compensation Management ch 13
According to the 1993 Family and Medical Leave Act, all eligible employees are entitled to Blank______ of unpaid leave for stated family or medical reasons.
12 weeks per year
In the context of vesting, which of the following conditions are included in the Economic Growth and Tax Relief Reconciliation Act of 2001?
20 percent vesting after two years and 20 percent each year thereafter Full vesting after three years
Which of the following are true of alternative work arrangements?
Alternative work arrangements reduce direct labor costs. Alternative work arrangements allow employers to easily expand and contract the labor force in response to fluctuation in sales.
Which of the following relieves an employer's liability in the event that a wound caused before employment combines with a wound caused during work to result in a disability greater than that caused by the latter alone?
Second-injury funds
Identify some of the forms of Social Security coverage in the United States.
Survivors insurance Retirement insurance Special Veterans Benefits
What are the goals of the Employee Retirement Income Security Act (ERISA)?
To protect the interest of approximately 100 million active participants To stimulate the growth of pension systems in which employers are not required to offer a pension plan
The use of alternative work arrangements offers a way to meet rapidly changing economic conditions.
True
To discourage turnover, most companies make life insurance forfeitable when employees depart from the company.
True
Benefits that are willingly provided by employers to an employee's unmarried partner are known as
domestic partner benefits
Lorenzo and Sophia, an unmarried couple, have been living together for over four years. Lorenzo's employer, a major investment bank, has been providing certain benefits to Sophia. In this scenario, the benefits received by Sophia are called:
domestic partner benefits.
Health care delivery through Blank______ enables employees to choose any health care provider.
indemnity plans
As part of a health promotion initiative, StatexPro, a business analytics company, provides a special annual travel allowance up to $500 to employees who cycle to work on a daily basis. StatexPro's initiative is an example of a cost control strategy for health care that:
links incentives to healthy behavior.
The Health Insurance Portability and Accountability Act (HIPAA) of 1996 is designed to:
minimize an employer's ability to deny coverage for a preexisting condition.
Life insurance coverage would typically be a group term insurance policy with a face value of:
one to two times an employee's annual salary.
Point-of-service plans do not permit individuals to see a doctor outside the network.
False
Workers are covered by unemployment insurance regardless of whether they are unemployed through faults of their own.
False
How many quarters of coverage will insure any worker for life?
Forty quarters
Which of the following statements is true of workers' compensation?
It covers injuries and diseases that arise out of, and while in the course of, employment.
Which of the following is true of the Employee Retirement Income Security Act (ERISA)?
It does not require that employers offer a pension plan.
What is the purpose of the Pension Benefit Guaranty Corporation (PBGC)?
It guarantees payment of vested benefits to employees formerly covered by terminated pension plans.
Identify a true statement about workers' compensation.
It is a form of no-fault insurance.
Which of the following is a feature of an individual retirement account (IRA)?
It is used to store wealth accumulated in other retirement vehicles.
Which of the following categories of benefits fall under Social Security?
Lump-sum death payments Old age or disability benefits Benefits for dependents of disabled or retired workers Benefits for surviving family members of a deceased worker
Employers pay insurance premiums to the Blank______ in order to protect employees from the potential risks of an organization going bankrupt or failing to meet its vested pension commitments.
Pension Benefit Guaranty Corporation
What are the benefits given to employees under workers' compensation?
Permanent disability payments to employees to make amends for permanent effects of the injury Survivor death benefits Temporary disability benefits to employees to help replace wages lost Medical care required to treat job-related injuries or illnesses
Health care delivery through Blank______ allows employers choose specific health care providers who are willing to offer price discounts and submit to stringent utilization controls.
Preferred Provider Organizations
Identify the legal services provided by most legal insurance plans.
Real estate matters Divorce Wills Traffic violations
Which of the following are private sources of disability income?
Salary continuation plans Long-term disability plans
Johanna, an accountant at an auditing firm, consults a doctor about a preexisting inflammatory condition of the skin. After the consultation, the doctor prescribes medication and instructs Johanna to follow the treatment regimen. The doctor also makes Johanna sign a HIPAA (Health Insurance Portability and Accountability Act) document. The HIPAA document is most likely to benefit Johanna by:
prohibiting discrimination against Johanna on the basis of her health-related status.
An important provision of the Pension Protection Act of 2006 permits employees in a publicly traded company to:
sell off any employer stock bought through deferrals or after-tax contributions.
offers a proportion of one's salary (about 60% on average) for temporary disability due to sickness or injury.
short term disability
The dental equivalent of Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs) is the
standard delivery system
Profit-sharing plans can be considered defined contribution plans if:
the distribution of profits to employees is delayed until retirement.
The Pension Protection Act of 2006 was meant to safeguard the retirement income of employees and to:
transfer some responsibility for retirement savings from the employer to the employee.
Which of the following is a savings plan that allows employees to defer pretax income?
A 401(k) plan
Which of the following can be attributed to the relatively modest increase in dental care costs?
An excess supply of dentists Stringent cost control strategies
Which of the following can be used as a tax-favored retirement savings plan?
An individual retirement account
For workers to be covered by unemployment insurance, they must satisfy the state requirements for wages earned or time worked during a specific time period referred to as
Blank 1: base Blank 2: period
A directs an employer to provide a particular amount of retirement pension, which is represented as either a fixed dollar or a percentage-of-earnings amount that increases with the seniority of the employee in the organization.
Blank 1: defined Blank 2: benefit Blank 3: plan
A(n) (ESOP) plan is a defined contribution plan in which a company makes a tax-deductible contribution of stock shares or cash to a trust.
Blank 1: employee Blank 2: stock Blank 3: ownership
A -- plan is a hybrid plan that merges the benefits of Health Maintenance Organizations and Preferred Provider Organizations and allows individuals to select which plan to avail treatment from at the time that services are required.
Blank 1: point Blank 2: of Blank 3: service
The length of time an employee must work for an employer before he or she is entitled to employer payments made into a pension plan is referred to as
Blank 1: vesting
Identify the ways in which employers can reduce the costs associated with unemployment insurance.
By having a well-designed human resource planning system By auditing compliance of terminated employees with unemployment insurance (UI) requirements By auditing pre-layoff behavior of employees
Which of the following is a similarity in state laws regarding workers' compensation?
Casual employees, farm labor, and domestic servants, are usuallyexempted from self-insurance coverage.
Which of the following firms is using a cost control strategy to reduce health care costs by linking incentives to healthy behaviors?
The Fitness Quo, a fitness center that charges employees $500 more in health premiums if they fail to attend their biannual health checkups
Which of the following is a feature of point-of-service plans?
The Preferred Provider Organization component of these plans does not require a person to first contact the primary care physician.
Who pays for the majority of legal insurance premiums?
The employee
Before 1930, who was responsible for health care coverage in the United States?
The family
Identify the true statements about the common elements of workers' compensation laws passed by different states.
The laws require employers to provide coverage for all diseases arising out of and in the course of employment. The laws mandate self-insurance coverage for all industrial employment.
What is the biggest concern for individuals who receive health insurance under the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
The relatively brief qualifying period
How do companies use defined benefit plans to cut cost?
They purchase annuities with insurance companies.
How do Consumer Driven Health Plans and High Deductible Plans help cut health care costs?
They shift much of the burden of purchasing health care over to employees.
Which of the following are cost control strategies for health care that involve changes in the design or the administration of health insurance policies?
Using intranet technology to let employees access to online benefit information Auditing of hospital charges for accuracy Deductibles Defining maximum payout schedules
The Consolidated Omnibus Budget Reconciliation Act (COBRA) was enacted by Congress in 1985 so that current and former employees and their spouses and dependents can avail:
a temporary extension of group health insurance when coverage is lost due to qualifying events.
The 1993 Family and Medical Leave Act applies to:
all employers having 50 or more employees
The extra amount of unemployment compensation paid by a company depends on its
experience rating
Defined benefit plans that resemble defined contribution plans are called
cash balance plans
The money to pay for Social Security benefits comes from:
contributions made by employees.
The unemployment benefits of an unemployed worker are paid for by the:
firm or firms most recently employing that currently unemployed worker.
In most states, unemployment insurance is financed by:
employers.