Human Resources Management in Canada, 13e (Dessler/Chhinzer)
Chapter 13 Employee Benefits and Services
The Strategic Role of Employee Benefits
1) What are the indirect financial payments given to employees known as?
A) Financial incentives
B) Stock options
C) Company shares
D) Commissions
E) Employee benefits
Answer: E
Type: MC Page Ref: 296
Topic: The Strategic Role of Employee Benefits
2) According to the textbook, which of the following employee benefits is becoming increasingly important for the aging workforce?
A) Coinsurance
B) Healthcare benefits
C) Work sharing
D) Employment insurance
E) Job sharing
Answer: B
Type: MC Page Ref: 296
Topic: The Strategic Role of Employee Benefits
3) According to the textbook, what is the average cost of benefits, as a percentage of payroll for public and private sectors combined?
A) 30%
B) 37%
C) 50%
D) 25%
E) 10%
Answer: B
Type: MC Page Ref: 296
Topic: The Strategic Role of Employee Benefits
Government-Mandated Benefits
1) What is the government-sponsored program that provides temporary financial assistance to a person who is unable to work through no fault of his or her own?
A) Service insurance
B) Employment insurance
C) Worker insurance
D) Labour insurance
E) Illness and injury insurance
Answer: B
Type: MC Page Ref: 297
Topic: Government-Mandated Benefits
2) The employment insurance benefit is generally 55% of average earnings during the last 14 to 45 weeks of which of the following?
A) The qualifying period
B) The previous calendar year
C) The probationary period
D) The previous month
E) The benefit period
Answer: A
Type: MC Page Ref: 297
Topic: Government-Mandated Benefits
3) What is the purpose of a supplemental unemployment benefit plan?
A) To supplement employment insurance benefits by receiving a combined benefit closer to the actual working wage
B) To provide employment insurance benefits so that employees can achieve a better standard of living during periods of unemployment
C) To extend the maternity leave period for both parents
D) To facilitate collective bargaining so that striking workers can receive strike pay without delay
E) To facilitate an agreement between an employer and the employees for benefits as employee needs change
Answer: A
Type: MC Page Ref: 297
Topic: Government-Mandated Benefits
4) The three types of benefits provided under the Canada/Quebec Pension Plan are
A) disability pensions, survivor pensions, and old age security.
B) retirement pensions, healthcare, and disability pensions.
C) retirement pensions, survivor pensions, and old age security.
D) retirement pensions, disability pensions, and survivor benefits.
E) retirement pensions, survivor benefits, and healthcare.
Answer: D
Type: MC Page Ref: 299
Topic: Government-Mandated Benefits
5) Workers' compensation is, in effect, what type of insurance plan?
A) Pension
B) Bureaucratic
C) Guaranteed
D) "No cost"
E) "No fault"
Answer: E
Type: MC Page Ref: 300
Topic: Government-Mandated Benefits
6) According to the textbook, what is the agreed upon best way to manage workers' compensation claims over the long term?
A) Accident prevention
B) Privatization of workers' compensation
C) Instituting employee premiums
D) Better supervising employees
E) Better claims monitoring
Answer: A
Type: MC Page Ref: 300
Topic: Government-Mandated Benefits
7) The amount of time off provided for bereavement leave varies by jurisdiction and also depends on which of the following?
A) The employee's length of service with the company
B) The employee's compensation level
C) The employee's number of unused personal days
D) The closeness of the relationship between the employee and the deceased
E) The employee's performance over the last review period
Answer: D
Type: MC Page Ref: 299
Topic: Government-Mandated Benefits
8) What is the range of the leave in weeks for parental and adoption leaves?
A) 12 to 24
B) 34 to 52
C) 9 to 25
D) 6 to 50
E) 2 to 40
Answer: B
Type: MC Page Ref: 298
Topic: Government-Mandated Benefits
9) Employees in Ontario and the federal jurisdiction may be eligible for what kind of additional pay in certain termination situations, in addition to pay in lieu of notice?
A) Unemployment pay
B) Notice pay
C) Exit pay
D) Severance pay
E) Terminal pay
Answer: D
Type: MC Page Ref: 298
Topic: Government-Mandated Benefits
10) An employer is required to provide advance notice to an employee whose employment is being terminated, unless the employee is working on a short-term contract or which of the following?
A) The company is shutting down
B) A layoff is occurring due to economic conditions
C) The employee is eligible for early retirement
D) The employee has seasonal work
E) The employee is being fired for just cause
Answer: E
Type: MC Page Ref: 298
Topic: Government-Mandated Benefits
11) Some provinces require additional termination pay when mass layoffs occur. The amount of additional pay depends on which of the following?
A) The level of unemployment in the region
B) The employee's length of service
C) The time of year
D) The number of employees being laid off
E) The reasons for the layoff
Answer: D
Type: MC Page Ref: 298
Topic: Government-Mandated Benefits
12) The employment insurance program is funded by contributions from eligible employees but not their employers.
Answer: FALSE
Type: TF Page Ref: 297
Topic: Government-Mandated Benefits
13) Employment insurance programs are meant for eligible persons who are unable to work through no fault of their own.
Answer: TRUE
Type: TF Page Ref: 297
Topic: Government-Mandated Benefits
14) The provincial and federal governments pay the full cost of the workers' compensation system.
Answer: FALSE
Type: TF Page Ref: 300
Topic: Government-Mandated Benefits
15) Briefly describe five government-sponsored employee benefits in Canada.
Answer: Two points for Employment Insurance (EI): provides income benefits if a person is unable to work through no fault of his or her own.
Two points for Canada/Quebec Pension Plan (C/QPP): programs that provide three types of benefits retirement income, survivor/death benefits, and disability benefits. Benefits are payable only to workers who make contributions to the plans and/or their family members.
Two points for Workers' Compensation: provides income and medical benefits to victims of work-related accidents or illnesses and/or their dependents, regardless of fault.
Two points for Vacations & Holidays: provides minimum amount of paid vacation, usually 2 weeks per year.
Two points for Pay on termination of employment: minimum standards for notice of termination, and severance pay
Another possibility is leaves of absence, but it is a stretch to call an unpaid leave of absence a benefit.
Type: ES Page Ref: 298-302
Topic: Government-Mandated Benefits
Voluntary Employer-Sponsored Benefits
1) What is the benefit that provides pay to an employee when he or she is out of work because of a non-work related injury or illness?
A) Severance pay
B) Unemployment pay
C) Workers' compensation
D) Short-term disability plans
E) Hospitalization benefits
Answer: D
Type: MC Page Ref: 305
Topic: Voluntary Employer-Sponsored Benefits
2) A type of life insurance that provides lower rates than individual insurance and includes all employees, regardless of health or physical condition, is called
A) whole life insurance.
B) group life insurance.
C) endowment insurance.
D) term insurance.
E) universal life insurance.
Answer: B
Type: MC Page Ref: 302
Topic: Voluntary Employer-Sponsored Benefits
3) What amount of life insurance does group life insurance usually provide?
A) $100,000
B) Five years' salary
C) Two years' salary
D) $25,000
E) One year's salary
Answer: C
Type: MC Page Ref: 303
Topic: Voluntary Employer-Sponsored Benefits
4) What is the benefit that provides a fixed lump-sum benefit in addition to life insurance benefits when death is accidental?
A) Bereavement and home care insurance
B) Loss of life and physical injury insurance
C) Survivors' benefit and recovery insurance
D) Accidental death and dismemberment coverage
E) Casualty and injury insurance
Answer: D
Type: MC Page Ref: 303
Topic: Voluntary Employer-Sponsored Benefits
5) What is critical illness insurance?
A) Coverage providing a lump-sum benefit to an employee who is diagnosed with and survives a life-threatening illness
B) Coverage for prescription drugs when an employee is diagnosed with an illness that will require a leave of absence
C) A deductible expense per year that provides a fund to be used for the purchase of drugs not covered by health insurance
D) Incremental payments made to employees who no longer can return to work
E) Coverage providing a fixed lump-sum benefit in addition to life insurance benefits when injury is accidental
Answer: A
Type: MC Page Ref: 303
Topic: Voluntary Employer-Sponsored Benefits
6) According to the textbook, what three benefits form the cornerstone of almost all benefits programs?
A) Life insurance, maternity leave, and supplementary healthcare/medical insurance
B) Life insurance, long-term disability, and supplementary healthcare/medical insurance
C) Long-term disability, critical illness, and life insurance
D) Life insurance, maternity leave, and pension benefits
E) Life insurance, long-term disability, and pension benefits
Answer: B
Type: MC Page Ref: 303
Topic: Voluntary Employer-Sponsored Benefits
7) According to the textbook, common health-related insurance plans, other than supplementary healthcare/medical insurance, include which of the following?
A) Vision care, physiotherapy, and dental services
B) Chronic illness benefits, vision care, and dental services
C) Vision care, hearing aids, and dental services
D) Vision care, prescription drugs, and dental insurance
E) Vision care, dental services, and medical supplies
Answer: C
Type: MC Page Ref: 304
Topic: Voluntary Employer-Sponsored Benefits
8) What is the term used to refer to the annual amount of health/dental expenses that an employee must pay before insurance benefits will be paid?
A) The premium
B) The fee
C) The charge
D) The supplement
E) The deductible
Answer: E
Type: MC Page Ref: 304
Topic: Voluntary Employer-Sponsored Benefits
9) According to the textbook, what is the biggest issue facing benefits managers in Canada?
A) Workers' compensation costs
B) Pension funding
C) Unusual illness coverage
D) Retiree benefits
E) Increasing healthcare costs
Answer: E
Type: MC Page Ref: 304
Topic: Voluntary Employer-Sponsored Benefits
10) According to the textbook, what are the main reasons for increasing healthcare costs in Canada?
A) Increasing use of expensive new drugs and rising drug use by an aging population
B) "Cost cutting" in provincial healthcare plans and the arrival of new types of diseases
C) The rise in psychiatric and psychological needs of employees
D) Increasing stress-related illnesses and associated legal costs from employee complaints
E) Increasing workers' compensation claims and the use of expensive new drugs
Answer: A
Type: MC Page Ref: 304
Topic: Voluntary Employer-Sponsored Benefits
11) What percentage do Canadian employers pay of all healthcare expenses in Canada, most of which is for prescription drugs?
A) 10%
B) 20%
C) 40%
D) 30%
E) 50%
Answer: D
Type: MC Page Ref: 304
Topic: Voluntary Employer-Sponsored Benefits
12) What is known as the percentage of expenses (in excess of the deductible that are paid for by the insurance plan?
A) Insured amount
B) Uninsured amount
C) Coinsurance level
D) Premium
E) Assessment
Answer: C
Type: MC Page Ref: 304
Topic: Voluntary Employer-Sponsored Benefits
13) According to the textbook, the simplest approach to reducing health-benefit costs of organizations is to increase the amount of healthcare costs paid by which of the following?
A) Employees
B) The federal government
C) Workers' compensation plans
D) Customers
E) Provincial governments
Answer: A
Type: MC Page Ref: 304
Topic: Voluntary Employer-Sponsored Benefits
14) What is known as a proactive, employer-centred process that coordinates the activities of the employer, the insurance company, and healthcare providers in an effort to minimize the impact of injury, disability, or disease on a worker's capacity to successfully perform his or her job?
A) Disability management
B) Productivity management
C) Worker health management
D) Benefits management
E) Workforce management
Answer: A
Type: MC Page Ref: 307
Topic: Voluntary Employer-Sponsored Benefits
15) According to the textbook, effective disability management programs include
A) monitoring worker's compensation.
B) early and safe return-to-work policies.
C) outplacement programs.
D) monitoring unemployment levels.
E) monitoring unemployment insurance.
Answer: B
Type: MC Page Ref: 307
Topic: Voluntary Employer-Sponsored Benefits
16) According to the textbook, what is the leading cause of short- and long-term disability claims in Canada?
A) Upper body injuries
B) Mental health issues
C) Injuries to feet and legs
D) Eyesight and hearing issues
E) Mobility injuries and issues
Answer: B
Type: MC Page Ref: 307
Topic: Voluntary Employer-Sponsored Benefits
17) According to the textbook, the fastest growing of all occupational disabilities are which of the following?
A) Virus and bacteria illness
B) Back issue
C) Psychiatric
D) Chronic fatigue
E) Repetitive strain
Answer: C
Type: MC Page Ref: 307
Topic: Voluntary Employer-Sponsored Benefits
18) According to the textbook, what is the most common psychiatric disability?
A) Schizophrenia
B) Depression
C) Bipolar disorder
D) Attention-deficit/hyperactivity disorder
E) Loneliness
Answer: B
Type: MC Page Ref: 307
Topic: Voluntary Employer-Sponsored Benefits
19) According to the data presented in the textbook, which of the following is the top challenge in improving how mental health issues are addressed in the workplace?
A) Lack of front-line manager awareness
B) Lack of senior management buy-in
C) Lack of tools and support
D) Inability to identify suitable modified work
E) Employee perceptions and stigma related to mental health issues
Answer: E
Type: MC Page Ref: 307
Topic: Voluntary Employer-Sponsored Benefits
20) According to the textbook, what percentage of employers have implemented return-to-work programs specific to mental health?
A) 33%
B) 13%
C) 23%
D) 43%
E) 53%
Answer: A
Type: MC Page Ref: 307-308
Topic: Voluntary Employer-Sponsored Benefits
21) What type of leave can employers provide for employees who want time off to rejuvenate or to pursue a personal goal?
A) Bereavement leave
B) Maternity leave
C) Paternity leave
D) Sabbatical leave
E) Mental leave
Answer: D
Type: MC Page Ref: 308
Topic: Voluntary Employer-Sponsored Benefits
22) Which of the following is the type of pension plan that contains a formula for determining retirement benefits so that the actual benefits to be received are defined ahead of time?
A) Money purchase pension plan
B) Defined contribution pension plan
C) Defined benefit pension plan
D) Deferred profit-sharing plan
E) Undefined retirement plan
Answer: C
Type: MC Page Ref: 308
Topic: Voluntary Employer-Sponsored Benefits
23) Which of the following is the type of retirement plan that does not define the eventual benefit amount, but only the periodic employer contribution to the plan?
A) Government-sponsored plan
B) Defined contribution pension plan
C) Deferred profit-sharing plan
D) Undefined retirement plan
E) Defined benefit pension plan
Answer: B
Type: MC Page Ref: 308
Topic: Voluntary Employer-Sponsored Benefits
24) Which of the following is the retirement benefit plan in which an amount of company profits is credited to each employee's account, payable at retirement, termination, or death?
A) Group profit pension plan
B) Defined profit pension plan
C) Defined contribution profit plan
D) Deferred profit-sharing plan
E) Group profit-sharing plan
Answer: D
Type: MC Page Ref: 308
Topic: Voluntary Employer-Sponsored Benefits
25) According to the textbook, why are group registered retirement savings plan/deferred profit-sharing plan combinations popular in Canada?
A) No tax is paid at all and the money can be withdrawn at any time after 5 years of retirement.
B) They increase severance payments over and above the amount legislated.
C) Employers provide contributions to them at three times the individual employee contribution.
D) No tax is paid until money is received from the plans at the time of the employee's death or termination of employment (at retirement or otherwise).
E) Membership is automatic upon beginning employment with any employer in Canada.
Answer: D
Type: MC Page Ref: 308-309
Topic: Voluntary Employer-Sponsored Benefits
26) In a contributory pension plan, pension fund contributions are made by
A) the government and the employee.
B) the employer only.
C) the government and the employer.
D) both the employer and the employee.
E) the employee only.
Answer: D
Type: MC Page Ref: 310
Topic: Voluntary Employer-Sponsored Benefits
27) A provision in pension plans referring to the money contributed by the employer that has been placed in a pension fund and cannot be forfeited for any reason is known as which of the following?
A) Employee vesting rights
B) Employee equity rights
C) Employee security rights
D) Employee guarantee rights
E) Employee assurance rights
Answer: A
Type: MC Page Ref: 310
Topic: Voluntary Employer-Sponsored Benefits
28) In most provinces, pension legislation requires that employer contributions be vested once the employee has completed how many years of service?
A) 3
B) 1
C) 2
D) 4
E) 5
Answer: C
Type: MC Page Ref: 311
Topic: Voluntary Employer-Sponsored Benefits
29) A pension provision whereby employees who change jobs can transfer the lump-sum value of the pension that they have earned to a locked-in registered retirement savings plan or to their new employer's pension plan is referred to as which of the following?
A) Non-funding
B) Vesting
C) A non-locked-in provision
D) A flexible pension
E) Portability
Answer: E
Type: MC Page Ref: 311
Topic: Voluntary Employer-Sponsored Benefits
30) According to the textbook, once an employee is vested, all pension plan contributions are “locked-in” and cannot be withdrawn by the employee on termination of employment; in this case, when must employees wait until to receive a pension from the plan?
A) Changing jobs
B) Retirement
C) At least 5 years of service
D) Transfer
E) Promotion
Answer: B
Type: MC Page Ref: 311
Topic: Voluntary Employer-Sponsored Benefits
31) Most group life insurance plans contain a provision for coverage of all employees regardless of health or physical condition.
Answer: TRUE
Type: TF Page Ref: 302
Topic: Voluntary Employer-Sponsored Benefits
32) Accidental death and dismemberment coverage provides annual payments in addition to life insurance benefits when employees are diagnosed with but survive a life-threatening illness.
Answer: FALSE
Type: TF Page Ref: 303
Topic: Voluntary Employer-Sponsored Benefits
33) A defined benefit pension plan contains a formula for determining retirement benefits.
Answer: TRUE
Type: TF Page Ref: 308