Compensation Ch 12&13

Various studies have found that only these specific benefits curtailed turnover: ____ and _____

pensions and medical coverage

A ___ plan is a hybrid health plan combining the benefits of HMO and ___

point of service; preferred provider organization

which of the following is not a benefit that is required by statutory law

pension and retirement benefits

____ is the most frequently used medium for communicating employee benefits

an employee benefit handbook

If a benefit forecast suggests future cost containment may be difficult, the benefit should

be offered to employees only on a cost sharing basis

All of the following are advantages of flexible benefits except

decreased administrative expenses

In a ___ plan an employeers agrees to provide a specific level of retirement pension whcih 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

Trumbrella Corp is a pharmaceutical company. One of its employees reports that he had an on the job injury caused by slippery factory floor that broke his back. When Trumbrella initiates its claims processing, it should first:

determine whether the accident happened.

Experts attribute the decline in dollar cost of workers compensation after 2005 relates to

employer safety programs

In the majority of the states, unemployment insurance is financed exclusively by

employers that pay federal and state unemployment insurance

Which of the following types of workers are generally not covered by workers compensation

farm workers

contingent workers receive ___ benefits than regular workers; contingent workers benefits cost ___ for employees than it does for regular workers

fewer; less

The first issue in setting up a benefits package is:

finding out who should be protected or benefited.

All of the following factors are reasons for the growth of benefits except

foreign lawsuits

an employer experienceing high turnover and seeking to reduce pension cost is likely to prefer

full vesting after 3 years

The typical employee can recall ___ percent of the benefits he or she receives.

less than 15

Health maintenance organization 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

Which of the following is a benefit under social security?

lump sum death payment

Surveys show that the most highly valued benefit is

medical insurance

_____ are not used for determining employee preferences.

product market share data

Which of the following benefits is NOT mandated by sate or federal legislation?

unemployment insurance

Seve 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 thoerugh Steve's company after being laid off?

0 months

How many weeks of leave does Family Medical Leave Act 1993 mandate for all workers at companies that employ 50 or more people?

12 weeks

In 1959, benefits were approximately ____ percent of payroll and in 2010 it was approximately ___ percent of payroll.

25, 30

The majority of defined benefit plans calculate average earnings over the last ___ years of service for a prospective retiree.

3-5

Roughly ___ of all employees have access to paid life insurance

3/4ths

For an employee to gain lifetime coverage under social security, they must have worked for ____ quarters during which they were coverage by the act

40

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% of its medical costs

7

A benefit plan that allocates a set dollar amount to employees and allows them to select benefits is called ___ plan

A flexible benefit

____ is designed to lessen an employers ability to deny coverage to an employee for a pre existing condition

HIPPA

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.

DrenchFort Corp is a small company that pays high wages. As its wages are high, it does not provide any benefits. Recently, it has noticed that its employee turnover rate has increased so it decides to provide benefits to retain employees. Which of the following benefits is most likely to reduce turnover?

Medical Coverage

The ___ requires individuals to maintain minimal essential health insurance coverage or pay a penalty unless exempted for religious beliefs or financial hardship.

Patient Protection and Affordable Care Act

Jennifer is hurt at work while driving a forklift. Her employer claims that she was injured as a result of her careless driving and therefor she is not eligible for workers compensation. What will be the outcome of the employers challenge to her workers compensation claim?

She will likely receive workers compensation benefits.

Which of the following benefits is a federally administered program?

Social Security

The most widely used benefit survey is conducted by

The US Chamber of Commerce

Which of the following is an advantage or flexible benefit plans?

They increase the involvement of employees in choosing benefit plans

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

By limiting liability for an employees hospital stay costs to $200000 an employer is using a cost containment measure known as

benefit ceiling

As part of the efforts to bring down the employee benefits cost to the company, Grindstop Corp. restricts the number of visits to the dentists covered in the dental plan to two per year. Which of the following cost containment strategies is used by Grindstop?

benefit limitation

Which of the following is not a disadvantage of flexible benefit programs?

new benefits are more difficult to introduce

The biggest cost containment strategy in recent years is the movement to

outsourcing

All of the following are cost containment practices designed to reduce benefit costs except

provision of skills development training

A survey shows that the majority of employers are responding to increased benefit costs by ___

requiring employees to pay higher deductibles and copays.

A recent survey shows employees ranking employee benefits ______ in explaining job satisfaction

second

____ relieve an employers liability when a pre-employment injury combines with a work related injury to produce a disability greater than that calls by the later alone.

second injury funds

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 not part of the cost centered approach for deciding to provide a benefit?

basing benefits on historical costs