Chp12comp

37._____ is/are one of the most preferred benefits. A. Stock plans B. Profit sharing C. Shorter working hours D. Early retirement

A. Stock plans

25. Alternatives to financing benefit plans include all of the following except: A. contributory B. 401K C. noncontributory D. employee financed

B. 401K

4. Which of the following benefits are not mandated by state or federal legislation? A. Workers' compensation B. Pensions C. Social security D. Unemployment insurance

B. Pensions

14. In the _____ benefit package, a package is designed with the average employee in mind. A. shared B. standard C. cafeteria-style D. federal

B. standard

2. In 1959, benefits were approximately _____ percent of payroll and in 2010, the percent was _____. A. 30, 50 B. 20, 38 C. 25, 30 D. 30, 60

C. 25, 30

9. A study of the factors affecting MBA students' job choice showed _____ was ranked as least important. A. geographic location B. promotion opportunities C. employee benefits D. opportunity for advancement

C. employee benefits

15. A type of benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called _____ plan. A. a select choice B. a no-deductible C. flexible benefit D. flat dollar benefit

C. flexible benefit

1. The total cost of employee benefits in the U. S. is _____ dollars. A. two trillion B. one trillion C. four trillion D. one billion

C. four trillion

29. Which of the following is not a part of the cost-centered approach for deciding to provide a benefit? A. Checking compliance B. Evaluating competitiveness of current benefits C. Examining employee preferences D. Basing benefits on historical costs

D. Basing benefits on historical costs

35. _____ allows employees who have resigned or were laid off to continue to purchase health insurance under their employer's plan. A. Health Maintenance Act 1973 B. FLSA 1938 C. Tax reforms of 1982, 1986 D. COBRA 1984

D. COBRA 1984

44. Which of the following would an employer be least likely to use if they sought to reduce benefit costs? A. Dual coverage B. Benefit ceiling C. Coinsurance D. Defined benefit plans

D. Defined benefit plans

45.(T/F)There is good evidence that a sound benefits program reduces turnover.

FALSE

48. (T/F) Today, benefits are twenty-five percent of payroll costs.

FALSE

79. (T/F) Dual coverage is when a portion of insurance premiums is paid by the employee.

FALSE

59. (T/F) The biggest current trend in health care is market-based or customer-driven.

TRUE

68.(T/F) Though commonly believed by managers, there is only anecdotal evidence supporting the belief that higher benefit levels increase employee retention.

TRUE

69. (T/F) The only two benefits shown to reduce turnover are pensions and medical coverage.

TRUE

72.(T/F) One study suggests that benefits focusing on work/life balance lead to greater worker involvement in productivity initiatives.

TRUE

75.(T/F)The "bandwagon" effect is when an employer offers a new benefit offered by a competitor without careful consideration.

TRUE

77. ((T/F) The ideal approach to determining employee benefit preferences is a flexible benefit plan.

TRUE

13. Which of the following is not a benefit administration issue? A. Benefit adequacy B. Benefit financing C. Degree of choice among benefits D. are benefits legally defensible.

A. Benefit adequacy

16. _____ is/are the primary reason why businesses adopt flexible benefit programs. A. Cost savings B. Increased employee understanding C. Federal requirements under EEO laws D. Maintaining external equity

A. Cost savings

8. Across five studies ranking preference for benefits,_________ had the lowest average rating. A. Long-term disability B. Sick pay C. Pensions D. Dental insurance

A. Long-term disability

36. The __________ act requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship. A. Patient Protection and Affordable Care Act B. Family and Medical Leave Act C. Health Maintenance Organization Act D. No act requires these actions.

A. Patient Protection and Affordable Care Act

41. All of the following are advantages of managing benefits via the internet or intranet except: A. employees have fewer interactions with HR staff. B. benefit handbook cost is minimized. C. benefit transactions costs are reduced. D. fewer employee benefits staff are required.

A. employees have fewer interactions with HR staff.

3. All of the following factors are reasons for the growth of benefits except: A. foreign competition. B. unions. C. cost effectiveness of benefits. D. government impetus.

A. foreign competition.

26. Employers prefer contributory benefits financing for all except which of the following? A. more favorable tax treatment B. A "free good," is less valuable to an employee. C. Employees have little personal interest in controlling the costs of a free good. D. It helps control benefit costs.

A. more favorable tax treatment

30. The most widely used benefit survey is conducted by: A. the U. S. Chamber of Commerce. B. Watson-Wyatt. C. the Society for Human Resource Management. D. the American Compensation Association.

A. the U. S. Chamber of Commerce.

12. The first issue in setting up a benefits package is: A. who should be protected or benefited. B. how much choice should employees have among benefits. C. how should benefits be financed. D. are benefits legally defensible.

A. who should be protected or benefited

11. A recent survey shows that the majority of employers are responding to increased benefit costs by______ A.requiring employees to pay higher deductibles and copays. B. raising premiums. C. dropping health care plans. D. relying on the Patient Protection and Affordable Care Act

A.requiring employees to pay higher deductibles and copays.

22. _____ is not an example of an approach to customer-driven health care. A. Tiered networks B. Cafeteria plans C. Managed competition D. Full-defined contribution

B. Cafeteria plans

38. _____ is/are not a method of determining employee benefit preferences. A. Demographic data B. Competitor pay surveys C. Employee surveys D. A cafeteria plan

B. Competitor pay surveys

33. Which of the following benefits has been found to increase productivity in organizations? A. Child care B. Employee stock options C. Health care D. No benefit has been found to increase productivity.

B. Employee stock options

5. The typical employee can recall _____ percent of the benefits they receive. A. almost 50 B. less than 15 C. over 30 D. 40

B. less than 15

42. All of the following are cost containment practices except: A. probationary periods. B. physical exams of all new hires. C. copay. D. seeking competitive bids for benefit delivery.

B. physical exams of all new hires.

32. A recent survey shows employees ranking employee benefits __________ in explaining job satisfaction. A. first B. second C. third D. last

B. second

39. _____ is the most frequent method of benefit communication. A. An orientation session B. On-line benefits information C. An employee benefit handbook D. A meeting with supervisor

C. An employee benefit handbook

34. _____ mandates 12 weeks of leave for all workers at companies that employ 50 or more people. A. Health Maintenance Act 1973 B. FLSA 1938 C. FMLA 1993 D. COBRA 1984

C. FMLA 1993

17. A major approach to increasing employee awareness of health care choices and cost is: A. customer-driven health care. B. cafeteria plans. C. large deductibles. D. large co-pays.18. Which of the following is not a disadvantage of flexible benefit programs? A. Administrative burdens and expenses increase. B. Adverse selection. C. New benefits are more difficult to introduce. D. Flexible benefits are subject to nondiscrimination requirements in Section 125 of IRS code.

C. New benefits are more difficult to introduce.

6. Advantages of employer sponsored life and health insurance include all of the following except: A. favorable tax treatment. B. lower rates. C. employees can choose coverage levels. D. easy qualifying standards.

C. employees can choose coverage levels.

27. All of the following except _____ are factors affecting employer choices of components of a benefits package. A. relationship to total compensation costs B. legal requirements C. equity D. competitor offerings

C. equity

23. A _____ is an employer-provided subsidized basic medical plan with buy-up options. A. full-defined contribution B. menu-driven health-care plan C. managed competition D. health savings account

C. managed competition

43. The biggest trend in cost-containment is: A. benefit limitations. B. HMO's. C. outsourcing. D. higher deductibles.

C. outsourcing.

10. Which of the following is not a major benefits planning and design issue? A. Benefit adequacy B. Competitiveness of benefits C. Cost effectiveness D. Diversity compliance

D. Diversity compliance

19. All of the following are advantages of flexible benefits except: A. costs of benefits are contained. B. employee understanding of benefits increases. C. introduction of new benefits is less costly. D. administrative expenses increase.

D. administrative expenses increase.

21. All of the following are advantages of flexible benefits except: A. costs of benefits are contained. B. employee understanding of benefits increases. C. introduction of new benefits is less costly. D. administrative expenses increase.

D. administrative expenses increase.

28. The best way for companies to decide whether or not the company can afford a benefit is on a _____ basis. A. package B. first dollar deductible C. discounted cost D. cost-centered

D. cost-centered

20. Tiered networks, managed competition and health savings accounts are all examples of choices for _____________ A. menu-driven health care. B. flexible benefits. C. cafeteria plans. D. customer-driven health care.

D. customer-driven health care.

40. A primary benefits objective of most employers is to: A. obtain employee cooperation in controlling benefit costs. B. increase employee knowledge of benefit costs. C. encourage employee responsibility for their own financial security. D. increase employee understanding of plan objectives.

D. increase employee understanding of plan objectives.

7. Surveys show that the most highly valued benefit is: A. dental plans. B. a pension. C. paid vacation and holidays. D. medical insurance.

D. medical insurance.

31. Various studies have found that only two specific benefits curtailed employee turnover: _____ and _____. A. vacation days, dental plans B. profit-sharing plans,life insurance C. retirement benefits, paid vacations D. pensions,medical coverage

D. pensions, medical coverage

24. A customer-driven health care plan that offers employees a choice of medical plans that include systems of varying cost is the: A. full-defined contribution. B. health savings account. C. managed competition. D. tiered networks.

D. tiered networks.

50. (T/F) While health care costs have risen rapidly during the past two decades, pension costs have been declining due to the strong stock market.

FALSE

52. (T/F) Though employer provided benefits cost less due to group rates, they are taxed the same as wages and salaries.

FALSE

53. (T/F) The favorable tax status granted to many benefits is safe from the threat of recurrent tax reform proposals.

FALSE

54.(T/F)According to a recent SHRM survey, pay is the top factor driving job satisfaction.

FALSE

60.(T/F) Flexible benefit plans are complex requiring many choices that lead to poor employee understanding of benefits.

FALSE

63. (T/F)Employers prefer the noncontributory approach to financing benefits because this allows greater control of costs.

FALSE

66. (T/F) When future cost containment of a benefit may be a problem, the benefit should be offered on a noncontributory basis.

FALSE

70. (T/F) The goal of employee benefits should be to keep turnover to near zero.

FALSE

71.(T/F) Most employers are pleased that 3 Americans in 10 stayed in a job they wanted to leave simply because they could not give up their health-care coverage.

FALSE

73. (T/F) The Employment Retirement Income Security Act (1974) requires employers to offer some form of pension.

FALSE

74. (T/F)According to available evidence, a good strategy for a company to remain non-union is to offer the same benefits as those provided by unionized firms.

FALSE

76. (T/F)Employees' preferences for various benefits can be predicted well from demographic data.

FALSE

78. (T/F) Employees feel their benefits are very fair when they are given extensive communications about benefits but plan design is left to experts.

FALSE

46. (T/F) The average per hour cost of benefits is higher in state and local governments than in the private sector.

TRUE

47. (T/F)Before World War II, hourly employees were given time off for holidays but without pay.

TRUE

49. (T/F) General Motors spends more than twice as much for employee health insurance as for the steel that goes into each car they produce.

TRUE

51. (T/F) Employee benefits may be accurately described as a costly entitlement of the American workforce.

TRUE

55.(T/F) A job ad stating generous benefits leads applicants to place higher value on benefits in choosing among jobs

TRUE

56.(T/F)Benefits can be an effective tool to attract and retain employees when benefits address needs of a target group.

TRUE

57. (T/F)The biggest recent trend in health care is consumer-driven health care

TRUE

58. (T/F)Cost pressure related to increasing diversity of the workforce is one of the reasons companies are offering flexible benefit plans.

TRUE

61. (T/F)Flexible benefits allow organizations to control benefit costs.

TRUE

62.(T/F) If adverse selection occurs for one or more benefits in a flexible benefits plan, the higher cost will likely lead to those benefits being dropped from the plan.

TRUE

64. (T/F) For most benefits, providing a level of coverage is more costly to employers than providing a benefit at a specific cost level.

TRUE

65. (T/F)A major reason for the proliferating cost of benefit programs is the narrow focus of benefit administrators

TRUE

67. (T/F) Most employers prefer to avoid providing benefits on a defined-level basis.

TRUE