chapter 12 Flashcards
Which of the following is true of employee benefits?
Employee benefits are used to create and maintain a competitive advantage for organizations.
In the context of the types of benefits offered by employers, which of the following is a voluntary benefit?
Wellness programs.
A flexible benefits plan typically _____
allows employees to select the benefits they prefer from options established by the employer.
A situation in which only higher-risk employees select and use certain benefits under a flexible benefits plan provided by employers is referred to as _____.
adverse selection.
Which of the following is a disadvantage of providing flexible benefits plans?
There is a risk that employees will choose an inappropriate benefits package.
Which of the following statements is true of part-time employees?
Many employers in the United States do not provide any part-time employee benefits, except some paid time off.
A problem with providing flexibility in benefit choice is that it _____.
increases the risk of adverse selection by employees.
In the context of benefits administration, which of the following statements is true of information technology?
It makes it possible for companies to offer self-service to employees.
Sylvia and Co. provides enrollment and recordkeeping services to Widgeton Inc. In this scenario, Sylvia and Co. is most likely _____.
a third-party administrator.
Cost sharing _____.
requires employees to pay for more of their benefit costs.
Which of the following is a benefit that employers must provide?
Unemployment compensation.
Which of the following is a voluntary employee benefit that employers may provide in addition to legally required benefits?
Education assistance.
What is the normal retirement age for employees in the United States to receive maximum Social Security benefits?
67.
Medicare is the health insurance program that was implemented by the U.S. government in 1965 to provide medical care primarily for _____.
people over the age of 65.
Which of the following best describes workers’ compensation?
A benefit program provided to workers injured on the job.
Jim, a 23-year-old factory worker, was seriously injured when a hammer fell on his head while he was at his workstation. In this scenario, which of the following is most likely to be true of Jim?
Jim will receive workers’ compensation even though he is responsible for the injury.
Workers’ compensation programs are typically funded _____.
at the expense of the employer.
Which of the following statements is true in the context of part-time employee benefits and status?
Part-time employees are more likely to receive retirement benefits than health care benefits.
Every company is required to pay an unemployment tax that is based on the _____.
the number of claims filed by workers who leave employment.
Claudia, a Legal Assistant, worked with Malag Inc. for 10 years after which she became fully vested. This implies that she _____.
will receive the amounts contributed by both the employer and herself when she retires.
A company that has been providing generous defined benefit pension plans to all its retirees for the past 50 years is now facing bankruptcy. Which of the following statements is true in the given scenario?
The Pension Benefit Guaranty Corporation will pay the company’s retiree benefits from its solvency fund.
Which of the following is true of defined benefit retirement plans?
In these plans, the amount of benefit paid at retirement is predetermined.
A _____ is a retirement program in which employees are promised a pension amount based on age and years of service.
defined benefit plan.
In defined contribution plans, _____.
investment risks are borne by employees.
