Question 1

Which of the following benefits are increasing most rapidly in cost?

Accepted Answer

A)  formal pension plans and supplemental medical 
B)  supplemental employment insurance and outplacement services 
C)  parental and educational leaves 
D)  tuition reimbursements and mortgage subsidies 
A)  formal pension plans and supplemental medical 
B)  supplemental employment insurance and outplacement services 
C)  parental and educational leaves 
D)  tuition reimbursements and mortgage subsidies A

Question 2

Discuss the pros and cons of flexible vs.fixed benefits plans.

Accepted Answer

Flexible benefits plans are considered a better fit for more diverse work forces,provide more value to employees for the benefits dollars,allow employees more choice in their indirect pay package,and may help to contain escalating benefits costs.However,flexible plans are more complex to administer,may lose economies of scale,and may be more confusing to employees. Fixed benefits plans are less complex to administer,have economies of scale in purchase of benefits,and are simpler to understand. However,fixed benefits systems tend to escalate in cost and do not adjust to the specific needs of employees.

Question 3

A force hindering flexible benefits is loss of economies of scale in the purchase of benefits.

Accepted Answer

A) True 
 B)False  True

Question 4

Defined benefits plans are intended to provide guaranteed income from retirement to death.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not a possible reason for implementing flexible benefit plans?

Accepted Answer

A)  cutting benefit costs 
B)  more diverse work force 
C)  union demands 
D)  shift employee perspective away from an entitlement approach 
A)  cutting benefit costs 
B)  more diverse work force 
C)  union demands 
D)  shift employee perspective away from an entitlement approach

Question 6

Which of the following is not a valid reason to deter the adoption of flexible benefit plans?

Accepted Answer

A)  high administrative costs 
B)  lack of consultant expertise 
C)  possible loss of economies of scale 
D)  confusion and poor decision making among employees 
A)  high administrative costs 
B)  lack of consultant expertise 
C)  possible loss of economies of scale 
D)  confusion and poor decision making among employees

Question 7

Research shows that one of the results of a company having a pension plan is that employees retire later.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is not a source of unexpected cost for defined benefit plans?

Accepted Answer

A)  work force diversity 
B)  inflation 
C)  negative market returns 
D)  life expectancy increases 
A)  work force diversity 
B)  inflation 
C)  negative market returns 
D)  life expectancy increases

Question 9

After mandatory benefits,what are the costliest items in most company benefits packages?

Accepted Answer

A)  disability, life, and accident insurance plans 
B)  supplemental health and dental insurance plans 
C)  pension and retirement plans 
D)  parental and sabbatical leaves 
A)  disability, life, and accident insurance plans 
B)  supplemental health and dental insurance plans 
C)  pension and retirement plans 
D)  parental and sabbatical leaves

Question 10

Which of the following statements is true of employee assistance programs?

Accepted Answer

A)  They are most likely to be used in classical organizations 
B)  They are used by a majority of major Canadian firms 
C)  They are only effective in high stress workplaces 
D)  They are often regarded as an invasion of employee privacy 
A)  They are most likely to be used in classical organizations 
B)  They are used by a majority of major Canadian firms 
C)  They are only effective in high stress workplaces 
D)  They are often regarded as an invasion of employee privacy

Question 11

Offering free onsite massages during peak times,fitness club memberships,and internet stations in lounge areas are examples of which type of employee services?

Accepted Answer

A)  work-life balance 
B)  outplacement services 
C)  employee assistance programs 
D)  wellness and recreational 
A)  work-life balance 
B)  outplacement services 
C)  employee assistance programs 
D)  wellness and recreational

Question 12

Examples of employee services include the following: employee assistance programs,recreational programs,and product/service discounts.

Accepted Answer

A) True 
 B)False

Question 13

From a funding obligation perspective,why do employers prefer to use a defined contribution pension plan?

Accepted Answer

A)  Liability is limited to the amount placed into the plan. 
B)  Actuarial predictions are made easier. 
C)  Pensioners are guaranteed a fixed sum of money. 
D)  This avoids "underfunded" plans. 
A)  Liability is limited to the amount placed into the plan. 
B)  Actuarial predictions are made easier. 
C)  Pensioners are guaranteed a fixed sum of money. 
D)  This avoids "underfunded" plans.

Question 14

Identify and briefly explain the types of pension plans discussed in the text.

Accepted Answer

defined benefit plans,and defined contri

Question 15

Which of the following is a company pension plan that guarantees a certain benefit to retirees regardless of market conditions?

Accepted Answer

A)  defined benefit plan 
B)  money purchase plan 
C)  defined contribution plan 
D)  Canada Pension Plan 
A)  defined benefit plan 
B)  money purchase plan 
C)  defined contribution plan 
D)  Canada Pension Plan

Question 16

Which of the following terms is used to describe a benefits plan that provides a standard set of benefits?

Accepted Answer

A)  uniform benefits plan 
B)  hybrid benefits plan 
C)  cafeteria type benefits plan 
D)  fixed benefits plan 
A)  uniform benefits plan 
B)  hybrid benefits plan 
C)  cafeteria type benefits plan 
D)  fixed benefits plan

Question 17

Describe how a health care spending account works.

Accepted Answer

A health care spending account is a tax

Question 18

What determines the amount the employer must contribute to government-provided employee benefits?

Accepted Answer

A)  pre-tax company profits 
B)  total cost of benefits system 
C)  total cash compensation received by an employee 
D)  total cost of benefit premiums 
A)  pre-tax company profits 
B)  total cost of benefits system 
C)  total cash compensation received by an employee 
D)  total cost of benefit premiums

Question 19

Providing which of the following benefits will reinforce your strong commitment to helping your employees balance work and personal activities?

Accepted Answer

A)  group banking package discount rates 
B)  paid time off for community service 
C)  subsidized meals and free hot drinks 
D)  computer purchase plan 
A)  group banking package discount rates 
B)  paid time off for community service 
C)  subsidized meals and free hot drinks 
D)  computer purchase plan

Question 20

Which of the following plans is comparable to a group RRSP?

Accepted Answer

A)  mandatory benefits 
B)  a defined benefit plan 
C)  a defined contribution plan 
D)  a tax-advantaged type of performance pay 
A)  mandatory benefits 
B)  a defined benefit plan 
C)  a defined contribution plan 
D)  a tax-advantaged type of performance pay

Which of the following benefits are increasing most rapidly in cost?

Discuss the pros and cons of flexible vs.fixed benefits plans.

A force hindering flexible benefits is loss of economies of scale in the purchase of benefits.

Defined benefits plans are intended to provide guaranteed income from retirement to death.

Which of the following is not a possible reason for implementing flexible benefit plans?

Which of the following is not a valid reason to deter the adoption of flexible benefit plans?

Research shows that one of the results of a company having a pension plan is that employees retire later.

Which of the following is not a source of unexpected cost for defined benefit plans?

After mandatory benefits,what are the costliest items in most company benefits packages?

Which of the following statements is true of employee assistance programs?

Offering free onsite massages during peak times,fitness club memberships,and internet stations in lounge areas are examples of which type of employee services?

Examples of employee services include the following: employee assistance programs,recreational programs,and product/service discounts.

From a funding obligation perspective,why do employers prefer to use a defined contribution pension plan?

Identify and briefly explain the types of pension plans discussed in the text.

Which of the following is a company pension plan that guarantees a certain benefit to retirees regardless of market conditions?

Which of the following terms is used to describe a benefits plan that provides a standard set of benefits?

Describe how a health care spending account works.

What determines the amount the employer must contribute to government-provided employee benefits?

Providing which of the following benefits will reinforce your strong commitment to helping your employees balance work and personal activities?

Which of the following plans is comparable to a group RRSP?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Activating and Maintaining an Effective Compensation System

Filters

Exam 12: Designing Indirect Pay Plans

Which of the following benefits are increasing most rapidly in cost?

Discuss the pros and cons of flexible vs.fixed benefits plans.

A force hindering flexible benefits is loss of economies of scale in the purchase of benefits.

Defined benefits plans are intended to provide guaranteed income from retirement to death.

Which of the following is not a possible reason for implementing flexible benefit plans?

Which of the following is not a valid reason to deter the adoption of flexible benefit plans?

Research shows that one of the results of a company having a pension plan is that employees retire later.

Which of the following is not a source of unexpected cost for defined benefit plans?

After mandatory benefits,what are the costliest items in most company benefits packages?

Which of the following statements is true of employee assistance programs?

Offering free onsite massages during peak times,fitness club memberships,and internet stations in lounge areas are examples of which type of employee services?

Examples of employee services include the following: employee assistance programs,recreational programs,and product/service discounts.

From a funding obligation perspective,why do employers prefer to use a defined contribution pension plan?

Identify and briefly explain the types of pension plans discussed in the text.

Which of the following is a company pension plan that guarantees a certain benefit to retirees regardless of market conditions?

Which of the following terms is used to describe a benefits plan that provides a standard set of benefits?

Describe how a health care spending account works.

What determines the amount the employer must contribute to government-provided employee benefits?

Providing which of the following benefits will reinforce your strong commitment to helping your employees balance work and personal activities?

Which of the following plans is comparable to a group RRSP?

A Road Map to Effective Communication

A Strategic Framework for Compensation

A Behavioural Framework for Compensation

Components of Compensation Strategy

Performance Pay Choices

Formulating the Reward and Compensation Strategy

Evaluating Jobs: the Job Evaluation Process

Evaluating Jobs: the Point Method of Job Evaluation

Evaluating the Market

Evaluating Individuals

Designing Performance Pay Plans

Activating and Maintaining an Effective Compensation System

Filters