Question 1

The ______ benefit plans allow employees to choose exactly the set of benefits that they desire,within specified monetary limitations.
A) full-choice
B) less-choice
C) non-choice
D) rigid-choice

Accepted Answer

Full-choice benefit plans give employees the freedom to select the benefits they prefer or need. They can adjust their coverage, deductibles, co-payments or wellness programs, all within a given budget. This empowers employees, who can choose employer coverage plans that fit best with their lifestyles, financial capacity, or medical needs.

Question 2

While not required,many U.S.employers provide employees with some paid holidays,sick leave,and/or vacation time.These voluntary benefits fall under the category of ______.
A) paid time off
B) group health insurance
C) employee services
D) retirement plans

Accepted Answer

Paid holidays, sick leave, and vacation time all fall under the category of paid time off, which is a type of voluntary benefit provided by some U.S. employers. Group health insurance, employee services, and retirement plans are different categories of employee benefits.

Question 3

Many organizations will provide ______ insurance policies to provide for survivors of an employee who dies while employed by the company.
A) individual term life
B) Social Security
C) group term life
D) workers' compensation

Accepted Answer

Group term life insurance policies are designed specifically to provide life insurance coverage to a group of people, typically employees of a company. These policies can be offered as a benefit to employees and can provide coverage for a certain multiple of the employee's salary. In the event that an employee passes away while covered under the group policy, the policy will pay out a death benefit to the employee's beneficiaries.

Question 4

______ benefit plans provide employees with several basic options for benefits packages from which they can select the one that best matches their life and family circumstances.
A) Singular
B) Vesting
C) Modular
D) Utilization

Accepted Answer

Modular benefit plans provide employees with a menu of options from which to choose, allowing them to select the best benefits package for their personal and family circumstances. This approach is becoming increasingly common as more organizations recognize that there is no "one size fits all" solution when it comes to employee benefits.

Question 5

The most well-known retirement plan in U.S.companies today is the ______.
A) Variable Pay
B) Vesting
C) Utilization analysis
D) 401(k)

Accepted Answer

The 401(k) is a popular retirement plan in the U.S. It allows employees to contribute a portion of their salary into the plan, and employers often offer matching contributions. This plan offers tax benefits and flexibility in investment options for employees. Options A, B, and C are not retirement plans but rather related concepts: Variable Pay refers to performance-based compensation, Vesting refers to an employee's ownership of company contributions to a retirement plan, and Utilization Analysis refers to a review of employee skills and workloads.

Question 6

Rachel's organization offers flexible benefits.Rachel receives some of the same benefits as everyone else in the organization,such as health,dental,and life insurance.However,Rachel was also able to add tuition reimbursement and elder care assistance to her benefits package.Rachel's organization is offering a ______ flexible benefits plan.
A) modular
B) core-plus
C) full-choice
D) defined benefit

Accepted Answer

Rachel's organization is offering a core-plus flexible benefits plan, as she receives some core benefits that everyone else in the organization receives, and is also able to add additional benefits such as tuition reimbursement and elder care assistance.

Question 7

Erin knows exactly what benefits she will receive when she retires.She has worked for the same organization for 20 years and will receive 65% of the average of her two highest years of pay.Erin's retirement plan is a ______ plan.
A) defined benefit
B) defined contribution
C) vesting
D) experience

Accepted Answer

A defined benefit plan is a retirement plan where an employer promises to pay a specified retirement benefit to employees, based on a specific formula, typically taking into account salary history and years of service. Erin's retirement plan matches this description, as she will receive 65% of the average of her two highest years of pay.

Question 8

Nubia's organization provides group health insurance.The plan covers "major medical" costs for each employee in any given year that total more than $10,000.Her group health insurance is a ______.
A) fee-for-service plan
B) health maintenance organization
C) high-deductible health plan
D) health savings account service

Accepted Answer

Nubia's group health insurance is a high-deductible health plan (HDHP) because it covers major medical costs that exceed a certain amount, which is $10,000 in this case. HDHPs typically have lower monthly premiums but higher deductibles than other types of health insurance plans, and they are often paired with health savings accounts (HSAs) that allow employees to save money tax-free to pay for medical expenses.

Question 9

Chelsea's organization offers flexible benefits.During the open enrollment period,Chelsea can choose any benefits she wants.She selects several benefits,including elder care coverage to help her take care of her mother and extra dental coverage because she knows her daughter will need braces this year.Chelsea's organization is offering a ______ flexible benefits plan.
A) modular
B) core-plus
C) full-choice
D) defined benefit

Accepted Answer

Chelsea is able to choose any benefits she wants during the open enrollment period which indicates that her organization is offering a full-choice flexible benefits plan, where employees have complete control over the benefits they choose.

Question 10

In a ______ plan,there is a base set of benefits,called the core,that are provided to everyone,and then employees are allowed to choose other options to meet personal needs and desires.
A) core-minus
B) core-plus
C) core-less
D) core-flex

Accepted Answer

A core-plus plan provides a base set of benefits (the core) to all employees and then allows them to choose additional options to meet their personal needs and desires. This is different from a core-minus plan, which provides a base set of benefits but allows employees to opt-out of certain benefits, and a core-less plan, which does not provide a base set of benefits at all. Core-flex is not a commonly used term in the context of benefits plans.

Question 11

In a ______,the amount received upon retirement will depend on the success of the investment of the retirement funds over the years.
A) utilization analysis
B) vesting
C) defined contribution plan
D) defined benefit plan

Accepted Answer

In a defined contribution plan, the amount received upon retirement is determined by the amount contributed by the employee and employer, as well as the investment returns on those contributions. In contrast, a defined benefit plan guarantees a specific amount of benefits upon retirement regardless of the investment performance. Utilization analysis is not a type of retirement plan, and vesting refers to an employee's ownership of employer contributions to their retirement plan.

Question 12

Under a ______ the employee does not know what their retirement benefit will be.
A) utilization analysis
B) defined contribution plan
C) vesting plan
D) defined benefit plan

Accepted Answer

Under a defined contribution plan, the employer contributes a set amount or a percentage of the employee's salary to the retirement account. However, the retirement benefit is not fixed or guaranteed as it depends on the performance of the investments made with the contributions. Therefore, the employee does not know what their retirement benefit will be, unlike a defined benefit plan, where the retirement benefit is predetermined based on factors such as salary and years of service.

Question 13

A ______ provides the retiree with a specific amount and type of benefits that will be available when the individual retires.
A) defined benefit plan
B) undefined benefit plan
C) defined contribution plan
D) undefined contribution plan

Accepted Answer

A defined benefit plan provides a specific amount and type of benefits that will be available when the individual retires. The other options, undefined benefit plan, defined contribution plan, and undefined contribution plan do not provide a specific amount and type of benefits.

Question 14

______ benefits include a group of options such as vacation time/annual leave,severance pay,personal time off,sick days,and holidays.
A) Workers' compensation
B) Utilization analysis
C) Vesting
D) Paid time off

Accepted Answer

The benefits listed (vacation time/annual leave, severance pay, personal time off, sick days, and holidays) are all types of paid time off. This option is sometimes referred to as PTO, and it allows employees to take time off from work while still receiving pay.

Question 15

Myra's organization provides group health insurance.Under her coverage,Myra can see any physician or go to any medical facility.However,if she goes to a physician or facility outside those identified by her plan,she will have to pay a larger percentage of the costs.Her group health insurance is a ______.
A) fee-for-service plan
B) health maintenance organization
C) preferred provider organization
D) health savings account service

Accepted Answer

Myra's insurance plan is a preferred provider organization (PPO) because she can choose any physician or medical facility but will have higher costs if she goes outside of the network of preferred providers. A PPO is a type of managed care organization that contracts with medical providers to provide services at a discounted rate, but also allows patients to see out-of-network providers for a higher cost.

Question 16

Alexander's organization offers flexible benefits.The plan has five packages from which Alexander can choose.His organization is offering a ______ flexible benefits plan.
A) modular
B) core-plus
C) full-choice
D) defined benefit

Accepted Answer

A modular flexible benefits plan offers a set of pre-designed packages from which employees can choose, which aligns with the description of Alexander's organization offering five packages.

Question 17

Under a ______ the retiree knows exactly what they are going to receive in benefits when they retire.
A) undefined benefit plan
B) undefined contribution plan
C) defined benefit plan
D) defined contribution plan

Accepted Answer

A defined benefit plan is a retirement plan where the employer guarantees a certain benefit amount to the employee upon retirement, based on a specific formula. This means the retiree knows exactly what they will receive in benefits, regardless of market fluctuations or other factors. Conversely, under an undefined benefit plan or defined contribution plan, the retiree's benefits are not guaranteed and may vary based on the performance of the plan's investments.

Question 18

A ______ identifies only the amount of funds that will go into a retirement account,not what the employee will receive upon retirement.
A) defined benefit plan
B) utilization analysis
C) vesting
D) defined contribution plan

Accepted Answer

A defined contribution plan only identifies the amount of funds that will go into a retirement account, not what the employee will receive upon retirement. The actual benefit received upon retirement will depend on the performance of the investments in the account. Defined benefit plans, on the other hand, specify the benefit that the employee will receive upon retirement, often based on factors such as years of service and salary history. Utilization analysis and vesting are not directly related to retirement benefits.

Question 19

Michel puts $17,500 into his 401(k)retirement plan each year.This type of retirement plan is a ______.
A) defined benefit
B) defined contribution
C) vesting
D) experience

Accepted Answer

Michel's retirement plan is a defined contribution plan because he is contributing a set amount of money per year. Defined benefit plans, on the other hand, guarantee a specific payment amount upon retirement, regardless of how much the individual contributes. Vesting refers to the process of becoming entitled to full ownership of employer-provided retirement funds. Experience is not a term related to retirement plans.

Question 20

Isobel's organization offers several sets of benefits.One set would appeal to young single employees because it provides more paid time off for personal activities and no reimbursements for childcare expenses.Another set would likely appeal parents with young children because it does provide childcare reimbursements and other benefits important to parents such as life insurance.Isobel's organization is offering a ______ flexible benefits plan.
A) modular
B) core-plus
C) full-choice
D) defined benefit

Accepted Answer

The organization is offering a modular flexible benefits plan, where different sets or "modules" of benefits are designed to meet the needs of different groups of employees, such as young single employees and parents with young children.

Quiz 13: Employee Benefits

The ______ benefit plans allow employees to choose exactly the set of benefits that they desire,within specified monetary limitations.

While not required,many U.S.employers provide employees with some paid holidays,sick leave,and/or vacation time.These voluntary benefits fall under the category of ______.

Many organizations will provide ______ insurance policies to provide for survivors of an employee who dies while employed by the company.

______ benefit plans provide employees with several basic options for benefits packages from which they can select the one that best matches their life and family circumstances.

The most well-known retirement plan in U.S.companies today is the ______.

Erin knows exactly what benefits she will receive when she retires.She has worked for the same organization for 20 years and will receive 65% of the average of her two highest years of pay.Erin's retirement plan is a ______ plan.

Nubia's organization provides group health insurance.The plan covers "major medical" costs for each employee in any given year that total more than $10,000.Her group health insurance is a ______.

In a ______ plan,there is a base set of benefits,called the core,that are provided to everyone,and then employees are allowed to choose other options to meet personal needs and desires.

In a ______,the amount received upon retirement will depend on the success of the investment of the retirement funds over the years.

Under a ______ the employee does not know what their retirement benefit will be.

A ______ provides the retiree with a specific amount and type of benefits that will be available when the individual retires.

______ benefits include a group of options such as vacation time/annual leave,severance pay,personal time off,sick days,and holidays.

Alexander's organization offers flexible benefits.The plan has five packages from which Alexander can choose.His organization is offering a ______ flexible benefits plan.

Under a ______ the retiree knows exactly what they are going to receive in benefits when they retire.

A ______ identifies only the amount of funds that will go into a retirement account,not what the employee will receive upon retirement.

Michel puts $17,500 into his 401(k) retirement plan each year.This type of retirement plan is a ______.