Ch. 13 MGT461

Steve has a small company with 12 employees. One of his employees, Larry, has been laid off because his work has been outsourced. Larry had health coverage through Steve's company and wants to continue that coverage. According to COBRA, how long can Larry continue his coverage through Steve's company after being laid off?

0 months

The majority of defined benefit plans calculate average earnings over the last _____ years of service for a prospective retiree.

3 to 5

Which of the following is a hybrid of defined benefit and defined contribution plans?

Cash balance plan

Which of the following types of workers are generally NOT covered by workers' compensation?

Farm Workers

_____ is designed to lessen an employer's ability to deny coverage to an employee for a preexisting condition.

HIPPA

Michael was laid off by his company owing to budget cuts. Before being laid off, he earned $1,000 per week. If he has been receiving unemployment insurance benefits for 26 weeks, which of the following statements is true in this scenario?

Michael is no longer eligible for unemployment benefits.

Which of the following is NOT a benefit that is required by statutory law?

Pension and retirement benefits

_____ relieve an employer's liability when a pre-employment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone.

Second-injury funds

Which of the following is a feature of defined contribution plans?

They are faster to vest than defined benefit plans.

What is the first question that should be asked when determining the amount of retirement income an employer should provide?

What level of retirement compensation would the employer like to set as a target, expressed in relation to pre-retirement earnings?

In a _____ plan, an employer agrees to provide a specific level of retirement pension, which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase) with years of seniority in the company.

defined benefit

Experts attribute the decline in dollar cost of workers' compensation after 2005 relates to:

employer safety programs.

In the majority of the states, unemployment insurance is financed exclusively by:

employers that pay federal and state unemployment insurance.

An employer experiencing high turnover and seeking to reduce pension cost is likely to prefer:

full vesting after three years.

An employee who changes jobs four or more times during his or her career will likely receive a pension approximately _____ as that of an employee whose working career is spent with one employer, assuming that both employees have the same starting salary and receive annual increases equal to inflation rate.

half the size

A health maintenance organization (HMO) pulls together a group of providers willing to provide services at an agreed upon rate in exchange for employers:

limiting employees to these providers for health services.

For an employee to gain lifetime coverage under Social Security, they must have worked for _____ quarters during which they were covered by the Act.

40

Almost _____ percent of the companies offering child care assistance to employees also offer elder care assistance.

50

Today, _____ percent of the workers participate in the pension plan coverage provided by their employers.

53

Some level of dental coverage is provided by about _____ percent of all employers with above 500 employees.

60

Data from WellPoint Inc shows that _____ percent of its 29 million customers account for over 60 percent of its medical costs.

7

Jacob, an 18-year-old, has been working at HoldVille Corp. for over a year. If HoldVille offers full vesting after one year, which of the following statements is true?

Jacob is not eligible for pension as he is not over 21.

Which of the following is a benefit under Social Security?

Lump-sum death payments

Contingent workers receive _____ benefits than regular workers; contingent workers' benefits cost _____ for employers than it does for regular workers.

fewer; less

The rising costs of Social Security have been covered by:

increases in the maximum earnings base and the rate at which that base is taxed.

Roughly _____ of all employees have access to paid life insurance.

three-fourths

Jennifer is hurt at work while driving a forklift. Her employer claims that she was injured as a result of her careless driving, and therefore she is not eligible for workers' compensation. What will be the outcome of the employer's challenge to her worker's compensation claim?

She will likely receive workers' compensation benefits.

Which of the following benefits is a federally administered program?

Social Security