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20 Cards in this Set
- Front
- Back
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An individual retirement account is a tax-favored retirement savings plan that individuals can establish themselves. True False |
True |
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The Employee Retirement Income Security Act states that employers must offer a retirement plan to their employees if they work for at least 1,250 hours per year. True False |
False |
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A health maintenance organization (HMO) pulls together a group of providers willing to provide services at an agreed upon rate in exchange for employers: A. providing free child care assistance to employees B. laying off all contingent workers who are not eligible for insurance C. paying 30 percent of employee salary to the HMO D. limiting employees to these providers for health services |
D. limiting employees to these providers for health services |
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A qualified deferred compensation plan offers tax advantages to employers. True False |
True |
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____ is designed to lessen an employer's ability to deny coverage to an employee for a preexisting condition. A. COBRA B. OSHA C. FMLA D. HIPPA |
D. HIPPA |
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Medicare is not part of Social Security True False |
False |
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Data from WellPoint Inc shows that ______ percent of its 29 million customers account for over 60 percent of its medical costs A. 37 B. 27 C. 17 D. 7 |
D. 7 |
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What is the first question that should be asked when determining the amount of retirement income an employer should provide? A. should Social Security payments be factored in when considering the level of income an employee should have during retirement? B. how should seniority be factored into the payout formula? C. should other postretirement income sources be integrated with the pension payment? D. What level of retirement compensation would the employer like to set as a target, expressed in relation to pre-retirement earnings? |
D. What level of retirement compensation would the employer like to set as a target, expressed in relation to pre-retirement earnings? |
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Steve has a small company with 12 employees. One of his employees, Larry, has been laid off because his work has been outsourced. Larry had health coverage through Steve's company and wants to continue that coverage. According to COBRA, how long can Larry continue his coverage through Steve's company after being laid off? A. 24 months B. 0 months C. 18 months D. 36 months |
B. 0 months |
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In a ______ plan, an employer agrees to provide a specific level of retirement pension, which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase) with years of seniority in the company. A. defined benefit B. noncontributory benefit C. shared benefit D. 401(k) |
A. defined benefit |
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In the majority of the states, unemployment insurance is financed exclusively by: A.joint contributions by employee unions B. federal, state, and employee contributions C. employers that pay federal and state unemployment insurance D. the philanthropy of co-workers |
C. employers that pay federal and state unemployment insurance |
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Which of the following is a feature of defined contribution plans? A. they are less portable than defined benefit plans B. they are characterized by high contribution rates C. they are faster to vest than defined benefit plans D. they are fully funded by employers |
C. they are faster to vest than defined benefit plans |
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Which of the following types of workers are generally NOT covered by workers' compensation? A. private sector employees B. railroad workers C. farm workers D. state government employees |
C. farm workers |
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Maxford Corp. offers full vesting after two years. However, it does not offer portability of pension to its employees. Which of the following statements is true in this scenario? A. Maxford does not have to provide vested benefits to employees who quit before six months B. Maxford does not have to provide vested benefits if employees quit of their own volition after two years C. Employees of Maxford will receive 20 percent of their pension if they quit after one year D. Employees of Maxford who quit can have their pension benefits transferred to the new employer |
A. Maxford does not have to provide vested benefits to employees who quit before six months |
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Jacob, an 18-year-old, has been working at HoldVille Corp. for over a year. If HoldVille offers full vesting after one year, which of the following statements is true? A. Jacob is not eligible for a pension if he quits of his own volition B. Jacob is eligible for full pension as he worked for over a year at HoldVille C. Jacob is not eligible for pension as he is not over 21 D. Jacob is eligible for 20 percent of his pension if he has dependents |
C. Jacob is not eligible for pension as he is not over 21 |
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For an employee to gain lifetime coverage under Social Security, they must have worked for ____ quarters during which they were covered by the Act. A. 20 B. 30 C. 40 D. 10 |
C. 40 |
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The rising costs of Social Security have been covered by: A. progressive reduction in the coverage B. increases in the maximum earnings base and the rate at which that base is taxed C. welfare grants and annual supplements from Congress D. reduction in Social Security benefits by providing market-driven options |
B. increases in the maximum earnings base and the rate at which that base is taxed |
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Which of the following is a hybrid of defined benefit and defined contribution plans? A. cash balance plan B. 401(k) plan C. profit-sharing plan D. employee stock ownership plan |
A. Cash balance plan |
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Worker's compensation costs have been declining since 2005 due in part to employer safety programs. True False |
True |
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The majority of defined benefit plans calculate average earnings over the last ____ years of service for a prospective retiree. A. 2 to 4 B. 6 to 8 C. 3 to 50 D. 7 to 9 |
C. 3 to 5 |
