Chapter 13

Question 1

are benefits taxed?

Answer 1

no

Question 2

benefit administration is often outsourced to?

Answer 2

third-party administrators

Question 3

general types of benefits include what 5 things?

Answer 3

1. security
2. health care
3. retirement, financial
4. family oriented
5. time off

Question 4

major legally required benefits include what 4 things?

Answer 4

1. social security
2. medicare
3. workers compensation
4. unemployment compensation

Question 5

retirement programs are governed by several federal laws. specifically what two?

Answer 5

ERISA and ADEA

Question 6

employers are managing their heal benefit costs more aggresively by?

Answer 6

1. increasing employee copayments and contributions
2. limiting spousal coverage
3. using managed care
4. switching to consumer-driven health (CDH) plans

Question 7

family oriented benefits including complying with what act and what benefits (3)

Answer 7

Family and medical leave act (FMLA) of 1993 
benefits:
1. adoption benefits
2. child care assistance
3. elder-care assistance

Question 8

benefit?

Answer 8

tangible indirect reward provided to an employee or group of employees for organizational membership

Question 9

gross up?

Answer 9

to increase the net amount of what the employee receives to include the taxes owed on the amount

Question 10

flexible benefits plan?

Answer 10

program that allows employees to select the benefits they prefer from options established by the employer

Question 11

adverse selection

Answer 11

situation in which only higher-risk employees select and use certain benefits

Question 12

open enrollment

Answer 12

a time when employees cam change their participation level in various benefit plans and switch benefit options

Question 13

third party administrator

Answer 13

a vendor that provides enrollment, record keeping, and other administrative services to an organization

Question 14

self service

Answer 14

technology that allows employees to change their benefit choices, track their benefit balances, and submit questions to HR staff members and external benfit providors

Question 15

cafeteria benefit plans

Answer 15

employees are given a budget and can purchase the bundle of benefits most important to them from the “menu” of options offered by the employer

Question 16

the social security act of 1935 did what?

Answer 16

established a system to provide old age, survivor’s, disability, and retirement benfits

Question 17

the federal insurance contributions act (FICA) did what?

Answer 17

was passed to facilitate payroll contributions in support of both programs

Question 18

workers compensation?

Answer 18

security benefits provided to workers who are injured on the job

Question 19

no fault insurance

Answer 19

an injured worker receives benefits even if the accident was the employees fault

Question 20

exclusive remedy

Answer 20

workers compensation benefits are the only benefits injured workers may receive from the employer to comepnsate for work-related injuries

Question 21

three-legged stool

Answer 21

a model showing the three sources of income to fund an employees retirement which are social security, retireee savings and employee funded retirement plan/defined contribution

Question 22

vesting

Answer 22

a benefit that cannot be taken away

Question 23

portability

Answer 23

a retirement pkan feature that allows employees to move their retirement benefits from one employer to another

Question 24

retirement plan?

Answer 24

a program established and funded by the employer and or employees to fund employees retirement years

Question 25

defined benefit plan

Answer 25

retirement program in which employees are promised a pension amount based on age and years of service

Question 26

defined contribution plan?

Answer 26

retirement program in which the employer and or employee makes an annual payment to an employees retirement account

Question 27

401(k) plan

Answer 27

plan allows for a percentage of an employees pay to be withheld and invested in a tax deffered account

Question 28

auto enrollment

Answer 28

process by which employee contributions to a 401k plan are started automatically when an employee is eligible to join the plan

Question 29

cash balance plan

Answer 29

retirement program in which benefits are based on accumulated annual company contributions, expressed as a percentage of pay, plus interest credited each year

Question 30

what was the Employee Retirement Income Securtiy Act (ERISA) in 1974 established for

Answer 30

this law is to ensure that private pension plans and other plans governed by ERISA meet minimum standards

Question 31

according to a 1986 ammendment to the Age discrimination in employment act (ADEA) what cannot be forced?

Answer 31

employees to retire at a specific age

Question 32

what was established and enacted in 1990 as an ammendment to the ADEA?

Answer 32

older workers benefit protection ACt

Question 33

patient protection and accordable care act (PPACA)?

Answer 33

has many provision intended to provide affordable health care to all citizens

Question 34

deductible

Answer 34

money paid by an insured individual before a health plan pays for medical expenses

Question 35

copayment

Answer 35

the portion of medical expenses paid by an insured individual for medical treatment

Question 36

managed care

Answer 36

approaches that monitor and reduce medical costs through restrictions and market system alternatives

Question 37

consumer driven health (CDH) plans

Answer 37

health plan that provides employer financial contributions to employees to help cover their health related expenses

Question 38

the consolidated omnibus budget reconciliation act (Cobra) requires what?

Answer 38

that most employers with 20 or more full time and or part time employees offer extended health care coverage to certain groups of plan participants

Question 39

qualifying event

Answer 39

an event that causes a plan particpant to lose group health benefits

Question 40

the health insurance portability and accountability act (HIPAA) of 1996 allows what?

Answer 40

employees to switch their health insurance plans when they change employers and to enroll in health coverage with the new company regardless of pre-existing health conditions

Question 41

what are the 4 most common types of insurance benefits?

Answer 41

1. life insurance 2. disability insurance 3. long-term car insurance 4. legal insurance

Question 42

what is a credit union?

Answer 42

a unin sponsored by te emplyer that provides savings, checking, lending, and other financial services for employees

Question 43

purchase discounts?

Answer 43

allow employees to buy goods or services from their company at reducred prices

Question 44

worker adjustment and retraining notification act of 1988 (WARN) does what?

Answer 44

requries employers to give 60 days notice of mass layoff or plant closings

Question 45

family and medical leave act of 1993 does what?

Answer 45

provides for unpaid leaves of abscence

Question 46

serious health conditions

Answer 46

an illness or injury that requires inpatient care or continuing treatment by a health car eprovidor for medical problems that exist beyond 3 days

Question 47

paid time off plans (PTO plans)

Answer 47

plans that combine all sick leave, vacation time, and holidays into a total number of hours or days that employees can take off with pay