Question 1

A cash balance plan:

Accepted Answer

A)  requires contributions from the employer and the employee.
B)  does not permit rolling over of balance into an individual retirement account in case an employee changes jobs.
C)  earns interest according to a predetermined rate.
D)  is most generous to older employees.
E)  does not guarantee the rate of interest.

Question 2

A company would like to provide benefit-related compliance information to all of its employees. Which of the following media should it use?

Accepted Answer

A)  Meetings
B)  Webcasts
C)  Teleconference messaging
D)  Summary plan descriptions
E)  Paycheck attachments

Question 3

Which one of the following is true about workers' compensation?

Accepted Answer

A)  Employees are covered under the "no-fault" provision regardless of their behavior.
B)  Only about 50 percent of all U.S. workers are covered by the system.
C)  Benefits fall into four major categories: inability income, housing care, death of spouse benefits, and pension services.
D)  Self-funding by employers is restricted in most states.
E)  The system allowing employers to purchase coverage from private insurance companies.

Question 4

The _____ requires defined contribution plans holding publicly traded securities to provide employees with at least three investment options other than employer securities.

Accepted Answer

A)  Pensions Act of 2008
B)  Health Insurance Portability and Accountability Act of 1996
C)  Consolidated Omnibus Budget Reconciliation Act of 1985
D)  Employee Retirement Income Security Act of 1974
E)  Pension Protection Act of 2006

Question 5

What advice would you give an employer who is about to make changes to his benefits program in attempt to control costs?

Accepted Answer

It is useful to consider three factors w...

Question 6

Which one of the following is a major objective of the unemployment insurance program?

Accepted Answer

A)  To offset lost income during voluntary unemployment
B)  To motivate workers by providing income during long work hours
C)  To provide an incentive for employees to stabilize employment
D)  To make up for the lost income during a labor dispute
E)  To enable contracting of existing labors to outside firms

Question 7

Private pension income represents the largest single component of an elderly person's overall retirement income.

Accepted Answer

A) True 
 B)False

Question 8

Part-time employees receive about the same benefits as full-time employees when adjusted for hours worked.

Accepted Answer

A) True 
 B)False

Question 9

Defined contribution retirement plans insulate employees from investment risks, which are instead borne by the company.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true about family-friendly policies?

Accepted Answer

A)  Organizations implement the policies to ease conflicts amongst the employees.
B)  Defined benefit plan is a classic example of this policy.
C)  Increased organizational performance resulting from loyalty may be expected from implementing these policies.
D)  These policies have no spillover effects on other employees.
E)  These policies cause a fall in quality management practices.

Question 11

The _____ tax rate is the percentage of additional earnings that goes to taxes.

Accepted Answer

A)  marginal
B)  net
C)  gross
D)  incremental
E)  resulting

Question 12

Which of the following is true about benefits programs?

Accepted Answer

A)  Public group insurance is one of the categories of benefits programs.
B)  The percentage of employees covered by benefits programs falls with increase in establishment size.
C)  The prevalence of benefits programs in establishments is not very high.
D)  The number of employees covered by benefits programs account for a low percentage amongst the largest employers.
E)  Total compensation costs increase with establishments.

Question 13

Which of the following is better in reducing the risk factors associated with cardiovascular disease?

Accepted Answer

A)  Counselors providing tailored programs to obtain baseline measures
B)  Raising awareness levels of cardiovascular disease
C)  A physical fitness facility in the company
D)  Lunchtime lecturer conducting class on preventing cardiovascular disease
E)  Presence of athletic trainers in the company gym

Question 14

What potential risks do employers run when they choose to offer a flexible benefits (cafeteria-style)plan?

Accepted Answer

(1)High administrative costs, especially...

Question 15

The right of an employee to a pension upon retirement is known as ______.

Accepted Answer

A)  vesting right
B)  portability fund
C)  transfer of fund
D)  fiduciary responsibility
E)  funding right

Question 16

According to ERISA, a summary plan description (SPD) must provide descriptions of the plan's:

Accepted Answer

A)  budget.
B)  nominations.
C)  risks.
D)  benefit levels.
E)  tenure.

Question 17

Discuss the Social Security Act of 1935.

Accepted Answer

The Social Security Act of 1935 was the ...

Question 18

Which of the following is true about the coverage of OASDHI program?

Accepted Answer

A)  Only about fifty percent U.S. employees are covered by the program.
B)  Federal, state, and local government employees account for a high percentage of employees covered under this program.
C)  There are no eligibility requirements to be met by an individual to receive benefits.
D)  Old-age insurance benefits for fully insured workers begin at the age of 50.
E)  High earners help subsidize benefit payments to low earners.

Question 19

Which of the following managed-care efforts includes employer use of increased deductibles, coinsurance payments, policy exclusions and limitations, and establishment of maximum benefits?

Accepted Answer

A)  Alternative funding methods
B)  Plan design
C)  Claims review
D)  External cost control systems
E)  Alternative providers

Question 20

The highest level of child care provision is:

Accepted Answer

A)  providing vouchers or discounts for employees to use at existing child care facilities.
B)  providing child care at or near the worksite.
C)  supplying information about the cost of available child care.
D)  referring employees to websites and phone numbers of child care facilities in the area.
E)  helping employees collect information about quality of available child care.

Exam 13: Employee Benefits

Which one of the following is true about workers' compensation?

Correct AnswerverifiedShow Answer

Which of the following is true about the coverage of OASDHI program?

Correct AnswerverifiedShow Answer

Which of the following managed-care efforts includes employer use of increased deductibles, coinsurance payments, policy exclusions and limitations, and establishment of maximum benefits?

Correct AnswerverifiedShow Answer

Defined contribution retirement plans insulate employees from investment risks, which are instead borne by the company.

Correct AnswerverifiedShow Answer

What potential risks do employers run when they choose to offer a flexible benefits (cafeteria-style)plan?

Correct Answerverified(1)High administrative costs, especially...View AnswerShow Answer

Which of the following is true about family-friendly policies?

Correct AnswerverifiedShow Answer

The highest level of child care provision is:

Correct AnswerverifiedShow Answer

Discuss the Social Security Act of 1935.

Correct AnswerverifiedThe Social Security Act of 1935 was the ...View AnswerShow Answer

A cash balance plan:

Correct AnswerverifiedShow Answer

Which of the following is better in reducing the risk factors associated with cardiovascular disease?

Correct AnswerverifiedShow Answer

According to ERISA, a summary plan description (SPD) must provide descriptions of the plan's:

Correct AnswerverifiedShow Answer

The _____ requires defined contribution plans holding publicly traded securities to provide employees with at least three investment options other than employer securities.

Correct AnswerverifiedShow Answer

What advice would you give an employer who is about to make changes to his benefits program in attempt to control costs?

Correct AnswerverifiedIt is useful to consider three factors w...View AnswerShow Answer

Part-time employees receive about the same benefits as full-time employees when adjusted for hours worked.

Correct AnswerverifiedShow Answer

A company would like to provide benefit-related compliance information to all of its employees. Which of the following media should it use?

Correct AnswerverifiedShow Answer

The right of an employee to a pension upon retirement is known as ______.

Correct AnswerverifiedShow Answer

Which one of the following is a major objective of the unemployment insurance program?

Correct AnswerverifiedShow Answer

The _____ tax rate is the percentage of additional earnings that goes to taxes.

Correct AnswerverifiedShow Answer

Private pension income represents the largest single component of an elderly person's overall retirement income.

Correct AnswerverifiedShow Answer

Which of the following is true about benefits programs?

Correct AnswerverifiedShow Answer

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(1)High administrative costs, especially...
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The Social Security Act of 1935 was the ...
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It is useful to consider three factors w...
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