Deck 11: Employee Benefits

Question 1

Who has the key responsibility of communicating benefits information to employees?

A) the press
B) the government
C) the employer
D) the benefits provider

Answer 1

C

Question 2

What is the key reason why employers' benefits costs are less in Canada versus the United States?

A) Doctors are cheaper in Canada.
B) Healthcare is subsidized by governments in Canada.
C) Hospitals are better managed in Canada.
D) Canadians have better eating habits.

Answer 2

B

Question 3

Who contributes financially to the Employment Insurance Fund that is used to support unemployment insurance claims?

A) employers and employees
B) the government and employees
C) unions and employees
D) the government and employers

Answer 3

A

Question 4

Which of the following is the best explanation of the increasing cost of employee benefits?

A) the rising educational levels of the workforce
B) the treatment of employees' benefits as strategic
C) the use of online, interactive benefits programs
D) employers trying to match the competition

Question 5

Great Parcel Inc. has numerous office locations across Canada, including isolated areas with no access to the Internet. What would be the most efficient way for the company to communicate a new benefit to all its employees?

A) online modules
B) a meeting in a central location
C) trips by the organization's top executive team to all the locations
D) payroll inserts

Question 6

Which of these statements best describes management concerns about benefits?

A) Management is concerned with promoting a shift in mindset from self-responsibility to entitlement.
B) Management is concerned with employees not using their benefits.
C) Management is concerned with tax consequences.
D) Management is concerned with employee turnover because of benefits.

Question 7

What is an important reason why employers need to communicate the extent and value of the benefits they provide?

A) Such communication is required by the law.
B) The HR department needs this information for its communication outlets.
C) It immediately reduces the overall costs.
D) Employees generally underestimate the value of the benefits offered.

Question 8

What are the two critical factors considered when determining the amount of employment insurance to be paid to unemployed applicants?

A) their education and experience
B) the number of hours worked and their education
C) the number of hours worked in the past year and regional unemployment rates
D) the size of the firm and the salary of the employee

Question 9

What's a major problem facing the Canada Pension Plan?

A) the aging population
B) public disapproval
C) decreased subsidies from government
D) employer resistance

Question 10

Which of the following is a method to contain the costs of benefits?

A) making contribution changes, such as deductibles
B) eliminating benefit caps
C) increasing benefits coverage
D) making cuts to mandatory benefits

Question 11

What is an important factor in determining the effectiveness of benefits programs in organizations?

A) level of competition
B) employee motivation
C) state of the broader economy
D) effective administration

Question 12

What's a major disadvantage of cafeteria benefit plans?

A) They increase the complexity of the administration of the plans.
B) They are rejected by most workers.
C) Unions oppose them.
D) They increase government costs.

Question 13

Susie Jones has definite preferences in terms of the benefits offered by her employer. Susie will be able to select the benefits she values highly and avoid those she does not need or want if her employer offers which benefit format?

A) an employee selection plan
B) a flexible benefits plan
C) a benefit pool
D) a modified benefits system

Question 14

Which of the following benefits must be provided by employers in Canada because it is legally required?

A) dental benefits
B) employment insurance
C) vision care
D) out-of-country medical assistance

Question 15

Ideally, which of the following should apply to an organization's benefits system?

A) It should mirror that of the competition, so as to attract top applicants.
B) It should be restricted to mandatory benefits.
C) It should be aligned to the overall strategy of the organization.
D) It should be more than 50 percent of payroll costs, so as to be competitive.

Question 16

Management at ABC Inc. wants to introduce a new benefit that is not required by law. What should it do first?

A) develop an HRIS to help with its administration
B) establish that there is a need for it
C) lobby the government to make it mandatory
D) hire a consulting firm to roll it out

Question 17

Which statement best describes flexible benefit plans?

A) They are offered as a bonus to executives.
B) They are favoured by employers because they reduce administration costs.
C) They allow employees to choose benefits suited to their needs.
D) They are offered to employees who then must purchase each benefit they select.

Question 18

ABC Corporation uses the services of professional benefits vendors to administer their benefits. What is this practice a form of?

A) outsourcing
B) shared services
C) freelancing
D) delegation

Question 19

Which of the following statements is most applicable to the benefits costs to employers in Canada and the United States?

A) Benefits costs are higher in Canada.
B) Benefits costs are higher in the United States.
C) Benefits costs are the same in Canada and the United States.
D) Benefits costs are both negligible in Canada and the United States.

Question 20

Canada's workforce is becoming increasingly diverse. How is this having an impact on benefits programs?

A) Greater pension contributions are required by employers.
B) There are lower out-of-pocket costs for employees.
C) Benefit programs are becoming more family-friendly.
D) Benefits packages now cover part-time as well as full-time employees.

Question 21

Omar Morales, an older employee, is considering an early retirement package that his employer has offered; it includes improved benefits and cash bonuses. What do we call this type of inducement?

A) a silver handshake
B) a golden parachute
C) a platinum cushion
D) a severance pay

Question 22

What are holiday pay, sick leave, and vacation pay examples of?

A) categories of health care benefits
B) benefits required by law
C) payment for time not worked
D) unearned benefits

Question 23

Which of the following is related to the recent use of employee assistance programs (EAPs) in Canada?

A) They are increasing in use.
B) They are decreasing in use.
C) They add no costs to the employer.
D) They are not geared for dealing with emotional problems.

Question 24

From a pension perspective, what is a key issue concerning the aging of baby boomers in Canada?

A) There are more demands for dental benefits.
B) Baby boomers are leaving management, thus there is a loss to the HR managers who oversee this benefit.
C) There are fewer contributions to the pension fund by younger generations and more withdrawals for funding pensions for baby boomers.
D) Younger generations are demanding reduced pensions for those leaving the workforce.

Question 25

Employer-sponsored employee assistance programs (EAPs) are created to help workers overcome hurdles in their personal lives. Which employee is the most likely to receive help under a typical EAP?

A) John Jones, who needs assistance to overcome a chemical dependency problem
B) Steve Brown, who needs legal help in a personal bankruptcy proceeding
C) Cindy Savage, who needs a list of qualified daycare facilities near the office
D) Kate Johnson, who needs help choosing an appropriate M.B.A. program

Question 26

Raj Vickram is receiving a pension of $3,500 per month. This figure was based on a predetermined formula. What type of plan is this?

A) a contributory plan
B) a non-contributory plan
C) a defined-contribution plan
D) a defined-benefit plan

Question 27

In a non-contributory pension plan, who makes the financial contributions?

A) the employer only
B) the employee only
C) the employer and the employee
D) the employer, the employee, and the government

Question 28

Bob Jones was recently permanently laid off. His company, ACME Manufacturing, has issued Bob a cheque that represents one month's pay for every year Bob worked at ACME. What does this cheque represent?

A) Bob's unused vacation pay
B) Bob's unused benefits
C) Bob's unused sick leave
D) Bob's severance pay

Question 29

In Canada, registered retirement savings plans (RRSPs) have grown significantly over the past few years. What is a key reason for this growth?

A) Minimum wage earners now have more disposable income and they are contributing.
B) The funds accumulate tax-free until they are withdrawn.
C) The rich-poor gap is narrowing, thus people have more money to invest.
D) RRSPs are a part of stock plans, which are growing.

Question 30

Which of the following is based on the perspective that work-related accidents and illnesses should be considered a cost of doing business and that employees should NOT bear the costs of their treatment?

A) unpaid leave
B) medical care benefits
C) paid sick time
D) workers' compensation insurance

Question 31

Which type of pension plan with fixed payouts is experiencing a decline in its use in Canada?

A) defined-benefit plan
B) defined-contribution plan
C) contributory plan
D) registered retirement savings plan (RRSP)

Question 32

Most pension plans are now viewed as providing deferred income that employees accumulate during their working life and that belongs to them after a specified number of years of service. What view is this based on?

A) provincial law
B) a pay-as-you-go philosophy
C) a reward philosophy
D) an earnings philosophy

Question 33

A predetermined formula is used to calculate retirement benefits under what type of benefit plan?

A) a defined benefit plan
B) a defined contribution plan
C) a specified benefit plan
D) a non-specified benefit plan

Question 34

James Callaghan has worked full-time for BC Metals for four years. He has learned from the HR manager that his earned pension benefits cannot be revoked by the employer. Why is this so?

A) because the employer expects him to work until retirement
B) because the benefits are vested
C) because the union would strike if they are revoked
D) because the benefits are defined

Question 35

Tommy Lee is recovering from a drug addiction problem. His employer has offered him services to help him with the recovery process. What is this service an example of?

A) an employee assistance program
B) an outplacement service
C) a defined-benefit plan
D) a defined contribution plan

Question 36

What are two of the largest health care costs in Canada for employers?

A) administrative and infrastructure costs
B) drugs and administrative costs
C) drug and hospital costs
D) administrative and hospital costs

Question 37

Logan Wolverine works for RAY Vision Inc. The employer deducts money every month from Logan's paycheque for his pension plan. RAY Vision matches this amount for his pension. What type of plan is this?

A) a defined-benefit plan
B) a defined-contribution plan
C) a contributory plan
D) a non-contributory plan

Question 38

In terms of childcare provisions, which of the following is considered the most visible and desired solution?

A) short time-off for mothers
B) on-site or near-site daycare centres
C) short time-off for fathers
D) grandparents to provide care

Question 39

Justin Bryant worked for ABC Corporation for ten years before leaving. He was told that his benefits have vested. What does this mean?

A) He can withdraw the benefits at any time.
B) He needs to cash out his benefits immediately or he will lose them.
C) He has lost his pensions earned at ABC Corporation.
D) He has accrued pension benefits at retirement age.

Question 40

ABC Corporation allows employees the opportunity to try out retirement with a leave program, or gradually reduce their work hours as they approach retirement age. What is this an example of?

A) retirement leave
B) CPP/QPP
C) family-friendly benefits
D) a preretirement program

Question 41

It would be desirable for employers to enlist employee participation in modifying a benefits program.

Question 42

How are childcare programs and eldercare programs similar?

A) Under both programs, most of the caregivers are men.
B) Both types of programs typically offer on-site care facilities.
C) Both programs are on the decline in Canada.
D) Both programs help to maintain or increase employee productivity.

Question 43

Benefit packages of any kind still help employers attract and retain quality employees.

Question 44

Scenario 11.1
Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost non-existent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.
Refer to Scenario 11.1. Some of Canadian Fasteners' employees have been around since its inception and are well into their late 40s. Which of the following pension plans would be most effective in allowing employees to have a decent pension when they retire?

A) a non-contributory plan
B) a contributory plan
C) a registered retirement savings plans with only the employee contributing
D) a defined non-contributory plan

Question 45

The collective bargaining agreement between ACME Inc. and the union CUPA 1003 Local requires the employer to provide a limited vision care package. Workers are demanding more. Who will determine any new package?

A) the union and the government
B) the government
C) the employer and the union
D) the employer

Question 46

Benefits programs should be based on specific objectives in line with the organization's strategic compensation plan.

Question 47

Employee benefits are a form of indirect compensation.

Question 48

Scenario 11.2
Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "Generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and Work-Life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs.
Refer to Scenario 11.2. BPBI would like to also set up an employee assistance program (EAP) to help employees solve their personal problems, or at least prevent those problems from turning into crises that are likely to affect their ability to work productively. Which of the following are programs offered by EAPs in today's organizations?

A) seminars and workshops to help prepare for retirement
B) counselling and referral services for alcohol or drug problems, emotional problems, or financial or family crises
C) increased pension benefits or cash bonuses
D) salary continuance programs, sick leave credits, and weekly indemnity plans

Question 49

Scenario 11.1
Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost non-existent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.
Refer to Scenario 11.1. Canadian Fasteners must ensure that the benefits it offers employees are fulfilling the legal requirements. Which of the following is NOT legally required?

A) survivor benefits
B) employer contributions to the Canada and Quebec pension plans
C) employment insurance
D) workers' compensation insurance

Question 50

Canada has experienced a growth in the proportion of part-time workers (versus full-time) over the past decade. What is a key reason for this growth?

A) Employers tend to save on compensation and benefits costs.
B) The government is forcing firms to hire on a part-time basis.
C) Unions prefer workers to have part-time jobs.
D) Many full-time jobs are outsourced overseas.

Question 51

Scenario 11.2
Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "Generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and Work-Life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs.
Refer to Scenario 11.2. In order to promote Work-Life balance at BPBI, management has decided to adopt more creative and unusual benefits as a way to deter turnover. Which of the following would be most welcomed by "Generation Y" employees?

A) on-site restaurants where employees can have dinner together
B) extended childcare when employees work later hours
C) free baseball tickets for families and friends
D) pay increases to offset the extra overtime hours worked each day

Question 52

Many employers provide unneeded and unwanted types of medical benefits to their employees.

Question 53

Scenario 11.2
Bradshaw, Petrilli & Blake Inc. (BPBI) is a Canadian financial planning firm that provides financial advice for companies across Canada and the United States. The firm offers employees great benefits and excellent salaries. Its workforce is composed of predominantly "Generation Y" employees. These employees are very tech-savvy, achievement focused, and, most importantly, family centric (they value flexible schedules and Work-Life balance). While they understand the demands of the job, they often get caught between the needs of the organization's clients and their family responsibilities, especially as related to their children. Currently, there is little flexibility if employees want to attend to family needs during work hours. BPBI is now looking into ways of helping its employees better meet these dual needs.
Refer to Scenario 11.2. Which of the following is NOT a family-friendly benefit that will help BPBI develop and maintain Work-Life balance?

A) allowing employees to work from home
B) allowing flexible scheduling of work hours
C) facilitating employer-paid on-site or near-site childcare facilities
D) allowing time off for children's school activities

Question 54

Employee benefits typically represent 40 percent of total payroll costs to employers.

Question 55

Which of the following is an example of a family-friendly benefit that is increasingly being used?

A) defined benefits
B) tuition reimbursements
C) eldercare
D) defined contributions

Question 56

Scenario 11.1
Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost non-existent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.
Refer to Scenario 11.1. Canadian Fasteners is a small-size firm that still needs to monitor its costs. Which of the following would be most cost-effective for the company?

A) setting up its own in-house system to be administered by the new HR manager and new staff
B) hiring a full-time benefits specialist
C) hiring a professional benefits vendor to administer the plan
D) declining to provide pension and benefits to it employees

Question 57

Which of the following is a potential outcome of family-friendly programs?

A) increase in conflict
B) increase in turnover
C) increase in risk of unionization
D) reduction of employee absenteeism

Question 58

Benefits can help employers get branded as "best employers."

Question 59

A primary objective of most benefits programs is to increase turnover.

Question 60

Scenario 11.1
Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost non-existent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients.
Refer to Scenario 11.1. Canadian Fasteners wants to take into consideration changes in the diversity and lifestyles of its workforce. Which of the following would be the best option for the company?

A) implementing a defined-benefit program
B) tailoring its benefits programs to be family friendly
C) paying employees money in lieu of benefits
D) continuing with the way it is currently doing things

Question 61

It is primarily the responsibility of the employee to remain informed about the benefits he or she receives.

Question 62

The Canada and Quebec Pension Plans both require employer and employee contributions.

Question 63

CPP and QPP have universal portability-that is, an employee has the right to claim benefit credits wherever they are employed in Canada.

Question 64

Only employees contribute to the Employment Insurance (EI) fund.

Question 65

Flexible benefits plans are also known as "cafeteria" plans.

Question 66

Many employers now offer additional health care benefits such as dental and prescription drug coverage.

Question 67

Many firms outsource their cafeteria plans to a professional vendor because of the complexity of administering the system.

Question 68

The declining cost of health care benefits provides Canadian organizations opportunities to reduce employee benefit costs.

Question 69

Employees who resign from a position or who are terminated for cause may not be eligible to collect employment insurance (EI).

Question 70

Legally required benefits amount to 50 percent of the benefits packages that Canadian employers provide.

Question 71

To reflect the social changes Canada is facing, employers are increasingly tailoring their benefits programs to be family friendly.

Question 72

Since provincial health care benefits cover basic health care services, very few employers offer supplementary health benefits.

Question 73

Employer health plans are generally restricted to medical, surgical, and hospital expenses.

Question 74

Online benefits programs allow employees self-service freedom and availability virtually any time.

Question 75

The growth in health care costs can be attributed to a number of factors, including the greater need for health care by an aging population.

Question 76

Both employees and employers make contributions toward a workers' compensation fund.

Question 77

Self-employed individuals can contribute to the Canada Pension Plan.

Question 78

The Conference Board of Canada has concluded that it is not possible to contain the cost of employee benefit programs.

Question 79

The government provides financial contributions for the Canada Pension Plan.

Question 80

Workers' compensation insurance is based on a system of individual liability.