Exam 12: Indirect Compensation: Employee Benefit Plans

Which agency acts as an insurance company,collecting annual premiums from companies with defined-benefit plans that spell out specific payments upon retirement?

An aging population and an increase in obesity are part of the major factors driving increases in the cost of healthcare.

Once viewed as an expense with little return,what type of policies are now endorsed by a growing number of executives as an investment that pays dividends in morale,productivity,and ability to attract and retain top-notch talent?

In providing health and cash payments to disabled workers and their families,workers' compensation is second in size only to the nation's pension fund.

Cash balance plans are portable when an employee leaves,but they do not vest any sooner than traditional pension plans.

A mature firm with well-established products and substantial market share will probably offer low base pay and benefits but high incentives.

Who are contributions to pension funds typically managed by?

The theory underlying the cafeteria benefits approach is simple: Instead of all workers at a company getting the same benefits,each worker can pick and choose among alternative options cafeteria style.

Regardless of whether a plan is a defined-benefit plan or defined-contribution plan,employees will not know what the purchasing power of their pension checks will be,because interest rates are variable.

Achieving cost competitiveness assures that employees will perceive the benefits program as valuable to them.

To ensure covered workers will receive their accrued benefits even if they get fired,ERISA created the Pension Benefit Guaranty Corporation.

What is the broad objective of the design of compensation programs?

What is driving the increasing costs of healthcare?

In this type of managed care health insurance plan,there is no deductible,and the nominal fees generally range from $5 to $30 per visit depending on the service performed.

Briefly explain the provisions of the Pension Protection Act (PPA)of 2006.

Explain the purpose of the unemployment insurance system.

Generally,employees of nonagricultural,private-sector firms are entitled to benefits for work-related accidents and illnesses leading to temporary or permanent disabilities under:

The perceived value of benefits rises when employers introduce choice through a flexible benefits package.

A growing number of companies are giving employees direct access to information about their direct compensation,but not indirect compensation.

This type of insurance is usually yearly renewable term insurance and typical coverage is one to two times the employee's annual salary.