Question 1

David, the HR vice president at Redding Co., evaluates responses from an employee survey at the company's annual benefits presentation. He concludes that many employees are confused about their options for health insurance, and they are often unhappy with the policy they choose. What should David do about this situation?

Accepted Answer

A)   accept that it is difficult for employees to understand the value of insurance
B)   save money by reducing printed messages about health insurance
C)   downplay the role of health insurance in the benefits package, relative to other benefits
D)   discontinue health insurance, since it is a source of dissatisfaction
E)   introduce software that will guide employees to the insurance option for their needsF) A) and E)
G) None of the above

Question 2

According to the Financial Accounting Standards Board, employers fund retirement benefits on a pay-as-you-go basis.

Accepted Answer

A) True 
 B)False

Question 3

What is legally required by an organization while offering early-retirement incentives?

Accepted Answer

A)   setting an age at which retirement benefits stop growing
B)   asking female employees to pay more to defined-benefit plans
C)   ensuring there is no coercion used to force employees to retire
D)   asking employees to sign compulsory waiver under ERISA
E)   providing employees no more than 48 hours to make an early retirement decisionF) A) and D)
G) A) and C)

Question 4

Allen, the CEO of a company, considers dropping medical insurance from the list of benefits provided to its employees. Monique, the operations director, disagrees with Allen by stating that medical insurance is a high-value benefit. Which of the following supports Monique's statement?

Accepted Answer

A)   Companies that do not provide medical insurance cannot have their retirement plans considered as qualified plans.
B)   Most employees do not appreciate what health insurance costs the employer.
C)   Medical insurance plans do not cover mental illness.
D)   A health insurance rate is higher than a general insurance rate.
E)   Employees usually realize that surgery or a major illness can be financially devastating.F) A) and D)
G) A) and C)

Question 5

Fred, the vice president of Gallway Co., plans to introduce a retirement plan for all employees. Ron, the operations director, disagrees because the proposed plan would increase the company's costs. Which statement, if true, strengthens Fred's argument?

Accepted Answer

A)   Some benefits have become so common that today's employees expect them.
B)   Benefits packages are more complex than pay structures.
C)   The employees at Gallway Co. are young adults who prefer cash compensation to benefits.
D)   Benefits packages do not affect the competitive nature of the labor market.
E)   The federal government does not have mandatory requirements for specific retirement plans.F) A) and C)
G) A) and E)

Question 6

What is an example of a defined-contribution pension plan?

Accepted Answer

A)   consumer-driven pension plan
B)   money purchase plan
C)   cost-sharing plan
D)   flexible spending account plan
E)   unfunded PBGC planF) A) and C)
G) C) and D)

Question 7

Under the Family and Medical Leave Act, which criteria makes employees eligible to take unpaid family leave?

Accepted Answer

A)   They should be working for an organization with 50 or more employees within a 75-mile radius.
B)   They should be working at least 15 hours per week.
C)   They should have worked for the employer for more than 5 years.
D)   They should belong to the top 10 percent of highest paid executives.
E)   They should be working for an organization with at least 100 employees.F) B) and C)
G) All of the above

Question 8

What must be true for a pension plan to be deemed a qualified plan?

Accepted Answer

A)   It must not discriminate in favor of an organization's highly compensated employees.
B)   It must not be a cafeteria-style plan.
C)   It should include elder care and child care.
D)   It has to be a defined-contribution plan.
E)   It has to be a defined-benefit plan that requires most of the funding to come from the employer.F) D) and E)
G) B) and D)

Question 9

Chad finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. Which statement is true?

Accepted Answer

A)   He will receive full retirement benefits.
B)   He will receive retirement benefits only according to his earnings history.
C)   He will not be eligible for worker's compensation.
D)   He will receive benefits at a permanently reduced level.
E)   His exempt amount limits will be lifted.F) D) and E)
G) B) and D)

Exam 14: Providing Employee Benefits

Allen, the CEO of a company, considers dropping medical insurance from the list of benefits provided to its employees. Monique, the operations director, disagrees with Allen by stating that medical insurance is a high-value benefit. Which of the following supports Monique's statement?

Correct Answer
verified

According to the Financial Accounting Standards Board, employers fund retirement benefits on a pay-as-you-go basis.

Correct Answer
verified

What must be true for a pension plan to be deemed a qualified plan?

Correct Answer
verified

What is an example of a defined-contribution pension plan?

Correct Answer
verified

Chad finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. Which statement is true?

Correct Answer
verified

Correct Answer
verified

Fred, the vice president of Gallway Co., plans to introduce a retirement plan for all employees. Ron, the operations director, disagrees because the proposed plan would increase the company's costs. Which statement, if true, strengthens Fred's argument?

Correct Answer
verified

Under the Family and Medical Leave Act, which criteria makes employees eligible to take unpaid family leave?

Correct Answer
verified

What is legally required by an organization while offering early-retirement incentives?

Correct Answer
verified

Exam 14: Providing Employee Benefits

Allen, the CEO of a company, considers dropping medical insurance from the list of benefits provided to its employees. Monique, the operations director, disagrees with Allen by stating that medical insurance is a high-value benefit. Which of the following supports Monique's statement?

Correct AnswerverifiedShow Answer

According to the Financial Accounting Standards Board, employers fund retirement benefits on a pay-as-you-go basis.

Correct AnswerverifiedShow Answer

What must be true for a pension plan to be deemed a qualified plan?

Correct AnswerverifiedShow Answer

What is an example of a defined-contribution pension plan?

Correct AnswerverifiedShow Answer

Chad finds that he meets the eligibility requirements for Social Security. He elects to receive retirement benefits at 62. Which statement is true?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Fred, the vice president of Gallway Co., plans to introduce a retirement plan for all employees. Ron, the operations director, disagrees because the proposed plan would increase the company's costs. Which statement, if true, strengthens Fred's argument?

Correct AnswerverifiedShow Answer

Under the Family and Medical Leave Act, which criteria makes employees eligible to take unpaid family leave?

Correct AnswerverifiedShow Answer

What is legally required by an organization while offering early-retirement incentives?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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