HR Management Ch. 13 Quiz
A.
A _____ pension plan allows pension benefits for key employees, such as highly paid managers, to exceed a government-specified share of total pension benefits. A. top-heavy B. multiemployer C. special draw rights D. deferred E. defined-contribution
B.
A popular defined-contribution plan whereby employees contribute pretax dollars which are then matched by the employer is known as: A. money purchase plans. B. Section 401(k) plans. C. profit-sharing plans. D. ERISA benefit plans. E. employee stock ownership plans (ESOPs).
D.
Active employee wellness programs: A. rely on employees to identify and obtain the services they need. B. are health education programs that provide information and services, but no formal support or motivation to use the program C. have not been successful in reducing risk factors associated with cardiovascular disease. D. assume that behavior change requires not only awareness and opportunity, but support and reinforcement. E. cost less than passive wellness programs.
B.
Benefit plans that permit employees to choose the types and amounts of benefits they want from a set of alternatives are called: A. preferred provider plans. B. cafeteria-style plans. C. pay-or-play plans. D. flexible spending accounts. E. cash balance plans.
A.
Defined-benefit plans must meet the funding requirements of the _____. A. Employee Retirement Income Security Act B. Consolidated Omnibus Budget Reconciliation Act C. Social Security Act D. Patient Protection and Affordable Care Act E. Sarbanes-Oxley Act
D.
Elder care benefits typically give emphasis to: A. providing a direct financial assistance. B. providing tax exemptions on medical bills of the dependent elders. C. setting up an elderly care facility close to the work place. D. providing information and support. E. providing vouchers and discounts to help employees access the existing elderly care facilities.
E.
Employers that offer medical insurance must meet the requirements of the _____. A. Employee Retirement Income Security Act of 1974 B. Family and Medical Leave Act of 1993 C. Social Security Act of 1935 D. Sarbanes-Oxley Act of 2002 E. Consolidated Omnibus Budget Reconciliation Act of 1985
A.
For an organization with _____, switching from a defined-benefit plan can produce great savings in pension benefits. A. many experienced employees B. a few skilled employees C. many young employees D. many retired employees E. highly skilled employees
D.
How do cafeteria-style plans increase costs for employers? A. Employers pay much higher premium on HMO than a preferred health care plan. B. Employers are required to pay higher insurance premium for laid-off workers. C. Contribution to PGBC to fund the retirement plan increases under this plan. D. Employees select the kind of benefits they expect to need the most. E. The employers bear the cost of providing employees with benefits they do not value.
C.
In general, Social Security provides support for _____. A. laid-off workers B. workers injured on the job C. retired workers D. self-injured workers E. sick workers
B.
In which of the following areas are unemployment insurance benefits and workers' compensation benefits similar? A. Both these programs are funded by the federal taxes on employees. B. Both these costs depend on the organization's experience ratings. C. The funding costs of both these programs are same across the states. D. Both the programs replace the same percentage of an individual's previous earnings. E. The amount of compensation provided to the employees is fixed under both the programs.
C.
Social Security is formally known as the _____. A. paid leave program B. New Deal program C. Old Age, Survivors, Disability, and Health Insurance program D. employee wellness program E. noncontributory plan
B.
The Family and Medical Leave Act of 1993 requires employers to provide: A. up to 8 weeks of unpaid leave after childbirth or adoption. B. reinstatement to the same (or a comparable) job upon the employee's return to work. C. paid leave to any employee who has one or more years of full-time service. D. up to 18 weeks of unpaid leave to care of a seriously ill parent, spouse, or child. E. up to one month of paid leave to take care of a seriously ill spouse, child, or parent.
A.
The Mental Health Parity and Addiction Equity Act of 2008 exempts which of the following companies? A. Companies with less than 50 employees B. Companies with less than 100 but more than 50 employees C. Companies with more than 50 employees D. Companies with more than 100 employees E. Companies with more than 1000 employees
D.
The _____ is a federal law that requires employers to permit employees or their dependents to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff, reduction in hours, or the employee's death. A. Family and Medical Leave Act (FMLA) B. Employee Retirement Income Security Act (ERISA) C. Social Security Act D. Consolidated Omnibus Budget Reconciliation Act (COBRA) E. Sarbanes-Oxley Act
E.
The _____ is a report that describes a pension plan's funding, eligibility requirements, risks, and other details. A. mission statement B. balanced scorecard C. labor law posting D. "top-heavy" plan E. summary plan description
E.
The cost of a worker's compensation insurance depends on: A. the profit earned by the organization during the concerned fiscal. B. the number of years the concerned worker has been working in the organization. C. the total strength of the organization's workforce. D. the number of years for which the organization has been in business. E. the state where the company is located.
C.
The employer's _____ refers to the number of employees the company laid off in the past and the cost of providing them with unemployment benefits. A. attrition B. scalability C. experience rating D. Six Sigma score E. wage drift
E.
The funds required by an organization to pay retirement benefits are reported as _____ in the financial statement. A. current assets B. current liabilities C. accounts receivable D. bad debt E. future cost obligations
E.
The guarantee that when employees become participants in a pension plan and work a specified number of years, they will receive a pension at retirement age, regardless of whether they remained with the employer is referred to as _____. A. special drawing rights B. quid pro quo C. laissez-faire D. benchmarking E. vesting rights
A.
The purpose of floating holidays is to allow employees to: A. extend a Tuesday or Thursday holiday into a long weekend. B. decide which national holidays they wish to observe with pay. C. take time off for personal reasons on any day of the week. D. allow international employees to observe legal holidays within their country of assignment. E. pool in the different types of leaves and enjoy long paid vacations.
B.
The unemployment insurance program is financed largely through federal and state taxes on: A. both employees and employers. B. employers only. C. employees only. D. retirees. E. only high income group of citizens.
A.
To encourage learning and attract the kinds of employees who wish to develop their knowledge and skills, many organizations offer: A. tuition reimbursement programs. B. flexible schedules. C. paid leaves for more than 2 weeks. D. quarterly promotions. E. college savings plans.
A.
To take unpaid family leave under the Family and Medical Leave Act, employees must meet which of the following criteria? A. Should be working for an employer with 50 or more employees within a 75-mile radius B. Should have worked at least 15 hours per week C. Should have worked for the employer for more than 5 years D. Should belong to the top 10 percent of highest paid executives E. Should be working for an employer with at least 100 employees
A.
Under the Americans with Disabilities Act, which of the following employers is most likely to face legal challenges? A. An employer who switches to a risk-based policy after hiring a disabled employee. B. An employer who sets guidelines for using waivers C. An employer who discriminates against workers over age 40 in providing pay or benefits. D. An employer who has risk-based insurance and then hires an employee with a disability E. An employer who does not have risk-based insurance
A.
Under the Older Workers Benefit Protection Act of 1990, employers wishing to use early-retirement waivers must adhere to which of the following guidelines? A. Inform employees that they may consult with a lawyer before signing B. Allow employees not more than 48 hours before signing the retirement agreement C. Make ADEA waivers compulsory D. Provide lesser benefits than would otherwise be available upon retirement E. Provide employees annual bonus and health insurance after the retirement
B.
Which legal benefit requires employers to pay payroll tax depending on state requirements? A. Long-term disability insurance B. Unemployment insurance C. Workers' compensation D. Unpaid family medical leave E. Health care benefits
E
Which of the following actions help organizations reduce the cost of health care benefits offered to employees? A. By increasing the amount employers pay for deductibles and coinsurance B. By selecting traditional health insurance over HMO and PPO as a preferred option C. By expanding the coverage for different types of claims D. By paying some or all of the difference in cost between an HMO or PPO plan E. By shifting from traditional health insurance plans to PPOs and CDHPs
D.
Which of the following benefits is required by law in the United States? A. Sick leave B. Personal leave C. Medical care D. Social Security E. Paid leave
D.
Which of the following benefits required by law provides coverage according to state requirements? A. Paid leave B. Medical care C. Sick leave D. Workers' compensation insurance E. Social Security
C.
Which of the following criteria is an organization required to meet while offering early retirement incentives? A. Set an age at which retirement benefits stop growing B. Ask female employees to pay more to defined-benefit plans C. Should not coerce employees to retire. D. Ask employees to sign compulsory waiver under ADEA E. Provide employees not more than 48 hours to make an early retirement decision
E.
Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees? A. The COBRA B. The ADEA C. The ADA D. The FLSA E. The ERISA
A.
Which of the following is a difference between PPOs and HMOs? A. PPOs provide benefits at a reduced fee rather than on a prepaid basis as in HMOs. B. HMO employees are not required to use only preselected plan service providers, as in PPOs. C. PPOs are less expensive plans than HMOs if the employee goes out of the PPO network. D. HMOs have more in common with traditional fee-for-service plans than do PPOs. E. Unlike HMOs, payments to PPO physicians are made on a flat salary basis.
E.
Which of the following is a requirement set for employers under the FASB standards? A. Employers must fund benefits on a pay-as-you-go basis. B. Benefits must not appear as future cost obligations. C. Employers should encourage employees to participate in management functions. D. Financial statements should be made in such a way that outsiders cannot understand them. E. Employers must set aside the funds they expect to need for benefits to be paid after retirement.
C.
Which of the following is a typical factor used to determine retirement benefit levels under a defined benefit retirement plan? A. The state where the person was employed during the retirement year B. Number of dependents C. Age D. Average earning during the last 20 years of employment E. Number of unused leaves at the end of the retirement year
E.
Which of the following is true of 529 savings plans? A. They are mandated by the federal government. B. They are designed to support the primary education expenses of workers' children. C. They provide education to employees' children at a subsidized rate. D. They provide information about the education standards in different colleges to employees to help them enroll their children in better institutions. E. They allow parents and other family members to defer taxes on the earnings of their deposits.
B.
Which of the following is true of a cash balance plan? A. All contributions to the plan come from the employee. B. The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills. C. Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers. D. It penalizes employees for changing jobs. E. Employees cannot predict retirement benefits under cash balance plans.
E.
Which of the following is true of an employee's domestic partner under the health insurance benefits? A. They are not considered as dependents of the employee. B. They are not covered under the employee's health insurance benefits. C. They get the same tax benefits as those received by spouses. D. They receive benefits only if they work in the same firm as the employee. E. They get benefits that are taxed as wages of the employee receiving the benefits.
C.
Which of the following is true of benefits? A. They allow employees to buy their own insurance. B. They let employees to contribute to their own savings plans. C. Employees do not pay income taxes on most benefits they receive. D. They give employees greater control over what their compensation buys. E. Laws usually do not require employers to provide benefits.
B.
Which of the following is true of defined-contribution plans? A. Defined-contribution plans are required by ERISA. B. Employers are free from the risk of poor performance of the plans. C. The PGBC makes annual contribution of $33 per participant. D. They guarantee a specified level of retirement income. E. They guarantee higher returns to the employees compared to the defined benefit plans.
D.
Which of the following is true of flexible spending accounts? A. They may be used to cover only employees' and not dependents' health-care expenses. B. They do not permit pretax employee contributions. C. Contributions to the accounts may exceed $5,000 per year but must be designated in advance. D. Funds must be used by the plan's year end or they revert to the employer. E. The money in the flexible spending account is taxed and it reduces an employee's take home pay.
B.
Which of the following is true of the Employee Retirement Income Security Act (ERISA) of 1974? A. It was introduced as a bill by the Pension Benefit Guarantee Corporation. B. It established vesting rights related to pensions. C. It prohibits the movement of retirement savings when changing employers. D. It makes it mandatory to operate a day-care center at or near the workplace. E. It establishes the setting up flexible spending accounts for dependent care.
A.
Which of the following is true of the Employee Retirement Income Security Act of 1974? A. The act established certain rights related to vesting. B. The act required employers to offer supplemental retirement plans. C. The act barred portability of retirement savings. D. The act reduced the responsibility of pension plan trustees. E. The act guaranteed retirees a pension equivalent to their last drawn salary.
A.
Which of the following is true of the Pension Benefit Guarantee Corporation? A. It was created by the Employee Retirement Income Security Act (ERISA) of 1974. B. It provides a supplemental income if the employee is temporarily unemployed. C. It provides employee protection for only defined-benefit pension plans. D. It is funded by a payroll tax imposed on each plan participant. E. It guarantees retirees a basic benefit only if the employer is in a sound financial position.
A.
Which of the following is true of the cost of benefits? A. Data about costs help employers to select the kinds of benefits to offer. B. The lowest-cost items tend to offer the most room for savings. C. Non-negotiable benefits tend to help the employer save more. D. Cost control is easier when economic growth slows. E. Concern over costs has prompted many employers to shift from PPOs to traditional health insurance.
A.
Which of the following options can be legally adopted by organizations looking to restructure the workforce to minimize the expense of benefits? A. Use more independent contractors rather than hire additional employees. B. Limit the coverage on life insurance, based upon the employee's age. C. Use more full-time rather than part-time employees. D. Recruit new employees instead of demanding overtime from the existing employees. E. Substitute HMO and PPO plans with traditional health insurance plans.
A.
Which of the following organizations strictly limits the definition of "independent contractors," so that employers cannot avoid legal obligations by classifying workers as self-employed when the organization receives the benefits of a permanent employee? A. The Internal Revenue Service B. The FBGC C. The ERISA D. Employee Benefit Research Institute E. The Bureau of Labor Statistics
A.
Which of the following sources do most retirees (65 and older) receive most of their income? A. Social Security B. Private pensions C. Earnings from personal assets D. Disability insurance E. Private investments
E.
Which of the following was created by the Employee Retirement Income Security Act (ERISA) of 1974? A. Employee Benefit Security Administration B. Federal Trade Commission C. Merit Systems Protection Board D. Federal Retirement Thrift Investment Board E. Pension Benefit Guarantee Corporation
C.
Which one of the following employer-provided benefits is required by law in the U.S.? A. Floating holidays B. Paid vacation leave C. Unpaid family and medical leave D. Long-term disability insurance E. Long-term care insurance
A.
Which one of the following is an advantage of a qualified plan in retirement benefits? A. An immediate tax deduction for the funds employees contribute to the plan B. Taxable earnings on the money in the retirement fund C. Tax-free withdrawals for highly compensated employees D. Employees need not contribute to the fund E. Allows an organization to set up a retirement plan that provides benefits exclusively to its owners and top managers
B.
Which one of the following is an example of a defined-contribution pension plan? A. Consumer-driven pension plan B. Money purchase plan C. Gainsharing plan D. Flexible spending account plan E. Unfunded PBGC plan
C.
Which one of the following is an objective of the unemployment insurance program? A. To improve the productivity and skill set of workers B. To protect the employer from lawsuits C. To provide an incentive for employers to stabilize employment D. To offset lost income during voluntary unemployment E. To help workers with the expenses resulting from job-related accidents and illnesses
B.
Which one of the following is true of Social Security benefits? A. Benefits are taxed as ordinary income at both the federal and state level. B. Workers who meet requirements receive retirement benefits according to age and earnings history. C. Workers are not required to meet any eligibility rules to receive benefits. D. The cost of the program is borne entirely by the employees who pay a payroll tax. E. The program covers railroad and federal, state, and local government employees.
E.
Which one of the following is true of defined-contribution plans? A. They shift the investment risk to the employer. B. They present greater administrative challenges to employers. C. They require annual premium payments to the PBGC. D. They guarantee a basic benefit to the employee if the employer experiences financial difficulties. E. They are easier to administer as compared to other plans.
D.
Which one of the following is true of health maintenance organizations? A. It's costs tend to be more than the cost for traditional health insurance. B. It's services are provided on a postpaid basis. C. It's patients are allowed to select physicians of their choice. D. It pays physicians on a flat salary basis. E. It pays physicians a fee-per-service rather than a flat salary.
E.
Which one of the following is true of workers' compensation? A. Employees are covered under the "no-fault" provision even if the injury is self-inflicted. B. Disability income is not covered under this benefit. C. It provides payments to offset lost income during involuntary unemployment. D. Funding for the program comes from the state taxes on employees. E. The benefits provided to the workers are not taxable.
B.
Which one of the following statements is true of employee benefits? A. Employees generally have a thorough understanding of what benefits they have and what the market value of these benefits is. B. Employees significantly underestimate the cost and value of their benefits. C. Employers do an effective job of communicating the cost and value of benefits to their employees. D. Employees, for the most part, are just not interested in their benefits. E. Employers have very limited options for communicating information about benefits.
D.
Which type of retirement plan guarantees a specified level of retirement income? A. 401(k) plan B. Profit sharing plan C. Money purchase plan D. Defined benefit plan E. Employee stock ownership plan
D.
Workers are eligible for unemployment benefits if they: A. voluntarily quit a job. B. are out of work due to health reasons. C. were discharged for cause. D. are actively seeking work. E. are out of work because of a labor dispute.
