidated Omnibus Budget Reconciliation Act (COBRA)

Which is an advantage for employers who implement flexible benefits plans?

Control over the size of the contribution

Which is a part of an active wellness program?

Counselors providing tailored programs

Which is true about workers' compensation?

Disability benefits that are part of workers' compensation are tax-free

Which of the following increased the fiduciary responsibilities of pension plan trustees and established vesting rights and portability provisions?

Employee Retirement Income Security Act

Employers pay for workers' compensation costs. There is a range of cost based on which of the following?

Employer's experience rating

Which is true about vesting rights?

Employers may choose to vest employees after five years

Which is a characteristic of preferred provider organizations (PPOs)?

Employers may give incentives for employees to choose a participating physician

COLONIAL LIFE will be in the building next week to chat with employees about their insurance plans.

Enrollment materials (online or paper)

Which provides 12 weeks of unpaid absence from work to care for a seriously ill child, spouse, or parent if the organization has at least 50 employees living within a 75-mile radius?

Family and Medical Leave Act

Which is true about flexible spending accounts?

Funds must be used by the plan's year end or they revert to the employer

Which of the following media is least used by organizations to communicate benefit plans?

Group employee benefits communications with the benefits vendor

Which of the following is a reason for the growth of benefits as a method of employee compensation?

Groups of employees can typically receive a cost advantage over individuals

In which ways does PPOs differ from HMO's?

HMOs provide benefits on a prepaid basis

Which is true of passive employees wellness programs (EWPs)?

Health education programs are an example of passive EWPs

Which is true about the Old Age, Survivors, Disability, Health Insurance (OASDHI) program?

High earners help subsidize benefit payments to low earners

Which of the following was an amendment to the Social Security Act of 1935?

Hospital insurance

An organization introduces active employee wellness programs. Which is likely to happen in the organization as a result?

Increased focus on awareness and opportunity as well as support and reinforcement

Which is true about the Pension Benefit Guaranty Corporation (PBGC)?

It does not guarantee health care benefits

Which is true of an active wellness program?

It includes the outreach and follow-up model

Which is true about Social Security as a benefits program?

It is entirely free from federal tax

Which is true of the Fair Labor Standards Act (FLSA)?

It is more likely to cause employers to classify workers as independent contractors than employees

Which of the following types of benefits involves the highest of costs?

Medical and other insurance

Which of the following is the largest single component of the elderly's overall retirement income?

Old-age insurance

Which of the following is a unique aspect of benefits?

Organizations so typically offer them that they have become institutionalized

Which is a characteristic of a health maintenance organization (HMO)?

Payment of physicians on a flat salary basis

Which type of retiree benefits plan is excluded from the Financial Accounting Statement 106 rule that states benefits should not be provided on a pay-as-you-go basis?

Pension

The ____ guarantees payment to employees of a basic retirement benefit in the event that financial difficulties force a company to terminate or reduce employee pension benefits.

Pension Benefit Guaranty Corporation

The ____ requires defined contribution plans holding publicly traded securities to provide employees with at least three investment options other than employer securities.

Pension Protection Act of 2006

Which is true of the methods used for communication about benefits information?

Providing clear benefits communication does not always increase employee satisfaction

Which individuals are eligible for unemployment benefits?

REENA lost her job due to outsourcing

Which is a major category of workers' compensation?

Rehabilitative services

_____ plans permit employees to defer compensation on a pretax basis.

Section 401(k)

Which affects the amount of income that will be available to an employee upon retirement in defined contribution plans?

The age at which investments are made

Which is true of the Consolidates Omnibus Budget Reconciliation Act (COBRA)?

The beneficiaries of employees who still have their health insurance have access to the same services

Which is true of the cost to the employer for workers' compensation?

The compensation mostly covers minor injuries such as sprains and strains, rather than dramatic injuries.

Which of the following is true about employee benefits?

The impact of legal regulations on benefits is greater than that on direct compensation

Which is true about defined contribution plans?

They are preferred more in smaller companies than larger ones.

Which is a major objective of the unemployment insurance program?

To provide an incentive for employees to stabilize employment

Which is an example of a Pareto group?

Twenty percent of the employees, who account for 75 percent of the health care costs

In the context of benefits, which of the following is true of the demographics of a workforce?

Women of childbearing age care more about disability leave

Financial Accounting Statement 106 requires that any benefits provided after retirement be paid on a(n) ____ basis.

accrual

Which is true about Social Security retirement benefits?

an earnings test increases a person's incentive to retire

FALCON WINGS INC. has instituted an incentive program that includes smoking cessation and exercise. The goal of the wellness program is to

change health-related behaviors both on and off work time

At the highest level of child care provision, firms provide employees with

child care at or near their worksites

LOUANN has retired and is receiving Social Security. Each year she can expect an increase in

cost-of-living

You have the option to choose a retirement plan. You want to choose a plan that promises a specific benefit level, so you decline the ______ plan

defined contribution

DREWS company has offered a defined contribution plan for retirement. It makes him nervous because the investment decision is made by the

employee

NORTH WINDS needs to downsize. They have done an employee scan and have realized that there are a number of employees who could retire or retire early to meet their budget goals.

employees should not be coerced to accept an incentive and retire

The unemployment insurance program is financed largely through federal and state taxes on

employers

BRENDA has been offered choices when selecting her benefits. She knows she wants health insurance, is unsure of vision insurance, and does not want dental insurance. This is allowed because her employer has

flex-plans

Workers are eligible for unemployment benefits if they

have worked for at least one year

To be a qualified benefits plan, a pension plan should not discriminate in favor of

highly compensated employees

ALEX knows that he no longer needs to sue his employer for workers' compensation because the law now covers job-related

injuries and death

The major advantage of a flexible spending account is that

it increases employees' take-home pay

The ____ tax rate is the percentage of additional earnings that goes to taxes

marginal

Group insurance rates are typically lower than individual rates because

of economies of scale

Survey information on competitors' benefit packages and information on benefit costs are available from

the Bureau of Labor Statistics (BLS)

According to the Americans with Disabilities (ADA)

the terms of health insurance should not be a subterfuge to deny benefits to those with disabilities

The Pregnancy Discrimination Act of 1978 requires employers to

treat pregnancy as they would any other disability if they do offer disability plans

In cafeteria-style plans, adverse selection can be controlled by

using a limited set of packaged options

After OLIVIA has worked for her company for 10 years, she will have ____ to a pension upon retirement....

vesting rights

In the 1978 Manhart ruling, the Supreme Court declared it illegal for employers to require

women to contribute more than men to a defined benefit plan