FINAL
An insurance pool refers to all employees who fall into an insured category. True False
True
An older employee may not be required to pay more for a benefit as a condition of employment. True False
True
Benefits professionals craft benefits strategies based on information contained in strategic benefit plans. True False
True
Cost-of-living adjustments (COLAs) are based on changes in prices as indexed by the consumer price index. True False
True
Workers' compensation laws are state laws. True False
True
In 2016, what was the average monthly disability benefit for all disabled workers? $540 $1,166 $2,245 $3,450
$1,166
In 2017, the IRC set the maximum annual benefits of defined benefits plans at what amount? $135,000 $215,000 $235,000 $250,000
$215,000
What was the IRS limit for annual earnings amount for determining qualified plan benefits in 2017? $150,000 $170,000 $200,000 $270,000
$270,000
What is the amount of contribution employer and employees must make to the Medicare tax which supports Medicare Part A? 1.45% 50% 3% 4%
1.45%
To qualify as a group term life insurance policy, it must insure at least how many full-time employees? 20 15 10 25
10
This type of defined contribution plan, also known as a CODA, permits only private sector or tax-exempt employers' employees to tax defer part of their compensation to the trust of a qualified plan. Section 457 plan Section 403(b) annuities Saving incentive match plan 401(k) plan
401(k) plan
Medical care has risen about how much since 1984? 1224% 450% 220% 860%
450%
Using the ratio percentage test for tax benefit qualification, what does the percentage of non-highly compensated employees to highly compensated employees in the plan have to be? 30% 70% 60% 40%
70%
In 2015, what percentage of full-time and part-time employees received employer-sponsored life insurance? 38% full-time, 23% part-time 70% full-time, 30% part-time 69% full-time, 41% part-time 72% full-time, 13% part-time
72% full-time, 13% part-time
ERISA requires that employees receive a summary plan description within how many days of becoming a plan participant? 120 days 60 days 90 days 30 days
90 days
Which of the following factors does not determine the accrual rate in defined contribution plans? Benefits equal balance in the account Company cannot set maximum age limits for discontinuing contributions Company's contribution cannot be reduced because of employee age Benefits exceed the balance in the account
Benefits exceed the balance in the account
EAPs service providers must universally release information about employees concerning what? Child abuse and neglect only Child abuse and neglect and alcoholism Child abuse and neglect, alcoholism and drug abuse Child abuse and neglect and drug abuse
Child abuse and neglect only
Which of the following laws does not mandate legally required employee benefits? Social Security Act Family and Medical Leave Act Civil Rights Act Patient Protection and Affordable Care Act
Civil Rights Act
Which of the following compares the nontaxable benefits provided to key employees to the nontaxable benefits provided to all employees? Eligibility Concentration Concurrent reviews Prospective reviews
Concentration
This type of utilization review judges whether additional inpatient hospitalization is medically necessary. Prospective Certification Concurrent Retrospective
Concurrent
Which of the following are the three main types of retirement programs that companies can offer? Employee-financed plans, defined benefits plans, hybrid plans Hybrid plans defined contribution plans employee-financed plans Defined contribution plans, employee-financed plans, defined benefits plans Defined contribution plans, defined benefits plans, hybrid plans
Defined contribution plans, defined benefits plans, hybrid plans
These are the three main types of dental plans. Dental fee-for-service, dental savings accounts, dental maintenance organizations Dental savings accounts, dental maintenance organizations, dental service plans Dental preferred provider organizations, dental maintenance organizations, dental service corporations Dental fee-for-service, dental service corporations, dental maintenance organizations
Dental fee-for-service, dental service corporations, dental maintenance organizations
This organization developed an evaluation system for EAPs. Employee Assessment Programs Association Evaluation Assistance Professionals Association Employee Assistance Professionals Association Employee Assessment Program Association
Employee Assistance Professionals Association
Which one of the following is not a characteristic of employee owned annuities? Offers financial security Third party vendors are involved Employee pays the cost of the annuity Not subject to ERISA provisions
Employee pays the cost of the annuity
Which one of the following is not a feature of corporate owned life insurance? Correct Answer Employers use it to recover cost of qualified plans Designated amount paid to designated beneficiaries of deceased The goal is to purchase policies that match the amount of deferred compensation promised to executives You Answered Using it does not create a funded plan
Employers use it to recover cost of qualified plans
A salary reduction agreement refers to the annual maximum allowable contribution to a participant's account in a defined contribution plan. True False
False
A stock option is a company's offering of stock to an employee. True False
False
A term life insurance policy is considerably more expensive than whole life policy. True False
False
According to FLSA guidelines, employees are entitled to pay at a rate of one-and-one-half times their regular pay, when they work over 8 hours in a work day. True False
False
Defined contribution plans guarantee particular benefit amounts to participating employees. True False
False
Scheduled injuries involve the loss of a member of the body, including an arm, leg, finger, hand, or eye. True False
True
The EAPA develops EAP evaluation systems. True False
True
This federal law was established to regulate the establishment and implementation of discretionary benefits practices. NLRA FLSA COBRA ERISA
ERISA
This consumer-driven health care option allows employees to contribute pre-tax wages annually to pay for qualified medical expenses, but they will lose the balance not used at year's end. Flexible spending accounts Health reimbursement arrangements Health savings accounts Flexible savings accounts
Flexible spending accounts
Top hat plans are exempt from which ERISA Title I regulation? Funding Reporting and disclosure Continuation coverage Administration and enforcement
Funding
These indicate yearly probabilities of death based on such factors as age and sex. Experience ratings Formulary ratings Mortality tables Morbidity table
Mortality tables
Which of the following is the state unemployment tax? FICA FUTA SUTA COLA
SUTA
Consortium EAPs establish contracts with sets of numerous smaller employers. True False
True
ERISA sets forth legally required disclosure requirements. True False
True
Flexible work schedules are being offered to create greater work-life balance. True False
True
In 2016, 44% employees participated in defined contribution plans. True False
True
In consumer-driven health care plans, the first tier is a pretax account that allows employees to pay for services using pretax dollars. True False
True
Morbidity tables express annual probabilities of the occurrence of health problems. True False
True
The largest share of the FICA tax funds OASDI programs. True False
True
Workers were at a disadvantage after the Great Depression. True False
True
Which of the following is not an example of an accommodation and enhancement program? Disability insurance Tuition reimbursement Family assistance Stress management
Tuition Reimbursement
Which of the following is not an example of a personal problem covered under EAP programs? Drug abuse Domestic violence Depression Vacation buy back
Vacation buy back
Effective 2016, what was the annual increase in Social Security benefits? 1% no increase 7.2% 9%
no increase
These indicate yearly probabilities of death based on such factors as age and sex. Experience ratings Formulary ratings Mortality tables Morbidity tables
Mortality tables
What is the 3% rule used to determine? Nondiscrimination in defined benefits plans Nondiscrimination in defined contribution plans Tax benefit qualification for defined benefits plans Tax benefit qualification for defined contribution plans
Nondiscrimination in defined benefits plans
These programs provide technical and emotional support to employees who are being terminated. Reemployment assistance Outplacement assistance Job search assistance Employment assistance
Outplacement assistance
If an employee suffers a disability that limits the kind of work an individual can perform on an enduring basis, she would qualify for what type of disability income under workers' compensation? Permanent total disability Temporary partial disability Permanent partial disability Temporary total disability
Permanent partial disability
________ pay medical service providers a fixed amount based on the number of people enrolled, regardless of services received. Indemnity plans Fee-for-service plans Self-funded plans Prepaid plans
Prepaid plans
Which of the following does not fall within the scope of the role of a primary care physician? Making initial diagnosis and evaluation of patient's condition Identifying applicable treatment protocols and practice guidelines Providing specialist diagnosis Deciding what treatment is warranted
Providing specialist diagnosis
These are the 4 most common types of cafeteria plans. Premium-only, mix-and-match, core-plus-option, salary reduction Salary reduction, modular, core-plus-option, mix-and-match Material modification, mix-and-match, core-plus-option, modular Mix-and-match, material modification, premium-only, salary reduction
Salary reduction, modular, core-plus-option, mix-and-match
Which one of the following is a funded plan? General asset approach Secular trusts Corporate life insurance Rabbi trusts
Secular trusts
There are three possible contribution sources for defined contribution plans. Which of the following is not one of those sources? Social Security integration Employer contributions Forfeitures Employee contributions
Social Security integration
defined contribution plans. Which of the following is not one of those sources? Social Security integration Employer contributions Forfeitures Employee contributions
Social Security integration
COBRA applies to EAPs if these two conditions are met. The program qualifies as a welfare plan under ERISA and qualifies as a health care plan by providing counseling for a medical condition The program is a qualified plan under FSLA and as a welfare plan under ERISA The program qualifies as a welfare plan under FSLA and qualifies as a health care plan under ERISA The program qualifies as a health care plan by providing counseling for a medical condition, is a qualified plan under FSLA
The program qualifies as a welfare plan under ERISA and qualifies as a health care plan by providing counseling for a medical condition
Which of the following is not an ERISA requirement pertaining to employer-sponsored benefits plans? Written notices must be written for the "average" participant to understand. The waiting period before participation in employer-sponsored health-care programs is limited to a maximum of 90 days. Employers are obligated to distribute summary plan descriptions to employees within 120 days of the plan becoming subject to reporting and disclosure requirements. Employees must receive a summary plan description within 90 days of becoming a plan participant.
The waiting period before participation in employer-sponsored health-care programs is limited to a maximum of 90 days.
NOT allowing a Jewish employee to observe Hanukah would be a direct violation of which law? FMLA FSLA ERISA Title VII of the Civil Rights Act
Title VII of the Civil Rights Act
Which is the following is NOT one of the fundamental roles characterizing benefits programs? Accommodation and enhancement Paid time-off Protection programs Total compensation
Total compensation
A miner who develops black lung disease is eligible for workers' compensation benefits. True False
True
A percentage of annual wages is one of the methods states use to calculate weekly unemployment benefit amounts. True False
True
A point-of-service plan requires the selection of a primary care physician, similar to HMOs. True False
True
According to the Pregnancy Discrimination Act of 1978, employers must not treat pregnancy less favorably than other conditions covered under employee benefit plans, including health insurance and disability insurance. True False
True
Social Security disability benefits are available to disabled workers who are unable to work as a result of a serious medical impairment that lasts at least 12 months. True False
True
Staff model HMOs own the medical facilities and employ the medical and support staffs that work on the premises. True False
True
The Equal Employment Opportunity Commission enforces the ADEA. True False
True
The Social Security Administration increases retirement benefits by a designated percentage for each month worked beyond full retirement until age 70. True False
True
The endorsement approach designates the employer as owner. True False
True
Which of the following is not a feature of excess benefits plans? Extended provisions of existing qualified plans Increased retirement benefits by the amount lost due to limits set by the Internal Revenue Service Funded excess benefit plans are subject to ERISA regulations Unfunded excess benefit plans are subject to some ERISA regulations
Unfunded excess benefit plans are subject to some ERISA regulations
Under provider payment systems, agreements may include one or more cost saving features. Which of the following is not one of these cost saving features? Percentage discounts Capped fee schedules Partial capitation Whole capitation
Whole capitation
This federal law requires group health plans to provide medical and surgical benefits for mastectomies. Women's Health and Cancer Rights Act Health Insurance Portability and Accountability Act Pregnancy Discrimination Act Women with Disabilities Act
Women's Health and Cancer Rights Act
Employees, of covered employers, qualify for FMLA leave when they meet the following qualifications. Worked 1025 hours in a 12 month time span Worked 2150 hours in a 12 month time span Worked 1250 hours in a 12 month time span Worked 1520 hours in a 12 month time span
Worked 1250 hours in a 12 month time span
This cafeteria plan allows a single-mother employee to select a benefits package designed to meet the particular needs of single-mothers. Core-plus-option Flexible spending account Mix-and-match Modular
modular
In 2015, on average, employers spent how much annually per employee to provide short-term disability insurance? $80 $125 $100 $140
$100
How much can employees exclude from their annual gross income for educational assistance programs? $2,250 $5,250 $5,520 $2,550
$5,250
Benefits accounted for what percentage of total compensation costs in the private sector? 30.3% 25.5% 20.3% 10.7%
30.3%
Which one of the following is not true of protection benefits in Germany? The German Social Security system is analogous to the one in the US Employees have three different sources of pensions Blue collar workers contribute 75% of the premiums for health insurance Highly paid employees can opt out of state insurance plans
Blue collar workers contribute 75% of the premiums for health insurance
This involves discussing incidents of poor performance with the troubled employee, citing the necessity of improving job performance within a designated period. Positive confrontation Confidential confrontation Direct confrontation Constructive confrontation
Constructive confrontation
If all employees are offered health insurance and retirement benefits, but then get to select the rest of their benefits package, then they're being offered what type of cafeteria plan? Core-plus-option Mix-and-match Modular Flexible spending
Core-plus-option
Which of the following questions is not used in evaluating EAP effectiveness? Are troubled employees aware of their employer's EAP? Do co-workers and supervisors understand the importance of and procedures for referring troubled employees to EAPs? Do the benefits of EAPs equal the costs? Based on available information, should the EAP be modified in any particular ways, offered as is or dropped altogether?
Do the benefits of EAPs equal the costs?
Which of the following is a tax benefit associated with 401(k) plans? Employees pay taxes on their contribution Employees do not pay taxes on their contributions Investment gains are taxed Employees cannot deduct their contributions from taxable income
Employees do not pay taxes on their contributions
Which of the following is true concerning the Family and Medical Leave Act? Guarantees paid leave Spouses at same employer both get 12 weeks leave for the same incident Employees have to have worked 1250 hours in the previous 12 months to qualify Applies to companies with less than 50 employees
Employees have to have worked 1250 hours in the previous 12 months to qualify
Executive retirement plans adhere to ERISA's nondiscrimination rules. True False
False
Long term relationship between employer and employee pertains to transactional psychological contracts. True False
False
The top-down approach to strategic benefits planning is a reactive process that evaluates the benefits program only after problems arise. True False
False
These clauses in the employment agreement provide pay and benefits to executives after a termination that results from a change in ownership or corporate takeover. Platinum Parachutes Mandatory Retirement Golden Parachutes Top Hat
Golden Parachutes
This consumer-driven health care option contains contributions made by employers and the balance can be carried-over to the next year. Flexible spending accounts Health reimbursement arrangements Health savings accounts Flexible savings accounts
Health reimbursement arrangements
In 2016, how much did an employee have to make to earn a credit for OASDI? $1500 $2240 $1200 $1260
$1260
How many days of maternity leave is paid for by social security in Brazil? 45 60 90 120
120
In 2016, about how many million persons were employed by private-sector companies? 90 million 122 million 118 million 125 million
122 Million
This Section of the IRC permits an employer to offer employees the choice between taxable income or to allocate some of their income to purchase qualified benefits through a cafeteria plan. 125 152 127 172
125
In Canada, the amount of vacation pay is equal to what percentage of the employee's pay for the preceding year per week of vacation. 2% 3% 5% 5.5%
2%
ERISA requires that material modification summaries must be sent to the Department of Labor within how many days after the end of the plan year in which the change occurred. 210 180 90 120
210
Most long-term disability insurance plans pay how much after a waiting period of how long? 70 - 90%, after 6 - 12 months 70 - 90%, after 3 - 6 months 50 - 70% after 6 - 12 months 50 - 70% after 3 - 6 months
50 - 70% after 6 - 12 months
In 2015, what was the percentage of full-time employees who had access to EAPs? 32% 45% 51% 67%
51%
When discussing organizational citizenship behavior, which of the following statements is NOT true? Satisfied employees engage in good citizenship behavior. A company's employee benefits practices do not influence employees' satisfaction. Organizational citizenship behavior is discretionary. Citizenship behaviors tend to go beyond the formal job requirements.
A company's employee benefits practices do not influence employees' satisfaction.
________ provides non-key employees with a minimum benefit if it is a defined benefit plan or a minimum contribution if it is a defined contribution plan. The fractional rule An accumulated benefit obligation A top-heavy plan A fiduciary
A top-heavy plan
In 2013, which age group had the highest average total medical expenditures? Adults aged 65 an older Adults aged 45-64 Adults aged 18-44 Children aged 5-17
Adults aged 65 an older
Which of the following can be avoided by using experience ratings? Adverse selection Medical underwriting Economies of sales Insurance pooling
Adverse selection
Which of the following is not an accrual criteria? Average benefit test 3% rule Fractional rule 113 1/3 rule
Average benefit test
This term is used to describe policies that allow employees to take unused vacation time at a later time. Carry-out provisions Carryover provisions Cash-out provisions Integration provisions
Carryover provisions
Which one of these is not a defined contribution plan? Cash balance plan ESOPs SIMPLEs Profit sharing
Cash Balance
Which of the following is not one of the objectives of SERP? Use of SERPs as a tool in executive-level succession planning Rewarding substantially higher retirement benefits Compensating for long-term employment Compensating for older new hires
Compensating for long-term employment
In short-term disability insurance plans, this term refers to the minimum amount of time an employee must wait after becoming disabled before disability insurance payments begin. Elimination period Exclusion period Pre-eligibility period Full integration period
Elimination period
Rabbi trusts are characterized by which one of the following features? Is a revocable grantor trust Employer maintains ownership No financial lending institutions are involved Are funded plans
Employer maintains ownership
According to ADA guidelines, which of the following is true? Employers can require a longer pre-eligibility period for employees with disabilities Employers cannot exclude qualified employees with disabilities from participating in its' disability retirement plans Employers must offer the same benefits to all under its disability retirement plans Employers must include cost-of-living adjustments on its disability benefits
Employers cannot exclude qualified employees with disabilities from participating in its' disability retirement plans
Nonqualified retirement plans for executives are generally divided into these two broad classes. Top hat plans and supplemental executive retirement plans Excess benefit plans and supplemental executive retirement plans Offset benefit plans and supplemental executive retirement plans Target benefit plans and supplemental executive retirement plans
Excess benefit plans and supplemental executive retirement plans
Self-inflicted wounds and drug dependency are generally considered as what in most short-term disability insurance plans? Partial disability provisions Exclusion provisions Elimination provisions Preexisting condition provisions
Exclusion provisions
Which one of the following is not true about stock appreciation rights? Provide income to executives at the end of a designated period, much as with restricted stock options Executives always have to exercise their stock rights to receive income The company simply awards payment to executives based on the difference in stock price between the time the company granted the stock rights at fair market value to the end of the designated period, permitting the executives to keep the stock Neither the employee nor employer pays taxes when stock appreciation rights are granted
Executives always have to exercise their stock rights to receive income
Determining whether jobs are exempt from the FLSA overtime pay provision has become even more complex since the U.S. Department of Labor introduced revised guidelines, known as the: Qualified Plans. Nondiscrimination Rules. Fair Pay Rules. Equal Benefit Principle.
Fair Pay Rules
A cafeteria plan is one example of a one-size-fits-all approach. True False
False
Argentina offers no vacation days for employees with less than 2 years seniority. True False
False
Canada has one state pension plan for all its residents. True False
False
Capital gains is the term used to describe the market value of stock options as listed on the NYSE. True False
False
Case management is conducted by primary care physicians. True False
False
Collateral approach is a term used to indicate employer ownership of an insurance policy.
False
Collateral approach is a term used to indicate employer ownership of an insurance policy. True False
False
Companies establish qualified plans for executive employees. True False
False
Core hours are those times in the work day that are subject to flexible scheduling. True False
False
Employee assistance programs include a variety of services; the specific services contained in any EAP depends on state laws. True False
False
Employees forfeit Social Security credits when they change jobs or become unemployed. True False
False
Employers use case management companies to ensure that all of their employees' medical needs are being met adequately. True False
False
Excess benefits plans can only be funded plans. True False
False
Exclusive provider organizations are similar to PPOs in that they offer reimbursement for services provided outside the established network. True False
False
Executive retirement plans adhere to ERISA's nondiscrimination rules. True False
False
Fee-for-service plans establish provider payment systems to control the costs of health care. True False
False
Flexible work schedules are regulated by the FLSA. True False
False
Full-time employees and part-time employees enjoy the same paid time-off benefits. True False
False
Group meetings and audiovisual presentations provide the key features of benefits programs, conveying the "big picture" and helping potential employees compare benefits offerings with those offered by other companies they may be considering. True False
False
IRC does not allow deductions for providing national health coverage. True False
False
If a company is participating in workers' compensation programs and complying with applicable regulations, injured employees cannot bring a legal suit against them under any conditions. True False
False
In France, the burden of health care is with the employee. True False
False
In general, an employee must earn at least 30 credits to be eligible to receive retirement benefits. True False
False
In most companies, employers choose whether an employee will participate in wellness programs, thus initiating a lifestyle intervention. True False
False
In nonleveraged ESOPs, the company borrows money from a financial institution to purchase company stock. True False
False
It is possible to have a qualified Section 125 cafeteria plan for managers only. True False
False
Long-term disability insurance plans used to cover partial disabilities, but ceased due to high costs. True False
False
Long-term disability plans often contain exclusion provisions. True False
False
Mix-and-match plans allow employees to purchase any benefit but at only certain levels. True False
False
NAFTA regulates labor conditions in North America. True False
False
Nearly 55% of workers employed in the private sector participated in some form of retirement plan in 2016. True False
False
Only one event triggers a mandatory distribution: the participant reaches age 65 or the normal retirement age. True False
False
Outplacement assistance programs provide information for individuals in the recruitment process. True False
False
Pertaining to case management, serious health problems arising from injuries or illnesses may be chronic (ongoing) or acute (possibly life threatening). True False
False
Plan providers use mortality tables and morbidity tables to determine the terms and premium amount, a decision-making process known as experience ratings. True False
False
Plan termination rules apply and procedures apply to all types of pension plans. True False
False
Preexisting condition clauses require physicians receive approval from a registered nurse or medical doctor employed by an insurance company before admitting patients to the hospital on a nonemergency basis. True False
False
Pregnancy and childbirth are not considered as disabilities. True False
False
Pretax contributions do not reduce the amount of annual income subject to income tax. True False
False
Second-injury funds are a funding element of workers' compensation programs where claims are associated with two employees with similar injuries. True False
False
Single employees pay a larger percentage of their health care premium than employees with family coverage pay. True False
False
Social Security retirement funds are expected to remain sustainable in the coming decades. True False
False
States rely on rating manuals to specify workers' compensation insurance rates based on businesses' payroll size. True False
False
Summary plan descriptions are generally short and only present the "big picture" of a benefit plan. True False
False
The Cadillac tax is due to take effect in 2020 but only applies to health-care plans within certain states. True False
False
The IRC limit on maximum annual benefit is indexed for inflation in $7000 increments each year beginning after 2006. True False
False
The IRS has no impact on nonqualified plans. True False
False
The Securities Exchange Act of 1934 requires disclosure of company financial information and information about executive compensation practices; all companies must comply. True False
False
The Social Security Administration only issues Social Security numbers to U.S. citizens. True False
False
The national federal-state unemployment insurance program provides weekly income to individuals who become unemployed for any reason. True False
False
The scope of various wellness-type benefits has decreased through recent years as employer costs are outweighing the benefits of offering such programs. True False
False
Universal life insurance has less flexibility than whole life insurance. True False
False
Funding for OASDI and Medicare programs requires equal employer and employee contributions under the ________. Fair Labor Standards Act of 1938 Federal Insurance Contributions Act The Social Security Act of 1935 Titles III and IX of the Social Security Act
Federal Insurance Contributions Act
Which of the following statements concerning provider payment systems is NOT true? Fee-for-service plans generally contain this feature to control the costs of health care. Provider payment systems negotiate acceptable payment amounts to participating doctors, hospitals, and pharmacies for the duration of the contract. A percentage discount reduces the amount of a health-care providers' usual charge. A partial capitation system applies to primary care physicians.
Fee-for-service plans generally contain this feature to control the costs of health care.
Which one of the following is not true of paid time off benefits in Mexico? Workers are entitled to paid time off during public holidays Females are entitled to 6 weeks of maternity leave with full pay Employees are entitled to 6 vacation days Workers get double pay for working on a mandatory holiday
Females are entitled to 6 weeks of maternity leave with full pay
Under this provider payment system, managed care plans hold primary care physicians accountable for the cost of services rendered to each assigned patient. Full capitation Full capitation plus Partial capitation Semi capitation
Full capitation
According the Internal Revenue Code, this person was a five percent owner at any time during the year or the preceding year; or, for the preceding year, the employee had compensation in excess of $120,000 in 2017 and was in the top-paid group of employees. Highly compensated employee Key Employee Bona fide executive High policymaker
Highly compensated employee
Profit sharing payments are examples of which type of core compensation package? Incentive pay Merit pay Person-focused pay Seniority pay
Incentive Pay
n which social context were workers' compensation laws enacted? Post Depression Post WWII Industrial expansion in the early 1900s The end of the 19th century when no laws ensured worker safety
Industrial expansion in the early 1900s
Retirement benefits are generally distributed in one of these three ways. Backloading, collateral payments, offset approach Periodic payments, lumps sums collateral payments Annuities, lumps sums offset payments Lumps sums, annuities, periodic payments
Lumps sums, annuities, periodic payments
Under NLRA, subjects for collective bargaining fall into one of which three categories? Mandatory, probable, legal Mandatory, permissive, illegal Mandatory, probable, illegal Mandatory, permissive, legal
Mandatory, permissive, illegal
Which of the following statements is true of health care costs? Many private-sector companies require employees to contribute a portion of health-care premiums because of their considerable cost. The premiums for fully insured plans is likely to decrease. The highest paid workers contribute the most towards the cost of their health insurance. Employees contributed 42% of the cost for single coverage and 62% for family coverage.
Many private-sector companies require employees to contribute a portion of health-care premiums because of their considerable cost.
Which of the following statements is not true of unscheduled absences? Oversleeping is the most socially acceptable reason for an unscheduled absence. Unscheduled absences can impair productivity and increase costs. Companies may require medical certification for unscheduled absences. Unscheduled absences may create hardship on the employer.
Oversleeping is the most socially acceptable reason for an unscheduled absence.
Flexible spending accounts and premium-only plans are versions of which cafeteria plan? Modular Pretax salary reduction Core-plus-option Mix-and-match
Pretax salary reduction
This cafeteria plan allows employees to exclude allocated income from federal income tax to pay for the benefits. Core-plus-option plans Modular plans Pretax salary reduction plans Mix-and-match plans
Pretax salary reduction plans
Which of the following is not a feature of prospective reviews or precertification reviews? Verifying a patient's coverage Determining whether the health plan covers the treatment Judging whether the proposed treatment is medically appropriate Proceeding without a second surgical opinion
Proceeding without a second surgical opinion
Which of the following is not a type of stock option plan? Stock appreciation rights Phantom stock plans Restricted stock units Profit sharing
Profit Sharing
According to the IRS, educational assistance programs may qualify for tax benefits if the employer meets three additional requirements. Which of the following is not one of those requirements? Offer the program exclusively for the benefit of employees Satisfy nondiscrimination requirements Describe the program in a separate written document Provide program evaluation results
Provide program evaluation results
What are the three specific forms of prepaid group practices? Universal model HMOs, group model HMOs, staff model HMOs Group model HMOs, network model HMOs, universal model HMOs Staff model HMOs, group model HMOs, network model HMOs Network model HMOs universal model HMOs, staff model HMOs
Staff model HMOs, group model HMOs, network model HMOs
Which of the following statements is not true of telecommuting? Nearly 4 million people telecommute. Telecommuters spend part of their time working in the office and other times working at home. Telecommuting is appropriate for work activities that do not require regular, direct interactions with other workers. Telecommuting is an option only for full-time employees.
Telecommuting is an option only for full-time employees.
The 1331/3 % rule refers to what? The annual accrual rate for defined benefits plans The annual accrual rate for defined contribution plans The annual accrual rate for qualified benefit plans The annual accrual rate for qualified contribution plans
The annual accrual rate for defined benefits plans
Nonstatutory stock options are characterize by which one of the following features? They qualify for favorable tax treatment They are awarded at discounted prices Executives do not have any ownership control over the disposition of the stock for 5 to 10 years Executives pay taxes in the future when they choose to exercise their nonstatutory stock options
They are awarded at discounted prices
According to the Fair Labor Standards Act, employers must compensate employees for duties and activities indispensable to performing principal work activities. Which of the following is not a compensable nonproduction time? Preparation time. Cleanup time. Travel time driving to work. Rest periods shorter than 20 minutes.
Travel time driving to work.
"Just cause dismissal" and mandatory profit sharing are common features of employment relationships in France. True False
True
A premium is the amount an employer pays to establish and maintain a health-care plans. True False
True
A summary of material modifications might include changes in plan eligibility rules. True False
True
A top-heavy plan must also provide a special vesting schedule: 3-year 100% vesting schedule, or 6-year graded vesting schedule. True False
True
A trade bloc is a group of countries that agree to reduce trade barriers between themselves, often by lowering tariffs and sometimes restricting non-participating countries from engaging in trade relationships. True False
True
According the U.S. Treasury Regulations, the term "officer" means an administrative executive who is in regular and continued service and holds the authority of an officer, regardless if they hold the title of an officer. True False
True
According to the US Department of the Treasury, qualified retirement plans must cover at least 50 employees or at least 40% of the employer's workforce. True False
True
Accrual rules specify the rate participants can accumulate benefits. True False
True
An EAP is considered an excepted benefit if it meets four criteria; two of which are no employee premiums are required for the EAP and there is no cost sharing, such as copayments, under the EAP. True False
True
An employee's average indexed monthly earnings determines the initial primary insurance amount for OASDI benefits. True False
True
An employee's pregnancy is covered under a company's short-term disability insurance program. True False
True
As of 2016, China had the largest economy in Asia, followed by India and Japan. True False
True
Automatic cost-of-living adjustments are applied to OASDI benefits to guard against inflation. True False
True
Benefits are considered "qualified" if the employee may exclude the cost from federal income tax. True False
True
Both discretionary short-term and long-term disability plans sometimes duplicate public disability benefits mandated by state workers' compensation laws and the Social Security Act. True False
True
Both employers and employees can receive tax benefits through employer-sponsored adoption assistance programs. True False
True
By adding a partial disabilities inclusion, long-term disability carriers cover a portion of income loss associated with paid part-time employment while a disabled person works on a part-time basis in any job. True False
True
Canadian employment laws for the province of Quebec are separate from the rest of the country. True False
True
Capital-intensive businesses require highly capable employees who have the aptitude to learn how to use complex physical equipments such as casting machines and robotics. True False
True
China has a unique paid time off policy called "home leave" for visiting parents and family in the rural areas. True False
True
Cliff vesting schedules must grant employees 100 percent vesting after no more than three years from beginning participation in the retirement plan. True False
True
Companies offer accommodation and enhancement benefits to promote effective coping skills and educational benefits for employees. True False
True
Companies use platinum parachutes to avoid legal battles or negative media publicity by paying off a CEO to give up his or her post. True False
True
Company-sponsored care benefits appeared in the late 1800s for mining and railroad workers when companies hired doctors to provide medical services to employees. True False
True
Constructive receipt guides the timing of an executive's obligation to pay income taxes for funded nonqualified plans. True False
True
Dual capacity means that a firm may fulfill a role for an employee that is completely different from its role as employer. True False
True
Employer-sponsored disability insurance is more encompassing than workers' compensation, because its benefits generally apply to both work-related and nonwork-related illnesses and injuries. True False
True
Employers can offer health-care plans using fully insured or self-funded plans. True False
True
Employers can take tax deductions on qualified plans. True False
True
Employers have been shifting health related costs to employees partly because of the economic downturn starting in the 2000s. True False
True
Employers must follow several guidelines to maintain a Section 125 cafeteria plan, specifically, the plan must be in writing. True False
True
Employers that use referral EAPs usually do NOT have a contractual relationship with service providers. True False
True
Employment relationships in Mexico fall under the Federal Labor Law, which clearly defines the terms worker and employer. True False
True
Exercise of stock option refers to an employee's purchase of stock using stock options. True False
True
Exercise of stock option refers to an employee's purchase of stock using stock options. True False
True
Experience rating is the process of gathering information about employees' risk profiles.
True
Experience rating is the process of gathering information about employees' risk profiles. True False
True
Federal government employees are granted 12 paid holidays in a year. True False
True
Formularies are lists of drugs proven to be clinically appropriate and cost effective. True False
True
GDP per capita generally indicates the standard of living within a country with the larger the per capita GDP, the better the standard of living. True False
True
German law has separate health insurance criteria for blue and white collar workers. True False
True
Health-care plans generally offer hospital expense, surgical expense and physician expense benefits. True False
True
In 2015, more than 64 million Americans received Social Security benefits. True False
True
In 2015, private industry paid leave benefit costs were highest for management, professional, and related occupations, accounting for 8.4% of total compensation. True False
True
In 2016, 6.2% of employer and employee contributions were set aside from FICA to fund OASDI programs. True False
True
In Australia, paid maternity and paid paternity leave maximum are 18 weeks. True False
True
In United Kingdom, the retirement age will gradually rise from age 65 to age 68 from 2020 to 2046. True False
True
In the 1940s, companies adopted a rehabilitative rather than punitive approach towards alcohol consumption. True False
True
In unionized setting, the collective bargaining agreement or contract details employee entitlements to paid time-off benefits. True False
True
Individual health insurance coverage can also cover the employee's dependents. True False
True
Long-term disability insurance carriers define long-term disability as an inability to engage in any occupation for which the individual is qualified by reason of training, education or experience. True False
True
Longer waiting periods is one way companies try to reduce the cost of benefits. True False
True
Medicare Part B covers the services not included under Medicare Part A. True False
True
Medicare Part D was established by the Medicare Prescription Drug Improvement and Modernization Act of 2003. True False
True
Mexican law requires that all workers must join mandatory individual account system, which is slowly replacing the social insurance system. True False
True
Nonexempt employees subject to on-call time must be compensated according to the minimum wage provisions of FLSA. True False
True
Outsourcing benefits administration can be very expensive in the short term because most or all contract fees are due up front. True False
True
Part A coverage automatically qualifies an individual to enroll in Part B coverage for a monthly premium. True False
True
Passage of the FMLA bestowed rights upon workers to take substantial unpaid time off work to attend to serious personal illness or qualifying family events, and it created return-to-work protections. True False
True
Physicians that work in individual practice associations work out of their own facilities and work on HMO patients as well as the ones in their private practice. True False
True
Promoting educational opportunities, including tuition reimbursement and scholarships, yields benefits for employees as they are able to acquire greater credentials to compete for higher-level jobs in the company. True False
True
Safe harbors refer to compliance guidelines in a law or regulation. True False
True
Section 457 Plans are nonqualified retirement plans for government employees. True False
True
Service industries such as retail and food service are not capital intensive, and most have the reputation of paying low wages and offering less generous benefits, including retirement plans. True False
True
Sick leave policies are separate from disability leave. True False
True
Social Security programs were geared toward promoting the social good, which refers to a booming economy, low levels of unemployment, progressive wages and benefits, and safe and healthful working condition. True False
True
State compulsory disability laws created workers' compensation programs. True False
True
The Age Discrimination in Employment Act does not forbid employers from setting a mandatory retirement age for employees who are 65 years old. True False
True
The Internal Revenue Code and ERISA's Title I and Title II provisions set 13 minimum standards to determine whether retirement plans are qualified or nonqualified. True False
True
The Patient Protection and Affordable Care Act distinguishes between health plans that existed prior to the enactment date (grandfathered plans) and those that come into existence afterward (non-grandfathered plans). True False
True
The Social Security Administration defines disability as an inability to engage in any substantial gainful activity because of a medically determinable physical or mental impairment that is expected to result in death, or that has lasted for a continuous 12 months. True False
True
The Social Security Administration pays monthly survivor benefits at a level ranging from 71.5% to 100% of the primary insurance amount. True False
True
The Unemployment Compensation Act of 2008 expanded the EUC benefits to 20 weeks nationwide. True False
True
The major distinction between the unit and flat defined benefit formulas is the use of the employee's years of service. True False
True
The present value of benefits based on a designated date is known as accumulated benefit obligation. True False
True
The top reason companies outsource benefits functions is for the expertise. True False
True
Under cafeteria plans, employers grant employees the opportunity to accept or reject benefits such as day care benefits. True False
True
Under the modular plan, employees contribute the cost difference between a more extensive benefits package and the lowest-cost package. True False
True
Using the unit benefit formula, the annual benefits are based on age, years of service and final average wages or salary. True False
True
Usually, cash balance plans are less costly to employers than defined benefit plans. True False
True
Utilization reviews are used to evaluate the quality of specific health-care services. True False
True
When considering funding mechanisms, employee-owned annuities offer the highest level of security. True False
True
With unfunded plan, executives may forfeit retirement benefits when a company becomes bankrupt or financially insolvent or following a change of company ownership. True False
True
Which of the following statements is true of tuition reimbursement? Tuition reimbursement plans qualify as working condition fringe benefits when instruction or training is required by law for employees to work in their jobs Pay increases are directly associated with tuition reimbursement programs Pay-for-knowledge programs is another name for tuition reimbursement programs Tuition programs have a set curricula and award pay increases upon successful completion of all courses in the curricula
Tuition reimbursement plans qualify as working condition fringe benefits when instruction or training is required by law for employees to work in their jobs
Which of the following is not a feature of excess benefits plans? Extended provisions of existing qualified plans Increased retirement benefits by the amount lost due to limits set by the Internal Revenue Service Funded excess benefit plans are subject to ERISA regulations Unfunded excess benefit plans are subject to some ERISA regulations
Unfunded excess benefit plans are subject to some ERISA regulations
To qualify as a nondiscriminating defined contribution plan, it must meet which two safe harbors? Base contribution formula or collateral contribution formula Fixed first-dollar-of-profits formula or graduated first-dollar-of-profits formula Uniform allocation formula or uniform points allocation formula Profitability threshold formula or the backloading formula
Uniform allocation formula or uniform points allocation formula
According to NLRA, which of the following is NOT the subject for mandatory bargaining? Disability pay Employer-provided health insurance Unpaid time-off Retirement plans
Unpaid time-off
In 2014, around how many occupational injuries and illnesses within U.S. private industry required recuperation away from work beyond the day of the incident? around 0.5 million around 1.1 million around 2.1 million around 2.5 million
around 1.1 million
Information for strategic benefits planning comes from these two environments. External company and internal market External market and internal company Internal market and external market Internal company and external company
external markey and internal company
Flexible benefits allow employees to do which of the following? Choose which benefits they want and at what level Only choose the level of benefits they want Only choose which benefits they want Choose whether they want all base pay or pay and benefits
Choose which benefits they want and at what level
Under the Equal Pay Act of 1963, what are skill, effort, responsibility and working conditions referred to as? Classification factors Compensable factors Commendable factors Performance factors
Compensable factors
What are the three main reasons that employers offer discretionary benefits? Employers have a cost advantage, the benefits help in recruiting and retaining workers and the company gets tax incentives to offer them It's required to by law, the company gets tax incentives to offer them, employers have a cost advantage The company gets tax incentives to offer them, the benefits help in recruiting and retaining workers, it's required to by law The benefits help in recruiting and retaining workers, employers have a cost advantage, it's required to by law
Employers have a cost advantage, the benefits help in recruiting and retaining workers and the company gets tax incentives to offer them
As the size of the insured group increases, so does the difficulty for the insurance companies to predict the total medical expenses of the group. True False
False
Defined benefits plans, defined contribution plans and hybrid plans are types of health care funding plans. True False
False
Despite increasingly diverse workforce in the US workplace, traditional benefits practices assuming similarity among workers can still work well for today's organizations. True False
False
Distributive justice is employees' perceptions of fairness of the process by which decisions are made and the extent to which employees can participate in the process. True False
False
Employees of the federal government are not protected by FLSA regulations. True False
False
Employer's expectation of the employee is not as important as employee's expectation about the employer. True False
False
Employer-provided health care is considered a permissible collective bargaining subject. True False
False
Health care was a discretionary benefit until passage of the Family and Medical Leave Act in 1993. True False
False
Incentive-pay is a permanent increase of compensation based on individual goal achievement. True False
False
Incentive-pay only rewards employees for completely attaining predetermined work objectives. True False
False
Life insurance programs protect employees' families in the event of untimely illness. True False
False
Once the social exchange is set between employer and employee, it does not change over time. True False
False
Perceived organizational support is an employee's perception of the fairness of the accounts given for certain procedures. True False
False
Person-focused pay rewards employees with periodic additions to base pay, according to length of service. True False
False
Psychological contracts do not develop and change over time. True False
False
Tax incentives are the only reason employers offer benefits to employees. True False
False
The Equal Employment Opportunity Commission enforces FLSA. True False
False
The Fair Labor Standards Act first legitimized bargaining for employee benefits. True False
False
The Federal Unemployment Tax Act is levied against employees to finance unemployment insurance benefits. True False
False
The Social Security Act was enacted due to the effects of WWII. True False
False
The existence of labor union has limited the use of welfare practices by companies. True False
False
Unemployment insurance is funded solely by the Federal Unemployment Tax Act (FUTA). True False
False
Union workers cannot negotiate paid time off benefits. True False
False
Vacations are a type of accommodation benefit. True False
False
Violations of psychological contracts are basically the same as unmet expectations. True False
False
When health benefit costs rise for a single employer in a market, the employer will likely be able to pass along the benefit costs to workers, even if the workers valuation of the benefit has NOT changed. True False
False
Workers' compensation insurance programs, run by the federal government, are designed to cover employee expenses incurred in work-related accidents and injuries. True False
False
Taxes fund programs for which of the following? State and local governments Federal and state governments Federal, state and local governments Local governments only
Federal, state and local governments
Which of the following is not closely associated with the nature of transactional psychological contracts? Economic and extrinsic focus Close-ended, specific Narrow scope Long term relationship
Long term relationship
Which of the following adjustments to core compensation rewards employees for acquiring new knowledge and skills through designated curricula sponsored by an employer? Merit-pay Person-focused pay Seniority-pay Incentive-pay
Person-focused pay
Which three are the three fundamental roles that characterize discretionary benefits? Protection programs, paid time-off, retirement programs Protection programs, paid time-off, accommodation and enhancement programs Paid time-off, accommodation and enhancement programs, retirement programs Retirement programs, protection programs and accommodation and enhancement programs
Protection programs, paid time-off, accommodation and enhancement programs
This equal employment opportunity law prohibits illegal discrimination against protected class individuals in employment. Title VII of the Civil Rights Act of 1964 Civil Rights Act of 1991 Equal Pay Act of 1963 Equal Employment Opportunity Act of 1965
Title VII of the Civil Rights Act of 1964
This term refers to an unfunded deferred compensation plans for a select group of highly compensated employees? Top hat plan Safe harbor plan Nonqualified plan Fiduciary plan
Top hat plan
During the 1940s and 1950s, companies expanded their discretionary benefits as an alternative to wage increases or as a motivational tool. True False
True
Employee benefits act as a tool for recruiting and retaining desired employees for companies. True False
True
Employee benefits practices can fulfill either transactional or relational psychological contracts. True False
True
Employees in a large company are less likely to be subject to medical underwriting than those in a small company. True False
True
Flexible benefits plans enable employees to choose from among a set of benefits and different levels of these benefits. True False
True
Flexible work schedules are considered part of accommodation and enhancement benefits packages. True False
True
Forfeitures come from the accounts of employees who terminate their employment prior to earning vesting rights. True False
True
If health insurance premiums rise because of advances in medical care technology, employees would probably perceive that the increase added value to their insurance. True False
True
Job security, recognition, and support in exchange for commitment and loyalty to the employer more pertain to relational psychological contracts. True False
True
Legally required benefits would form a part of employees' transactional expectation. True False
True
Most small group health insurance policies are based on experience ratings. True False
True
Patients' consent is required for use and disclosure of health records as of 2003. True False
True
Protection programs most closely parallels legally required benefits. True False
True
Qualified benefit plans are given favorable tax treatment, because they meet certain ERISA guidelines. True False
True
Retirement plans is a good example of benefits that fulfill both transactional and relational expectations. True False
True
The Americans with Disabilities Act of 1990 pertains to all private sector employees, all government employees and labor unions. True False
True
The IRS offers tax benefits to companies that offer retirement plans. True False
True
The concept of justice in the work setting concerns the distribution of rewards, information, and other resources. True False
True
The degree to which employers will decrease their hiring, if the market compensation level increases, can affect how much of a benefit's increase cost will be passed on to the employees. True False
True
The planned use of company resources to promote and sustain competitive advantage is referred to as competitive strategy. True False
True
Which is the following is NOT an example of a discretionary benefit? Retirement plans Workers' compensation Life insurance Paid vacations
Workers' Compensation