Question 1

Which type of retirement plan guarantees a specified level of retirement income?

Accepted Answer

A)   401(k)  plan
B)   Profit sharing plan
C)   Money purchase plan
D)   Defined benefit plan
E)   Employee stock ownership planF) A) and C)
G) B) and C)

Question 2

Which of the following is true of a cash balance plan?

Accepted Answer

A)   All contributions to the plan come from the employee.
B)   The money earns interest at a predetermined rate, such as the rate paid on U.S. Treasury bills.
C)   Older employees with many years of service benefit to a greater degree than do younger workers just starting their careers.
D)   It penalizes employees for changing jobs.
E)   Employees cannot predict retirement benefits under cash balance plans.F) A) and B)
G) B) and D)

Question 3

Which of the following criteria is an organization required to meet while offering early retirement incentives?

Accepted Answer

A)   Set an age at which retirement benefits stop growing
B)   Ask female employees to pay more to defined-benefit plans
C)   Should not coerce employees to retire.
D)   Ask employees to sign compulsory waiver under ADEA
E)   Provide employees not more than 48 hours to make an early retirement decisionF) A) and B)
G) A) and E)

Question 4

Which of the following legally required employer-provided benefits help workers injured on the job?

Accepted Answer

A)   Social Security
B)   Unemployment insurance
C)   Group insurance
D)   Workers' compensation
E)   Family and medical leaveF) A) and E)
G) A) and B)

Question 5

Under FASB standards,employers fund retirement benefits on a pay-as-you-go basis.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true of 529 savings plans?

Accepted Answer

A)   They are mandated by the federal government.
B)   They are designed to support the primary education expenses of workers' children.
C)   They provide education to employees' children at a subsidized rate.
D)   They provide information about the education standards in different colleges to employees to help them enroll their children in better institutions.
E)   They allow parents and other family members to defer taxes on the earnings of their deposits.F) A) and B)
G) B) and D)

Question 7

Employers that offer medical insurance must meet the requirements of the _____.

Accepted Answer

A)   Employee Retirement Income Security Act of 1974
B)   Family and Medical Leave Act of 1993
C)   Social Security Act of 1935
D)   Sarbanes-Oxley Act of 2002
E)   Consolidated Omnibus Budget Reconciliation Act of 1985F) None of the above
G) A) and E)

Question 8

According to ERISA,employees whose contributions are vested have met the requirements to receive a pension at retirement age.

Accepted Answer

A) True 
 B)False  True

Question 9

Which of the following is true of defined-contribution plans?

Accepted Answer

A)   Defined-contribution plans are required by ERISA.
B)   Employers are free from the risk of poor performance of the plans.
C)   The PGBC makes annual contribution of $33 per participant.
D)   They guarantee a specified level of retirement income.
E)   They guarantee higher returns to the employees compared to the defined benefit plans.F) B) and E)
G) A) and C)

Question 10

Tuition reimbursement programs offered by certain organizations cover the tuition and other education related expenses of their workers' children.

Accepted Answer

A) True 
 B)False  False

Question 11

Which one of the following is true of Social Security benefits?

Accepted Answer

A)   Benefits are taxed as ordinary income at both the federal and state level.
B)   Workers who meet requirements receive retirement benefits according to age and earnings history.
C)   Workers are not required to meet any eligibility rules to receive benefits.
D)   The cost of the program is borne entirely by the employees who pay a payroll tax.
E)   The program covers railroad and federal, state, and local government employees.F) B) and D)
G) C) and D)

Question 12

According to the Americans with Disabilities Act (ADA),employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

Accepted Answer

A)   The COBRA
B)   The ADEA
C)   The ADA
D)   The FLSA
E)   The ERISAF) C) and E)
G) D) and E)

Question 14

The funds required by an organization to pay retirement benefits are reported as _____ in the financial statement.

Accepted Answer

A)   current assets
B)   current liabilities
C)   accounts receivable
D)   bad debt
E)   future cost obligationsF) C) and D)
G) None of the above E

Question 15

Disability insurance payments are usually less than 25 percent of the employee's salary.

Accepted Answer

A) True 
 B)False

Question 16

Cafeteria-style plans permit employees to choose the types and amounts of benefits they want for themselves from a given set of alternatives.

Accepted Answer

A) True 
 B)False

Question 17

For an organization with _____,switching from a defined-benefit plan can produce great savings in pension benefits.

Accepted Answer

A)   many experienced employees
B)   a few skilled employees
C)   many young employees
D)   many retired employees
E)   highly skilled employeesF) None of the above
G) B) and C)

Question 18

Elder care benefits typically give emphasis to:

Accepted Answer

A)   providing a direct financial assistance.
B)   providing tax exemptions on medical bills of the dependent elders.
C)   setting up an elderly care facility close to the work place.
D)   providing information and support.
E)   providing vouchers and discounts to help employees access the existing elderly care facilities.F) B) and C)
G) A) and E)

Question 19

The _____ is a report that describes a pension plan's funding,eligibility requirements,risks,and other details.

Accepted Answer

A)   mission statement
B)   balanced scorecard
C)   labor law posting
D)   "top-heavy" plan
E)   summary plan descriptionF) A) and E)
G) B) and C)

Question 20

Why is it essential for organizations to communicate the nature and value of benefits to their employees?

Accepted Answer

Organizations must communicate benefits ...

Exam 13: Providing Employee Benefits

Which type of retirement plan guarantees a specified level of retirement income?

Correct AnswerverifiedShow Answer

Which of the following is true of a cash balance plan?

Correct AnswerverifiedShow Answer

Which of the following criteria is an organization required to meet while offering early retirement incentives?

Correct AnswerverifiedShow Answer

Which of the following legally required employer-provided benefits help workers injured on the job?

Correct AnswerverifiedShow Answer

Under FASB standards,employers fund retirement benefits on a pay-as-you-go basis.

Correct AnswerverifiedShow Answer

Which of the following is true of 529 savings plans?

Correct AnswerverifiedShow Answer

Employers that offer medical insurance must meet the requirements of the _____.

Correct AnswerverifiedShow Answer

According to ERISA,employees whose contributions are vested have met the requirements to receive a pension at retirement age.

Correct AnswerverifiedTrue

Which of the following is true of defined-contribution plans?

Correct AnswerverifiedShow Answer

Tuition reimbursement programs offered by certain organizations cover the tuition and other education related expenses of their workers' children.

Correct AnswerverifiedFalse

Which one of the following is true of Social Security benefits?

Correct AnswerverifiedShow Answer

According to the Americans with Disabilities Act (ADA),employers are required to take care not to discriminate against workers over age 40 in providing pay or benefits.

Correct AnswerverifiedShow Answer

Which of the following federal laws increased the responsibility of pension plan trustees to protect retirees?

Correct AnswerverifiedShow Answer

The funds required by an organization to pay retirement benefits are reported as _____ in the financial statement.

Correct AnswerverifiedE

Disability insurance payments are usually less than 25 percent of the employee's salary.

Correct AnswerverifiedShow Answer

Cafeteria-style plans permit employees to choose the types and amounts of benefits they want for themselves from a given set of alternatives.

Correct AnswerverifiedShow Answer

For an organization with _____,switching from a defined-benefit plan can produce great savings in pension benefits.

Correct AnswerverifiedShow Answer

Elder care benefits typically give emphasis to:

Correct AnswerverifiedShow Answer

The _____ is a report that describes a pension plan's funding,eligibility requirements,risks,and other details.

Correct AnswerverifiedShow Answer

Why is it essential for organizations to communicate the nature and value of benefits to their employees?

Correct AnswerverifiedOrganizations must communicate benefits ...View AnswerShow Answer

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True

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False

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E

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Organizations must communicate benefits ...
View Answer