Question 1

In Canada, only Quebec has legislation regarding benefits for part-time employees.

Accepted Answer

A) True 
 B)False

Question 2

Describe how a health care spending account works.

Accepted Answer

A health care spending account is a tax-

Question 3

A force promoting flexible benefits plans is the increasing diversity of the work force.

Accepted Answer

A) True 
 B)False

Question 4

As a result of a recent human resource audit, it was determined that a particular company has an "underfund liability" associated with its retirement plan, requiring an immediate injection of cash. What type of pension plan or retirement plan is this company likely using?

Accepted Answer

A)  hybrid flexible plan 
B)  registered retirement savings plan (RRSP) 
C)  mandatory retirement plan 
D)  defined benefit plan 
A)  hybrid flexible plan 
B)  registered retirement savings plan (RRSP) 
C)  mandatory retirement plan 
D)  defined benefit plan

Question 5

Which of the following nonmandatory major benefits is the most common among Canadian organizations with 10 or more employees?

Accepted Answer

A)  life insurance 
B)  supplemental unemployment benefits 
C)  formal pension plans 
D)  group RRSPs 
A)  life insurance 
B)  supplemental unemployment benefits 
C)  formal pension plans 
D)  group RRSPs

Question 6

One drawback associated with outsourcing routine benefits administration is the notion that employers will begin to lose touch with benefit needs and issues important to employees.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  cutting benefit costs 
B)  developing a more diverse work force 
C)  lowering overall administrative costs 
D)  shifting employee perspective away from an entitlement approach 
A)  cutting benefit costs 
B)  developing a more diverse work force 
C)  lowering overall administrative costs 
D)  shifting employee perspective away from an entitlement approach

Question 8

As a member of the company's defined benefit plan, employees receive a pension based on one percent of the average of their best three years' earnings for each year of service. What will be your annual pension if you retire after 30 years of service and have averaged $50,000 per year during your three best years?

Accepted Answer

A)  $28,000 
B)  $15,000 
C)  unable to determine, as we need to have know the average return on the investments funding the pension 
D)  depends on how much money is in the investment trust 
A)  $28,000 
B)  $15,000 
C)  unable to determine, as we need to have know the average return on the investments funding the pension 
D)  depends on how much money is in the investment trust

Question 9

Identify and briefly explain the most common and important employee services.

Accepted Answer

Employee services encompass a number of

Question 10

Research shows that satisfaction with a benefits plan declines as employees learn more about it.

Accepted Answer

A) True 
 B)False

Question 11

What component of a company's benefits package is second only to mandatory benefits in terms of cost for an organization?

Accepted Answer

A)  employment assistance programs 
B)  wellness and recreational plans 
C)  retirement plans 
D)  pay for time not worked plans 
A)  employment assistance programs 
B)  wellness and recreational plans 
C)  retirement plans 
D)  pay for time not worked plans

Question 12

Experts will support the notion that employee participation in the process of designing a benefits plan is highly desirable. Which of the following goals do experts NOT identify as a positive outcome of having employee involvement?

Accepted Answer

A)  better understanding of needs 
B)  support mechanism in communicating the plan 
C)  increased level of acceptance 
D)  decreased overall plan costs 
A)  better understanding of needs 
B)  support mechanism in communicating the plan 
C)  increased level of acceptance 
D)  decreased overall plan costs

Question 13

It is not cost effective having employers purchase dental coverage on behalf of their employees.

Accepted Answer

A) True 
 B)False

Question 14

Deferred profit-sharing plans tend to be classified as "contributory."

Accepted Answer

A) True 
 B)False

Question 15

Some benefits consultants are starting to turn against flexible benefits plans, arguing in favour of semi-flexible systems

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT an issue in establishing an indirect pay system?

Accepted Answer

A)  determining the role of employee performance in establishing benefits 
B)  choosing a process for plan design 
C)  choosing the benefits system and specific benefits 
D)  determining the structure of each benefit 
A)  determining the role of employee performance in establishing benefits 
B)  choosing a process for plan design 
C)  choosing the benefits system and specific benefits 
D)  determining the structure of each benefit

Question 17

Which of the following is NOT a consideration in deciding whether to include a particular benefit in indirect pay?

Accepted Answer

A)  whether it contributes to the objectives of indirect pay 
B)  whether or not there is a union 
C)  whether it is valued by employees 
D)  whether it adds much net value to the compensation package 
A)  whether it contributes to the objectives of indirect pay 
B)  whether or not there is a union 
C)  whether it is valued by employees 
D)  whether it adds much net value to the compensation package

Question 18

Which of the following variables is NOT used to determine the income level provided to employees upon retirement under a "defined benefit program"?

Accepted Answer

A)  some variable (percentage) of the average income over a certain period of time, usually three to five years 
B)  the company's profit level over a period of three to five years 
C)  employees' years of service 
D)  employees' salary level 
A)  some variable (percentage) of the average income over a certain period of time, usually three to five years 
B)  the company's profit level over a period of three to five years 
C)  employees' years of service 
D)  employees' salary level

Question 19

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 20

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

Accepted Answer

Flexible benefits plans are considered a

In Canada, only Quebec has legislation regarding benefits for part-time employees.

Describe how a health care spending account works.

A force promoting flexible benefits plans is the increasing diversity of the work force.

As a result of a recent human resource audit, it was determined that a particular company has an "underfund liability" associated with its retirement plan, requiring an immediate injection of cash. What type of pension plan or retirement plan is this company likely using?

Which of the following nonmandatory major benefits is the most common among Canadian organizations with 10 or more employees?

One drawback associated with outsourcing routine benefits administration is the notion that employers will begin to lose touch with benefit needs and issues important to employees.

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

Identify and briefly explain the most common and important employee services.

Research shows that satisfaction with a benefits plan declines as employees learn more about it.

What component of a company's benefits package is second only to mandatory benefits in terms of cost for an organization?

Experts will support the notion that employee participation in the process of designing a benefits plan is highly desirable. Which of the following goals do experts NOT identify as a positive outcome of having employee involvement?

It is not cost effective having employers purchase dental coverage on behalf of their employees.

Deferred profit-sharing plans tend to be classified as "contributory."

Some benefits consultants are starting to turn against flexible benefits plans, arguing in favour of semi-flexible systems

Which of the following is NOT an issue in establishing an indirect pay system?

Which of the following is NOT a consideration in deciding whether to include a particular benefit in indirect pay?

Which of the following variables is NOT used to determine the income level provided to employees upon retirement under a "defined benefit program"?

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

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

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

In Canada, only Quebec has legislation regarding benefits for part-time employees.

Describe how a health care spending account works.

A force promoting flexible benefits plans is the increasing diversity of the work force.

As a result of a recent human resource audit, it was determined that a particular company has an "underfund liability" associated with its retirement plan, requiring an immediate injection of cash. What type of pension plan or retirement plan is this company likely using?

Which of the following nonmandatory major benefits is the most common among Canadian organizations with 10 or more employees?

One drawback associated with outsourcing routine benefits administration is the notion that employers will begin to lose touch with benefit needs and issues important to employees.

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

Identify and briefly explain the most common and important employee services.

Research shows that satisfaction with a benefits plan declines as employees learn more about it.

What component of a company's benefits package is second only to mandatory benefits in terms of cost for an organization?

Experts will support the notion that employee participation in the process of designing a benefits plan is highly desirable. Which of the following goals do experts NOT identify as a positive outcome of having employee involvement?

It is not cost effective having employers purchase dental coverage on behalf of their employees.

Deferred profit-sharing plans tend to be classified as "contributory."

Some benefits consultants are starting to turn against flexible benefits plans, arguing in favour of semi-flexible systems

Which of the following is NOT an issue in establishing an indirect pay system?

Which of the following is NOT a consideration in deciding whether to include a particular benefit in indirect pay?

Which of the following variables is NOT used to determine the income level provided to employees upon retirement under a "defined benefit program"?

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

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

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