Exam 11: Employee Benefits

Which would NOT be considered a primary objective of most benefits programs?

Benefit packages of any kind still help employers attract and retain quality employees.

Employee assistance programs and wellness programs cannot help organizations cut the costs of health care benefits.

Employees who resign from a position or who are terminated for cause may not be eligible to collect employment insurance (EI).

Both employees and employers make contributions toward a workers' compensation fund.

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

Which of the following is NOT an example of family-friendly benefits?

Most pension plans are now viewed as providing deferred income that employees accumulate during their working life and that belongs to them after a specified number of years of service. What view is this based on?

Management at ABC Inc. wants to introduce a new benefit that is not required by law. What should it do first?

Stella Vickram will receive a pension of $2,500 per month if she continues to work with ABC Media until she retires. She is now 45 years old. What type of plan is this?

Employment insurance benefits are available for illness, injury, maternity, parental, and adoption leave.

In the past two decades, more and more employees have been receiving dental care insurance as a benefit.

Flexible benefits plans are also known as "cafeteria" plans.

Employer health plans are generally restricted to medical, surgical, and hospital expenses.

Scenario 11.1 Canadian Fasteners is a Mississauga-based packing firm that packages nuts, bolts, and screws for various Canadian furniture companies across the country. The company has been growing at a rapid rate in the past couple of years. Previously, all HR-related functions were extremely informal or almost nonexistent. With the rising turnover, and a constant struggle to retain employees during the company's rapid growth, Canadian Fasteners has decided to implement an HR system that not only will assist with the recruitment and selection process, but also will help to administer a pension and benefit program. The newly promoted HR manager is excited about the company's future and is looking forward to the new challenges, but hopes efforts to more effectively capture and retain the right talent will be worth it, as turnover has caused the firm to lose one of its biggest clients. -Refer to Scenario 11.1. Canadian Fasteners wants to take into consideration changes in the diversity and lifestyles of its workforce. Which of the following would be the best option for the company?

Once employees have two years of service, they are considered, in terms of their pension fund, fully vested and locked in.

Canada has experienced a growth in the proportion of part-time workers (versus full-time)over the past decade. What is a key reason for this growth?

Company-sponsored preretirement programs force employees to think about what their lives will be like after they leave the organization.

Employee benefits are a form of indirect compensation.

In Canada, the higher the household income, the lower the retirement age.