Old Thyme Manufacturing offered employees a defined-benefit retirement plan, in which retirees received benefits calculated on the basis of their age, earnings, and years of service. But the company didn't keep up with technology, and its earnings fell. When the stock market dipped, the company found that it couldn't afford to keep up with paying for its retirement benefits. What protection will the retirees have in this situation?

Because the plan was underfunded, the retirees will no longer receive benefits.

The employees will receive payouts from their 401(k) plans.

Old Thyme must give the employees the option to sell their stock in the company.

The Pension Benefit Guarantee Corporation will provide them with a basic benefit.

The employees will receive a share of profits as part of the company's ESOP.

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Question 40 2 pts

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Steve, the vice president of Ocher Inc., plans to introduce a retirement plan for all employees. George, the operations director, disagrees because the proposed plan would increase the company's costs. Which of the following, if true, strengthens Steve's argument?

Steve, the vice president of Ocher Inc., plans to introduce a retirement plan for all employees. George, the operations director, disagrees because the proposed plan would increase the company's costs. Which of the following, if true, strengthens Steve's argument?

Some benefits have become so common that today's employees expect them.

The employees at Ocher are young adults who prefer cash compensation to benefits.

Benefit packages do not affect the competitive nature of the labor market.

Benefit packages are more complex than pay structures.

The federal government does not have mandatory requirements for specific retirement plans.

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Question 41 2 pts

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

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

the American Disabilities Act (ADA)

the Consolidated Omnibus Budget Reconciliation Act (COBRA)

the Fair Labor Standards Act (FLSA)

the Age Discrimination in Employment Act (ADEA)

the Employee Retirement Income Security Act (ERISA)

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Question 42 2 pts

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For an average employee, the most common type of insurance offered as benefits is the pension program.

For an average employee, the most common type of insurance offered as benefits is the pension program.

True

False

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Question 43 2 pts

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Which of the following is an example of a defined-contribution pension plan?

Which of the following is an example of a defined-contribution pension plan?

unfunded PBGC plan

cost-sharing plan

money purchase plan

flexible spending account plan

consumer-driven pension plan

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Question 44 2 pts

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Nick, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Nick to say she has been called up for jury duty and needs to be away next week. What should Nick do?

Nick, the HR manager at a start-up company, helped the founder plan a benefits package that includes paid vacations, holidays, and sick leave. Now an employee approaches Nick to say she has been called up for jury duty and needs to be away next week. What should Nick do?

He should ask the employee to use her sick leave for jury duty.

He should establish, and then apply, policies for other situations requiring time off.

He should direct the employee to use the Family and Medical Leave Act.

He should ask the employee to use her vacation time for jury duty.

He should forbid the employee from taking time off for jury duty.

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Question 45 2 pts

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Which of the following is a true of unemployment insurance?

Which of the following is a true of unemployment insurance?

Costs for unemployment insurance are standard across the country.

Most funding for unemployment insurance is provided by employees.

It is a voluntary program based on number of employers in a specific state.

It provides payments to offset lost income during voluntary unemployment.

Unfavorable experience ratings of employers lead to higher premiums.

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Question 46 2 pts

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Which of the following is a function of elder care benefits offered by organizations?

Which of the following is a function of elder care benefits offered by organizations?

direct financial assistance

providing vouchers and discounts to help employees access the existing elderly care facilities

information, referrals, and support

setting up elderly care facilities close to the workplace

tax exemptions on medical bills of the dependent elders

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Question 47 2 pts

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Isaiah, an HR manager, conducted a survey to learn which benefits employees value the most. He discovers that the survey results will be difficult to apply. What is the most likely reason?

Isaiah, an HR manager, conducted a survey to learn which benefits employees value the most. He discovers that the survey results will be difficult to apply. What is the most likely reason?

The costs of turnover at Isaiah's company are high.

The employees only value medical insurance.

Software is the only method employees will accept to help them choose their benefits.

Employees expect to receive benefits that are legally required and widely available.

Employees have very different opinions about what they value.

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Question 48 2 pts

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Bilge Makers Unlimited has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which of the following actions could best help Bilge Makers accomplish its goal?

Bilge Makers Unlimited has a goal to lower the cost of employee benefits. Its human resource department compares the costs of its benefits with averages published by the Bureau of Labor Statistics, the U.S. Chamber of Commerce, and other sources. The investigation shows that its cost for workers' compensation insurance is high relative to other companies. Which of the following actions could best help Bilge Makers accomplish its goal?

cancel the workers' compensation insurance

improve safety to lower the company's experience rating

replace the workers' compensation insurance with disability insurance

accept the high cost and look for other areas in which to reduce spending

shop for a better deal on workers' compensation insurance

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Question 49 2 pts

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Which of the following must be true for a pension plan to be deemed as a qualified plan?

Which of the following must be true for a pension plan to be deemed as a qualified plan?

It must not be a cafeteria-style plan.

It has to be a defined-benefit plan that requires most of the funding to come from the employer.

It must not discriminate in favor of an organization's highly compensated employees.

It should include elder care and child care.

It has to be a defined-contribution plan.

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Question 50 2 pts

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An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which of the following will strengthen Sarah's argument?

An organization employs Rick, a bilateral amputee, to work as a research analyst. When Sarah, the organization's chief advisor, becomes aware of this, she argues that the organization is going to experience legal challenges. According to the Americans with Disabilities Act, which of the following will strengthen Sarah's argument?

The organization switched to a risk-based policy after hiring Rick.

The organization has a risk-based insurance in place before recruiting Rick.

The organization does not have a risk-based insurance.

The organization plans to stop Rick's benefits when he reaches the age of 50.

The organization gave Rick access to the same health insurance that is provided to the other employees.