Management 365 Connect Chapter 13 Test Questions
Which of the following is true about Social Security retirement benefits?
An earnings test increases a person's incentive to retire.
In which of the following ways may staffing practices change in response to benefit cost controls?
Classifying employees as contractors rather than employees
Which of the following is true about private group insurance?
Concern for employee security explains the prevalence of employer-sponsored insurance plans.
The _____ requires employers to permit employees to extend their health insurance coverage at group rates for up to 36 months following a qualifying event, such as a layoff.
Consolidated Omnibus Budget Reconciliation Act (COBRA)
Which of the following is an advantage for employers who implement flexible benefits plans?
Control over the size of the contribution
Which of the following is part of an active wellness program?
Counselors providing tailored programs
Which of the following is true about workers' compensation?
Disability benefits that are part of workers' compensation are tax-free.
Which of the following increased the fiduciary responsibilities of pension plan trustees and established vesting rights and portability provisions?
Employee Retirement Income Security Act
Which of the following is true about vesting rights?
Employers may choose to vest employees after five years.
Which of the following provides 12 weeks of unpaid absence from work to care for a seriously ill child, spouse, or parent if the organization has at least 50 employees living within a 75-mile radius?
Family and Medical Leave Act
Which of the following statements is true about flexible spending accounts?
Funds must be used by the plan's year end or they revert to the employer.
Which of the following media is least used by organizations to communicate benefit plans?
Group employee benefits communications with the benefits vendor
Which of the following is a reason for the growth of benefits as a method of employee compensation?
Groups of employees can typically receive a cost advantage over individuals.
In which of the following ways do PPOs differ from HMOs?
HMOs provide benefits on a prepaid basis.
Which of the following is true of passive employee wellness programs (EWPs)?
Health education programs are an example of passive EWPs.
Which of the following was an amendment to the Social Security Act of 1935?
Hospital insurance
Which of the following is true of an active wellness program?
It includes the outreach and follow-up model.
Which of the following is true about Social Security as a benefits program?
It is entirely free from federal tax.
Which of the following is the largest single component of the elderly's overall retirement income?
Old-age insurance
Which of the following is a unique aspect of benefits?
Organizations so typically offer them that they have become institutionalized.
The _____ guarantees payment to employees of a basic retirement benefit in the event that financial difficulties force a company to terminate or reduce employee pension benefits.
Pension Benefit Guaranty Corporation
The _____ requires defined contribution plans holding publicly traded securities to provide employees with at least three investment options other than employer securities.
Pension Protection Act of 2006
Which of the following is true of the methods used for communication about benefits information?
Providing clear benefits communication does not always increase employee satisfaction.
Which of the following is a major category of workers' compensation?
Rehabilitative services
_____ plans permit employees to defer compensation on a pretax basis.
Section 401(k)
Which of the following affects the amount of income that will be available to an employee upon retirement in defined contribution plans?
The age at which investments are made
Which of the following is true of the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
The beneficiaries of employees who still have their health insurance have access to the same services.
Which of the following is true of the cost to the employer for workers' compensation?
The compensation mostly covers minor injuries such as sprains and strains, rather than dramatic injuries.
Which of the following is true about employee benefits?
The impact of legal regulations on benefits is greater than that on direct compensation.
Which of the following is true about defined contribution plans?
They are preferred more in smaller companies than larger ones.
In the context of benefits, which of the following is true of the demographics of a workforce?
Women of childbearing age care more about disability leave.
Financial Accounting Statement 106 requires that any benefits provided after retirement be paid on a(n) _____ basis.
accrual
Employee wellness programs primarily aim at
changing health-related behaviors both on and off work time.
At the highest level of child care provision, firms provide employees with
child care at or near their worksites.
Defined contribution plans make it the responsibility of the _____ to make wise investment decisions for retirement plans.
employee
According to the Age Discrimination in Employment Act (ADEA), in early retirement incentive programs, _____.
employees should not be coerced to accept an incentive and retire
The workers' compensation cost to an employer is based on the
employer's experience rating.
The unemployment insurance program is financed largely through federal and state taxes on _____.
employers
Activities such as preadmission testing and second surgical opinions focus on shifting, rather than reducing, costs.
false
Benefit plans that permit employees to choose the types and amounts of benefits they want are called _____.
flex-plans
Workers are eligible for unemployment benefits if they
have worked for at least one year.
To be a qualified benefits plan, a pension plan should not discriminate in favor of _____.
highly compensated employees
Workers' compensation laws cover job-related _____.
injuries and death
The major advantage of a flexible spending account is that
it increases employees' take-home pay.
The _____ tax rate is the percentage of additional earnings that goes to taxes.
marginal
Group insurance rates are typically lower than individual rates because risks cannot be pooled together in group insurance.
of economies of scale.
Survey information on competitors' benefit packages and information on benefit costs are available from _____.
the Bureau of Labor Statistics (BLS)
The Pregnancy Discrimination Act of 1978 requires employers to
treat pregnancy as they would any other disability if they do offer disability plans.
Beneficiaries do not get free coverage under the Consolidated Omnibus Budget Reconciliation Act (COBRA).
true
Economic theory tells us that people prefer a dollar in cash over a dollar's worth of any specific commodity because the cash can be used to purchase the commodity or something else.
true
Flexible benefit plans are also known as cafeteria-style plans.
true
Health insurance, like pensions, discourages employee turnover because not all employers provide health insurance benefits.
true
In contrast to Social Security retirement benefits, unemployment benefits are taxed as ordinary income.
true
In contrast to unemployment insurance benefits, disability benefits are tax-free.
true
Increasing retiree health care costs (and the change in accounting standards) have led some companies to require white-collar employees and retirees to pay insurance premiums for the first time in history.
true
Social Security retirement benefits are no longer subject to an earnings test once retirement age is reached.
true
The follow-up model is better than the physical fitness facility and health education programs in reducing risk factors.
true
According to the Employee Retirement Income Security Act (ERISA), the rights of employees to a pension upon retirement are known as _____.
vesting rights
In the 1978 Manhart ruling, the Supreme Court declared it illegal for employers to require
women to contribute more than men to a defined benefit plan.
_____ increases are provided as part of Social Security benefits for each year that the consumer price index increases.
Cost-of-living
_____ plans do not promise a specific benefit level for employees upon retirement.
Defined contribution
Which of the following is a characteristic of preferred provider organizations (PPOs)?
Employers may give incentives for employees to choose a participating physician.
Which of the following media is most widely used by organizations to communicate benefit plans?
Enrollment materials (online or paper)
Which of the following is true about the Old Age, Survivors, Disability, and Health Insurance (OASDHI) program?
High earners help subsidize benefit payments to low earners.
An organization introduces active employee wellness programs. Which of the following is likely to happen in the organization as a result?
Increased focus on awareness and opportunity as well as support and reinforcement
Which of the following statements is true about the Pension Benefit Guaranty Corporation (PBGC)?
It does not guarantee health care benefits.
Which of the following is true of the Fair Labor Standards Act (FLSA)?
It is more likely to cause employers to classify workers as independent contractors than employees.
Which of the following types of benefits involves the highest of costs?
Medical and other insurance
Which of the following is a characteristic of a health maintenance organization (HMO)?
Payment of physicians on a flat salary basis
Which type of retiree benefits plan is excluded from the Financial Accounting Statement 106 rule that states benefits should not be provided on a pay-as-you-go basis?
Pension
Which of the following individuals is eligible for unemployment benefits?
Reena lost her job due to outsourcing.
Which of the following is a major objective of the unemployment insurance program?
To provide an incentive for employees to stabilize employment
Which of the following is an example of a Pareto group?
Twenty percent of the employees, who account for 75 percent of the health care costs
Defined contribution plans insulate employees from investment risks, which are borne by the company.
false
Fitness facility programs have two central goals: raising awareness levels of health-related issues and informing people on health-related topics.
false
Insurance risks can be more easily pooled in smaller groups.
false
Investment returns on qualified retirement funds are taxed.
false
Medical insurance and disability insurance programs are legally required.
false
One of the objectives of the unemployment insurance program is to offset lost income during voluntary unemployment.
false
Part-time employees receive about the same benefits as full-time employees.
false
Private pension income remains the largest single component of an elderly person's overall retirement income.
false
The smaller the cost of a benefit category, the greater the opportunity for savings.
false
The state tax code requires that funds in health care and dependent care accounts be earmarked in advance and spent during the plan year.
false
Workers' compensation benefits exclude rehabilitative services.
false
According to the Americans with Disabilities Act (ADA),
the terms of health insurance should not be a subterfuge to deny benefits to those with disabilities.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires that the beneficiary (whether the employee, spouse, or dependent) have access to the same services as employees who have not lost their health insurance.
true
Unlike workers in most Western European countries, who have nationalized health systems, the majority of Americans receiving health insurance get it through their (or family members?) employers.
true
Where employee contributions completely fund a disability insurance plan, there is no federal tax.
true
With the passage of the Americans with Disabilities Act, employers came under even greater pressure to deal effectively and fairly with workplace injuries.
true
In cafeteria-style plans, adverse selection can be controlled by
using a limited set of packaged options.