Management Ch 13.7
What are the conditions for qualifying for the benefits of Social Security?
-A worker must work in covered employment. -A worker must earn a specified amount of money for each quarter-year of coverage.
Which of the following are true of alternative work arrangements?
-Alternative work arrangements reduce direct labor costs. -Alternative work arrangements allow employers to easily expand and contract the labor force in response to fluctuation in sales.
Which of the following can be attributed to the relatively modest increase in dental care costs?
-An excess supply of dentists -Stringent cost control strategies
Identify the ways in which employers can reduce the costs associated with unemployment insurance.
-By auditing compliance of terminated employees with unemployment insurance (UI) requirements -By auditing pre-layoff behavior of employees -By having a well-designed human resource planning system
Which of the following are private sources of disability income?
-Long-term disability plans -Salary continuation plans
Approximately ________ percent of private sector employees have access to paid life insurance.
56
Which of the following is a hybrid of defined benefit and defined contribution plans?
Cash balance plan
How many quarters of coverage will insure any worker for life?
Forty quarters
Which of the following 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 is a feature of an individual retirement account (IRA)?
It is used to store wealth accumulated in other retirement vehicles
Which of the following is a benefit under Social Security?
Lump-sum death payments
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 of the following is NOT a benefit that is required by statutory law?
Pension and retirement benefits
Which of the following cost control strategies for health care are considered to be less extreme? (Check all that apply.)
Point-of-service plans Preferred Provider Organizations Health Maintenance Organizations Consumer-directed health care plans
_____ plans permit employees to defer compensation on a pretax basis.
Section 401(k)
The Consolidated Omnibus Budget Reconciliation Act (COBRA) was enacted by Congress in 1985 so that current and former employees and their spouses and dependents can avail _____.
a temporary extension of group health insurance when coverage is lost due to qualifying events
The term "pension plan" most often refers to _________blank.
defined benefit plan
The workers' compensation cost to an employer is based on the
employer's experience rating.
Which of the following relieves an employer's liability in the event that a wound caused before employment combines with a wound caused during work to result in a disability greater than that caused by the latter alone?
second-injury funds
Which of the following benefits is a federally administered program?
social security
Survey information on competitors' benefit packages and information on benefit costs are available from _____.
the Bureau of Labor Statistics (BLS)
The Pension Protection Act of 2006 was meant to safeguard the retirement income of employees and to _____.
transfer some responsibility for retirement savings from the employer to the employee
In cafeteria-style plans, adverse selection can be controlled by
using a limited set of packaged options.
The length of time an employee must work for an employer before he or she is entitled to employer payments made into a pension plan is referred to as
vesting
The length of time an employee must work for an employer before he or she is entitled to employer payments made into a pension plan is referred to as ____
vesting
According to the Employee Retirement Income Security Act (ERISA), the rights of employees to a pension upon retirement are known as _____.
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.
What are the benefits given to employees under workers' compensation?
· Permanent disability payments to employees to make amends for permanent effects of the injury · Medical care required to treat job-related injuries or illnesses · Survivor death benefits · Temporary disability benefits to employees to help replace wages lost
The follow-up model is better than the physical fitness facility and health education programs in reducing risk factors.
true
Which of the following are cost control strategies for health care that involve changes in the design or the administration of health insurance policies?
-Deductibles -Using intranet technology to allow employees access to online benefit information -Auditing of hospital charges for accuracy -Defining maximum payout schedules
In the context of vesting, which of the following conditions are included in the Economic Growth and Tax Relief Reconciliation Act of 2001?
-Full vesting after three years -20 percent vesting after two years and 20 percent each year thereafter
Which of the following categories of benefits fall under Social Security?
-Old age or disability benefits -Lump-sum death payments -Benefits for dependents of retired or disabled workers -Benefits for surviving family members of a deceased worker
Which of the following cost control strategies for health care are considered to be less extreme?
-Point-of-service plans -Consumer-directed health care plans -Health Maintenance Organizations -Preferred Provider Organizations
Identify the legal services provided by most legal insurance plans.
-Real estate matters -Traffic violations -Wills -Divorce
What are the benefits that are given to employees under workers' compensation?
-Survivor death benefits -Medical care required to treat job-related injuries or illnesses
Which of the following are true of alternative work arrangements? (Check all that apply.)
Alternative work arrangements reduce direct labor costs. Alternative work arrangements allow employers to easily expand and contract the labor force in response to fluctuation in sales.
Which of the following types of workers are generally NOT covered by workers' compensation?
Farm Workers
In the majority of the states, unemployment insurance is financed exclusively by: a. joint contributions by employee unions. b. the philanthropy of co-workers. c. federal, state, and employee contributions. d. employers that pay federal and state unemployment insurance.
d. employers that pay federal and state unemployment insurance.
In most states, unemployment insurance is financed by _____.
employers
Medical insurance and disability insurance programs are legally required.
false
Flexible benefit plans are also known as cafeteria-style plans.
true
What are the goals of the Employee Retirement Income Security Act (ERISA)?
-To protect the interest of approximately 100 million active participants -To stimulate the growth of pension systems in which employers are not required to offer a pension plan
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
According to the 1993 Family and Medical Leave Act, all eligible employees are entitled to _____ of unpaid leave for stated family or medical reasons.
12 weeks per year
According to the 1993 Family and Medical Leave Act, all eligible employees are entitled to _____ of unpaid leave for stated family or medical reasons.
12 weeks per year (12 month period)
The majority of defined benefit plans calculate average earnings over the last _____ years of service for a prospective retiree.
3 to 5
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
The Pension Protection Act of 2006 defines pension plans less than _____ as 'at risk' plans.
70% funded
Which of the following is a savings plan that allows employees to defer pretax income?
A 401(k) plan
What are the conditions for qualifying for the benefits of Social Security? (Check all that apply.)
A worker must work in covered employment. A worker must earn a specified amount of money for each quarter-year of coverage.
Which of the following is true about Social Security retirement benefits?
An earnings test increases a person's incentive to retire.
Which of the following can be attributed to the relatively modest increase in dental care costs? (Check all that apply.)
An excess supply of dentists Stringent cost control strategies
Which of the following can be used as a tax-favored retirement savings plan?
An individual retirement account
Identify the ways in which employers can reduce the costs associated with unemployment insurance. (Check all that apply.)
By auditing compliance of terminated employees with unemployment insurance (UI) requirements By having a well-designed human resource planning system By auditing pre-layoff behavior of employees Resources
Consolidated Omnibus Budget Reconciliation Act (COBRA), which of the following statements is true?
COBRA allows an employer to charge individuals up to 110 percent of the premium for supplying the coverage.
________ are defined benefit plans that look like a defined contribution plan.
Cash balance plans
In which of the following ways may staffing practices change in response to benefit cost controls?
Classifying employees as contractors rather than employees
Which of the following is true about private group insurance?
Concern for employee security explains the prevalence of employer-sponsored insurance 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 _____ requires employers to permit employees to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Which of the following is an advantage for employers who implement flexible benefits plans?
Control over the size of the contribution
_____ increases are provided as part of Social Security benefits for each year that the consumer price index increases.
Cost-of-living
Which of the following is part of an active wellness program?
Counselors providing tailored programs
_____ plans do not promise a specific benefit level for employees upon retirement.
Defined contribution
Which of the following is true about workers' compensation?
Disability benefits that are part of workers' compensation are tax-free.
This type of defined contribution plan involves a company making a tax-deductible contribution of stock shares to cash to a trust which then allocates payments to employees based on earnings.
ESOP
Which of the following increased the fiduciary responsibilities of pension plan trustees and established vesting rights and portability provisions?
Employee Retirement Income Security Act
Which of the following is true about vesting rights?
Employers may choose to vest employees after five years.
Which of the following is a characteristic of preferred provider organizations (PPOs)?
Employers may give incentives for employees to choose a participating physician.
Which of the following media is most widely used by organizations to communicate benefit plans?
Enrollment materials (online or paper)
Employees are the sole contributors to their cash balance plans.
False
True or false: Point-of-service plans do not permit individuals to see a doctor outside the network.
False
True or false: Workers are covered by unemployment insurance regardless of whether they are unemployed through faults of their own.
False
Workers are covered by unemployment insurance regardless of whether they are unemployed through faults of their own.
False (must be determined to be unemployed through no fault of their own)
Which of the following 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
In the context of vesting, which of the following conditions are included in the Economic Growth and Tax Relief Reconciliation Act of 2001? (Check all that apply.)
Full vesting after three years 20 percent vesting after two years and 20 percent each year thereafter
Which of the following statements 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.
_____ is designed to lessen an employer's ability to deny coverage to an employee for a preexisting condition.
HIPPA
In which of the following ways do PPOs differ from HMOs?
HMOs provide benefits on a prepaid basis.
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 passive employee wellness programs (EWPs)?
Health education programs are an example of passive EWPs.
Which of the following is true about the Old Age, Survivors, Disability, and 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 of the following is likely to happen in the organization as a result?
Increased focus on awareness and opportunity as well as support and reinforcement
Which of the following statements is true of workers' compensation?
It covers injuries and diseases that arise out of, and while in the course of, employment.
Which of the following statements is true about the Pension Benefit Guaranty Corporation (PBGC)?
It does not guarantee health care benefits.
Which of the following is true of the Employee Retirement Income Security Act (ERISA)?
It does not require that employers offer a pension plan.
What is the purpose of the Pension Benefit Guaranty Corporation (PBGC)?
It guarantees payment of vested benefits to employees formerly covered by terminated pension plans
What is the purpose of the Pension Benefit Guaranty Corporation (PBGC)?
It guarantees payment of vested benefits to employees formerly covered by terminated pension plans.
Which of the following is true of an active wellness program?
It includes the outreach and follow-up model.
Identify a true statement about workers' compensation.
It is a form of no-fault insurance
Identify a true statement about workers' compensation.
It is a form of no-fault insurance.
Which of the following is true about Social Security as a benefits program?
It is entirely free from federal tax.
Which of the following is a feature of an individual retirement account (IRA)?
It is used to store wealth accumulated in other retirement vehicles.
Which of the following is true of the Affordable Care Act?
It was 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.
Which of the following types of benefits involves the highest of costs?
Medical and other insurance
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 categories of benefits fall under Social Security? (Check all that apply.)
Old age or disability benefits Lump-sum death payments Benefits for surviving family members of a deceased worker Benefits for dependents of retired or disabled workers
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 of the following 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
Employers pay insurance premiums to the _____ in order to protect employees from the potential risks of an organization going bankrupt or failing to meet its vested pension commitments.
Pension Benefit Guaranty Corporation
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
A key provision of the _________blank allows employees in publicly traded companies the freedom to sell off any employer stock purchased through deferrals or after-tax contributions.
Pension Protection Act
Which of the following is true of the methods used for communication about benefits information?
Providing clear benefits communication does not always increase employee satisfaction.
Identify the legal services provided by most legal insurance plans. (Check all that apply.)
Real estate matters Divorce Traffic violations Wills
Which of the following individuals is eligible for unemployment benefits?
Reena lost her job due to outsourcing.
Which of the following is a major category of workers' compensation?
Rehabilitative services
Which of the following are private sources of disability income? (Check all that apply.)
Salary continuation plans Long-term disability plans
Which of the following relieves an employer's liability in the event that a wound caused before employment combines with a wound caused during work to result in a disability greater than that caused by the latter alone?
Second-injury funds
_____ 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
_______ 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 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
Identify some of the forms of Social Security coverage in the United States.
Special Veterans Benefits Survivors insurance Retirement insurance
What are the benefits that are given to employees under workers' compensation?
Survivor Death Benefits Medical care required to reat job- related injuries or illnesses
Which of the following firms is using a cost control strategy to reduce health care costs by linking incentives to healthy behaviors?
The Fitness Quo, a fitness center that charges employees $500 more in health premiums if they fail to attend their biannual health checkups
Which of the following 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 of the following is true of the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
The beneficiaries of employees who still have their health insurance have access to the same services.
Which of the following 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.
Who pays for the majority of legal insurance premiums?
The employee
Before 1930, who was responsible for health care coverage in the United States?
The family
Which of the following is true about employee benefits?
The impact of legal regulations on benefits is greater than that on direct compensation.
What is the biggest concern for individuals who receive health insurance under the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
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 true about defined contribution plans?
They are preferred more in smaller companies than larger ones.
How do companies use defined benefit plans to cut cost?
They purchase annuities with insurance companies.
How do Consumer Driven Health Plans and High Deductible Plans help cut health care costs?
They shift much of the burden of purchasing health care over to employees.
Coordination of benefits (meanings of cost control strategies for health care)
This ensures no double payment when coverage exists under the employee's plan and a spouse's plan.
Medicare (national health insurance plans)
This insurance plan covers the elderly.
Medicaid (national health insurance plans)
This insurance plan covers the poor.
Affordable Care Act (national health insurance plans)
This insurance plan targets the uninsured.
Coinsurance rates (meanings of cost control strategies for health care)
This refers to premium payments being shared by the company and employee.
What are the goals of the Employee Retirement Income Security Act (ERISA)? (Check all that apply.)
To protect the interest of approximately 100 million active participants To stimulate the growth of pension systems in which employers are not required to offer a pension plan
Which of the following is a major objective of the unemployment insurance program?
To provide an incentive for employees to stabilize employment
Which of the following is an objective of the unemployment insurance program?
To provide an incentive for employers to stabilize employment
True or false: The use of alternative work arrangements offers a way to meet rapidly changing economic conditions.
True
True or false: To discourage turnover, most companies make life insurance forfeitable when employees depart from the company.
True
Vesting refers to the length of time an employee must work for an employer before he or she is entitled to employer payments made into a pension plan.
True
To discourage turnover, most companies make life insurance forfeitable when employees depart from the company.
True (Since most life insurance premiums are paid entirely by the employer.)
The use of alternative work arrangements offers a way to meet rapidly changing economic conditions.
True (it reduces direct workforce costs (because there are no legally required benefits for non-employees and other benefits may not be offered) and permits easier expansion and contraction of the workforce in response to expansion and contraction of production/services (sales).)
Which of the following is an example of a Pareto group?
Twenty percent of the employees, who account for 75 percent of the health care costs
Which of the following statements concerning contingent workers, alternative work arrangements, and/or gig workers is not true?
Use of such workers represents less than 5% of all workers.
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 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.
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? a. She will likely receive workers' compensation benefits. b. She will get nothing. c. Jennifer and her employer will share the blame and split the costs. d. The employer has the final word in determining Jennifer's eligibility.
a. She will likely receive workers' compensation benefits.
Financial Accounting Statement 106 requires that any benefits provided after retirement be paid on a(n) _____ basis.
accrual
The 1993 Family and Medical Leave Act applies to _____.
all employers having 50 or more employees
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? a. Employees of Maxford will receive 20 percent of their pension if they quit after one year. b. Maxford does not have to provide vested benefits to employees who quit before six months. c. Employees of Maxford who quit can have their pension benefits transferred to the new employer. d. Maxford does not have to provide vested benefits if employees quit of their own volition after two years.
b. Maxford does not have to provide vested benefits to employees who quit before six months.
Which of the following benefits is a federally administered program? a. Workers' compensation b. Social Security c. Job security d. Occupational Safety and Health Act
b. Social Security
For workers to be covered by unemployment insurance, they must satisfy the state requirements for wages earned or time worked during a specific time period referred to as
base period
For workers to be covered by unemployment insurance, they must satisfy the state requirements for wages earned or time worked during a specific time period referred to as ____ ____
base period
_____ is designed to lessen an employer's ability to deny coverage to an employee for a preexisting condition. a. COBRA b. OSHA c. HIPPA d. FMLA
c. HIPPA
Experts attribute the decline in dollar cost of workers' compensation after 2005 relates to: a. increased variable component of base wage. b. devaluation of the dollar. c. employer safety programs. d. relaxed federal regulations.
c. employer safety programs.
Defined benefit plans that resemble defined contribution plans are called
cash balance plans
In a(n) _________blank, employees have a hypothetical account into which is deposited what is typically a percentage of annual compensation.
cash-balance plan
Employee wellness programs primarily aim at
changing 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.
The money to pay for Social Security benefits comes from _____.
contributions made by employees
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
A ____ ____ ____ directs an employer to provide a particular amount of retirement pension, which is represented as either a fixed dollar or a percentage-of-earnings amount that increases with the seniority of the employee in the organization.
defined benefit plan
directs an employer to provide a particular amount of retirement pension, which is represented as either a fixed dollar or a percentage-of-earnings amount that increases with the seniority of the employee in the organization.
defined benefit plan
Benefits that are willingly provided by employers to an employee's unmarried partner are known as
domestic partner benefits
Benefits that are willingly provided by employers to an employee's unmarried partner are known as ____ ____ ____
domestic partner benefits
Lorenzo and Sophia, an unmarried couple, have been living together for over four years. Lorenzo's employer, a major investment bank, has been providing certain benefits to Sophia. In this scenario, the benefits received by Sophia are called _____.
domestic partner benefits
Defined contribution plans make it the responsibility of the _____ to make wise investment decisions for retirement plans.
employee
A(n) ____ ____ ____ (ESOP) plan is a defined contribution plan in which a company makes a tax-deductible contribution of stock shares or cash to a trust.
employee stock ownership (plan)
According to the Age Discrimination in Employment Act (ADEA), in early retirement incentive programs, _____.
employees should not be coerced to accept an incentive and retire
It is important to note that for every dollar that an employee pays as his or her share of social security, there is a matching amount paid by the _____.
employer
Experts attribute the stabilization in the dollar cost of workers' compensation since 2010 to:
employer safety programs
Experts attribute the decline in dollar cost of workers' compensation after 2005 relates to:
employer safety programs.
The unemployment insurance program is financed largely through federal and state taxes on _____.
employers
In the majority of states, unemployment insurance is financed exclusively by:
employers that pay federal and state unemployment insurance.
In the majority of the states, unemployment insurance is financed exclusively by:
employers that pay federal and state unemployment insurance.
The extra amount of unemployment compensation paid by a company depends on its
experience rating
The extra amount of unemployment compensation paid by a company depends on its ____ ____
experience rating
Activities such as preadmission testing and second surgical opinions focus on shifting, rather than reducing, costs.
false
Defined contribution plans insulate employees from investment risks, which are borne by the company.
false
Fitness facility programs have two central goals: raising awareness levels of health-related issues and informing people on health-related topics.
false
Insurance risks can be more easily pooled in smaller groups.
false
Investment returns on qualified retirement funds are taxed.
false
One of the objectives of the unemployment insurance program is to offset lost income during voluntary unemployment.
false
Part-time employees receive about the same benefits as full-time employees.
false
Private pension income remains the largest single component of an elderly person's overall retirement income.
false
The smaller the cost of a benefit category, the greater the opportunity for savings.
false
The state tax code requires that funds in health care and dependent care accounts be earmarked in advance and spent during the plan year.
false
Workers' compensation benefits exclude rehabilitative services.
false
Contingent workers receive _____ benefits than regular workers; contingent workers' benefits cost _____ for employers than it does for regular workers.
fewer; less
Contingent workers receive ________ benefits than regular workers; contingent workers' benefits cost ________ for employers than it does for regular workers.
fewer; less
The unemployment benefits of an unemployed worker are paid for by the _____.
firm or firms most recently employing that currently unemployed worker
Benefit plans that permit employees to choose the types and amounts of benefits they want are called _____.
flex-plans
Child care may be considered a legitimate expense offered in a _________blank funded with pretax dollars provided by the employee, the employer, or both.
flexible spending account
An employer experiencing high turnover and seeking to reduce pension costs is likely to prefer:
full vesting after three years
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
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
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.
Health care delivery through _____ enable employees to choose any health care provider.
indemnity plans
Workers' compensation laws cover job-related _____.
injuries and death
The major advantage of a flexible spending account is that
it increases employees' take-home pay.
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.
As part of a health promotion initiative, StatexPro, a business analytics company, provides a special annual travel allowance up to $500 to employees who cycle to work on a daily basis. StatexPro's initiative is an example of a cost control strategy for health care that _____.
links incentives to healthy behavior
The _____ tax rate is the percentage of additional earnings that goes to taxes.
marginal
The Health Insurance Portability and Accountability Act (HIPAA) of 1996 is designed to _____.
minimize an employer's ability to deny coverage for a preexisting condition
Group insurance rates are typically lower than individual rates because risks cannot be pooled together in group insurance.
of economies of scale.
Life insurance coverage would typically be a group term insurance policy with a face value of _____.
one to two times an employee's annual salary
plan merges the benefits of Health Maintenance Organizations and Preferred Provider Organizations and allows individuals to select which plan to avail treatment from at the time that services are required.
point of service
A ____-____-____ plan merges the benefits of Health Maintenance Organizations and Preferred Provider Organizations and allows individuals to select which plan to avail treatment from at the time that services are required.
point-of-service
A ________ plan is a hybrid health plan combining the benefits of a health maintenance organization and a ________.
point-of-service; preferred provider organization
Johanna, an accountant at an auditing firm, consults a doctor about a preexisting inflammatory condition of the skin. After the consultation, the doctor prescribes medication and instructs Johanna to follow the treatment regimen. The doctor also makes Johanna sign a HIPAA (Health Insurance Portability and Accountability Act) document. The HIPAA document is most likely to benefit Johanna by _____.
prohibiting discrimination against Johanna on the basis of her health-related status
An important provision of the Pension Protection Act of 2006 permits employees of a publicly held company to _____.
sell any employer stock purchased through deferrals or after-tax contributions
offers a proportion of one's salary (about 60% on average) for temporary disability due to sickness or injury.
short term disability
____-____ ____ offers a proportion of one's salary (about 60% on average) for temporary disability due to sickness or injury.
short-term disability
The dental equivalent of Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) is the
standard delivery system
The dental equivalent of Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) is the ____ ____ ____
standard delivery system
Profit-sharing plans can be considered defined contribution plans if _____.
the distribution of profits to employees is delayed until retirement
Who pays for the majority of legal insurance premiums?
the employee
According to the Americans with Disabilities Act (ADA),
the terms of health insurance should not be a subterfuge to deny benefits to those with disabilities.
Roughly _____ of all employees have access to paid life insurance.
three-fourths
The Pregnancy Discrimination Act of 1978 requires employers to
treat pregnancy as they would any other disability if they do offer disability plans.
Beneficiaries do not get free coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA).
true
Economic theory tells us that people prefer a dollar in cash over a dollar's worth of any specific commodity because the cash can be used to purchase the commodity or something else.
true
Health insurance, like pensions, discourages employee turnover because not all employers provide health insurance benefits.
true
In contrast to Social Security retirement benefits, unemployment benefits are taxed as ordinary income.
true
In contrast to unemployment insurance benefits, disability benefits are tax-free.
true
Increasing retiree health care costs (and the change in accounting standards) have led some companies to require white-collar employees and retirees to pay insurance premiums for the first time in history.
true
Social Security retirement benefits are no longer subject to an earnings test once retirement age is reached.
true
The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires that the beneficiary (whether the employee, spouse, or dependent) have access to the same services as employees who have not lost their health insurance.
true
Unlike workers in most Western European countries, who have nationalized health systems, the majority of Americans receiving health insurance get it through their (or family members?) employers.
true
Where employee contributions completely fund a disability insurance plan, there is no federal tax.
true
With the passage of the Americans with Disabilities Act, employers came under even greater pressure to deal effectively and fairly with workplace injuries.
true
In 1940, the ratio of social security covered workers (those paying into the fund) to beneficiaries was 159.4 to 1, and now it is:
under 3.0 to 1.