HRM Chapter 13

Contributory Pay

Is a voluntary benefit consisting of vacation/annual leave, personal time off, sick days, holidays, and severance pay.

Preferred Provider Organizations (PPOs)

Kind of hybrid between traditional fee-for-service plans and HMOs. Usually have some advantages and disadvantages. Have networks of physicians and medical facilities, just like HMOs. Prefer (but do not require) that you have a PCP within the network and that you go to that PCP before going elsewhere for medical care. They provide preventative care services to their insured members, similar to HMOs, and have a similar copayments and annual deductibles.

Regular FMLA leave is typically associated with __________ leave?

12 weeks unpaid

COBRA allows continued health coverage for most employees for _____ months if the employee pays ________ of the premium for such coverage.

18 months 102%

COBRA applies to companies who provide company sponsored health insurance and have at least how many full-time equivalent (FTE) employees?

20

According to the Patient Protection and Affordable Care Act of 2010, children can stay on their parents' health care insurance until what age?

26

FMLA leave, when associated with care of a service member, is allowed for as many as ____ work weeks in a 12-month period.

26

What is the normal maximum period of time for which an individual can receive unemployment benefits

26 weeks

Social security retirement was only designed to pay about ____ of pre-retirement income

30%

FMLA affects companies with __ or more employees within 75 miles of a central location.

50

The Patient Protection and Affordable Care Act of 2010 mandates that companies with at least ______ employees provide health care coverage by 2014 or face penalties for not providing health insurance.

50

What is the most common percentage group health insurance split between the insurance plan and the individual in a traditional health plan (in other words, who pays)?

80/20

About what percent of employers provide sick leave of some type - either through an all-encompassing PTO plan or specifically as "sick days"?

86%

Why are benefits growing as a portion of overall compensation?

Pg 483

Under an HMO health plan, ______________ will be the first point of contact for all preventative care and in any routine medical situations.

Primary care physicians

Cafeteria Plans

Benefit plans allowing employees to pick and choose their benefit mix are called? Designed to give the employee full flexibility in their choice of benefits provided by the company within a specified monetary value.

Ex1. Which type of retirement plan guarantees the amount and type of a retiree's benefits? Ex2. If I know what retirement pay and benefits I am getting upon retirement, what kind of retirement plan do I have?

Defined benefits plans

What is the main reason that companies have been rapidly shifting from a defined benefit to defined contribution retirement plans?

Defined contribution plans shift the investment risk to the employee instead of the employer bearing the risk

Unemployment insurance in virtually all states is financed primarily through taxes on:

Employers only

Modular

Ex: Meghan's organization offers several sets of benefits. One set would appeal to young single employees because it provides more paid time off for personal activities and no reimbursements for child care expenses. Another set would likely appeal parents with young children because it does provide child care reimbursements and other benefits important to parents such as life insurance. Meghan's organization is offering a _______ flexible benefits plan.

Swapping holidays to observe a holiday of choice that would normally be unpaid; for instance, swapping Christmas Day for Yom Kippur, is called _________

Floating Holiday

Tamera's organization provides group health insurance. She has a primary care physician who is her first point of contact for all preventative care and routine medical situations. Her primary care physician can provide her with referrals to specialists, if needed. However, to be covered, the specialists must be within her plan's network. Her group health insurance is a ________.

Health Maintenance Organization

Defined Contribution Plans

Identify the funds that go into retirement but don't help you determine what you get when you retire.

Defined Benefit

If I know what retirement pay and benefits I am getting upon retirement, what kind of retirement plan do I have? Ex: Erin knows exactly what benefits she will receive when she retires. She has worked for the organization for 20 years and will receive 65 percent of the average of her two highest years of pay. Erin's retirement plan is a ________ plan.

Workers' Compensation

In 48 of 50 U.S. states. An insurance program designed to provide medical treatment and temporary payments to employees who cannot work because of an employment-related injury or illness is:

Under an HSA health plan, which of the following is not true?

The employee must see their PCP first, before being allowed to go to a specialist.

Which of the following has NOT been a reason for growth in employer-provided benefits?

The growing desire of employees to trade more benefits for less direct pay.

Due to a recession, Lauren was laid off by her organization. To avoid having Lauren and other laid off workers stop spending money and thus deepen the recession, __________ will help them maintain some income.

Unemployment Insurance

Benefit plans should be?

Valuable to the employees and affordable for the organization

During the last 80 years, congress added multiple mandatory employee benefits, causing the cost of providing benefits to

increase

Preferred Provider Organization

A kind of hybrid between traditional fee-for-service plans and Health Maintenance Organizations (HMOs). Ex: Myra's organization provides group health insurance. Under her coverage, Myra can see any physician or go to any medical facility. However, if she goes to a physician or facility outside those identified by her plan, she will have to pay a larger percentage of the costs. Her group health insurance is a ________.

Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)

A law that requires employers to offer to maintain health insurance on individuals who leave their employment (for a period of time). The individual former employee has to pay for the insurance, but the employer is required to keep the former employee on their group insurance policy. Ex: Shannon recently quit her job at Acme Global. Under ________, Shannon can continue to pay for her group health insurance through Acme Global to avoid having a gap in her coverage. Pg. 497

ERISA requires employers who offer insurance or retirement plans to provide all of the following except:

A list of all beneficiaries

Because of the problems associated with excessive leave under the FMLA, companies can do all of the following except:

A. Require that the employee pay for a second health care provider opinion (of the employer's choosing) if the employer believes that the initial FMLA document is falsified. B. Require that the employee provide a reason for the leave documented by a health care provider at the employee's expense. **C. Require the employee to use ALL paid leave before using FMLA leave.** D. Enforce the requirement that the employee provide 30 days' notice of their intent to use FMLA unless it is an unforeseen problem. E. Require periodic recertification of the need for FMLA when the condition lasts for an extended time period.

All of the following statements concerning workers' compensation are true except one. Which one?

A. Workers' compensation insurance is paid for by employers. B. It is a form of no-fault insurance - it doesn't matter who was wrong, it still pays. C. Payments to injured workers are permanent in most cases. D. Companies can manage their costs to an extent by managing their experience rating. **E. Workers' compensation is mandatory in 49 states.**

In examining her organization's benefits package, Monica has determined that the organization can provide a 40 percent premium to direct compensation for the cost of benefits. What consideration in providing benefits programs has Monica addressed?

Amounts

Whitney earns about $100,000 a year. She and her employer both pay 6.2 percent of Whitney's pay into __________ by withholding the money from Whitney's pay check.

Social Security

In order to communicate the value of benefit programs, which communication channels should we use?

Standard mail, social media, and email.

Which entity manages mandatory Workers' Compensation programs?

State governments

Part of the imbalance with Social Security exists because?

There are more retirees drawing from the system than there are younger workers paying into the system.

One reason for re-evaluating social security is because of?

There have been changes in the lifespan of the retiree population.

Vesting

_________ rules provide a maximum amount of time beyond which the employee will have unfettered access to his or her retirement funds, both employee contributions and employer contributions.

Under the Patient Protection and Affordable Care Act, the "pay or play" provision means that:

all employers with more than 50 employees have to offer health insurance benefits or they will face financial penalties.

Upon completion of FMLA leave, the employee will return to work to

an equivalent position

Under the ACA, an "affordable plan" means one which

will not exceed 9.5% of employee's household income