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Questions and Answers
What is one of the main purposes of the Patient Protection and Affordable Care Act?
What is one of the main purposes of the Patient Protection and Affordable Care Act?
Which type of dental plan is characterized by requiring the use of participating providers?
Which type of dental plan is characterized by requiring the use of participating providers?
What is a benefit of managed care medical plans?
What is a benefit of managed care medical plans?
Which statement describes a common health care benefit related to mental health treatment?
Which statement describes a common health care benefit related to mental health treatment?
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What is one of the main objectives of the regulations on employee benefits plans?
What is one of the main objectives of the regulations on employee benefits plans?
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What is NOT typically included in income protection programs offered by companies?
What is NOT typically included in income protection programs offered by companies?
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What type of health plan typically features a high deductible?
What type of health plan typically features a high deductible?
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How do private medical plans address the rising cost of healthcare?
How do private medical plans address the rising cost of healthcare?
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Which of the following is NOT typically included in employee welfare benefits?
Which of the following is NOT typically included in employee welfare benefits?
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Which of the following accurately represents a characteristic of indemnity plans?
Which of the following accurately represents a characteristic of indemnity plans?
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What is a characteristic of death benefits in most countries?
What is a characteristic of death benefits in most countries?
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What does a private health-care exchange offer?
What does a private health-care exchange offer?
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Which insurance type is referred to as long-term disability in other countries?
Which insurance type is referred to as long-term disability in other countries?
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What factor influences health benefits alongside other types of employee benefits?
What factor influences health benefits alongside other types of employee benefits?
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In Italy, the typical death benefit payout is how many times an employee's pay?
In Italy, the typical death benefit payout is how many times an employee's pay?
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Which health plan type is often considered less flexible for employers?
Which health plan type is often considered less flexible for employers?
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What is a defining characteristic of defined contribution (DC) plans?
What is a defining characteristic of defined contribution (DC) plans?
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Which type of plan is considered the most prevalent DC plan in the U.S.?
Which type of plan is considered the most prevalent DC plan in the U.S.?
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Which of the following is NOT a component of pay for time not worked programs?
Which of the following is NOT a component of pay for time not worked programs?
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What is a hybrid plan that combines features of defined benefit and defined contribution plans?
What is a hybrid plan that combines features of defined benefit and defined contribution plans?
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In many countries, which term is often synonymous with 'vacation'?
In many countries, which term is often synonymous with 'vacation'?
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Which program consolidates separate time-off programs into one policy?
Which program consolidates separate time-off programs into one policy?
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What is a common characteristic of severance allowances?
What is a common characteristic of severance allowances?
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Which of the following time-off programs is typically guided by company policy or union contracts?
Which of the following time-off programs is typically guided by company policy or union contracts?
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What is the primary aim of employee benefits in the total rewards model?
What is the primary aim of employee benefits in the total rewards model?
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Which of the following is considered a mandatory income protection program in many countries?
Which of the following is considered a mandatory income protection program in many countries?
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What distinguishes voluntary benefits from mandatory benefits?
What distinguishes voluntary benefits from mandatory benefits?
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Which of the following factors does NOT influence the growth and change of employee benefits?
Which of the following factors does NOT influence the growth and change of employee benefits?
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In which situation would pay for time not worked programs apply?
In which situation would pay for time not worked programs apply?
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Which benefit is categorized under wellness programs?
Which benefit is categorized under wellness programs?
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Which of the following best describes income protection programs?
Which of the following best describes income protection programs?
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What role do unions play in employee benefits?
What role do unions play in employee benefits?
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How does taxation benefit levels in employee benefits?
How does taxation benefit levels in employee benefits?
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What impact does corporate philosophy have on employee benefits?
What impact does corporate philosophy have on employee benefits?
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What strategy have organizations employed to control rising employee benefits costs?
What strategy have organizations employed to control rising employee benefits costs?
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Which demographic change is currently influencing employee benefits structures?
Which demographic change is currently influencing employee benefits structures?
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What effect has increased competition had on employee expectations?
What effect has increased competition had on employee expectations?
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Which piece of legislation is known for significantly affecting U.S. employee benefits plans?
Which piece of legislation is known for significantly affecting U.S. employee benefits plans?
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Which of the following economic changes is influencing international benefits structures?
Which of the following economic changes is influencing international benefits structures?
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What is one consequence of an aging population on employee benefits?
What is one consequence of an aging population on employee benefits?
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What percentage range of pay may be provided for compensation in some countries?
What percentage range of pay may be provided for compensation in some countries?
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Which of the following retirement plans offers benefits based on a formula related to pay and service?
Which of the following retirement plans offers benefits based on a formula related to pay and service?
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Which retirement program is likely affected by the introduction of company-sponsored plans?
Which retirement program is likely affected by the introduction of company-sponsored plans?
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What factor should be considered in the design of retirement benefits plans?
What factor should be considered in the design of retirement benefits plans?
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What might happen when companies terminate their defined benefit plans?
What might happen when companies terminate their defined benefit plans?
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Which defined benefit structure is common in Europe and the Americas?
Which defined benefit structure is common in Europe and the Americas?
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What is a typical limitation of local workers' compensation payments?
What is a typical limitation of local workers' compensation payments?
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Study Notes
Employee Benefits
- Benefits are a core element of total rewards, balancing personal and professional life.
- Benefits encompass health and welfare, income protection, financial security, retirement, and time off.
- Benefit programs are categorized into income protection and voluntary/discretionary benefits.
- Mandatory benefits include, in some countries, unemployment coverage, medical care, and retirement.
- Voluntary/discretionary benefits can include wellness, mental health, and life insurance.
Factors Influencing Benefits
- Competitive practices influence the level of benefits, which may vary geographically or between competitors.
- Employee demands and unions contribute to benefit negotiations.
- Regulatory and legal environments impact benefit programs, with governments often playing a central role.
- Tax implications affect both employer and employee contributions and benefit levels.
Total Rewards Model
- Costs associated with employee benefits are substantial and often require cost-sharing and eligibility management.
- Perceived value of benefits can influence employer decisions.
Benefits: Economic and Demographic Influences
- Multinational free trade areas influence benefit structures, affecting countries like the European Union, NAFTA, Mercosur and ASEAN.
- Globalization, skilled workforce additions, aging populations, multi-generational workforces, and increasing female participation affect benefits.
- Increased competition leads to shorter career expectations and a focus on immediate compensation.
Major US Benefits Laws
- ERISA (Employee Retirement Income Security Act) affects employee benefit plans, including their protection, tax effects of transactions, and standards for employers with numerous locations.
- PPACA (Patient Protection and Affordable Care Act) expands health care coverage and seeks to lower health care costs for Americans.
Income Protection Programs
- Income protection programs are often legally mandated in some countries, and companies may also provide them for other organizational goals.
- Programs can include health care, welfare, and retirement benefits.
Common Health Care Benefits
- Indemnity plans cover preventive and basic care.
- Dental maintenance organization (DMO) plans involve use of participating providers.
- Vision, prescription drug and behavioral health plans cover vision, prescription drugs and mental health respectively.
Medical Plan Types
- Traditional indemnity plans are less common today.
- Preferred provider organizations (PPOs), health maintenance organizations (HMOs), High-deductible health plans (HDHPs), and consumer-driven health plans (CDHPs) provide varying levels of coverage.
- Health Savings Accounts (HSAs) are linked with high-deductible health plans.
Death Benefits
- Company-provided death benefits are prevalent globally and vary in form and amount.
- Benefits may be tied to insurance policies, social programs, fixed amounts, or relative to annual salaries (e.g., one to two times annual salary).
Disability Insurance
- Disability insurance (long-term disability, invalidity, or permanent ill health) covers injuries or illnesses not related to work.
- The provision and calculation of benefits varies across countries.
Retirement Benefits
- Sources may be statutory social security programs, company-provided plans, or a combination.
- Mandatory requirements and different benefit structures by country need to be considered by employers and employees.
- Government programs and eligibility for social security must be considered in pension plans.
Competitive Practices and Defined Benefits
- Competitive practices, union directives, cost, and business needs significantly impact benefit design
- Defined benefit (DB) and defined contribution (DC) plans are popular globally.
- DB plans offer fixed benefits based on factors like pay and service years, while DC plans allow for employer and employee contributions to participant accounts, with significant risk to the employee.
Pay for Time Not Worked
- Non-work time paid for can include training, rest periods, wash-up time, and vacation/holidays.
Additional Benefits
- Additional benefits can include clothes changing time, travel time, coffee breaks and birthday celebrations.
- Policy and union contracts are often factors in these programs.
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Description
This quiz explores the essential elements of employee benefits, including their role in total rewards and the different categories of benefits offered. It also covers the factors influencing benefits, such as competitive practices and regulatory environments. Test your knowledge on how benefits impact both employees and employers.
