Exam 12: Designing and Administering Benefits

The benefits portion of a compensation package most likely plays an important role in:

A(n)________ plan is a retirement plan for which the employer assumes all the risk of meeting the plan's obligation and which provides the employee with a safe,secure,predictable retirement income.

Social Security and unemployment insurance benefits originated in:

Unemployment insurance is administered under the Social Security Act of 1935.

An HMO is a health-care plan that establishes a network of doctors who provide a broad range of services for a set fee,providing the advantages of managed care and the flexibility of traditional insurance.

________ is a guarantee that accrued retirement benefits will be given to retirement plan participants when they retire or leave the employer.

Employee benefits accounted for about ________ of employers' payrolls in 2013.

Health insurance typically covers all of the following EXCEPT:

The rates that employers pay for workers' compensation are based on: the severity of injuries sustained by the company's workforce,the risk of injury to employees,and the benefit level provided for specific injuries.

American companies spend an average of nearly ________ per year per employee on benefits.

Additional Case 12.2 Tri-State Shipping employs 45 workers. They ship commodities across the country. Until recently, they had only legally required benefits, but business has become very profitable and they can now offer their employees more benefits. The average age of their employees is 50. Most employees have been there for more than 20 years, and the company prides itself on keeping workers. The majority of the jobs require heavy lifting or the operation of heavy equipment for loading and unloading trucks, trains, etc. Their workers' compensation tax has been running about 5% per year. They are in one of the lowest workers' compensation tax rate states, but TSS has had a lot of injuries. The lifting required and type of equipment used tends to result in a lot of sprained backs, mashed fingers, or bruised muscles. When workers are injured, they tend to heal quickly and return to work quickly. Despite its reputation for keeping workers, the dock supervisor recently fired a 21-year old employee who had been with TSS for 12 months. Even though everyone liked him, the young man just couldn't learn his job. -Refer to Additional Case 12.2.Given Tri-State Shipping's workforce and the company's culture,which of the following benefits would most likely support its culture?

A(n)________ is a retirement plan that promises to pay a fixed dollar amount of retirement income based on a formula that takes into account the average of the employee's last 3-5 years' earnings prior to retirement.

Which of the following is the LEAST innovative and effective method of employee benefits communication?

Workers' compensation:

________ is legislation that gives employees the right to continue their health insurance coverage for 18 to 36 months after their employment has terminated.

Which of the following is a true statement about HSAs?

Why are employee benefits significant to both employers and employees? What should an employer consider when developing a benefits mix?

A federal law that protects an employee's ability to transfer between health insurance plans without a gap in coverage due to a preexisting condition is ________.

Additional Case 12.1 The HR Director of The Camera Center is leading the executive team through a review of the company's benefits plan. He begins by explaining how the firm funds the benefits plan. After a few questions on that matter, he moves on to clarify what they must offer by law and what benefits the firm would like to provide. A highly entrepreneurial, performance-driven company, The Camera Center provides an excellent profit-sharing plan and one of the best retirement packages in the industry. The firm commits a high portion of compensation funds to the benefits plan. The workforce tends to be college-educated, young professionals who are just starting their families. The CEO wants the total benefits plan reviewed and repackaged, if necessary, to align it with The Camera Center's business culture and strategy. He also wants to contain costs as much as possible and simplify benefits administration. -Refer to Additional Case 12.1.When reviewing the legally required benefits,the HR Director would most likely address:

Crescent Control Systems focuses on providing job security and long-term employment opportunities for its employees.Which of the following would most likely support Crescent's strategy?