Chapters 7-11 Flashcards
According to ADA guidelines, which of the following is true?
A) Employers can require a longer preeligibility period for employees with disabilities
B) Employers cannot exclude qualified employees with disabilities from participating in its’ disability retirement plans
C) Employers must offer the same benefits to all under its disability retirement plans
D) Employers must include cost-of-living adjustments on its disability benefits
B) Employers cannot exclude qualified employees with disabilities from participating in its’ disability retirement plans
Employer-sponsored disability insurance plans generally supplement legally required benefits established which law?
A) Family Medical Leave Act
B) Employee Retirement Income Security Act
C) Fair Labor Standards Act
D) Social Security Act
B) Employee Retirement Income Security Act
Self-inflicted wounds and drug dependency are generally considered as what in most short-term disability insurance plans? A) Partial disability provisions B) Exclusion provisions C) Elimination provisions D) Preexisting condition provisions
B) Exclusion provisions
These reduce company-sponsored benefits by subtracting a particular percentage of these disability benefits from workers' compensation and Social Security disability plans. A) Elimination provisions B) Exclusion provisions C) Limited integration provisions D) Offset provisions
D) Offset provisions
This amendment contains the equal benefit or equal cost principle and bans termination of an employee’s long-term disability benefits for active employees based on age.
A) Older Workers Benefit Protection Act
B) Retired Workers Protection Act
C) Age Discrimination in Employment Act
D) Older Workers Retirement Act
A) Older Workers Benefit Protection Act
This Medicare program offers voluntary supplemental medical insurance. A) Medicare Part B B) Medicare Part A C) Medicare Advantage D) Medicare Part C
A) Medicare Part B
Which Medicare program provides beneficiaries the opportunity to receive health care from a variety of options? A) Medicare Advantage B) Medigap C) Medicare Part C D) Medicare Select
A) Medicare Advantage
Which of the following are eligible for OASDI?
A) Self employed individuals
B) Federal government workers
C) 10 year railroad employees
D) Children under 21 who work for their parents
A) Self employed individuals
At what age are retirees first eligible for Social Security benefits? A) 65 B) 62 C) 70 D) 67
B) 62
Most states pay regular unemployment benefits for how long? A) 13 weeks B) 16 weeks C) 26 weeks D) 28 weeks
C) 26 weeks
This paid time-off policy is generally used by employees for professional and managerial development activities. A) Sabbatical Leave B) Academic leave C) Professional Development Leave D) Personal Leave
A) Sabbatical Leave
This Act gives individuals the right to employment by the company they worked for prior to military service.
A) Fair Labor Standards Act
B) Uniformed Services Employment and Reemployment Rights Act
C) Military Reemployment Act
D) Military Service Reemployment Act
B) Uniformed Services Employment and Reemployment Rights Act
Jury duty and witness duty are governed by which law(s)?
A) Both by federal and state laws
B) Jury duty by federal and state laws, witness duty by some state laws only
C) Both by federal laws only
D) Both by state laws only
B) Jury duty by federal and state laws, witness duty by some state laws only
Which of the following is true concerning FMLA provisions?
A) The time-off is unpaid, but medical insurance is continued
B) The time-off is paid, but medical insurance is discontinued
C) The time-off is unpaid, and medical insurance is discontinued
D) The time-off is paid, and medical insurance is continued
A) The time-off is unpaid, but medical insurance is continued
This provision pays employees an amount equal to the unused vacation days based on regular daily earnings. A) Cashover B) Carryover C) Cashout D) Carryout
C) Cashout
COBRA applies to EAPs if these two conditions are met.
A) The program qualifies as a welfare plan under ERISA, and qualifies as a health care plan by providing counseling for a medical condition
B) The program is a qualified plan under FSLA, and as a welfare plan under ERISA
C) The program qualifies as a welfare plan under FSLA, and qualifies as a health care plan under ERISA
D) The program qualifies as a health care plan by providing counseling for a medical condition, is a qualified plan under FSLA
A) The program qualifies as a welfare plan under ERISA, and qualifies as a health care plan by providing counseling for a medical condition
This type of EAP establishes contracts with sets of numerous smaller employers. A) Full-service EAPs B) Referral EAPs C) Consortium EAPs D) Third-party EAPs
C) Consortium EAPs
Which Section of the IRC pertains to educational assistance programs? A) 162 B) 167 C) 172 D) 127
D) 127
This involves discussing incidents of poor performance with the troubled employee, citing the necessity of improving job performance within a designated period. A) Positive confrontation B) Confidential confrontation C) Direct confrontation D) Constructive confrontation
D) Constructive confrontation
Which of the following questions is not used in evaluating EAP effectiveness?
A) Are troubled employees aware of their employer’s EAP?
B) Do co-workers and supervisors understand the importance of and procedures for referring troubled employees to EAPs?
C) Do the benefits of EAPs equal the costs?
D) Based on available information, should the EAP be modified in any particular ways, offered as is, or dropped altogether?
C) Do the benefits of EAPs equal the costs?
These are the 4 most common types of cafeteria plans.
A) Premium-only, mix-and-match, core-plus-option, reduction
B) Reduction, modular, core-plus-option, mix-and-match
C) Material modification, mix-and-match, core-plus-option, modular
D) Mix-and-match, material modification, premium-only, reduction
B) Reduction, modular, core-plus-option, mix-and-match
The Roth IRA was introduced through this federal legislation.
A) Taxpayer Relief Act of 1997
B) Economic Growth and Tax Relief Reconciliation Act of 2001
C) Tax Relief and Accountability Act of 1996
D) Tax Relief and Retirement Savings Act of 1996
A) Taxpayer Relief Act of 1997
These are the three types of utilization reviews.
A) Qualified, modified, nondiscriminatory
B) Prospective, concurrent, retrospective
C) Flexible, core-plus, mix-and-match
D) Precertification, prospective, retrospective
B) Prospective, concurrent, retrospective
Under this provider payment system, primary care physicians are paid a fixed dollar amount for each patient, not for the number of services rendered in a given amount of time. A) Capped-fee schedule B) Semi-capitation C) Full capitation D) Partial capitation
D) Partial capitation
Under the concentration test, a cafeteria plan is discriminatory if the nontaxable qualified benefits provided to key employees exceed how much of the total nontaxable qualified benefits provided for all employees. A) 50% B) 25% C) 60% D) 40%
B) 25%
T/F Employer-sponsored disability plans replace disability benefits mandated by law.
F
T/F in the 1960s, insurance companies began to manage liability more effectively by offering benefits on an income replacement basis.
T
T/F Most short term disability plans pay employees 60 to 66.67 present of their pre-tax salary on a monthly or weekly basis
F- 50-66.67%, sometimes as much as 100%
What are 5 features of many short-term disability plans?
- Limited payment period (usually no more than 6 months)
- Monthly benefit cap
- Preexisting condition clause
- Waiting periods: preeligibility and elimination period
- Exclusion provision for designated health condition
What is a preeligibility period (short term disability)?
Time from the initial date of hire to the time of eligibility for coverage in a disability insurance program.
What is an elimination period (short term disability)?
Minimum amount of time an employee must wait for coverage after being disabled.
Most common elimination period is 3 months but can be anywhere between 1 mo. to 1 yr.
What are the two stages of long term disability?
Stage 1- illness/accident prevent employee from performing their own occupation
Stage 2- illness/accident prevent employee from performing any occupation
What is the typical elimination period of a long term disability plan?
between 6 months and 1 year
T/F An employee’s pregnancy is covered under a company’s short-term disability insurance
T
T/F Generally, employees must pay income taxes on the amount of workers’ compensation benefits they receive
F
T/F Social Security disability benefits are available to disabled workers who are unable to work as a result of a serious medical impairment that lasts at least 12 mos.
T
The Medicare tax is subject to a taxable wage base
F
The Social Security Administration increases retirement benefits by a designated percentage for each month worked beyond full retirement until age 70.
T
Self-employed individuals must pay a FICA rate that is twice as much as what a factory worker has to pay.
T
A term life insurance policy is considerable more expensive than a whole life policy.
F
Companies that offer long-term disability insurance plans only require an elimination period that runs how long? A) 9-12 mos. B) 1-3 mos. C) 6-12 mos. D) 3-6 mos.
C) 6-12 mos.
Most short-term disability insurance plans pay employees around how much of their regular pre-tax salary? A) 85-100% B)35-50% C)50-67% D)40-59%
C)50-67%
Short-term disability insurance usually provides benefits for up to how long? A) 6 mos. B) 9 mos. C) 3 mos. D) 12 mos.
A) 6 mos.
T/F The purpose of a PTO plan is to reduce absenteeism
T
T/F Floating holidays cannot be used for an employee’s religious observance that a company does not observe.
F
T/F An employee on military leave ill not lose any seniority rights during the time they are in the service.
T
On call time is always compensable
F
An employer can exempt its highest 10% paid employees from FMLA coverage.
T
Under the Family Medical Leave Act, an employer is required to pay their portion of an employee’s health insurance premium during the leave period
T
T/F It is permissible under the ADA not to provide cost-of-living adjustments for disability benefits.
T
What are the 3 Types of Life insurance programs?
1) Term life- limited coverage period up to a maximum age
2) Whole life- do not terminate until payment is made to beneficiaries. Insurance protection with savings feature.
3) Universal life- insurance feature of term life and more flexible savings than whole life
What are the 4 criteria for Group term life insurance tax exemption?
1) general death benefit excludable from gross income (IRC, Sec. 101)
2. Provide to a group of employees
3) Provided under a policy carried directly or indirectly by employer
4) Amount of insurance provided to employees is computed under a formula that precludes individual selection
Can an employer deduct the paid premium of Group Life Insurance as an ordinary and necessary business expense for noncontributory plans and their contribution to contributory plans?
Yes, as long as the beneficiary is someone other than the employer.
What year was The Social Security Act enacted? A) 1930 B)1940 C1935 D)1936
C)1935
T/F An amendment to the Social Security Act in 1965 added disability and Medicare
T
What are the 3 exempt classes of US workers not eligible for OASDI and Medicare?
1) Civilian employees of federal government and railroad employees with 10+ years are exempt from OASDI, but eligible for medicare
2) Employees of state/local governments who are already covered under other retirement plans are exempt from retirement contributions unless org. chooses to participate
3) Children under age 21 who work for a parent, except children age 18+ who work in their parent’s business
What are the 2 agencies that oversee Social Security programs?
Social Security Administration
Centers for Medicare & Medicaid Services
T/F Social Security survivor benefits are paid at 100% of PIA (Primary Insurance Amount)
F- usually 71.5-75%
SSA pays a lump sum in addition if deceased worker earned 6 credits in last 13 calendar quarters and if survivor lived with worker at time of death
T/F Social Security disability benefits are available to disabled workers who are unable to work as a result of a serious medical or mental impairment that lasts at least 6 months.
F- It must last at least 12mos.
Are Social security disability benefits subject to a waiting period?
Yes, up to six months
What is Medicare Part A?
Hospital insurance
What is Medicare Part B?
Medical insurance
What is Medigap?
Voluntary supplemental insurance to cover gaps in parts A & B
What is Medicare Part C?
Medicare Advantage- allows choices in health care providers
What is Medicare Part D?
Prescription Drug Benefit
T/F Medicare Part B premiums are dependent on income?
T
What is the “donut hole”
The gap in prescription drug coverage.
$295-2700 costs covered by Medicare 75%
$2700-4350- Donut Hole = no medicare coverage
$4350+- 95% Medicare coverage
T/F FICA funds OASDI and Medicare programs
T
T/F OASDI taxes are subject to a taxable wage base
T, Medicare is NOT
Referring to unemployment insurance, what is the base period?
The minimum period of time an individual must have been employed to be eligible for unemployment benefits.
T/F Unemployment benefits are funded through FUTA (Federal Unemployment Tax Act) and sometimes additional state taxes
T
T/F Workers compensation programs are run by the federal government
F- run by state governments
What are the 3 types of workers’ compensation claims an employee can make?
- Injury claim
- occupational disease claim
- death claim
What are the 4 types of disabilities recognized by workers’ compensation programs?
- temporary total - prelude from working for limited periods
- permanent total- prevent from ever working
- temporary partial- may perform limited work for short time
- permanent partial- can perform limited work on an enduring basis
What are the 3 pay approaches states use to pay workers’ comp claims?
- Impairment approach- benefits based on physical/mental loss. Same benefit regardless of impact of loss of future earnings
- Wage-loss approach- benefits based on actual loss of earnings.
- Loss of wage earning capacity approach- factors in human capital and type of impairment
T/F Participation in workers’ comp programs protect employers from potential legal action brought by employees
T, with these exceptions:
- Employer acted intentionally
- Lawsuits alleging employer retaliation for filing claim
- Lawsuits against noncomplying employers
- Lawsuits relating to “dual capacity” relationships
What are the two main delivery options for establishing EAPs?
- Referral EAPs- list of professional help services no contractual relationship
- Full-service EAPs
What are the ways employers offer full-service EAPs?
- in-house= staff members of EAP are employees of the company
- Third-party= independent EAP companies
- Consortium= EAP contracts with sets of numerous smaller employers
What is constructive confrontation?
Discussing incidents of poor performance with the troubled employee, citing the necessity of improving job performance within designated period.
T/F An employer can be held liable if an EAP misdiagnoses the condition of an employee
T
What are 3 possible violations to nondiscrimination rules for cafeteria plans?
- Eligibility= company grants eligibility to highly compensate employees with shorter waiting periods
- Benefits= highly compensated participants with regard to an employer’s contributions and benefits levels
- Concentration= Key employees regarding the kinds of benefits and levels provided
T/F Under ERISA, a company is obligated to provide a summary plan description within 90 days of employment
T
