Question 1

Identify and describe 5 different voluntary employer-sponsored benefits.

Accepted Answer

The answer of Identify and describe 5 different voluntary employer-sponsored...

Question 2

Which of the following is a salary guarantee that protects executives if their firms are the targets of acquisitions or mergers?

Accepted Answer

Golden parachutes are a form of compensation that provides executives with a guaranteed payout in the event of an acquisition or merger. This payout is intended to protect the executive's financial interests and provide them with some level of security during the transition.

Question 3

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 which of the following?

Accepted Answer

Vesting refers to the right of an employee to receive the funds contributed by the employer to a pension plan. Once an employee is fully vested, they have the right to those funds and they cannot be forfeited for any reason. This is a common provision in pension plans and is often referred to as employee vesting rights. The other options are not accurate descriptions of this provision.

Question 4

Which of the following is the retirement benefit plan in which an amount of company profits is credited to each employee's account,payable at retirement,termination,or death?

Accepted Answer

The Deferred profit-sharing plan is a retirement benefit plan where a portion of company profits is credited to each employee's account, which is payable upon retirement, termination, or death. This allows employees to share in the profits of the company, with the funds typically becoming accessible under the conditions specified.

Question 5

Melanie has a defined contribution pension plan; she will know the actual benefits that she will receive ahead of time.

Accepted Answer

In a defined contribution pension plan, the contributions are defined, but the actual benefits received at retirement depend on the investment performance of the contributions, and thus cannot be known ahead of time.

Question 6

In a contributory pension plan,pension fund contributions are made by

Accepted Answer

In a contributory pension plan, both the employer and the employee make contributions to a pension fund. The contributions are typically a percentage of the employee's salary and the employer may also match a portion of the employee's contributions. This plan requires both parties to fund the employee's retirement benefits.

Question 7

According to the textbook,once an employee is vested,all pension plan contributions are "locked-in" and cannot be withdrawn by the employee on termination of employment; in this case,when must employees wait until to receive a pension from the plan?

Accepted Answer

Once an employee is vested, all pension plan contributions are "locked-in" and cannot be withdrawn by the employee on termination of employment. Employees must wait until retirement to receive a pension from the plan.

Question 8

A defined benefit pension plan contains a formula for determining retirement benefits.

Accepted Answer

A defined benefit pension plan specifies how an employee's retirement benefit will be calculated based on factors such as years of service and salary history.

Question 9

According to the textbook,why are group registered retirement savings plan/deferred profit-sharing plan combinations popular in Canada?

Accepted Answer

Group registered retirement savings plan/deferred profit-sharing plan combinations are popular in Canada because no tax is paid until money is received from the plans at the time of the employee's death or termination of employment (at retirement or otherwise). This makes it a tax-efficient way for employees to save for retirement.

Question 10

XYZ is a content marketing firm.They have clients across Canada and hire consultants across the country as well.They have no physical office and instead allow employees to work from home and connect remotely for meetings.This arrangement is referred to as

Accepted Answer

The arrangement where employees work from home and connect remotely for meetings is commonly referred to as telecommuting. This allows for flexibility and eliminates the need for a physical office space. Flextime, flexwork, compressed workweeks, and work sharing all refer to different types of work arrangements but do not necessarily involve remote work.

Question 11

Identify three advantages of offering flexible work arrangements?

Accepted Answer

The answer of Identify three advantages of offering flexible work...

Question 12

Mark works at a IT consulting firm.He has to drop his daughter at daycare every morning.Instead of beginning work at 9 a.m.and finishing at 5 p.m.,he works from 9:30 a.m.to 5:30 p.m.This arrangement is referred to as

Accepted Answer

Flextime refers to a flexible working arrangement where employees have the option to adjust their starting and ending times within a certain range, allowing for better work-life balance. This is exactly what Mark is doing by starting work at 9:30 a.m. instead of 9 a.m. to drop off his daughter at daycare first. Telecommuting refers to working from home or another location outside of the office. Flexwork and work sharing are broader terms that encompass a variety of flexible working arrangements. Compressed workweeks involve working the same number of hours but in fewer days (e.g. working four 10-hour days instead of five 8-hour days).

Question 13

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

Accepted Answer

Most group life insurance plans do not require employees to undergo individual underwriting, which means that all employees can be insured regardless of their health or physical condition. However, there may be certain exclusions or limitations based on a specific medical history or pre-existing conditions.

Question 14

Mandatory retirement is now prohibited by human rights laws across the country,employees cannot be required to retire at age 65.

Accepted Answer

Mandatory retirement is indeed prohibited by human rights laws across Canada. This means that employers cannot require employees to retire solely based on their age.

Question 15

Which of the following is the popular work arrangement that involves using technology to work away from the office?

Accepted Answer

Telecommuting involves using technology to work remotely away from the office, typically from home or another location outside of the traditional workplace. Flextime and compressed workweeks refer to adjusting the hours or days worked within the office, while flexwork can encompass a variety of arrangements including job sharing and staggered hours.

Question 16

Liz and Larry are both part-time students.They both work as a receptionist in a small business.Liz works Mondays to Wednesdays and Larry works Thursdays and Fridays.This arrangement is referred to as

Accepted Answer

Work sharing refers to a situation where two or more employees share the responsibilities of one full-time position. In this case, Liz and Larry are sharing the duties of a receptionist role over the course of a week, with each working on different days, which fits the definition of work sharing.

Question 17

Which of the following includes executive perquisites related to subsidized mortgages,purchase of the executive's current house,and payment for the actual move?

Accepted Answer

Relocation benefits typically include a variety of services designed to assist employees in relocating from one city to another. This may include subsidized mortgages, assistance with the purchase of a new home, and payment for the actual move. Golden parachutes, termination benefits, outplacement assistance, and expense accounts are not typically associated with relocation benefits.

Question 18

Accidental death and dismemberment coverage provides annual payments in addition to life insurance benefits when employees are diagnosed with but survive a life-threatening illness.

Accepted Answer

Accidental death and dismemberment coverage provides benefits in the event of accidental death or serious injury resulting in dismemberment or loss of function, but it does not provide benefits for life-threatening illnesses.

Question 19

A pension provision whereby employees who change jobs can transfer the lump-sum value of the pension that they have earned to a locked-in registered retirement savings plan or to their new employer's pension plan is referred to as which of the following?

Accepted Answer

Portability refers to the ability of an employee to transfer their pension benefits to another plan or account when changing jobs. This provides flexibility and continuity of retirement savings for individuals who may switch employers multiple times during their career.

Question 20

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

Accepted Answer

In most provinces, pension legislation requires that employer contributions be vested once the employee has completed 2 years of service. This means that the employee is entitled to the full value of the employer's contributions to the pension plan, regardless of whether or not they choose to stay with the company.

Quiz 13: Employee Benefits and Services