Question 1

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.

Accepted Answer

Family-friendly benefits do not necessarily provide higher base pay, as they are designed to support employees with work-life balance and family responsibilities, rather than increasing their compensation directly.

Question 2

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.

Accepted Answer

The aging of baby boomers in Canada is putting pressure on the pension fund as there are fewer contributions to the fund by younger generations and more withdrawals to fund pensions for baby boomers, which can result in the depletion of the fund. This is a key issue from a pension perspective, as it affects the sustainability of the pension system in the long run. A and B are not key issues related to the aging of baby boomers in Canada in the context of pensions. D is also not a key issue as younger generations demanding reduced pensions for those leaving the workforce would not address the issue of a potential depletion of the pension fund.

Question 3

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.

Accepted Answer

Both childcare and eldercare programs are designed to help employees balance their caregiving responsibilities outside of work with their work responsibilities, with the ultimate goal of maintaining or increasing productivity. Both programs may also offer flexible scheduling options or resources, such as counseling or referrals, to assist caregivers. However, the other options (A, B, and D) are incorrect. Most caregivers in both childcare and eldercare programs are women, on-site care facilities are not offered by all programs, and tax benefits may vary or not be substantial.

Question 4

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

Accepted Answer

Accumulation of sick days is generally regarded as pay for time not worked, as it allows employees to receive compensation for sick time even if they do not use all of their allotted sick days in a given year. This can be a contentious issue in labor negotiations, as employers may argue that banked sick days represent an unnecessary cost, while employees may view them as a valuable benefit.

Question 5

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

Accepted Answer

As per the collective bargaining agreement, the employer and the union have the authority to negotiate and agree upon any changes or additions to the benefits package. Therefore, they will determine any new package through negotiations and mutual agreement. The government's involvement is not necessary in this situation.

Question 6

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.

Accepted Answer

Employee assistance programs are designed to offer help and support to employees struggling with personal issues that affect their work performance. Substance abuse is a common problem among employees, and EAPs often provide counseling, referrals to treatment facilities, and support services to help individuals overcome addiction. While legal and career-related challenges can also be addressed by EAPs, the emphasis is usually on addressing personal problems that may impact workplace productivity or morale. Therefore, the employee most likely to receive help under a typical EAP is John Jones, who needs assistance to overcome a chemical dependency problem.

Question 7

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.

Accepted Answer

The key reason for the growth of registered retirement savings plans (RRSPs) in Canada is that the funds accumulate tax-free until they are withdrawn. This tax-free growth is an attractive feature for Canadians looking to save for retirement. While the other options may contribute to the growth of RRSPs, they are not the key reason.

Question 8

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

Accepted Answer

The view that pension plans provide deferred income that belongs to employees after a specified number of years of service is based on an earnings philosophy, where pension benefits are seen as an earned part of an employee's compensation package. This philosophy has become increasingly popular in recent years, as employers have moved away from pay-as-you-go pension systems and towards defined benefit and defined contribution plans. Provincial law may play a role in regulating pension plans, but it is not the basis for this particular view. A reward philosophy may be relevant to the design of a pension plan, but it does not capture the idea that pension benefits are earned by employees.

Question 9

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

Accepted Answer

Vested benefits are guaranteed to the employee and cannot be taken away by the employer. This incentivizes employees to stay loyal and committed to their employer.

Question 10

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.

Accepted Answer

The answer of Tommy Lee remembers his grandfather telling him...

Question 11

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

Accepted Answer

Vesting guarantees that an employee has earned the right to receive accrued pension benefits at retirement age. It does not allow for withdrawal of benefits at any time, automatic funding of pension plans, or selection of pension options.

Question 12

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

Accepted Answer

This is a defined benefit plan where the pension amount is pre-determined and based on factors such as age, salary, and years of service. The employee does not have to contribute to the plan, and the employer assumes the investment risk to ensure the promised benefits can be paid out.

Question 13

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

Accepted Answer

The cheque represents Bob's severance pay, as it is a lump sum payment given to an employee who has been permanently laid off as a form of compensation for losing their job. It is typically calculated based on the employee's years of service with the company.

Question 14

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

Accepted Answer

Holiday pay, sick leave, and vacation pay are all forms of payment for time not worked.

Answer: B 
 Holiday pay, sick leave, and vacation pay are also benefits required by law in some states and countries.

Question 15

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

Accepted Answer

A contributory plan is a pension plan in which both the employer and the employee contribute to the plan.

Question 16

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

Accepted Answer

an increase in base pay can lead to an increase in the costs of benefits because many benefits are calculated as a percentage of base pay, such as retirement contributions or life insurance coverage. As base pay increases, so do these costs. Outsourcing can potentially decrease costs, flexible benefits can actually help control costs by allowing employees to choose which benefits they need, and deductibles shift some costs to employees rather than increasing the costs overall.

Question 17

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.

Accepted Answer

The inducement offered to Omar Morales is called a silver handshake. This is a retirement package offered to older employees that typically includes enhanced benefits and cash bonuses. It is designed to incentivize early retirement and reduce the number of employees while offering attractive options for those who choose to leave. A golden parachute is typically an arrangement in which top executives receive generous benefits if there is a change in ownership or control of the company. Severance pay is a type of compensation provided to employees who are laid off or terminated without cause. There is no common term known as a platinum cushion.

Question 18

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

Accepted Answer

Executive perquisites (also known as perks) are benefits or privileges given to top-level employees or executives. This is not typically a reason why employees take early retirement. The other options (health, personal finances, and job satisfaction) are common reasons why employees may choose to retire early.

Question 19

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

Accepted Answer

The option provided by Polaroid for employees to either try out retirement or gradually reduce work hours as they approach retirement age is an example of a pre-retirement program. Such programs are designed to help employees transition into retirement and provide them with more flexibility and control over their work schedule as they approach retirement age. Severance leave, family-friendly benefits, and CPP/QPP are all different types of employee benefits or compensation programs that are not directly related to pre-retirement planning or transition.

Question 20

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

Accepted Answer

Defined benefit plans have been falling out of use in recent years, as employers shift to defined contribution plans which are less expensive to administer and transfer the risk and responsibility of retirement savings to employees. Contributory plans and RRSPs are still commonly used, but defined benefit plans are becoming less common.

Quiz 11: Employee Benefits

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

From a pension perspective, which of the following is a key issue concerning the aging of baby boomers in Canada?

How are child-care programs and elder-care programs similar?

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?

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?

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?

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?

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?

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?

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?

What does vesting guarantee?

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?

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?

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

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?

Which of the following usually increases the costs of benefits?

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?

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

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?

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