Deck 9: Employee Benefits

Question 1

Which of the following is a feature of a salary continuation plan?

A)It covers only work-related illness or injury.
B)It provides income protection due to long-term illness or injury.
C)It typically provides full pay for some period of time, often two or three weeks.
D)It grants a specified number of paid sick days per month or per year.
E)It typically begins paying after 26 weeks of disability and continues to age 65 or for life.

Answer 1

C

Question 2

Which of the following is true of defined contribution plan?

A)It is more favourable to long-service employees.
B)It provides an explicit benefit which is easily communicated.
C)It does not make employer costs known.
D)It makes the employer accountable for the risks associated with changes in inflation and interest rates.
E)It does not require managing of surplus or deficit in pension fund.

Answer 2

E

Question 3

Which of the following is true of defined benefit plan?

A)It makes the employee bear the risks associated with changes in inflation and interest rates.
B)It does not require managing of surplus or deficit in pension fund.
C)It is more favourable to short-term employees.
D)It allows employer costs to be known up front.
E)It provides an explicit benefit which is easily communicated.

Answer 3

E

Question 4

What is vesting?

A)It is a general strategy used to control medical benefit costs by promoting preventive health programs.
B)It is the employee's right to the employer-paid portion of pension benefits within a certain period of time even if he or she no longer works for the employer.
C)It is the negotiation some employers have with employees about wage concessions to reduce employer contributions to selected benefits.
D)It is the reduction of benefits by any amount paid under a spouse's plan.
E)It is the exclusion of new employees from benefits coverage until some term of employment is completed.

Question 5

Which of the following is true of Workers' Compensation?

A)They provide benefits for loss of earnings due to permanent disability; not temporary.
B)Employees are not eligible for cover if their actions caused the injury.
C)The complete cost of administering and paying out for the plan is borne by the employer.
D)They cover injuries and diseases that are not work-related.
E)The contributions made to the plan are subject to tax.

Question 6

Which of the following is true of Employment Insurance program?

A)It is payable even if an employee quits without good reason.
B)It is funded entirely by contributions from the employer.
C)It applies to workers who are self-employed.
D)It is not included in taxable income.
E)It provides temporary income to employees during adoption leave period.

Question 7

Which of the following factors relate to employee preferences in determining desirable components of a benefits package?

A)relationship to total compensation costs
B)competitor offerings
C)costs relative to benefits
D)legal requirements
E)perceived fairness

Question 8

Which of the following plans is funded by the employer alone?

A)defined contribution pension plans
B)Quebec pension plan
C)defined benefit pension plans
D)Employment Insurance
E)coinsurance

Question 9

are an arrangement by which employees work a reduced workweek and receive Employment Insurance benefits for the remainder of the week.

A)Employee assistance programs
B)Supplementary unemployment benefit plans
C)Vesting programs
D)Work-sharing programs
E)Workers' compensation plans

Question 10

refers to a specified dollar amount of claims paid by the employee each year before insurance benefits begin.

A)Deductible
B)Benefit cutback
C)Vesting
D)Wage concession
E)Coinsurance

Question 11

Disability benefits are payable to contributors who sustain a severe, prolonged mental or physical disability and are payable until age when the retirement pension begins.

A)⁴⁵ B)⁵⁰ C)⁵⁵ D)⁶⁰ E)⁶⁵

Question 12

Which one of the following is offered at the discretion of the employer?

A)Employment Insurance
B)Canada Pension Plan
C)life Insurance
D)Quebec Pension Plan
E)Workers' Compensation

Question 13

is an employer-sponsored pension plan where employee benefits are calculated based on a formula using factors such as salary history and employment duration.

A)defined contribution pension plan
B)Employment Insurance plan
C)defined benefit pension plan
D)Quebec pension plan
E)employment assistance plan

Question 14

Which of the following employee benefits is NOT legally required?

A)government-sponsored medical plan
B)employee assistance plan
C)Workers' Compensation
D)Employment Insurance
E)Quebec Pension Plan

Question 15

Which of the following statements about employee benefits is true?

A)Employee benefits are not part of a company's total compensation package.
B)Employee benefits are mostly not taxable.
C)Employee benefits of all types are discretionary and are not mandated by law.
D)Employee benefits of all types are mandated by law and are not discretionary.
E)Employee benefits are funded either by the government or the employer; not the employee.

Question 16

Under which of the following cost containment strategies are the benefits of an employee reduced by any benefits payable under his or her spouse's plan?

A)coordination of benefits
B)deductibles
C)coinsurance
D)administrative cost containment
E)benefit maximums

Question 17

Which of the following is an employee benefit required by law?

A)employee stock ownership plan
B)severance pay plan
C)employee assistance plan
D)payments for vacation
E)Employment Insurance

Question 18

Which of the following is true of long-term disability plans?

A)The payments typically begin after 48 weeks of disability.
B)They usually provide 50 percent to 75 percent of the employee's base pay.
C)They provide protection only if the disability was caused due to the nature of work.
D)They provide a fixed annual income to all retired employees.
E)They are taxable if the employee pays the full cost of the plan.

Question 19

Which of the following is a strategy used by managers to control the costs of health care?

A)offering defined benefit pension plans
B)offering long-term disability plans
C)offering a short vesting period on pension plans
D)offering wellness programs
E)offering workers' compensation insurance

Question 20

An employee assistance plan (EAP)is a formal employer program that provides employees with:

A)child care services and elder care.
B)counselling for mental health issues.
C)income protection for disability.
D)vision care and dental insurance.
E)pay for the extra number of hours worked.

Question 21

Employees perceive benefits as being dependent on how well they perform.

Question 22

In defined benefit plan, employees assume the risks associated with changes in inflation and interest rates.

Question 23

Which of the following provides temporary income replacement for employed Canadians who face employment interruptions due to shortage of work or sickness?

A)Supplementary Unemployment Benefit Plans
B)Employment Insurance
C)Old age Security Program
D)Workers' Compensation
E)Quebec Pension Plan

Question 24

Any evaluation of employee benefits must be placed in the context of total compensation costs.

Question 25

Flexible benefits help companies save on cost.

Question 26

Benefits need not be externally equitable.

Question 27

Which method of financing benefit plans allows costs to be shared between employer and employee?

A)non-contributory
B)ESOPs
C)employee financed
D)income-security
E)contributory

Question 28

Employer-sponsored plans that provide pay to an employee when he/she is unable to work because of a non-work-related illness or injury are termed as plans.

A)sick leave
B)defined contribution
C)employee assistance
D)salary continuation
E)defined benefit

Question 29

Which of the following is a disadvantage of flexible benefit plans?

A)Flexible plans make introduction of new benefits more costly.
B)Flexible plans are not suited for companies with diverse workforce.
C)Flexible plans decrease the value of benefits as perceived by employees.
D)Flexible plans increase administrative burdens and expenses.
E)Flexible plans fail to equip firms to meet the changing needs of employees.

Question 30

Most employee benefits are not taxable and thus offer a cost advantage.

Question 31

Claims processing determines whether an employer has an obligation to fulfill a promise of payment when an employee asserts that disability or hospitalization has occurred.

Question 32

Which of the following is the most frequently used method of communicating benefits to employees?

A)employee discussion
B)intranet
C)employee handbook
D)video presentation
E)group seminar

Question 33

Supplementary unemployment benefit plans and work-sharing programs are mandatory benefits.

Question 34

Employment Insurance is a government-mandated employment-related benefit.

Question 35

Flu shot programs, staff appreciation events and first aid/CPR programs are in the top 10 wellness initiatives offered by employers.

Question 36

Long-term disability plans provide income protection due to long-term illness or injury that is not work-related.

Question 37

Because future cost estimates may be difficult to project, it is imperative that benefits administrators reduce uncertainty.

Question 38

Disability income payments cannot be limited to some maximum percentage of income.

Question 39

Flexible plans make introduction of new benefits more costly.

Question 40

A disadvantage of the traditional benefits package was that a package was designed with the average employee in mind, and any deviations in needs simply went unsatisfied.

Question 41

What is the purpose of Workers' Compensation?

Question 42

List the key issues in benefits planning, design, and administration.

Question 43

What is the purpose of Canada Pension Plan?

Question 44

What can be attributed to the growth in employee benefits?

Question 45

What is the reason behind defined-contribution plans gaining popularity over defined-benefit plans?

Question 46

How can medical benefit costs be controlled?

Question 47

Who contributes to the Employment Insurance (EI)?

Question 48

Describe the two general strategies for controlling medical benefit costs.

Question 49

Describe the three types of disability plans: short-term disability, sick leave, and long-term disability plans.

Question 50

List three disadvantages of a flexible benefit program.

Question 51

Which is the biggest cost-containment strategy used in benefit programs in recent years?