Deck 13: Employee Benefits and Services

Question 1

What is the government-sponsored program that provides weekly income benefits to a person who is unable to work through no fault of his or her own?

A) Service insurance
B) Employment insurance
C) Workers insurance
D) Labour insurance
E) Illness and injury insurance

Answer 1

B

Question 2

What is the benefit that provides pay to an employee when he or she is out of work because of a non-work related injury or illness?

A) Severance pay
B) Unemployment pay
C) Workers' compensation
D) Short-term disability/sick leave
E) Hospitalization benefits

Answer 2

D

Question 3

Which of the following factors, according to the text, is expected to increase the cost of benefits?

A) Advances in dental care
B) The looming labour shortage
C) Baby boomers
D) Employee services
E) Pension plans

Answer 3

B

Question 4

The three types of benefits provided under the Canada/Quebec Pension Plan are

A) disability, survivor, and old age security.
B) retirement, health care, and disability.
C) retirement, survivor, and old age security.
D) retirement, disability, and survivor.
E) retirement, survivor, and health care.

Question 5

Employees in Ontario and the federal jurisdiction may be eligible for what kind of additional pay in certain termination situations, in addition to pay in lieu of notice?

A) Unemployment pay
B) Notice pay
C) Exit pay
D) Severance pay
E) Terminal pay

Question 6

What is the purpose of a SUB plan?

A) To supplement EI benefits by receiving a combined benefit closer to the actual working wage
B) To provide benefits separate from EI so that employees can better maintain their standard of living during periods of unemployment
C) To supplement maternity leave for either the mother of spouse of the mother
D) To facilitate collective bargaining so that striking workers can receive strike pay without delay
E) To facilitate an agreement between an employer and the employees for benefits as needs of the employees change

Question 7

Some provinces require additional termination pay when mass layoffs occur. The amount of additional pay depends on which of the following?

A) The level of unemployment in the region
B) The employee's length of service
C) The time of year
D) The number of employees being laid off
E) The reasons for the layoff

Question 8

An employer is required to provide advance notice to an employee whose employment is being terminated, unless the employee is working on a short-term contract or which of the following?

A) The company is shutting down.
B) A layoff is occurring due to economic conditions.
C) The employee is eligible for early retirement.
D) The employee has seasonal work.
E) The employee is being fired for just cause.

Question 9

What is the benefit that provides a fixed lump-sum in addition to life insurance when death is unintentional?

A) Bereavement and home care insurance
B) Loss of life and physical injury insurance
C) Survivors' benefit and recovery insurance
D) Accidental death and dismemberment insurance
E) Casualty and injury insurance

Question 10

One or more of parental, paternity, and adoption leaves are provided in each Canadian jurisdiction. What is the range of the leave in weeks?

A) 12 to 24
B) 34 to 52
C) 9 to 25
D) 6 to 50
E) 2 to 40

Question 11

The EI benefit is generally 55% of average earnings during the last 14 to 26 weeks of what time frame?

A) Qualifying period
B) Previous calendar year
C) Probationary period
D) Previous 52 weeks
E) Benefit period

Question 12

The amount of time off provided for bereavement leave varies by jurisdiction and also depends on which of the following?

A) The employee's length of service with the company
B) Family circumstances as a result of the passing of the deceased
C) The location of the funeral particularly if it is out of country
D) The closeness of the relationship between the employee and the deceased
E) The cause of the death and any additional stress it has caused the employee

Question 13

What is he average cost of benefits, as a percentage of payroll today?

A) 30%
B) 37%
C) 50%
D) 25%
E) 10%

Question 14

What are indirect financial payments given to employees known as?

A) Financial incentives
B) Stock options
C) Perquisites
D) Commissions
E) Employee benefits

Question 15

What three benefits form the cornerstone of almost all benefits programs?

A) Life insurance, maternity leave, and supplementary health care/medical insurance
B) Life insurance, long-term disability, and supplementary health care/medical insurance
C) Long-term disability, critical illness, and life insurance
D) Life insurance, maternity leave, and pension benefits
E) Life insurance, long-term disability, and pension benefits

Question 16

Workers' compensation is, in effect, what type of insurance plan?

A) Pension
B) Bureaucratic
C) Guaranteed
D) "No cost"
E) "No fault"

Question 17

What is critical illness insurance?

A) Coverage providing a lump-sum benefit to an employee who is diagnosed with a life-threatening illness
B) Coverage for prescription drugs when an employee is diagnosed with a illness that will require a leave of absence
C) A deductible expense per year that provides a fund to be used for the purchase of drugs not covered by health insurance
D) Incremental payments made to employees who no longer can return to work
E) Coverage providing a fixed lump-sum benefit in addition to life insurance benefits when injury is accidental

Question 18

What is the agreed upon best way to manage workers' compensation claims over the long term?

A) Accident prevention
B) Privatization of workers' compensation
C) Instituting employee premiums
D) Controlling its benefits
E) Better claims monitoring

Question 19

A type of life insurance that provides lower rates than individual insurance, and includes all employees, regardless of health or physical condition, is called

A) whole life insurance.
B) group life insurance.
C) endowment insurance.
D) term insurance.
E) universal life insurance.

Question 20

What amount of life insurance does group life insurance usually provide?

A) $100,000
B) Five years' salary
C) Two years' salary
D) $25,000
E) One year's salary

Question 21

What is the fastest-growing occupational disability category?

A) Repetitive strain injuries
B) Back injuries
C) Eye strain and injuries
D) Falls from a height (including ladders)
E) Psychiatric disabilities

Question 22

What percentage of employers have implemented return-to-work programs specific to mental health?

A) 33%
B) 25%
C) 30%
D) 20%
E) 37%

Question 23

What is the biggest issue facing benefits managers in Canada today?

A) Workers' compensation costs
B) Pension funding
C) Unusual illness coverage
D) Retiree benefits
E) Increasing health care costs

Question 24

What percentage do Canadian employers pay of all health care expenses in Canada, most of which is for prescription drugs?

A) 36
B) 25
C) 40
D) 30
E) 50

Question 25

What is the type of retirement plan that does not guarantee the eventual pension benefit an employee will receive at retirement, but only what the employee and employer contributions to the plan will be called?

A) Government-sponsored plan
B) Defined contribution pension plan
C) Deferred profit-sharing plan
D) Retirement plan
E) Defined benefit pension plan

Question 26

What is known as the percentage of expenses (in excess of the deductible) that are paid for by the insurance plan?

A) Insured amount
B) Uninsured amount
C) Coinsurance level
D) Premium
E) Assessment

Question 27

Why are group RRSP/DPSP combinations popular in Canada?

A) No tax is paid at all and the money can be withdrawn any time after 5 years of retirement.
B) They increase severance payments over and above the amount legislated.
C) Employers' provide contribution to them at three times the employee contribution.
D) No tax is paid until money is received from the plans at the time of the employee's death or termination of employment.
E) Membership is automatic upon beginning employment with any registered employer in Canada.

Question 28

What is the amount of health/dental expense an employee must pay before insurance benefits will be paid called?

A) The premium
B) The fee
C) The charge
D) The supplement
E) The deductible

Question 29

What is the type of pension plan that specifies what contribution the employer will make to a retirement or savings fund set up for the employee called?

A) Government-sponsored plan
B) Defined contribution pension plan
C) Defined benefit pension plan
D) Retirement plan
E) Deferred profit-sharing plan

Question 30

The fastest growing occupational disabilities are which of the following?

A) Virus and bacteria illnesses
B) Back issues
C) Psychiatric
D) Chronic fatigue
E) Repetitive strain injuries

Question 31

What is the pension plan in which a certain amount of profit is credited to each employee's account, payable at retirement, termination, or death called?

A) Group profit pension plan
B) Defined profit pension plan
C) Defined contribution profit plan
D) Deferred profit-sharing plan
E) Group profit-sharing plan

Question 32

What is the type of pension plan that contains a formula for determining retirement benefits so that the actual benefits to be received are defined ahead of time called?

A) Money purchase pension plan
B) Defined contribution pension plan
C) Defined benefit pension plan
D) Deferred profit-sharing plan
E) Retirement plan

Question 33

Unlike government-provided retirement benefits, employer-sponsored pension plans are which of the following?

A) Self-paid
B) Easily managed
C) Fixed
D) Pre-funded
E) Flexible

Question 34

Effective disability management programs include

A) monitoring worker's compensation.
B) early and safe return-to-work policies.
C) remedial programs.
D) monitoring sick leave plans.
E) a required company medical.

Question 35

What is known as a proactive, employer-centred process that coordinates the activities of the employer, the insurance company, and healthcare providers, in an effort to minimize the impact of injury, disability, or disease on worker's capacity to successfully perform his or her job?

A) Disability management
B) Productivity management
C) Worker health management
D) Benefits management
E) Work force management

Question 36

What is the most common psychiatric disability?

A) Schizophrenia
B) Depression
C) Stress
D) Anxiety
E) Loneliness

Question 37

What are the main reasons for increasing health care benefit costs in Canada?

A) Increasing use of expensive new drugs and rising drug use by an aging population
B) "Cost cutting" in provincial health care plans and the arrival of new types of diseases
C) The rise in psychiatric and psychological needs of employees
D) Increasing stress related illnesses and associated legal costs from employee complaints
E) Increasing workers' compensation claims and the use of expensive new drugs

Question 38

The simplest approach to reducing health benefit costs of organizations is to increase the amount of health care costs paid by which of the following?

A) Employees
B) The federal government
C) Workers' compensation plans
D) Smokers
E) Provincial governments

Question 39

Common health-related insurance plans, other than supplementary health care/medical insurance, include which of the following?

A) Vision care, physiotherapy, and dental care
B) Chronic illness benefits, vision care, and dental care
C) Vision care, hearing aids, and dental care
D) Vision care, psychological counseling, and dental insurance
E) Vision care, dental care, and psychological counseling

Question 40

What is the leading cause of short- and long-term disability claims in Canada?

A) Upper body injuries
B) Mental health issues
C) Injuries to feet and legs
D) Eyesight and hearing issues
E) Mobility injuries and issues

Question 41

A pension provision whereby employees who change jobs can transfer the lump sum value of the pension they have earned to a locked-in RRSP or their new employer's pension plan is called what?

A) Non-funding
B) Vesting
C) A non-locked-in provision
D) Flexible pensions
E) Portability

Question 42

Executive perquisites are usually provided to which of the following?

A) Executives with base salaries of $100 000 or more
B) Only a few top executives
C) The CEO and the president
D) Head office executives
E) All executives

Question 43

Once an employee is vested, what triggers when he or she can receive any benefit from the pension plan?

A) Changing jobs
B) Retirement
C) At least 5 years of service
D) Disability
E) Termination

Question 44

The provincial and federal governments both contribute funds for workers' compensation.

Question 45

In a contributory pension plan, contributions are made by

A) the government and the employee.
B) the employer only.
C) the government and the employer.
D) both the employer and the employee.
E) the employee only.

Question 46

Individualized benefit plans allowed by some employers, in order to accommodate employee preferences for benefits, are known as which of the following?

A) Perquisite benefits plans
B) Flexible benefits programs
C) Individualized benefits plans
D) Constrained benefits plans
E) Family-friendly benefits

Question 47

The EI program is funded solely by contributions from eligible employees.

Question 48

Cost containment is one advantage to an employer by offering a flexible benefits plan.

Question 49

A flexible benefits plan provides fixed benefits but a flexible payment structure.

Question 50

Most group life insurance plans contain a provision for including all employees regardless of health or physical condition.

Question 51

A provision in pension plans referring to the money contributed by the employer that has been placed in a pension fund and cannot be forfeited for any reason is known as what?

A) Vesting
B) Employee equity
C) Security
D) Guarantees
E) Assurances

Question 52

A golden parachute is an executive perk in the form of a salary guarantee in which of the following circumstances?

A) Overseas transfer
B) Targeting of the company for acquisition or merger
C) Termination of employment
D) Injury to the executive in a work-related accident
E) Retirement of the executive

Question 53

Accidental death and dismemberment coverage provides annuity payments in addition to life insurance benefits when death is accidental.

Question 54

A defined benefit pension plan contains a mathematical formula to determine retirement benefits.

Question 55

In most provinces, employer pension plan contributions must be vested once the employee has completed how many years of service?

A) 3
B) 1
C) 2
D) 4
E) 5

Question 56

Unemployment benefits are meant for workers who are unable to work through no fault of their own.

Question 57

A job-related services benefit that is designed to help employees who must help aging parents or relatives who are not fully able to care for themselves is known as

A) personal care.
B) eldercare.
C) aging care.
D) family care.
E) parental care.

Question 58

Melanie has a defined contribution pension plan. She will know the actual benefits she will get ahead of time.

Question 59

Eldercare is designed to help older employees who are not fully able to care for themselves.

Question 60

What is a formal employer program for providing employees with counseling and/or treatment programs for problems such as mental health issues, marital/family problems, legal problems, or stress called?

A) Employee assistance program
B) Psychological, family, and legal benefits
C) AA and NA program
D) Crisis aid plan
E) Employee services benefit

Question 61

Briefly describe five government-sponsored employee benefits in Canada.

Question 62

Carlos has noticed that employees in his organization don't really value the benefits package his organization has designed for them. The workforce in Carlos' organization is quite diverse in age and other demographic variables. Give Carlos some advice about flexible benefits by describing what they are and be sure to tell him about at least two key advantages and disadvantages of flexible benefits.

Question 63

Identify and describe 5 different voluntary employer-sponsored benefits.