Chapter Quiz-8

Chapter Quiz-8
This activity contains 22 questions.
Question 1.
Which of the following benefits was designed to provide supplemental income to retired workers?

o shift differentials
o travel pay
o wellness program
o on-call pay
o social security

Question 2.
A(n) ________ is an employer-sponsored retirement plan in which employee benefits are paid based on a formula using factors such as salary and duration of employment. The amount of the retirement is fixed and the employee knows the amount.
o tax-deferred 401(k) plan
o defined contribution plan
o employee stock ownership plan
o defined benefit plan
o Scanlon plan

Question 3.
Which of the following statements is TRUE of a defined contribution plan?

o A defined contribution plan can be accessed at any time without penalties.
o A defined contribution plan provides guaranteed monthly payments to all those employees who have been seriously injured on the job.
o In a defined contribution plan, the amount of money contributed by an employer is twice the amount of money contributed by an employee.

o Under a defined contribution plan, an employer gives employees company shares instead of retirement benefits.
o Under a defined contribution plan, the amount of retirement benefit that would be received by an employee is not fixed.

Question 4.
Under ________ plans, the employer contributes a fixed percentage of workers' income to a hypothetical account and guarantees it will grow at a fixed rate.

o employee stock ownership
o cash balance
o defined contribution
o tax-deferred 401(k)
o flexible benefit

Question 5.
The income provided to employees who have been permanently terminated from the job through no fault of their own is known as the________.

o reporting pay
o call-in pay
o pension
o severance pay
o wellness benefit

Question 6.
For most employers, the greatest labor costs are incurred in the form of ________.

o severance pay
o employee assistance programs
o health insurance benefits
o wellness programs
o wages and salaries

Question 7.
Which of the following statements is TRUE regarding a Voluntary Employees Beneficiary Association (VEBA)?

o The assets created using the contributions made to a VEBA are protected from creditors in case of employer bankruptcy.
o In the event of early withdrawals of funds, the employer has to pay a penalty.
o The interest earned on the savings in a VEBA is taxable.
o The employer contributions to a VEBA are taxable.
o If the benefits obtained from a VEBA are transferred to a family member then the family member has to pay the appropriate amount of income tax for the benefits.

Question 8.
Wellness programs are designed to ________.

o provide monetary assistance to those employees who have been injured on the job
o provide guaranteed monthly payments to retired employees
o identify and reduce risky employee behaviors, such as smoking
o provide income to those employees who have been permanently terminated from the job through no fault of their own
o give on-the-job training to the employees so as to improve their skills

Question 9.
________ pay is the minimum payment guaranteed to employees who come in to work even if work is not available, if they have not been informed otherwise.

o On-call
o Standby
o Call-in
o Shift differential
o Reporting

Question 10.
________ pay is given to workers available to be called in if needed.

o Premium
o Severance
o Reporting
o Standby
o Shift differential

Question 11.
Health insurance is a legally required benefit that must be provided by an employer to all its employees.

o True
o False

Question 12.
Under a defined benefit plan, the amount of retirement benefit that would be received by an employee is fixed and the employee knows the amount.
o True
o False

Question 13.
According to the Pension Reform Act, employers are required to count toward vesting all service from age 18 and to count toward earned benefits all earnings from age 21.

o True
o False

Question 14.
The conveying of employees' nonforfeitable rights to share in a pension fund is termed pyramiding.

o True
o False

Question 15.
Severance pay is a lump sum or a dispersal of payments given to employees who are permanently separated from the company through no fault of their own.
o True
o False

Question 16.
The health maintenance organizations (HMOs) included in health insurance benefits provide specific services
at a discount in exchange for a guaranteed number of patients.

o True
o False

Question 17.
Both employees and employers make tax deductible contributions to a Health Savings Account (HSA).

o True
o False

Question 18.
An Employee Assistance Program (EAP) is similar to a 401(k) pension fund in that an employer contributes a fixed amount of tax-deferred money into an account for the employee to use for medical expenses

o True
o False

Question 19.
The ratio-to-work plan provides all workers with the same length of vacation.

o True
o False

Question 20.
In a typical flexible benefit plan, employees are allowed to choose the benefits they believe will best meet their needs.

o True
o False

Question 21.
Compare defined benefit plans and defined contribution plans.

Question 22.
Describe the various types of paid vacation plans.