Question 1

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 A

Question 2

Your organization has decided to terminate a couple of production workers without cause. The manager of the department approaches you and asks for your advice regarding the minimum amount of working notice or severance in lieu that should be provided. Assume both workers have been with the company for 24 months, and it is a non-unionized environment. What advice would you provide if you were going to use recent court cases to inform your answer?

Accepted Answer

A)  There is no need to provide notice, given that they have been employed with the organization for only 24 months. 
B)  Two months should be a minimum. 
C)  Four months should be a minimum. 
D)  Recent court cases have awarded one week per year of employment to a maximum of two months. 
A)  There is no need to provide notice, given that they have been employed with the organization for only 24 months. 
B)  Two months should be a minimum. 
C)  Four months should be a minimum. 
D)  Recent court cases have awarded one week per year of employment to a maximum of two months. B

Question 3

Which managerial strategy is likely to embrace the notion of providing employees with a pension plan?

Accepted Answer

A)  human relations 
B)  classical 
C)  innovator 
D)  analyzer 
A)  human relations 
B)  classical 
C)  innovator 
D)  analyzer A

Question 4

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

Accepted Answer

There are two main types of private pens

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT a government-regulated benefit?

Accepted Answer

A)  outplacement services 
B)  rest breaks 
C)  vacation time 
D)  statutory holidays 
A)  outplacement services 
B)  rest breaks 
C)  vacation time 
D)  statutory holidays

Question 7

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 8

Teresa has a dental plan through her employer. Recently, she has undergone dental work costing the plan $2,500. Luckily for Teresa, this particular dental work was covered completely by her dental plan. What are the tax consequences as a result of Teresa not having to pay for the dental work?

Accepted Answer

A)  Her employer will add the $2,500.00 as an expense in their income statement. 
B)  She will have to include the $2,500.00 as additional income. 
C)  There are no tax consequences at all as benefits are tax-free. 
D)  Teresa will have to claim half of the benefit as income. 
A)  Her employer will add the $2,500.00 as an expense in their income statement. 
B)  She will have to include the $2,500.00 as additional income. 
C)  There are no tax consequences at all as benefits are tax-free. 
D)  Teresa will have to claim half of the benefit as income.

Question 9

What is the first issue in developing an effective benefit system?

Accepted Answer

A)  determining the tax implications 
B)  examining the compensation cost structure of the organization 
C)  establishing the administration process 
D)  determining the role of indirect pay in compensation strategy 
A)  determining the tax implications 
B)  examining the compensation cost structure of the organization 
C)  establishing the administration process 
D)  determining the role of indirect pay in compensation strategy

Question 10

What benefit system provides employees with the choice between two or more fixed plans?

Accepted Answer

A)  modular benefits plan 
B)  "core" benefits plan 
C)  flexible benefits plan 
D)  "Beneflex" plan 
A)  modular benefits plan 
B)  "core" benefits plan 
C)  flexible benefits plan 
D)  "Beneflex" plan

Question 11

Which of the following variables has NOT caused Canadian organizations to move away from pensions that have defined benefits?

Accepted Answer

A)  inflationary pressures during the early 1980s 
B)  tax issues associated with the manner in which pension plans are funded 
C)  market returns associated with pension funds 
D)  rising life expectancies of employees 
A)  inflationary pressures during the early 1980s 
B)  tax issues associated with the manner in which pension plans are funded 
C)  market returns associated with pension funds 
D)  rising life expectancies of employees

Question 12

From an employee's point of view, what advantage do defined contribution plans have over defined benefit plans?

Accepted Answer

A)  The employer assumes the risk of investments. 
B)  They tend to be more portable. 
C)  They provide a higher pension for those who join the company later in life. 
D)  Risk is averaged over a large group of employees. 
A)  The employer assumes the risk of investments. 
B)  They tend to be more portable. 
C)  They provide a higher pension for those who join the company later in life. 
D)  Risk is averaged over a large group of employees.

Question 13

Ricardo has worked for a local company for the last 25 years. Upon retirement, Ricardo has been guaranteed a salary of $2,000.00 per month under the company's retirement plan. What kind of retirement benefit program is this company using?

Accepted Answer

A)  defined contribution plan 
B)  tax-deferred plan 
C)  defined benefit plan 
D)  registered retirement savings plan 
A)  defined contribution plan 
B)  tax-deferred plan 
C)  defined benefit plan 
D)  registered retirement savings plan

Question 14

Defined contribution plans ultimately transfer retirement income risk from the employer to the employee.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is usually NOT considered by courts in establishing awards relating to notice periods or severance in lieu of notice?

Accepted Answer

A)  whether some element of enticement was involved 
B)  the likelihood that the employee will secure employment quickly 
C)  the employee's age 
D)  the employee's gender 
A)  whether some element of enticement was involved 
B)  the likelihood that the employee will secure employment quickly 
C)  the employee's age 
D)  the employee's gender

Question 16

Describe the main issues in designing the benefits system.

Accepted Answer

The first step is to determine the role

Question 17

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 18

Which of the following questions is NOT one of the four main issues in deciding the structure of each benefit?

Accepted Answer

A)  What will the benefit provide? 
B)  Who will pay for it? 
C)  Who is eligible to receive it? 
D)  Is it tax-favoured or not? 
A)  What will the benefit provide? 
B)  Who will pay for it? 
C)  Who is eligible to receive it? 
D)  Is it tax-favoured or not?

Question 19

Which of the following processes of evaluating benefits systems considers the net benefits associated with a particular benefit system?

Accepted Answer

A)  competitive analysis 
B)  cost break-even analysis 
C)  cost analysis 
D)  employee surveys 
A)  competitive analysis 
B)  cost break-even analysis 
C)  cost analysis 
D)  employee surveys

Question 20

What is a likely reason that a company using a classical management philosophy would want to implement a flexible benefit plan?

Accepted Answer

A)  to lower administrative costs 
B)  an opportunity to cut overall benefit costs 
C)  to enhance employment engagement 
D)  to take advantage of economies of scale associated with flexible programs 
A)  to lower administrative costs 
B)  an opportunity to cut overall benefit costs 
C)  to enhance employment engagement 
D)  to take advantage of economies of scale associated with flexible programs

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

Which managerial strategy is likely to embrace the notion of providing employees with a pension plan?

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

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

Which of the following is NOT a government-regulated benefit?

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

Teresa has a dental plan through her employer. Recently, she has undergone dental work costing the plan $2,500. Luckily for Teresa, this particular dental work was covered completely by her dental plan. What are the tax consequences as a result of Teresa not having to pay for the dental work?

What is the first issue in developing an effective benefit system?

What benefit system provides employees with the choice between two or more fixed plans?

Which of the following variables has NOT caused Canadian organizations to move away from pensions that have defined benefits?

From an employee's point of view, what advantage do defined contribution plans have over defined benefit plans?

Ricardo has worked for a local company for the last 25 years. Upon retirement, Ricardo has been guaranteed a salary of $2,000.00 per month under the company's retirement plan. What kind of retirement benefit program is this company using?

Defined contribution plans ultimately transfer retirement income risk from the employer to the employee.

Which of the following is usually NOT considered by courts in establishing awards relating to notice periods or severance in lieu of notice?

Describe the main issues in designing the benefits system.

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

Which of the following questions is NOT one of the four main issues in deciding the structure of each benefit?

Which of the following processes of evaluating benefits systems considers the net benefits associated with a particular benefit system?

What is a likely reason that a company using a classical management philosophy would want to implement a flexible benefit plan?

A Road Map to Effective Compensation

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

Which managerial strategy is likely to embrace the notion of providing employees with a pension plan?

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

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

Which of the following is NOT a government-regulated benefit?

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

Teresa has a dental plan through her employer. Recently, she has undergone dental work costing the plan $2,500. Luckily for Teresa, this particular dental work was covered completely by her dental plan. What are the tax consequences as a result of Teresa not having to pay for the dental work?

What is the first issue in developing an effective benefit system?

What benefit system provides employees with the choice between two or more fixed plans?

Which of the following variables has NOT caused Canadian organizations to move away from pensions that have defined benefits?

From an employee's point of view, what advantage do defined contribution plans have over defined benefit plans?

Ricardo has worked for a local company for the last 25 years. Upon retirement, Ricardo has been guaranteed a salary of $2,000.00 per month under the company's retirement plan. What kind of retirement benefit program is this company using?

Defined contribution plans ultimately transfer retirement income risk from the employer to the employee.

Which of the following is usually NOT considered by courts in establishing awards relating to notice periods or severance in lieu of notice?

Describe the main issues in designing the benefits system.

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

Which of the following questions is NOT one of the four main issues in deciding the structure of each benefit?

Which of the following processes of evaluating benefits systems considers the net benefits associated with a particular benefit system?

What is a likely reason that a company using a classical management philosophy would want to implement a flexible benefit plan?

A Road Map to Effective Compensation

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