Chapter 13
To receive Social Security benefits, a qualified worker must work how many quarters of covered employment?
40
At what age do Social Security retirement benefits begin for workers born in 1960 or later?
67 years
Once employees enter a company pension plan, the employer has __________ to provide employees with a summary plan description, which provides detailed information about the plan.
90 days
The law that was enacted in 2010 and provides health care benefits to all Americans is the _____________________.
Affordable Care Act
What is the acronym for government legislation that requires employers to permit employees to extend their health care coverage at group rates for up to 36 months following a "qualifying" event, such as a layoff?
COBRA
What impact does FAS 106 have on companies?
Companies must carry the future costs of retiree benefits on their current financial statements.
What are the main kinds of medical expenses generally covered by company healthy care plans?
Costs of surgery Costs of visiting the doctor Costs of going to the hospital
What are some advantages of flexible benefits plans?
Employees can choose the benefits plans that work best for them. Cost control of benefits may occur, which is economical for the employer. Employees can gain greater awareness of what the employer provides for them. Employees are more aware of the value of their benefits.
How are workers' compensation benefits typically funded?
Employers purchase coverage from insurance companies.
Which of the following statements about retirement benefits is true?
Firms have started reducing retiree benefits
Which strategies can employers use to control the costs of employee benefits?
Increase employee hours without incurring overtime charges. Change status of employees from nonexempt to exempt.
Which of the following is the type of child care support offered by the largest percentage of employers?
Information about the cost and quality of available child care
What is a defined benefit plan?
It guarantees a specified retirement benefit level to employees based on their age, years of service, and earnings level.
What does the U.S. Supreme Court's 1978 Manhart ruling state
It is illegal to force women to contribute more to a defined benefits plan.
Which employee benefit gives employers the best opportunity for cost containment?
Medical benefits
Which of the following statements about communicating with employees about benefits is true?
Most employees do not fully understand what their benefits provide.
The largest portion of a retiree's income comes from ___________.
Social Security
Which of the following are outcomes of increased retiree health care costs sand the FAS 106 ruling as it pertains to benefits?
Some employees and retirees pay insurance premiums. Some employees and retirees pay increased co-payments and deductibles. Some retiree health care benefits have been abolished.
Which of the following statements about the Affordable Care Act (ACA) is true?
The future of the ACA is unclear.
Which of the following statements about employer-sponsored insurance plans is true?
They are offered at the discretion of employers.
What are some of the characteristics of employee wellness programs (EWPs)?
They work to lower the amount an employer must spend on employee health care. They are often designed to target certain health care issues, such as high blood pressure.
Why have some companies set up voluntary employee benefit association (VEBA) trusts?
To move retiree health care obligations off their financial statements
In which type of retirement plan does an employee's account earn a predetermined interest rate?
a cash balance plan
Of the following examples, who is eligible to receive unemployment insurance?
a person who is looking for work a person who is ready to work a person who has worked for a specific amount at a job
Offering an on-site child care facility is ________________.
and expensive venture for an employer
How can employers keep their unemployment tax rate low?
by limiting the number of employee layoffs
To maximize their return on a benefits package, companies must _____________.
communicate benefits information effectively to all employees
What kinds of benefits are provided by workers' compensation?
disability income death benefits medical coverage rehabilitative services
A defined contribution plan puts the responsibility for wise investing squarely on the shoulders of the ______________________.
employee
In the United States the amount of sick leave given to employees is often based on the ____________.
employee's years of service
Company pensions are designed to encourage ___________.
employees to work for a company for a long time
The ________________ makes all of the payments into a cash balance plan.
employer
True or false: Most organizations have a written document that summarizes the goal(s) of their various benefits programs, which helps them measure the outcomes of providing those benefits.
false
True or false: The tax treatment of benefits program is often less favorable for employees than the tax treatment of wages and salaries.
false
The unemployment insurance program is financed primarily though ___________.
federal and state taxes on employers
A program that permits pretax employee contributions to be used to pay for uncovered health care expenses is called a(n) ___________ account.
flexible spending
Employees who sign up for a health maintenance organization (HMO) health care plan ___________.
have benefits that are prepaid can only use HMO services
Providing a comprehensive employee benefits plan has a definitive impact on __________.
how long a person will work at the company who will accept a position at the company when a person will retire from the company
Employers who do not meet employee expectations regarding benefits run the risk of violating the _______________________.
implicit contract that exists between workers and the company they work for
Money spent on health care in the United States has _________ since 1960.
increased dramatically
Employee benefits may include __________________.
insurance policies that assist families retirement packages
What do workers' compensation laws cover?
job-related injuries job-related death
In general, the ____________ the company, the more benefits employees typically receive.
larger
The major types of insurance provided by employes include which of the following?
medical disability
What is the legal minimum of paid days off required for employees of U.S. companies?
no minimum
A qualified benefits plan must ____________.
offer benefits to variety of employees, not just senior level ones
Passive employee wellness programs ____________.
offer limited or zero support to program participants
Social Security retirement benefits are financed by a(n) ___________.
payroll tax assessed to both the employer and the employee
Family-friendly policies help companies ____________________.
promote loyalty of workers to company demonstrate their concern for their wellbeing of their employees balance work and family
A defined contribution plan __________________.
requires less administrative oversight on the part of the employer does not guarantee a certain benefit level to the employee upon retirement
Which U.S. employees do not receive Social Security benefits?
state workers railroad workers federal workers
Which federal law mandates certain employers to provide 12 weeks of unpaid leave to employees to care for newborns, adopted children, and seriously ill relatives among other reasons?
the Family and Medical Leave Act
Employers can obtain competitive information about other employers' benefit packages through __________.
the U.S. Chamber of Commerce the Bureau of Labor Statistics hiring private consultants
Which factors should companies consider when working to control the cost of employee benefits?
the company's "experience ratings" if the cost of benefits categories is forecasted to increase in the future the amount spent on benefits that are legally required
An employer's costs for workers' compensation insurance is based on which of the following factors?
the types of jobs its employees do state where employer is located safety rating of the employer
How the federal government taxes disability benefits is contingent upon _____________________.
the way the disability policy is funded
What should be a key factor in designing an employee benefits package?
the wishes of current employees
How can companies assess employee preferences for specific benefits?
through questionnaires through focus group discussions through interviews
What are some of the goals of unemployment insurance?
to encourage employers to retain employees and not lay them off to help unemployed workers secure new work to financially support unemployed workers during unemployment
True or false: When employee payments entirely subsidize disability coverage, no federal tax is paid on the money paid out to the employee.
true
The government's promise to workers that being a participant in a pension plan and working for a specific number of years ensures the right to receive a pension upon retirement is called _____________.
vesting rights