test bank for managing human resources 17th …...test bank for managing human resources 17th...

Test Bank for Managing Human Resources 17th

Edition by Snell

Managing Human Resources: 17th Edition Test Bank – Snell

Sample

Chapter 11

1. Benefits generally account for approximately 14 percent of payroll costs. a. True b. False

ANSWER:

POINTS:

DIFFICULTY:

LEARNING OBJECTIVES:

NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-1

United States – BUSPROG – Analytic – Business knowledge and analytic skills

United States – OH – DISC: HRM

Bloom’s: Knowledge

2. Surveys show that employees who are satisfied with their benefits are more likely to be satisfied with their jobs.

a. True b. False

ANSWER: True

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

1

Easy

MGHR.SNEL.17.11-1




3. Generation Y employees are less likely to be concerned with having pensions than Baby Boomers.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-1




4. Most online benefits systems are adaptable and transfer information with full security.

a. True b. False

ANSWER: False

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

1

Moderate

MGHR.SNEL.17.11-1



Bloom’s: Comprehension

5. There has been a reduction in the number of single-parent families and two-earner couples in the workplace than there have been in the decades past.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-11 – MGHR.SNEL.17.11-1




6. Typically, employees are offered a basic or core benefits package of life and health insurance, sick leave, and vacation.

a. True b. False

ANSWER: True

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

1

Easy

MGHR.SNEL.17.11-1




7. Employers are tailoring their benefits programs to be family-friendly, because employees desire more work-life balance.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Moderate

MGHR.SNEL.17.11-1




8. A need for a new benefit should be established through consultation with employees before it is introduced.

a. True b. False

ANSWER: True

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

1

Easy

MGHR.SNEL.17.11-1




9. To accommodate the individual needs of employees, it would be desirable for employers to implement a cafeteria plan.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-1




10. An advantage of flexible benefit plans is that if employees make poor

selections and do not use their benefits, it saves the employer money. a. True b. False

ANSWER: False

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

1

Moderate

MGHR.SNEL.17.11-1




11. Compensation specialists often see flexible benefits plans as ideal. a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-1




12. The Social Security Act was designed to protect workers against the loss of earnings resulting from old age and unemployment.

a. True b. False

ANSWER: True

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

1

Easy

MGHR.SNEL.17.11-2




13. Employees can sue employers who deliberately mislead them about health and welfare benefits.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-1




14. When communicating benefits packages to employees, using a uniform method or technique is recommended for consistency, so that everyone hears the

same message in the same way. a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-1




15. Although some government programs provide money to people with partial disabilities or short-term disabilities, Social Security does not.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-2




16. Generally speaking, a firm with a record of laying off large numbers of employees will have to pay a lower rate than those that do not.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-2




17. The Social Security program is funded by a tax paid by an employer, based on an employee’s earnings.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-2




18. In order to qualify for Social Security benefits, all individuals must be at least

65 years of age. a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-2




19. To be eligible for Social Security disability benefits, an individual’s disability

must have existed for at least one year and must result in, or be expected to result in, death.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-2




20. Workers who are laid off are eligible for 52 weeks of unemployment insurance per occurrence.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-2




21. Workers’ compensation programs serve to prevent financial disaster to employees who are injured or become ill through their work.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Moderate

MGHR.SNEL.17.11-2




22. Workers eligible for unemployment benefits must submit an application for

unemployment compensation with their state employment agencies, register for available work, and be willing to accept any suitable employment that may be offered to them.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-2




23. One of the major problems of workers’ compensation programs is that an injured employee faces substantial legal expense to obtain a settlement.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-2




24. Workers’ compensation laws provide uniform compensation to disabled workers regardless of the state in which they work.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

TOPICS:

False

1

Easy

MGHR.SNEL.17.11-2




25. Workers’ compensation insurance rates depend on the seriousness of the occupations, each state’s level of benefits for injuries, and the company’s frequency and severity of employee injury.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-2




26. The Consolidated Omnibus Budget Reconciliation Act requires all

employers to provide health care coverage to employees and their spouses for 12 months following termination, death, or divorce of an employee.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-2




27. Under the Family and Medical Leave Act, a convenience store owner with 20 employees is required to provide up to 12 weeks of unpaid leave to an eligible employee for medical reasons.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Moderate

MGHR.SNEL.17.11-2




28. If an employee takes a leave of absence under the Family and Medical Leave

Act, the employer must continue the employee’s medical benefits for the duration of the leave.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-2




29. The Family and Medical Leave Act permits substitution of paid leave and vacation during leave.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-2




30. Under the Family and Medical Leave Act, an employee returning to work does

not necessarily have to be restored to his or her original job or to an equivalent job. a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-2




31. As of 2014, firms that employ 50 or more people who work 30 or more hours per week but do not offer them health insurance will have to pay a penalty to the government.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-2




32. Some states provide rights to employees that are lesser than those provided by the Family and Medical Leave Act.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Moderate

MGHR.SNEL.17.11-2




33. Health care plans only cover medical, surgical, and hospital expenses. a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Moderate

MGHR.SNEL.17.11-1




34. Today, the majority of U.S. employees get health coverage through their

employers.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Moderate

MGHR.SNEL.17.11-1




35. To contain health care costs, an employer may increase an employee’s deductible amount or co-payments.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Moderate

MGHR.SNEL.17.11-1




36. Employers pay a fixed annual fee to a health maintenance organization to cover

a majority of their employees’ medical costs.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-1




37. Employee costs for medical services provided by a health maintenance organization (HMO) vary according to the type of service and how often the employee needs it.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Moderate

MGHR.SNEL.17.11-1




38. A preferred provider organization (PPO) is a group of physicians who establish an organization that guarantees the quality of health care provided by a health maintenance organization (HMO).

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-1




39. Unlike preferred provider organizations (PPOs), where employees may have little choice in the doctor they see, health maintenance organizations (HMOs) allow employees to select their doctor of choice from a list of physicians.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-1




40. Employees do not have to pay taxes on the amounts they are reimbursed under a health reimbursement account.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-1




41. The “payment for time not worked” category of benefits includes all absences from work except sick leaves and personal leaves taken by employees.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-3




42. One estimate is that the “payment for time not worked” category of benefits comprises a large expenditure, which is over 25 percent of the employer’s total payroll costs.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-3




43. According to the “payment for time not worked” category, all workers are guaranteed at least ten paid holidays each year.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-3




44. Severance pay plans grant employees weekly benefits in addition to state unemployment compensation.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-3




45. Severance pay is considered a supplemental unemployment benefit. a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Moderate

MGHR.SNEL.17.11-3




46. Supplemental unemployment benefits are not required by law and are usually

funded by an employer.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-3




47. Almost all workers with health coverage receive mental health benefits as part of their plans.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-1




48. It is not uncommon for larger companies to cut the health care plans they once

provided their retirees.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-1




49. Some firms are penalizing employees for unhealthy habits by charging them higher health care premiums for habits such as smoking.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-1




50. Paid time off for hours not worked is not mandatory in the United States.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-3




51. Research shows that workers who use their vacation time are more productive and less prone to job-related burnout.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-3




52. Most companies require their employees to either take their vacation days by the end of the year or forfeit them.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-3




53. Today, employers are required to provide pension plans to all full-time employees.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Moderate

MGHR.SNEL.17.11-4




54. With contributory pension plans, contributions are made jointly by employers and the government.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-4




55. In a defined-contribution pension plan, the amount an employee is to receive upon retirement is specifically set forth.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-4




56. Unlike defined benefit pension plan, which guarantees nothing, the 401(k) plan guarantees payments based on years of service.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-4




57. Companies may match employee contributions to a 401(k) with cash or company stock.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-4




58. Typically, in a 401(k) savings plan, an employer matches an employee

contribution at the rate of 25 to 50 cents for every worker dollar contributed.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-4




59. A 401(k) plan transfers responsibility for investment choices to the employee. a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-4




60. A 401(k) plan is also called a cash-balance pension plan. a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-4




61. Vesting is a guarantee of accrued benefits to participants at retirement age, provided they are currently employed.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-4




62. Childcare, elder care, and extended leave policies are all examples of work-life benefits.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-3




63. Employee assistance programs (EAPs) help employees mainly with relocation costs.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

False

1

Easy

MGHR.SNEL.17.11-1




64. A common childcare benefit offered by employers is the dependent care spending account.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-3




65. Mildly ill childcare facilities offer medical supervision in addition to traditional childcare arrangements.

a. True b. False

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

True

1

Easy

MGHR.SNEL.17.11-3




66. Benefits can represent more than ______ of the employer’s total payroll costs. a. 28 percent b. 7 percent c. 12 percent

d. 66 percent

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-1




67. Which of the following represents the greatest expense to which a dollar of the employee compensation goes to in the United States?

a. Supplemental pay b. Paid leave c. Legally required benefits d. Health, life, and disability insurance

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

d

1

Easy

MGHR.SNEL.17.11-1




68. _____ enable individual employees to choose the benefits that are best suited to

their particular needs.

a. Employee self-service systems b. Cafeteria plans c. Employee wellness programs d. Social Security plans

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-1




69. Online benefits systems are often referred to as _____ and can result in significant cost savings in benefits administration.

a. cafeteria plans b. value-based initiatives c. employee self-service systems d. high-deductible health insurance plans

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-1




70. To obtain employee input regarding benefits packages, employers often use: a. performance appraisals. b. psychological tests. c. union reports. d. opinion surveys.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

d

1

Easy

MGHR.SNEL.17.11-1




71. The communication of employee benefits information improved significantly with the passage of the _____.

a. Employee Retirement Income Security Act b. Social Security Act c. Old Age, Survivors, and Disability Insurance Act d. Consolidated Omnibus Budget Reconciliation Act

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

a

1

Easy

MGHR.SNEL.17.11-1


STATE STANDARDS: United States – OH – DISC: HRM

KEYWORDS: Bloom’s: Knowledge

72. Which of the following is NOT a method that employers commonly use to communicate benefits to employees?

a. Brochures b. Word-of-mouth c. Social media d. Blogs

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-1




73. Flexible benefit plans: a. are offered to employees who then must purchase each benefit they select. b. are favored by employers because they reduce administration costs.

c. result in wasted benefits because of the number of different types available to employees.

d. allow employees to choose benefits suited to their needs.

ANSWER: d

POINTS: 1

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

Easy

MGHR.SNEL.17.11-1




74. Regardless of the medium, which of the following is NOT a general pointer for designing benefits information?

Avoid complex language when describing benefits. Clear, concise, and

a. understandable

language is a must.

Explain the purpose behind a benefit and the value it offers employees. Be

b. up front

about the pros and cons of different benefit plans.

Provide numerous examples to illustrate how a benefit choice might affect

c. different

types of employees, depending upon their personal circumstances.

d. Avoid the use of graphics whenever possible to make the information understandable and prevent confusion.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

d

1

Moderate

MGHR.SNEL.17.11-1




75. When communicating benefits programs to employees use: a. correct legal language to avoid subsequent liability. b. one, uniform method to communicate to all employees. c. multiple media techniques. d. graphics and presentation software to conceal unpleasant news.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-1




76. According to the Social Security Administration, in 2014, about _____ people received retirement survivors and disability benefits from Social Security.

a. 100 million

b. 75 million

c. 60 million

d. 25 million

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

c

1

Knowledge

MGHR.SNEL.17.11-2




77. With a diverse workforce, more employers are willing to provide benefits to employees who establish a:

a. dual taxing relationship. b. joint employment status. c. codependent relationship. d. domestic partnership.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

d

1

Easy

MGHR.SNEL.17.11-4




78. A standard definition of domestic partnership includes all of the following

EXCEPT: a. a requirement that the couple live together. b. a specification of financial interdependence. c. a requirement that the relationship be a permanent one. d. a minimum term of cohabitation requirement.

ANSWER: d

POINTS: 1

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

Easy

MGHR.SNEL.17.11-4




79. Employees desiring domestic companion benefits typically must sign: a. a writ of Common Domestic Marriage. b. an Affidavit of Domestic Partnership. c. an Affidavit of Residency within their state of residence. d. a waiver of legal liability.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-4




80. Which of the following benefits is NOT a legally required employee benefit? a. Employer contributions to Social Security b. Employer contributions to unemployment insurance c. Employer contributions to workers’ compensation insurance d. Employer contributions to minimum life insurance

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

d

1

Easy

MGHR.SNEL.17.11-2




81. Which of the following groups of employees is NOT covered by Social Security insurance?

a. Railroad workers b. Clergy c. Self-employed persons d. Most military personnel

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-2




82. The Social Security insurance program is funded by: a. employer contributions. b. Old Age, Survivors, and Disability Insurance (OASDI). c. employee contributions with matching employer contributions.

d. employee contributions and general tax funds.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-2




83. Which of the following is NOT a benefit covered under Social Security insurance?

a. Old-age insurance benefits b. Disability benefits c. Short-term disability caused by a job-related accident d. Survivors’ benefits

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-2




84. Tax revenues derived from Social Security pay for each of the following

benefits, EXCEPT:

a. disability benefits.

b. unemployment. c. retirement. d. survivors’ benefits.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-2




85. The amount of survivors’ insurance benefits paid by Social Security is: a. based on the cause of death.

b. based on a formula that takes into consideration the number of remaining years the deceased worker had to work until retirement.

c. fixed by law and adjusted only by the cost-of-living. d. based on the worker’s lifetime earnings covered by Social Security.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

TOPICS:

d

1

Easy

MGHR.SNEL.17.11-2




86. Individuals can receive Social Security benefits as early as age:

a. 58. b. 62. c. 65. d. 67.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

b

1

Easy

MGHR.SNEL.17.11-2




87. Laid off employees who have been working in an employment covered by the

Social Security Act may get unemployment insurance benefits for up to _____

weeks. a. 20 b. 22 c. 24 d. 26

ANSWER: d

POINTS: 1

DIFFICULTY: Easy

LEARNING OBJECTIVES: MGHR.SNEL.17.11-2

NATIONAL STANDARDS: United States – BUSPROG – Analytic – Business

knowledge and analytic skills



88. A typical unemployment insurance program does NOT require that: a. all eligible individuals must register for available work. b. all eligible individuals must submit an application for benefits. c. recipients must be willing to accept any job that is offered to them. d. recipients must be willing to accept any suitable job that is offered to them.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-2




89. Unemployment compensation payments to individuals vary according to: a. the type of job held before layoff. b. their previous wage rate and length of previous employment. c. job type and length of previous employment. d. their previous wage rate and the type of job held before layoff.

ANSWER: b

POINTS: 1

DIFFICULTY: Easy


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

MGHR.SNEL.17.11-2




90. To qualify for old-age benefits, a person must reach retirement age and have earned:

a. 20 credits.

b. 40 credits.

c. 60 credits.

d. 80 credits.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

b

1

Easy

MGHR.SNEL.17.11-2




91. One of the limitations of the Family and Medical Leave Act is that it

only applies to companies that have ____ or more employees during 20 or more calendar workweeks in the current or preceding year.

a. 30 b. 40 c. 50 d. 60

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-2




92. The Family and Medical Leave Act:

a. applies to employers having 10 or more employees during 20 or more calendar workweeks in the current or preceding year.

b. preempts state laws under all circumstances. c. mandates continuation of medical coverage.

d. requires the employer to provide up to 24 weeks of unpaid, job-protected leave for certain family and medical reasons.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-2




93. The Family and Medical Leave Act provides all of the following EXCEPT:

a. up to 12 weeks of unpaid leave.

b. promotions missed during leave.

c. continuation of medical benefits.

d. job protection.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-2




94. Under the Family and Medical Leave Act, if an employee is returned to an

equivalent job, rather than his/her original job, the equivalent job must have: a. identical pay, benefits, and terms of employment. b. terms of employment and promotional opportunity. c. promotional opportunity and benefits. d. identical pay, benefits, and promotional opportunity.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-2




95. Retired persons are eligible for Medicare at the age of:

a. 59. b. 62. c. 65. d. 67.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

c

1

Easy

MGHR.SNEL.17.11-2




96. A portion of the payroll taxes is paid by workers and matched by their employers. In 2011, workers and their employers each paid _____ percent on every dollar of salary or wages paid.

a. 1.15 b. 1.30 c. 1.45 d. 1.60

ANSWER: c

POINTS: 1

DIFFICULTY: Easy


NATIONAL STANDARDS: United States – BUSPROG – Analytic – Business

knowledge and analytic skills



97. Organizations of physicians and other health care professionals that provide a wide range of services to subscribers on a prepaid basis are known as:

a. preferred provider organizations (PPOs). b. major medical plans. c. health maintenance organizations (HMOs). d. integrated medical practices.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-1




98. Despite its high unemployment rate, in 2011, _____ became the first state to cut the number of weeks to 20 because its unemployment fund was so far in the red.

a. Pennsylvania b. Michigan c. South Dakota d. California

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-2




99. The _____ mandates that employers make health care coverage, at the

same rate the employer would pay, available to employees, their spouses, and their dependents on termination of employment, death, or divorce.

a. Health Care and Education Reconciliation Act b. Patient Protection and Affordable Care Act c. Consolidated Omnibus Budget Reconciliation Act d. Social Security Act

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-2




100. Groups of physicians that contract with an employer to provide medical resources on a more cost-efficient basis in exchange for a greater share of patients are known as:

a. preferred provider organizations (PPOs).

b. major medical plans.

c. health maintenance organizations (HMOs).

d. integrated medical practices.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-1




101. Beginning in 2014, firms that employ _____ or more people who work 30 or more hours per week but do not offer them health insurance will have to pay a penalty to the government.

a. 12 b. 20 c. 25 d. 50

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

d

1

Easy

MGHR.SNEL.17.11-2




102. An advantage of a health savings account is that if there are funds remaining in the account at the end of the year the money:

a. goes back to the employer, helping the employer contain costs. b. is forfeited. c. belongs to the employee. d. can be withdrawn and placed in the employee’s retirement account.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Moderate

MGHR.SNEL.17.11-1




103. Disease management programs:

a. are comprehensive insurance benefits that serve as a supplemental health insurance.

b. assist employees by providing information on monitoring and treating health conditions.

c. assist employees as work-site fitness programs. d. are a major portion of worker’s compensation insurance.

ANSWER: b

POINTS: 1

DIFFICULTY: Easy


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:




104. Holiday pay, sick leave, and vacation pay are examples of: a. payment for time not worked. b. benefits required by law. c. categories of health care benefits. d. unearned benefits.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-3




105. Federal government employees can usually be expected to be paid for ____

holidays a year. a. 24 b. 10 c. 15 d. 20

ANSWER: b

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

1

Easy

MGHR.SNEL.17.11-3




106. Beginning in 2014, firms with ____ full-time employees will be required to automatically enroll new full-time employees in their health care plans.

a. 50 b. 100 c. 200 d. 250

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

c

1

Easy

MGHR.SNEL.17.11-2




107. A plan that enables an employee who is laid off to draw, in addition to state unemployment compensation, weekly benefits from the employer that are paid from a fund created for this purpose is referred to as:

a. severance pay. b. supplemental unemployment benefits. c. leave insurance compensation.

d. unemployment protection payments.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-3




108. Under the Family and Medical Leave Act (FMLA), employees are eligible to

take leave if they have worked for their employers for at least twelve months, have at least _____ hours of service, and work in organizations that have 50 or more

employees within a 75-mile radius

a. 750 b. 1,000 c. 1,250 d. 1,500

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

c

1

Easy

MGHR.SNEL.17.11-2




109. In January 2008, Congress passed the __________ which amended the Family and Medical Leave Act (FLMA) to provide eligible employees working for covered employers new leave rights related to military service.

a. National Defense Authorization Act b. Consolidated Omnibus Budget Reconciliation Act c. Patient Protection and Affordable Care Act d. Health Care and Education Reconciliation Act

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-2




110. A _____ is a plan in which employees fund accounts by having money deducted from their paychecks.

a. consumer-driven plan b. healthcare spending plan c. health reimbursement account d. flexible spending account

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

d

1

Easy

MGHR.SNEL.17.11-1




111. 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: a. a severance leave. b. a preretirement program. c. family-friendly benefits. d. policies recommended by Social Security.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Moderate

MGHR.SNEL.17.11-4



Bloom’s: Application

112. The decision whether a pension plan should be offered is the responsibility of

the: a. union and Department of Labor representatives. b. employees. c. employer. d. Pension Benefit Guaranty Corporation.

ANSWER: c

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

1

Easy

MGHR.SNEL.17.11-4




113. Today, about _____ of households nearing retirement have 401(k)-type of accounts.

a. 20 percent

b. 30 percent

c. 50 percent

d. 60 percent

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

d

1

Easy

MGHR.SNEL.17.11-4




114. A pension plan where contributions are made jointly by employees and employers is referred to as a:

a. contributory plan. b. noncontributory plan. c. defined-benefit plan.

d. defined-contribution plan.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-4




115. A pension plan where contributions are made solely by the employer is referred to as a:

a. contributory plan. b. noncontributory plan. c. defined-benefit plan. d. defined-contribution plan.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-4




116. A pension plan where the amount that an employee is to receive upon

retirement is set forth in advance is referred to as a:

a. contributory plan.

b. noncontributory plan.

c. defined-benefit plan. d. defined-contribution plan.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-4




117. A pension plan that establishes the basis on which an employer will contribute to a pension plan is referred to as a:

a. contributory plan. b. noncontributory plan. c. defined-benefit plan. d. defined-contribution plan.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

d

1

Easy

MGHR.SNEL.17.11-4




118. A popular plan that offers employees an opportunity to save through payroll

deductions and have their contributions matched by the employer is known as the: a. 401(k) plan. b. tax reduction plan. c. ERISA benefit plan. d. Individual Retirement Plan.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-4




119. Annual interest earned on cash-balance pension plans are often tied to a:

a. 20-year Treasury rate. b. 10-year Treasury rate. c. 15-year Treasury rate.

d. 30-year Treasury rate.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

d

1

Easy

MGHR.SNEL.17.11-4




120. Private pensions are subject to federal legislation under: a. Employee Retirement Income Security Act (ERISA). b. Consolidated Omnibus Budget Reconciliation Act (COBRA). c. Tax Equity and Fiscal Responsibility Act (TEFRA). d. Retirement Equity Act (REA).

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-4




121. After an employee works for an employer for a certain period of time, the employee is entitled to the money in his or her pension plan. This employee is now:

a. secured. b. endowed. c. vested. d. integrated.

ANSWER: c

POINTS: 1

DIFFICULTY:


NATIONAL STANDARDS:

Easy

MGHR.SNEL.17.11-4



TOPICS: Bloom’s: Knowledge

122. Vesting guarantees: a. withdrawal of benefits at any time. b. automatic funding of pension plans. c. accrued pension benefits at retirement age. d. selection of pension options.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-4




123. To help employees pay for the college expenses of their children and other family members, an increasing number of companies are offering _____.

a. additional overtime b. contributory benefit plans c. cafeteria plans d. 529 college savings plans

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

d

1

Easy

MGHR.SNEL.17.11-3




124. In 1996, Congress passed the ______, which provides that a same-sex domestic partner may not be treated as an employee’s spouse for purposes of federal law.

a. Defense of Marriage Act b. Employee Retirement Income Security Act c. Health Insurance Portability and Accountability Act d. Health Care and Education Reconciliation Act

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

TOPICS:

a

1

Easy

MGHR.SNEL.17.11-4




125. Mildly ill child care facilities provide:

a. tax benefits

b. medical supervision

c. a negative investment

d. telecommuting facilities for working parents with ill children

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

b

1

Easy

MGHR.SNEL.17.11-3




126. Employer-sponsored child care programs and elder care programs are similar because:

a. under both programs, most of the caregivers are men.

b. both types of programs typically offer on-site care facilities to the employees who bring their wards to the workplace.

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.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

c

1

Moderate

MGHR.SNEL.17.11-3



KEYWORDS: Bloom’s: Comprehension

127. The Social Security Administration administers the ______________

program. a. Childcare b. ERISA c. Medicare d. SNL

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

c

1

Easy

MGHR.SNEL.17.11-2




128. In recent years, several companies have banded together to provide elder care in a cooperative arrangement referred to as a:

a. consortium. b. limited partnership. c. combined subsidiary. d. hostel.

ANSWER: a

POINTS: 1

DIFFICULTY: Easy


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

MGHR.SNEL.17.11-3




129. Workers’ compensation insurance may be provided through private or _____

insurance. a. state-funded b. employee-prepaid c. federally-funded d. SNL-funded

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-2




130. Workers’ compensation insurance covers certain work-related _____. a. lawsuits b. misunderstandings c. pay inequities d. illnesses

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

d

1

Easy

MGHR.SNEL.17.11-2




131. Employers pay for workers’ compensation insurance in ___________ states. a. all b. a majority of c. large d. heavily industrialized

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

a

1

Easy

MGHR.SNEL.17.11-2




132. A major objective of the Pension Protection Act is to _____ 401(k) pension plans.

a. reduce the number of b. alter the tax status of c. limit to very small employers the use of

d. provide greater control over

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

d

1

Easy

MGHR.SNEL.17.11-4




133. Explain why an organization may choose to develop a cafeteria benefits plan for its employees.

To make it easier to accommodate the individual

needs of different employees, a wide range of

organizations have begun offering flexible benefits

plans, also known as cafeteria plans. Rather than one-

size-fits-all plans, these plans allow individual

employees to choose the benefits that are best suited

to their particular needs. They also prevent certain

benefits from being wasted on employees who have

ANSWER: no need for them. Furthermore, companies realize they can get a better return on investment by

tailoring benefits to an employee’s stage of life or

family status. For example, younger employees can

select a more comprehensive family health plan or

dental insurance, while older employees can spend

their benefits dollars on improved retirement or

disability coverage. In short, a cafeteria plan allows

benefits dollars to be spent in a more satisfying and

cost-effective manner.

POINTS: 1

DIFFICULTY: Moderate


NATIONAL STANDARDS: United States – BUSPROG: Diversity



134. Describe issues that employers have to consider while providing domestic partner benefits.

ANSWER:

POINTS:

DIFFICULTY:


NATIONAL STANDARDS:

STATE STANDARDS:

KEYWORDS:

Employer health benefits provided to unmarried

partners, unlike health benefits for spouses, are taxable

under federal law. Furthermore, in 1996, Congress

passed the Defense of Marriage Act, which provides

that a same-sex domestic partner may not be treated as

an employee’s spouse for purposes of federal law.

Another implication of the DOMA is that a married

same-sex partner is not eligible for his or her partners’

Social Security survival benefits or employer-provided

pension benefits if they are governed by Employee

Retirement Income Security Act (ERISA), which most

are.

1

Moderate

MGHR.SNEL.17.11-4

United States – BUSPROG: Diversity



135. Describe the requirements and provisions of the Family and Medical Leave

Act.

Under the Family and Medical Leave Act (FMLA),

ANSWER: all employers with 50 or more employees during 20 or more calendar workweeks, in the current or

proceeding year, must provide up to 12 weeks of

unpaid leave in a 12-month period for a serious

health condition affecting the employee’s family.

Reasons include, but are not limited to, birth or

adoption of a child, care of spouse, child, or parent,

or serious health condition affecting the employee.

Upon return to work, the employee must be

restored to his/her original job, or an equivalent job

in terms of pay, benefits, and terms of employment.

The employer may provide paid leave but is not

required to. The employee should provide 30 days notice for leave request when foreseeable.

POINTS: 1






136. Describe some of the ways employers have been trying to contain health insurance costs.

Employer efforts have focused on two areas. First,

employers have altered medical coverages so that

employees either share more of the costs or have to

better document the need for particular treatments.

Examples of this type of effort include higher co-

ANSWER: payments, reductions in coverages, larger deductibles, required second opinions, and preadmission hurdles for hospital admissions (see HRM 5 for a detailed list).

Second, employers are enlisting health systems that potentially help control costs. Examples of these

efforts include the negotiation of advantageous contracts with health maintenance organizations

(HMOs) and preferred provider organizations (PPOs). Finally, employers are incorporating

various consumer-driven health plans.

POINTS: 1






137. Compare and contrast the risks to the employee in regard to defined-contribution and defined-benefit pension plans.

In a defined-benefit pension plan, retiring

employees are guaranteed a particular payment level

(the retirement benefit is “defined”). However, in a

defined-contribution pension plan, the only

guarantee to employees is that the employer will

contribute a set dollar amount on their behalf to the

pension plan (the contribution is “defined”). While

the pension benefits under a defined-benefit plan are

fixed, the pension benefits of the defined-

contribution plan vary according to the success of

ANSWER: the plan’s investments (superior investment decisions will yield greater pension payments than

mediocre or poor decisions).

Under the defined-benefit plan, retiree risk is largely

limited to whether the fund is properly funded and

whatever effects inflation will have on their fixed

pension checks. Under the defined-contribution plan,

retiree risk is associated with the general risks and

rewards of investments, the quality of investment

advice, and the risks commonly associated with the defined-benefit plans.

POINTS: 1






138. Explain the concept of work-life benefits. Name and discuss at least five of these benefits employers offer their employees.

Many organizations are seeking to create a work-life

organizational environment that allows employees

to balance work and personal needs. There are a

wide variety of work-life benefits that organizations

may offer. To help workers cope with a wide variety

of problems that interfere with the way they perform

their jobs, organizations have developed employee

assistance programs. These programs provide

diagnosis, counseling, and referral for advice or

treatment when necessary for problems related to

alcohol or drug abuse, emotional difficulties, and

financial or family difficulties. One of the benefits

ANSWER: most frequently mentioned in the literature for

employees is the use of an educational assistance

plan to help employees keep up to date with

advances in their fields and to help them get ahead in

the organization. Usually the organization covers, in

part or totally, costs of tuition, books, and related

fees. The increased employment of women with

dependent children has created an unprecedented

demand for child care arrangements. In response

many organizations provide financial assistance and

on-site child care centers. Related, many

organizations are implementing employee-

accumulated leave days for dependent care and

extended leave policies for child and/or older care.

Many organizations offer flexible work hour

scheduling or work-at-home arrangement, such as

telecommuting, that enables employees to have

more flexibility to meet the family needs. Other

benefits include food services, onsite health

services, credit unions, and gift cards.

POINTS: 1






139. Why have 401(k) plans become so popular?

Employers like them because they shift the burden of retirement ANSWER: planning, risk, and investment management to employees. Employees

like the tax advantages and flexibility offered by such plans.

POINTS: 1

test bank for managing human resources 17th …...test bank for managing human resources 17th...

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