Deck 11: Employee Benefits

Question 1

The growth in health care costs can be attributed to a number of factors. Which of the following is NOT one of those factors?

A) an aging population
B) costs associated with technological advances in medicine
C) overuse of costly health care services
D) the mandatory retirement age

Answer 1

D

Question 2

Which of the following would NOT be considered a primary objective of most benefits programs?

A) reducing turnover
B) improving employee satisfaction
C) retaining top-performing employees
D) attracting and motivating employees

Answer 2

A

Question 3

Bob Sankar, an accountant at ABM Media Inc., earns below market compensation but continues to work with the organization because of its excellent retirement benefits. In this instance, which benefits objective is most relevant?

A) cost effectiveness
B) pay competitiveness
C) attraction
D) retention

Answer 3

D

Question 4

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 5

The Meat Shop, one of Canada's best employers according to a recent survey, is considering ways to contain its rising benefits costs. Which of the following is NOT a wise option?

A) making contribution changes, such as deductibles
B) putting dollar limits on some benefits
C) instituting flexible benefits
D) making cuts to mandatory benefits

Question 6

Which of the following is NOT necessary for an organization to consider when developing its benefits program?

A) the associated costs
B) tax consequences
C) benefits other employers offer
D) the globalization of benefits

Question 7

A large portion of an organization's total payroll is devoted to employee benefits and this figure has risen over the past few decades. Which of the following has NOT contributed to this increasing cost?

A) additional benefits offered voluntarily by organizations
B) legislation forcing employers to establish some benefits
C) the use of online, interactive benefits programs
D) employers trying to match the competition

Question 8

Legally required employee benefits amount to 12 percent of the benefits packages that Canadian employers provide. Which one of the following benefits is not required?

A) employer contributions
B) employment insurance
C) workers' compensation insurance
D) retirement savings

Question 9

Which of the following do employers often use to obtain employee input regarding benefits packages?

A) performance appraisals
B) opinion surveys
C) union reports
D) psychological tests

Question 10

Which of the following is NOT a benefit provided under CPP/QPP?

A) retirement pensions
B) sick leave benefits
C) survivors' benefits
D) disability benefits

Question 11

Great Parcel Inc. has numerous office locations across Canada, including isolated areas with no access to the Internet. Which of the following would be the most efficient way 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 12

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

A) develop an HRIS system 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 13

Many organizations use the services of professional benefits vendors to administer their benefits. What is this is a form of?

A) freelancing
B) merger
C) outsourcing
D) employee empowerment

Question 14

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 15

Which of the following statements does NOT describe workers' compensation?

A) All employers pay the same premium rate to be eligible for workers' compensation.
B) Employers share collective liability, though contributions may vary among employers in the same industry.
C) Workers' compensation is based on loss of earnings.
D) The system is no-fault and nonadversarial, and thus offers no recourse to the courts.

Question 16

Which of the following is a key reason why employers need to communicate the extent and value of the benefits they provide?

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

Question 17

Which of the following statements does NOT describe management concerns about benefits?

A) Management is concerned with union demands.
B) Management is concerned with tax consequences.
C) Management is concerned with the escalating cost of health care benefits .
D) Management is concerned with promoting a shift from a self-responsibility to entitlement mindset.

Question 18

How has the diverse workforce impacted benefits programs?

A) by requiring benefit programs to consider family-friendly options
B) by requiring lower out-of-pocket costs for employees
C) by requiring greater pension contributions by employers
D) by requiring benefits packages to cover part-time as well as full-time employees

Question 19

Which of the following best describes flexible benefit plans?

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

Question 20

Which of the following is a fast, convenient, and interactive way employees can learn about or change their benefits?

A) a benefits information packet
B) personal benefit profiles
C) infrequent information stations
D) employee self-service (ESS) systems

Question 21

Which of the following is NOT a potential advantage of family-friendly benefits?

A) They help to attract valuable employees.
B) They provide higher base pay, which helps with family budgets.
C) They allow employees to manage their time better.
D) They help to reduce workplace interruptions that affect productivity.

Question 22

From a pension perspective, which of the following 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, thus putting the fund at risk of depletion.
D) Younger generations are demanding reduced pensions for those leaving the workforce.

Question 23

How are child-care programs and elder-care 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 try to maintain or increase productivity by assisting employees with their responsibilities outside the workplace.
D) Both programs offer substantial income tax benefits to employees.

Question 24

A key issue in the 2009 Toronto municipal workers' strike related to the use of banked sick days. Accumulation of sick days is generally regarded in the literature as which of the following?

A) part of an incentive plan
B) pay for time not worked
C) a mandatory benefit
D) a form of pension

Question 25

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 26

Employer-sponsored employee assistance programs (EAPs) are created to help workers overcome hurdles in their personal lives. Which of the following employees 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 day-care facilities near the office.
D) Kate Johnson, who needs help choosing an appropriate M.B.A. program.

Question 27

In Canada, registered retirement savings plans (RRSPs) have grown significantly over the past few years. Which of the following 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 28

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. Which of the following is this view based on?

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

Question 29

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 30

Tommy Lee remembers his grandfather telling him how working in the coal mines was a tough job and that if you left the employer before retirement age, you did not get your pension. Which of the following applies to this type of pension?

A) It is a form of reverse discrimination.
B) It is based on a reward philosophy.
C) It is a defined benefit plan.
D) It is based on an earnings philosophy.

Question 31

What does vesting guarantee?

A) withdrawal of benefits at any time
B) accrued pension benefits at retirement age
C) automatic funding of pension plans
D) selection of pension options

Question 32

Stella Vickram will receive a pension of $2,500 per month if she continues to work with ABC Media until she retires. She is now 45 years old. What type of plan is this?

A) a contributory plan
B) a noncontributory plan
C) a defined contribution plan
D) a defined benefit plan

Question 33

Bob Jones has just been permanently laid off from his present position. His company, ACME Manufacturing, has issued Bob a cheque that represents one month's pay for every year Bob worked at ACME. What is this cheque?

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

Question 34

Holiday pay, sick leave, and vacation pay are examples of which of the following?

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

Question 35

Bob Jindal works for RAY Vision Inc. The employer deducts money every month from his 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 noncontributory plan

Question 36

Which of the following usually increases the costs of benefits?

A) outsourcing
B) the adoption of flexible benefits
C) an increase in base pay
D) the use of deductibles

Question 37

Omar Morales, an older employee, is considering an early retirement package that his employer has offered; it includes improved benefits and cash bonuses. Which of the following applies to this inducement?

A) It is called a silver handshake.
B) It is called a golden parachute.
C) It is called a platinum cushion.
D) It is called severance pay.

Question 38

Which of the following is NOT a common reason why employees take early retirement?

A) health
B) personal finances
C) job satisfaction
D) executive perquisites

Question 39

Polaroid allows employees the opportunity to try out retirement with a leave program, or gradually reduce their work hours as they approach retirement age. This is an example of which of the following?

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

Question 40

Which of the following types of pension plan, with fixed payouts, is falling out of use?

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

Question 41

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

Question 42

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

Question 43

Which of the following is NOT an example of family-friendly benefits?

A) employer-provided child-care services
B) flexible work hours
C) subsidized dependant care
D) increased over-time requirements

Question 44

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

Question 45

Some benefits are now considered rights to which employees are entitled, rather than a gift of the employer.

Question 46

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

Question 47

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

Question 48

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

Question 49

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

A) Many full-time jobs are outsourced overseas.
B) The government is forcing firms to hire on a part-time basis.
C) Unions prefer workers to have part-time jobs.
D) Employers tend to save on compensation costs as many part-time workers do not receive voluntary benefits.

Question 50

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

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

Question 51

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

Question 52

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

Question 53

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

Question 54

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

Question 55

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

Question 56

Which of the following is NOT a benefit of family-friendly programs?

A) increasing the risk of unionization
B) reducing tardiness
C) improving productivity
D) reducing employee absenteeism

Question 57

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

Question 58

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

Question 59

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

Question 60

Which of the following is NOT a way that recessions and financial crises affect benefit programs?

A) They lead to increased use of psychological counselling programs.
B) They cause increases in unemployment benefits.
C) They lead to increased benefits from charities.
D) They often lead to increased use of referral services for alcohol and drug problems.

Question 61

"Payment for time not worked" includes statutory holiday pay, time off for bereavement, military duty, vacation pay, jury duty, rest periods, coffee breaks, and maternity leave (which usually involves some form of salary continuance).

Question 62

Long-term disability plans normally provide a disabled employee with 90-100 percent of their pre-disability income.

Question 63

Employment insurance benefits are available for illness, injury, maternity, parental, and adoption leave.

Question 64

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 65

Severance pay is a one-time payment to employees who have been terminated.

Question 66

Employee assistance programs and wellness programs cannot help organizations cut the costs of health care benefits.

Question 67

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

Question 68

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

Question 69

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

Question 70

People who have been resident in a Canadian province for three months are eligible to receive health care benefits.

Question 71

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

Question 72

In addition to paid holidays, some employers give workers additional personal use days.

Question 73

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

Question 74

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

Question 75

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

Question 76

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

Question 77

Employee benefits are a form of indirect compensation.

Question 78

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

Question 79

Health care benefits are considered "discretionary" because employers are not required by law to provide them.

Question 80

In the past two decades, more and more employees have been receiving dental care insurance as a benefit.