Question 1

The XYZ Company tries to influence employee food choices by stocking vending machines with l healthy food.They also offer programs to teach stress reduction techniques.Which kind of discretionary benefit program does this company sponsor?

Accepted Answer

The company sponsors a wellness program aimed at promoting healthy food choices and stress reduction techniques.

Question 2

Which type of plan appeared as one of the first discretionary benefits practices?

Accepted Answer

Retirement plans, such as pensions, were one of the first discretionary benefits practices to emerge in the early 20th century.

Question 3

Which of the following would be considered part of a company's wellness program?

Accepted Answer

Offering anti-smoking courses would be considered part of a company's wellness program as it promotes healthy behaviors and can improve the overall health of employees. Putting a soda machine in the break room, giving out cigars to expecting fathers, and giving employees free pizza at lunch would not typically be considered part of a wellness program as they can promote unhealthy behaviors.

Question 4

Which of the following benefits was previously offered on a discretionary basis,but,is now mandatory?

Accepted Answer

Health insurance was previously offered on a discretionary basis by employers, but it is now mandatory under the Affordable Care Act (ACA) for companies with over 50 employees to provide health insurance to their full-time workers.

Question 5

Which of the following is the most common type of life insurance policy offered by companies?

Accepted Answer

The most common type of life insurance policy offered by companies is term life insurance. This is because it is the simplest and most affordable type of life insurance, and it provides coverage for a specific period of time (usually 10-30 years). Group life insurance (A) is a type of insurance that is generally available to employees as part of their benefits package, while whole life (C) and universal life (D) are more complex and expensive types of permanent life insurance.

Question 6

A 401(k)plan is which of the following types of retirement benefits?

Accepted Answer

A 401(k) plan is a defined contribution retirement plan. This is because the amount contributed is defined, but the eventual benefit is not guaranteed and is dependent on investment performance.

Question 7

Outplacement assistance programs are best suited for which condition?

Accepted Answer

Outplacement assistance programs are designed to help employees who are losing their jobs due to layoffs or other similar situations such as mergers and acquisitions. These programs provide support and assistance to help employees find new employment opportunities faster and more efficiently. Therefore, B) mergers and acquisitions is the best choice.

Question 8

Due to a recent merger with another major airline,ABC Airlines decided to lay off some of its employees.ABC Airlines offers training sessions to teach job search and interviewing techniques to those laid off employees.Which kind of service was provided by this airline?

Accepted Answer

The service provided by the airline is outplacement assistance, in which the company offers resources and support to employees who have been laid off to help them find new employment opportunities. This includes training sessions on job search and interviewing techniques.

Question 9

Which of the following contributed to the use of flexible benefits plans?

Accepted Answer

Greater workforce diversity has led to the adoption of flexible benefits plans to accommodate the varying needs and preferences of a diverse employee base.

Question 10

In response to government-imposed wage freezes,many companies began offering ________ as an alternative to motivate employees through greater work benefits.

Accepted Answer

The answer of In response to government-imposed wage freezes,many companies...

Question 11

Which of the following is associated with Roth 401(k)plans?

Accepted Answer

Roth 401(k) plans require employees to pay taxes on their contributions, unlike traditional 401(k) plans where taxes are deferred. However, investment gains in Roth 401(k) plans are generally tax-free. Option B is incorrect because it describes a traditional 401(k) plan. Option C is partially correct, as investment gains in Roth 401(k) plans are not taxed, but it is incorrect to say that all investment gains are taxed. Option D is incorrect because contributions to Roth 401(k) plans are made with after-tax dollars and cannot be deducted from post-taxable income.

Question 12

You broke your neck at work.The company called to inform you that they had to switch your benefits from the short-term disability account to the long-term disability account.Based on this decision,how long have you been off work?

Accepted Answer

Long-term disability benefits typically kick in after a certain period of time, usually 90 or 180 days, which translates to 3 to 6 months. Therefore, if the company switched the benefits from short-term to long-term disability, it means that the employee has already been off work for at least 3 to 6 months.

Question 13

What type of pension plan commonly includes profit-sharing plans,stock bonus plans,and employee stock ownership plans?

Accepted Answer

The type of pension plan that commonly includes profit-sharing plans, stock bonus plans, and employee stock ownership plans is known as defined contribution plan. This plan allows the employer to contribute a certain amount to an account (usually based on a percentage of the employee's salary) and the employee can invest the funds in different options, such as stocks, bonds, or mutual funds. The amount of retirement income is based on the investment performance of the employee's contributions and any employer contributions.

Question 14

In 2014,approximately what percentages of private-sector employees and government employees,respectively,had access to an EAP?

Accepted Answer

In 2014, about 54 percent of private-sector employees and 74 percent of government employees had access to an Employee Assistance Program (EAP).

Question 15

Which government action contributed to the use of welfare benefits?

Accepted Answer

The answer of Which government action contributed to the use...

Question 16

What are the implications of discretionary benefits for strategic compensation?

Accepted Answer

The answer of What are the implications of discretionary benefits...

Question 17

The XYZ Company provides a program for its employees who need help dealing with the effects of domestic violence.The XYZ Company can offer this kind of service through which of the following programs?

Accepted Answer

The program described in the scenario is an employee assistance program (EAP), which is designed to provide counseling and other support services to employees who are facing personal or work-related challenges, such as domestic violence. A family assistance program may also provide support services, but it is typically focused on helping employees deal with issues related to caring for family members (such as child or elder care). A wellness program is focused on promoting healthy habits and lifestyle choices among employees, while an employer assistance program is not a commonly used term in the HR or benefits field.

Question 18

These represent a series of payments for the life of the participant and beneficiary.

Accepted Answer

Annuities are a type of financial product that provides a series of payments for the life of the participant and beneficiary. Collateral payments are payments made to secure a loan or debt, periodic payments may refer to any recurring payments, and lump sum distributions involve a one-time payment of a whole amount, rather than a series of payments.

Question 19

Unscheduled absenteeism has climbed to its highest levels in the XYZ Company last month.In order to reduce costs,HR professionals in the XYZ Company changed their paid time off policy.This company used to grant each employee 10 vacation days,5 paid days for sick leave,and 4 days for personal leave.With the new policy,this company combines vacation,sick leave,and personal leave policies into one paid time off policy (i.e.,19 days).The management kept funeral leave as a stand-alone policy.What is the XYZ Company's new policy called?

Accepted Answer

The XYZ Company's new policy is called "integrated paid time off" because it integrates vacation, sick leave, and personal leave into one comprehensive policy.

Question 20

Which of the following is a commonly used employer-sponsored retirement plan design?

Accepted Answer

Defined contribution plans, such as 401(k) plans, are commonly used employer-sponsored retirement plan designs. These plans allow employees to contribute a portion of their pre-tax income into an individual account, which is then invested in a variety of funds. The employer may also make contributions to the plan on behalf of the employee. At retirement, the employee will receive the value of the account, which is based on the contributions and investment returns.

Quiz 9: Discretionary Benefits