Chapter 10: Employee Benefits and Services

A benefit audit enables employers to do all the following except A. determine what benefits employees want B. identify opportunities for savings C. identify who is in charge of the benefits budget D. exert control over the benefits area E. insure that insurers are doing a good job

A

An example(s) of how universal benefit packages within an organization may fail to achieve the same level of appreciation among all employees is/are A. the young employee who regards pensions as distant and largely irrelevant B. the single parent who likes the company daycare C. the overall appreciation of coffee and lunch breaks D. single and/or older workers who actively desire maternity benefits E. having a benefit that every employee wants

A

Cafeteria benefit programs are also known as A. flexible benefit programs B. optional benefit programs C. non-compulsory benefit programs D. lunchroom benefit programs E. benefit equity programs

A

In compensation administration, benefits and services are referred to as A. indirect compensation B. equity compensation C. absolute compensation D. direct compensation E. relative compensation

A

One approach that readily identifies inefficiencies in the administration of benefit plans is a A. benefit audit B. retention audit C. benefit survey D. compensation audit E. benefit analysis

A

One of the reasons legally required benefits and services are important to human resource departments is A. the organization holds the human resource department responsible for meeting legal obligations B. failure to obey legal requirements can decrease absenteeism and turnover C. failure to meet legal obligations can result in organizational savings D. failure to meet legal requirements is one of the major causes of unionization E. they replace voluntary organizational benefits

A

Reasons that the management of indirect compensation services and benefits has often been poorly done include A. the fact that many of these were introduced haphazardly in response to numerous pressures B. they are not particularly costly or difficult to administer C. human resource departments often spent too much time over-developing and co-ordinated objectives D. management has usually avoided any co-ordinated organization of these to prevent making them official E. human resource departments set too complex and detailed systematic plans and standards

A

The basic types of benefits and services include those that are A. legally required B. demanded by employees C. low cost D. required by union contracts E. deal with health matters

A

The central problem in the administration of supplementary compensation is A. the lack of employee involvement B. management disinterest C. union interference D. the disorganization of many human resource departments E. a result of the organization's external environment

A

The two types of Registered Pension Plans offered by employers to their employees are: A. defined benefit and defined contribution plans B. defined contribution and supplemental retirement plans C. defined benefit and vested retirement plans D. supplemental retirement and defined contribution plans E. vested retirement and supplemental retirement plans

A

Under the Employment Insurance Act and current regulations, self-employed persons A. are not eligible for benefits B. may volunteer to make contributions and therefore be eligible for benefits C. are as eligible for benefits as any other Canadian D. are eligible if self-employed in some fields, but does not include areas such as knowledge workers E. are only eligible if they have arrived as immigrants within the last five years

A

All the provincial workers' compensation acts involve the principle of "collective liability," which means A. that compensation is paid collectively by employers and employees B. compensation is payable by employers collectively C. that all parties are liable for accidents D. that society is responsible collectively for worker safety E. employees are legal responsible for their own safety

B

Compensation programs that allow employees to select a mix of benefits and services are referred to as A. blended benefit programs B. cafeteria benefit programs C. optional benefit programs D. equity benefit programs E. selective benefit programs

B

GST applies to some employee benefits, but not to others. Exceptions can include A. parking B. tuition fees C. frequent flyer points D. car operating costs E. holiday trips within North America

B

Some optional non-insurance benefits that can enhance employee security can include all the following except A. supplemental unemployment benefits B. Canada Pension Plan C. defined benefit plans D. employment income security E. defined contribution plans

B

Sources of financial protection provided workers by government legislation include all of the following except A. minimum wage acts B. human rights acts C. Canada Pension Plan D. workers compensation acts E. Employment Insurance

B

Studies seem to indicate that since employees have little choice in their individual benefit package, problems that human resource departments often have to overcome is/are A. heightened employee awareness of what their benefits are B. a general lack of interest in the compensation system C. encouraging employees to ask for more benefits D. employee appreciation of the compensation package E. paying for benefits

B

The following are all features of the new Employment Insurance Act (2001-2002) except A. benefits based on hours rather than weeks worked B. benefit eligibility for self-employed people C. a family income supplement top-up for low income families D. reduction in the minimum benefit entitlement period E. collection of premiums based on first dollar earned

B

The objectives of a needs analysis to determine the proper approach to employee benefits administration is A. to find out what is best for the employees B. to identify the best way to meet both the short- and long-term needs of the employer C. to determine the needs of the human resource department D. to determine the best system for administering employee benefit plans E. to determine what the competition is doing

B

The types of benefits that may be in demand for employees in the future are all of the following except A. elder care B. out of Canada coverage C. prepaid legal advice D. more and longer vacations E. sabbatical leaves

B

Traditional responses of human resource departments to the problem of employee lack of awareness, confusion, or disinterest in available benefit packages have included all of the following except A. employee handbooks B. allowing employees to select among benefits C. information mailouts D. information sessions E. company newsletters

B

According to one professional, all of the following are tips for success in designing a benefit plan except A. move quickly; taking too much time is inefficient B. don't spend money on getting specialists or expertise; do everything to the best of your own ability C. involve your employees in the planning D. don't overestimate the time required; the more people involved the faster it will proceed E. don't waste time investigating individual benefits - all benefits are basically identical

C

Acts that entitle workers to some form of compensation in the event of personal workplace-related injury A. exist in all provinces except Quebec B. exist in all ten provinces but not in the three territories C. exist in all ten provinces and all the territories D. exist only in Ontario, Manitoba, Saskatchewan, British Columbia, Nova Scotia, and Newfoundland E. used to exist provincially, but have all been replaced by one federal compensation act

C

Canada's public health and medical insurance coverage is provided by A. the provincial governments B. the federal government C. the provincial governments with assistance from the federal government D. by employees through direct and explicit payroll deductions (separate from private or company plans) E. as a free service by Canada's private insurance companies

C

Flexible benefit programs can involve A. lower administrative costs B. lower employee participation C. increased obligation on behalf of the human resource department to communicate with employees D. greater employee clarity about what benefits are offered E. less involvement by the human resource department

C

In 1999 the Supreme Court of Canada ruled that governments cannot limit benefits by discriminating against A. same-sex couples B. common-law opposite-sex couples C. all common-law relationships (both same-sex and opposite-sex) D. common-law same-sex couples E. elderly couples

C

In compensation administration, pay is called A. indirect compensation B. absolute compensation C. direct compensation D. relative compensation E. equity compensation

C

One recent addition to a flexible benefit program that is becoming more common is A. long-term disability B. life insurance C. the chance to buy and sell vacation time D. medical coverage E. pension plan

C

One serious compensation management problem in even otherwise well-run human resource departments has been the A. management of payroll B. management of government benefit plans C. management of indirect compensation D. management of direct compensation E. management of employee car pools

C

Studies have shown that innovative and flexible employee benefit plans, particularly in high-tech companies, can A. have little impact on attracting desirable recruits in a very competitive market B. cover for large differences in salaries between competing companies C. assist in retaining skilled staff D. have little impact on a firm's competitive advantage E. can be provided at no cost

C

The Canada Pension Plan and the Quebec Pension Plan are both contributory plans, which means that A. only employees contribute to the plans B. only employers contribute to the plans C. both the employer and the employee pay part of the cost D. employers only have to contribute if they wish to E. employees may withdraw their contributions by dropping out of the plans

C

The federal Pension Benefits Standards Act requires that A. pension funds be held in trust by the pension members members B. employers must have a minimum vesting period of forty years C. the funds not be under the complete custody and control of either the employer or the employees D. the funds be under the complete custody and control of the employer E. the funds be under the complete custody and control of the employees

C

The government program designed to alleviate the monetary concerns of Canadian workers during the transition from one job to another is called A. unemployment insurance B. workers' compensation C. employment insurance D. employment transition supplement E. guaranteed income supplement

C

The objectives of society, organizations and employees have encouraged rapid growth of benefits and services in all of the following areas except A. income security B. life insurance C. employment insurance D. time-off E. retirement plans

C

To effectively design an employee benefit plan, one should do all of the following except A. involve the employees B. spend money to get expertise C. move things quickly; taking too much time is inefficient and will harm the final product D. don't underestimate the time it will take E. plan to take time - the more people involved the longer things will take

C

To properly control and administer employee financial security benefits, human resource departments need to A. design voluntary benefits to duplicate legally required benefits B. worry less about reducing on-the-job accidents C. challenge unjustified compensation claims D. let the legal department worry about the legal provisions of benefits E. not worry about costs

C

Unemployment insurance was started in Canada in 1940, and was further significantly modified by the Unemployment Insurance Act of 1971; in 1995 the concept was officially renamed A. unemployment assurance B. unemployment insurance 1995 C. employment insurance D. employment equity E. guaranteed income supplement (GIS)

C

Vesting is a provision in employer-provided pension plans that A. allows employees to invest extra funds in the plan B. allows employers to divest themselves of pension responsibilities C. gives workers the right to a pension after a specified number of years D. is the opposite of portability E. allows employees to wear vests after they retire

C

Additional insurance that companies can provide for employees can include all of the following except A. medical insurance during travel B. dental insurance C. group life insurance D. vacation time insurance E. disability insurance

D

Benefits and services are referred to as indirect compensation because A. they are based on critical job factors or performance B. they are given indirectly rather than appearing on a pay cheque C. they can't be spent like money D. they are usually extended as a condition of employment rather than directly related to performance E. they are paid out to other family members

D

Benefits that employers gain from indirect compensation usually include A. increased turnover B. higher overtime costs C. increased labour unrest and/or moves to unionize D. assisting recruitment efforts E. increased worker fatigue

D

Employees usually seek employer-provided benefits and services because all the following except A. of lower costs and availability B. of lower income taxes C. of being (at least partially) protected from inflation D. in order to keep their jobs E. to obtain supplementary benefits that may not be obtainable otherwise

D

Forces that have encouraged the growth of indirect compensation benefits have included all the below except A. union demands B. social trends C. management wishes D. government action E. employee pressures

D

In order to keep ballooning health costs under control, one benefit consulting company (William M. Mercer) recommends that employers do all the following except A. ask staff to pay 20% of any treatment B. pay only for generic drugs where possible C. increase the time between dental checkups D. increase out-of-country medical coverage for personal travel only E. ask employees to buy "maintenance drugs" in larger amounts to save on dispensing fees

D

Management has to take into account changes in the labour force that will influence the type of benefits that will be desired by employees in the future. These labour force changes include all of the following except A. more woman in the workforce B. an increase in the average age of the labour force C. more part time workers D. fewer employees choosing retirement E. woman will work longer

D

Paid time-off benefits for employees can include all the below except A. on-the-job coffee and lunch breaks B. sick leave C. holidays D. educational assistance E. vacations

D

Some services that organizations can offer employees beyond pay and the more traditional benefits can include all of the following except A. stock purchase programs B. drug rehabilitation programs C. family counselling D. severance pay E. subsidized home-ownership mortgages

D

The Canada Pension Plan is all the following except A. mandatory B. portable C. contributory D. guaranteed E. applicable to all employees in Canada

D

To cover the requirements of the Pension Benefits Standards Act, the means of funding private organizational pension plans must be carried out by one or another of the following except A. an insurance company authorized to conduct business in Canada B. a corporate pension society C. an arrangement administered by the federal or provincial government D. a private trust company formed solely of employees and the employer E. a trust in Canada whose trustees are specifically defined

D

With the exception of Saskatchewan, federal and provincial laws specify an annual minimum vacation entitlement of __________ or greater for employees with less than 5 years of employment with the company A. one week B. ten days C. three weeks D. two weeks E. four weeks

D

Among the concerns of human resource departments in regards to employee financial security plans are all of the following except A. to challenge unjustified or fraudulent claims B. to be certain that the firm adheres to all legal provisions C. to avoid duplication between legally required and voluntary benefits D. to reduce accidents to reduce compensation costs E. to pay claims regardless of documentation

E

Benefits and services amount to over __________ of the average Canadian firm's total payroll costs. A. 15 percent B. 25 percent C. 30 percent D. 40 percent E. 50 percent

E

Benefits of the cafeteria style approach to employee benefits includes all of the following except: A. providing workers with a benefit and services account with a certain dollar value B. allowing employees to select benefits and services that match their own needs C. providing workers with a list of the price of each benefit D. providing a description of each benefit E. allowing workers to select the benefits they want, even from outside the organization's offerings

E

In compensation administration, benefits and services seek to satisfy several objectives, including A. societal objectives only B. organizational objectives only C. employee objectives only D. both societal and organizational objectives E. three objectives: employee, societal and organizational

E

Reasons that the amount of change in the employee benefits field has been dramatic in the last decade include all the following except A. tax reforms B. increased costs of health care and medical plans C. retirement and pension plans legislation D. changes in health care policies E. changes in minimum wage legislation

E

Since 1991 GST applies to some employee benefits, including all the below except A. tax-return preparation B. holiday trips within North America C. parking D. frequent flyer points E. gifts under $100

E

Some of the benefits of indirect compensation to employers usually include all the following except A. reduced employee fatigue B. satisfied employees C. reduced turnover D. enhanced recruitment E. increased labour unrest

E

Some organizations offer more than pay and traditional benefits, including all the following except A. educational assistance B. employee discounts C. employee assistance programs D. relocation programs E. workers' compensation

E

Voluntary employee insurance benefits can include all the below except A. life insurance B. health-related insurance C. short-term disability insurance D. long-term disability insurance E. health insurance plans such as the Medical Care Act

E

Workers' compensation acts are administered by A. employers B. employees' unions C. the federal government D. private certified outside agencies E. the provincial governments of each province

E