Question 1

For most organizations,what component of its 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 C

Question 2

Which statement best describes benefits for full-time versus part-time employees in Canada?

Accepted Answer

A)  Most jurisdictions do not legally require firms to have the same benefits for full-time and part-time employees. 
B)  Most firms have the same benefits for both categories of employees,regardless of the law. 
C)  All employees who work more than 20 hours a week are entitled to nonmandatory benefits. 
D)  All employees who work more than 25 hours a week are entitled to nonmandatory benefits. 
A)  Most jurisdictions do not legally require firms to have the same benefits for full-time and part-time employees. 
B)  Most firms have the same benefits for both categories of employees,regardless of the law. 
C)  All employees who work more than 20 hours a week are entitled to nonmandatory benefits. 
D)  All employees who work more than 25 hours a week are entitled to nonmandatory benefits. A

Question 3

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. B

Question 4

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

Accepted Answer

Employee services encompass a number of

Question 5

Which of the following are all Canadians entitled to?

Accepted Answer

A)  Old Age Security 
B)  defined pension plans 
C)  defined contribution plans 
D)  deferred profit-sharing plans 
A)  Old Age Security 
B)  defined pension plans 
C)  defined contribution plans 
D)  deferred profit-sharing plans

Question 6

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 7

Which term usually describes severance packages for executives?

Accepted Answer

A)  RRSPs 
B)  termination benefits 
C)  golden parachutes 
D)  just cause severance 
A)  RRSPs 
B)  termination benefits 
C)  golden parachutes 
D)  just cause severance

Question 8

Which of the following is NOT a mandatory benefit?

Accepted Answer

A)  Canada Pension Plan 
B)  defined benefit pension plans 
C)  workers' compensation 
D)  employment insurance 
A)  Canada Pension Plan 
B)  defined benefit pension plans 
C)  workers' compensation 
D)  employment insurance

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Describe how a health care spending account works.

Accepted Answer

A health care spending account is a tax-

Question 11

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 12

Which statement best describes pension plans in Canada?

Accepted Answer

A)  Defined contribution plans have been decreasing. 
B)  Defined contribution plans have been increasing. 
C)  Hybrid plans have been decreasing. 
D)  Defined benefit plans have not changed in terms of their use. 
A)  Defined contribution plans have been decreasing. 
B)  Defined contribution plans have been increasing. 
C)  Hybrid plans have been decreasing. 
D)  Defined benefit plans have not changed in terms of their use.

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 are riskier for employees versus defined benefit plans.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

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 as an expense in their income statement. 
B)  She will have to include the $2,500 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 as an expense in their income statement. 
B)  She will have to include the $2,500 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 17

What 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

Firms with pension plans have higher turnover rates among employees.

Accepted Answer

A) True 
 B)False

Question 19

Experts will support the notion that employee participation in the process of designing a benefits plan is highly desirable.Which goal 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 20

What 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

For most organizations,what component of its benefits package is second only to mandatory benefits in terms of cost for an organization?

Which statement best describes benefits for full-time versus part-time employees in Canada?

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

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

Which of the following are all Canadians entitled to?

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

Which term usually describes severance packages for executives?

Which of the following is NOT a mandatory benefit?

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

Describe how a health care spending account works.

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

Which statement best describes pension plans in Canada?

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 are riskier for employees versus defined benefit plans.

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

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 NOT a consideration in deciding whether to include a particular benefit in indirect pay?

Firms with pension plans have higher turnover rates among employees.

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

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

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

For most organizations,what component of its benefits package is second only to mandatory benefits in terms of cost for an organization?

Which statement best describes benefits for full-time versus part-time employees in Canada?

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

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

Which of the following are all Canadians entitled to?

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

Which term usually describes severance packages for executives?

Which of the following is NOT a mandatory benefit?

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

Describe how a health care spending account works.

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

Which statement best describes pension plans in Canada?

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 are riskier for employees versus defined benefit plans.

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

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 NOT a consideration in deciding whether to include a particular benefit in indirect pay?

Firms with pension plans have higher turnover rates among employees.

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

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

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