Compensation

Which of the following is a benefit under Social Security?

Lump-sum death payments

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 the Consolidated Omnibus Budget Reconciliation Act, how long can Larry continue his coverage through Steve's company after being laid off?

0 month

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

3 to 5

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

3 to 5

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

50%

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

53%

________ are defined benefit plans that look like a defined contribution plan.

Cash balance plans

The ________ was enacted by the Congress to provide current and former employees and their spouses and dependents with a temporary extension of group health insurance when coverage is lost due to qualifying events.

Consolidated Omnibus Budget Reconciliation Act

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

Health Insurance Portability and Accountability Act

Which of the following is true of the Affordable Care Act?

It is aimed at expanding health care coverage through an individual mandate to purchase health insurance and an employer mandate to provide qualifying health insurance coverage.

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.

Maxford Corp. offers full vesting after two years. However, it does not offer portability of pension to its employees. Which of the following statements is true in this scenario?

Maxford does not have to provide vested benefits to employees who quit before six months.

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.

A key provision of the ________ allows employees in publicly traded companies the freedom to sell off any employer stock purchased through deferrals or after-tax contributions.

Pension Protection Act

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

Second-injury funds

Jennifer is hurt at work while driving a forklift. Her employer claims that she was injured as a result of her careless driving and is therefore 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

In the context of the Consolidated Omnibus Budget Reconciliation Act, which of the following statements is true?

The biggest concern for individuals getting health insurance under the Consolidated Omnibus Budget Reconciliation Act is the relatively brief qualifying period.

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

They are faster to vest than defined benefit plans.

Which of the following is an objective of the unemployment insurance program?

To provide an incentive for employers to stabilize employment

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 preretirement earnings?

In a(n) ________, employees have a hypothetical account into which is deposited what is typically a percentage of annual compensation.

cash balance plan

Experts attribute the stabilization in the dollar cost of workers' compensation since 2010 to:

employer safety programs.

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

employers that pay federal and state unemployment insurance.

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

fewer; less

An employer experiencing high turnover and seeking to reduce pension costs 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 that is 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

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.

A health maintenance organization 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.

A ________ plan is a hybrid health plan combining the benefits of a health maintenance organization and a ________.

point-of-service; preferred provider organization