Question 1

Flexible-benefit plans are also called ____ plans.

Accepted Answer

Flexible plans are also called cafeteria plans because they provide a "menu," or choice of benefits, from which employees select.

Question 2

Corva Inc.provides a group life insurance for all its employees.Which of the following is true in this context?

Accepted Answer

If Corva Inc. provides a group life insurance, its employees will have the option of purchasing more insurance at their own expense. Generally, the employer provides a minimum coverage, usually $10,000 to $20,000. Employees often have the option to purchase more insurance at their own expense.

Question 3

Define the following: defined-benefit plans,defined-contribution plans,cash-balance plans,401(k)plans,and 403(b)plans.

Accepted Answer

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Question 4

Employees at Jupiter Systems Inc.are given the option of taking a holiday on the first day of the year.This is an optional holiday,which the employees may use or save it for some other purpose.Such holidays are referred to as ____.

Accepted Answer

Such holidays are referred to as floating holidays. Floating holiday is observed at the discretion of the employee or the employer.

Question 5

Unicorn Energies Inc.is planning its retirement and pension plans.Discuss the different schemes related to these plans that the company needs to know.

Accepted Answer

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Question 6

Three Crescent Inc.offers its employees the option of flexible-benefit plans.In this context,which of the following is a requirement resulting from Internal Revenue Code's Section 125 and/or The Deficit Reduction Act (DEFRA)?

Accepted Answer

Under flexible-benefit plans, Three Crescent Inc.'s employees will not be allowed to carryover individual balances if the selected benefits are not fully used. According to Section 125 and/or DEFRA, no cash-out or carryover of individual balances is allowed if the selected benefits are not fully used. In other words, any monies left in an account at the end of the year must be forfeited.

Question 7

Describe the employee benefits under social security.

Accepted Answer

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Question 8

Why is it important for organizations to communicate the benefit package to their employees?

Accepted Answer

The answer of Why is it important for organizations to...

Question 9

Describe insurance-related benefits.

Accepted Answer

The answer of Describe insurance-related benefits....

Question 10

Holidays that are observed at the discretion of the employee or employer are termed ____.

Accepted Answer

Floating holiday is observed at the discretion of the employee or the employer.

Question 11

Describe unemployment compensation.

Accepted Answer

The answer of Describe unemployment compensation....

Question 12

Flexible benefit plans are attractive because:

Accepted Answer

Under a flexible-benefit plan, individual employees have some choice as to specific benefits each will actually receive; usually employees select from among several options how they want their direct compensation and benefits to be distributed.

Question 13

LN Inc.offers a Roth IRA retirement plan to all its employees.Which of the following is true in this context?

Accepted Answer

The Roth IRA allows for nondeductible contributions of up to $5,500 annually ($11,000 married filing jointly), less the total amounts contributed to any other IRAs. In order for withdrawals from a Roth IRA to be qualified as tax free, the withdrawals must have been made for at least five years, after the attainment of age 59^1/2, or due to death or disability, or for first-time home buyer expenses up to a lifetime limit of $10,000.

Question 14

Explain the purposes of the Employee Retirement Income Security Act (ERISA)and the Retirement Equity Act.

Accepted Answer

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Question 15

Discuss the concept of early retirement as a benefit.

Accepted Answer

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Question 16

Describe workers' compensation.

Accepted Answer

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Question 17

Discuss the concept of flexible-benefit plans.

Accepted Answer

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Question 18

Flexible-benefit plans may be of interest to organizations for all of the following reasons EXCEPT:

Accepted Answer

Unions often oppose flexible plans because they are required to give up control over the program details or face losing some of their previously negotiated benefit improvements.

Question 19

The retirement plan of Cosvo Autos Inc.offers cliff vesting to its employees.Which of the following is true in this context?

Accepted Answer

Under cliff vesting, no vesting is provided during the first five years of service and the participant becomes vested after five years of service.

Question 20

Why are employees often unaware of the benefits their organizations offer?

Accepted Answer

Many surveys have shown that employees often do not understand the benefit programs their respective companies provide. Organizations do not make much of an effort to communicate their employee benefits.

Quiz 15: Employee Benefits