Exam 11: Employee Benefits

Severance pay is a one-time payment to employees who have been terminated.

The declining cost of health care benefits provides Canadian organizations opportunities to reduce employee benefit costs.

Bob Jindal works for RAY Vision Inc. The employer deducts money every month from Bob's paycheque for his pension plan. RAY Vision matches this amount for his pension. What type of plan is this?

Susie Jones has definite preferences in terms of the benefits offered by her employer. Susie will be able to select the benefits she values highly and avoid those she does not need or want if her employer offers which benefit format?

Some benefits are now considered rights to which employees are entitled, rather than a gift of the employer.

CPP and QPP have universal portability-that is, an employee has the right to claim benefit credits wherever they are employed in Canada.

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?

The growth in health care costs can be attributed to a number of factors. Which of the following is NOT one of those factors?

It would be desirable for employers to enlist employee participation in modifying a benefits program.

For which key reason do employers need to communicate the extent and value of the benefits they provide?

Describe some of the ways employers have been trying to contain health care benefit costs.

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

Because of added expenses and complicated governmental rules, defined-benefit pension plans are falling out of use.

Polaroid allows employees the opportunity to try out retirement with a leave program, or gradually reduce their work hours as they approach retirement age. What is this an example of?

Approximately one-third of Canadians have eldercare responsibilities.

Many organizations use the services of professional benefits vendors to administer their benefits. What is this practice a form of?

Many employers now offer additional health care benefits such as dental and prescription drug coverage.

"Payment for time not worked" includes statutory holiday pay, time off for bereavement, military duty, vacation pay, jury duty, rest periods, coffee breaks, and maternity leave (which usually involves some form of salary continuance).

What is NOT a common reason why employees take early retirement?

Canadian employees may retire at age 45 and begin drawing a reduced pension from CPP/QPP and other sources such as RRSPs.