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Benefits > Chapter 1-6 includes in class quizzes > Flashcards

Chapter 1-6 includes in class quizzes Flashcards

1
Q

Discretionary benefits can be categorized into programs that
A) protect health and income, provide job security, provide accommodation and enhancement benefits.
B) provide job security, protect health and income, allow for paid time-off
C) protect health and income, allow for paid time-off, provide accommodation and enhancement benefits.
D) provide job security, allow for paid time-off, provide accommodation and enhancement benefits.

A

C) protect health and income, allow for paid time-off, provide accommodation and enhancement benefits.

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2
Q 
Which two are the possible approaches that can be used in strategic benefits planning?
	A)	Backing-out & top-down
	B)	Top-down & backing-in
	C)	Backing-up & top-in
	D)	Backing-down & top-in
A

B) Top-down & backing-in

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3
Q

These two federal laws form the basis for legally required benefits.
A) Social Security Act & Civil Rights Act
B) Family and Medical Leave Act & Civil Rights Act
C) Social Security Act & Family and Medical Leave Act
D) Equal Employment Act & Social Security Act

A

C) Social Security Act & Family and Medical Leave Act

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4
Q

Employer choice of discretionary benefits does not depend on:
A) Economic considerations
B) Adequacy of legally required benefits
C) Employee expectations
D) Government mandates

A

D) Government mandates

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5
Q

The Family and Medical Leave Act (FMLA) permits employees which of the following?
A) 12 work weeks of paid leave during any 12-month period
B) 10 work weeks of paid leave during any 12-month period
C) 12 work weeks of unpaid leave during any 12-month period
D) 10 work weeks of unpaid leave during any 12-month period
Feedback: p.10

A

C) 12 work weeks of unpaid leave during any 12-month period

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6
Q

What are the two basic causes for psychological contract violations?
A) Distributive and procedural justice
B) Reneging and incongruence
C) Changing composition of the workforce and the economic challenges
D) Legal and industrial environments

A

B) Reneging and incongruence

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7
Q 
Which of the following is not closely associated with the nature of transactional psychological contracts?
	A)	Economic and extrinsic focus
	B)	Close-ended, specific
	C)	Narrow scope
	D)	Long term relationship
A

D) Long term relationship

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8
Q

Which of the following employee benefits is more relevant for relational psychological contracts?
A) Legally required benefits
B) Health insurance
C) Life insurance
D) Accommodation and enhancement benefits

A

D) Accommodation and enhancement benefits

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9
Q 
What are the types of justice perceptions related to employee satisfaction and benefit practices?
	A)	Distributive justice
	B)	Procedural justice
	C)	Interpersonal justice
	D)	All of the above
A

D) All of the above

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10
Q

Which of the following is not an example of organizational citizenship behaviors?
A) Helping other employees
B) Looking out for the employer’s interests
C) Concentrating own job responsibilities and duties
D) Going beyond job requirements to help achieve company’s goals

A

C) Concentrating own job responsibilities and duties

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11
Q 
Being able to spread the administrative costs to larger groups of employees, to reduce the health insurance cost per employee, is referred to as what?
	A)	Insurance pooling
	B)	Economies of scale
	C)	Economies of scope
	D)	Administrative underwriting
A

B) Economies of scale

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12
Q 
Which of the following can be avoided by using experience ratings?
	A)	Adverse selection
	B)	Medical underwriting
	C)	Economies of sales
	D)	Insurance pooling
A

A) Adverse selection

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13
Q

What are employee mandates?
A) Government requiring employers to do something for their employees they might NOT otherwise do
B) Government requiring employees to do something they might NOT otherwise do
C) Unions requiring non-union employees to do something they might NOT otherwise do
D) Employees requiring employers to do something they might NOT otherwise do

A

B) Government requiring employees to do something they might NOT otherwise do

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14
Q

What is medical underwriting?
A) A process where employers have to verify the medical history of their employees
B) A process where the employer has to pay the difference for insuring high-risk employees
C) A process where employees provide their past medical history to insurers
D) A process where one insurance company combines with another to insure a company

A

C) A process where employees provide their past medical history to insurers

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15
Q

In insurance terms, what does adverse selection refer to?
A) When employees choose an insurance plan they don’t like, but are stuck with it for a year
B) When insurance companies use medical underwriting to choose who to insure
C) When employees are forced to choose between what they think are two inferior insurance programs
D) The tendency of an insurance pool to disproportionately attract “bad risk” employees and discourage “good risk” employees.

A

D) The tendency of an insurance pool to disproportionately attract “bad risk” employees and discourage “good risk” employees.

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16
Q 
Companies can follow which schedules to grant full vesting for their employees?
	A)	Cliff and graduated
	B)	Cliff or gradual
	C)	Standard and gradual
	D)	Graduated and standard
A

B) Cliff or gradual

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17
Q 
This federal law was established to regulate the establishment and implementation of discretionary benefits practices.
	A)	NLRA
	B)	FLSA
	C)	COBRA
	D)	ERISA
A

D) ERISA

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18
Q 
Under the Equal Pay Act of 1963, what are skill, effort, responsibility, and working conditions are referred to as?
	A)	Classification factors
	B)	Compensable factors
	C)	Commendable factors
	D)	Performance factors
A

B) Compensable factors

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19
Q 
The federal government funds the Social Security Old-Age, Survivor and Disability Insurance Program using which tax?
	A)	Federal Insurance Collections Act
	B)	Federal Income Contributions Act
	C)	Federal Insurance Contributions Act
	D)	Federal Insurance Tax Act
A

C) Federal Insurance Contributions Act

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20
Q

Which of the following is a mandatory subject of bargaining?
A) Disability pay(supplemental to what is madated by Social Security and the state’s workers’ compensation laws)
B) Employer-provided health insurance
C) Paid time-off
D) Pension and retirement plans
E) All of the above

A

E) All of the above

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21
Q 
This type of hybrid plan is based on income and years of service, uses individual accounts, passes the IRS's cross-testing rules, and the total benefits are based on the investment performance of the plan's assets.
	A)	Target benefit plan
	B)	Money purchase plan
	C)	age-weighted profit sharing plan
	D)	Cash balance plan
A

A) Target benefit plan

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22
Q

The 133 1/3% rule refers to what?
A) The annual accrual rate for defined benefits plans
B) The annual accrual rate for defined contribution plans
C) The annual accrual rate for qualified benefit plans
D) The annual accrual rate for qualified contribution plans

A

A) The annual accrual rate for defined benefits plans

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23
Q

These two are the basic accrual rules for the nondiscrimination testing for defined contribution plans.
A) Contributions cannot be reduced based on age, no maximum age limit for discontinuing contributions
B) Contributions can be reduced based on age if everyone in the plan is affected, age, no maximum age limit for discontinuing contributions
C) Contributions can be reduced based on age if everyone in the plan is affected, no minimum age limit for discontinuing contributions
D) Contributions can be increased based on age, no maximum age limit for discontinuing contributions

A

A) Contributions cannot be reduced based on age, no maximum age limit for discontinuing contributions

24
Q 
In 2009, the IRC set the maximum annual benefits of defined benefits plans at what amount?
	A)	$135,000
	B)	$195,000
	C)	$265,000
	D)	$235,000
A

B) $195,000

25
Q 
Which one of these is not a defined contribution plan?
	A)	Cash balance plan
	B)	ESOPs
	C)	SIMPLE
	D)	Profit sharing
A

A) Cash balance plan

26
Q

This law sets minimum standards for the length of hospital stays for mothers and newborns.
A) Family and Medical Leave Act
B) Newborns’ and Mothers’ Health Protection Act
C) Pregnancy Discrimination Act
D) Newborns’ and Mothers’ Discrimination Act

A

B) Newborns’ and Mothers’ Health Protection Act

27
Q

What is coinsurance?
A) When both parents have employer-sponsored insurance coverage for their children
B) Two insurance companies combine to offer a group policy to an employer
C) The amount an employee has to pay out-of-pocket before the insurance kicks in
D) The percentage of covered expenses paid by the insured

A

D) The percentage of covered expenses paid by the insured

28
Q

Companies can choose from which three classes of health insurance programs?
A) Fee-for-service, managed care, point-of-service
B) Indemnity, health savings accounts, managed care
C) Point-of-service, fee-for-service, indemnity
D) Self-funded, managed care, fee-for-service

A

A) Fee-for-service, managed care, point-of-service

29
Q

This type of group insurance plan offers health insurance and other benefits to the employees of two or more unaffiliated employers, except for any arrangements established by a collective bargaining agreement.
A) Voluntary employee beneficiary associations
B) Multiple employer trusts
C) Pooled coverage
D) Multiple employer welfare arrangement

A

D) Multiple employer welfare arrangement

30
Q 
This consumer-driven health care option contains contributions made by employers and the balance can be carried-over to the next year.
	A)	Flexible spending accounts
	B)	Health reimbursement arrangements
	C)	Health savings accounts
	D)	Flexible savings accounts
A

B) Health reimbursement arrangements

31
Q

COLAs are based in prices as indexed by the consumer price index.

T or F?

A

T

32
Q

Flexible work schedules are considered part of accommodation and enhancement benefits packages.

T or F?

A

T

33
Q

Health insurance is a legally required benefit for all private sector employers.

T or F?

A

F

34
Q

Defined benefits plans, defined contribution plans and hybrid plans are types of health insurance funding plans.

T or F?

A

F-retirement plans

35
Q

Since 1999, base pay has decreased as a percentage of an employee’s total compensation package.

T or F?

A

T

36
Q

Discretionary benefts can be categorized into programs that….

A

protect health and income, allow for paid time-off, provide accommodation and enhancement benefits.

37
Q

These two federal laws form the basis for legally required benefits

A

Social Security Act & Family and Medical Leave Act (FMLA)

38
Q

What (approx.) percentages of total compensation are base pay and benefits?

A

70% & 30%

39
Q

When the employee bears the entire costs of discretionary benefits it is referred to as which type of financing?

A

Employee -financed

40
Q

The Social Security Act of 1935 set up which two programs?

A

Retirement income & unemployment insurance

41
Q

Legally required benefits are NOT taxed as income by the IRC, but most discretionary benefits are.

T or F?

A

F

42
Q

Offering some benefits in a compensation package can attract qualified, but undesirable job applicants.

T or F?

A

T

43
Q

The IRS offers tax benefits to companies that offer retirement plans.

T or F?

A

T

44
Q

If health insurance premiums rise because of advances in medical care technology, employees’ would probably perceive that the increase added value to their insurance.

T or F?

A

T

45
Q

Employee benefits practices can fulfill either transactional or relational psychological contracts.

T or F?

A

T

46
Q

The FMLA allows employees what benefit?

A

12 weeks of unpaid leave

47
Q

Long term relationship between employer and employee pertains to transactional psychological contracts.

T or F?

A

F-relational

48
Q

Employers can deduct the cost of the benefits they offer employees, from their annual income, as a business expense, if the cost is considered an ordinary and necessary expense.

T or F?

A

T

49
Q

According to OWBPA, employers are not required to offer older workers benefits equal to younger workers if it costs them too much.

T or F?

A

T

50
Q

Employer-provided health insurance is considered a permissible collective bargaining subject.

T or F?

A

F-Mandatory subject

51
Q

The Federal Unemployment Tax Act is levied against employees to finance unemployment insurance benefits.

T or F?

A

F

52
Q

Title I of ERISA requires employers to report detailed financial and actuarial data about their benefits plan to US Dept. of Labor.

T or F?

A

F-Title II

53
Q 
COBRA is an amendment to which federal law?
A) IRCA
B) HIPAA
C) ERISA
D) FLSA
A

ERISA

54
Q 
This federal law was est. to regulate the establishment and implementation of discretionary benefits practices.
A) NLRA
B) FLSA
C) COBRA
D) ERISA
A

ERISA

55
Q 
This term refers to an unfunded deferred compensation plans for a select group of highly compensated employees?
A) Top hat plan
B) Safe harbor plan
C) Nonqualified plan
D) Fiduciary plan
A

Top hat plan

56
Q 
The federal government funds the Social Security Old-Age, Survivor and Disability Insurance Program using which tax?
A) Federal Insurance Collections Act
B) Federal Income Contributions Act
C) Federal Insurance Contributions Act
D) Federal Insurance Tax Act
A

Federal Insurance Contributions Act

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