HRMT 817 – FALL 2014
FINAL EXAM
– Please Bold and UnderlineYour Answers
and Email Your Completed Exam to Prof. Pearson (.edu”>spears02@nyit.edu& spearson@chernoffdiamond.com)
Completed Exam
Due by, Saturday, December 13.
1. Which is the
following is NOT the reason for companies to adopt various benefits plans?
(Defining and Exploring Employee Benefits)
A. Government
regulation/mandates
B. Favorable tax treatments
C. Attracting and retaining best employees
D. Reducing labor cost
2. What is
another name for a pay-for-knowledge plan? (Adjustments to Core Compensation)
A. Merit-pay
B. Person-focused pay
C. Seniority-pay
D. Incentive-pay
3. Discretionary benefits can be categorized into programs that (Discretionary
Benefits)
A. Protect health and income, provide job security, provide
accommodation and enhancement benefits
B. Provide job security, protect health and income, allow for paid
time-off
C. Protect health and
income, allow for paid time-off, provide accommodation and enhancement benefits
D. Provide job security, allow for paid time-off, provide accommodation
and enhancement benefits
4. What are the
two basic causes for psychological contract violations? (Psychological Contract
Violation)
A. Distributive and
procedural justice
B.Reneging and incongruence
C.Changing composition of the
workforce and the economic challenges
D. Legal and industrial
environments
5.
Which of the following is not closely associated with
the nature of transactional psychological contracts? (Psychological Contracts)
A.Economic and extrinsic
focus
B.Close-ended, specific
C.Narrow scope
D.Long term relationship
6.
Which of the following employee benefits is more
relevant for relational psychological contracts? (Psychological Contracts)
A. Legally required benefits
B. Health insurance
C.Life insurance
D.Accommodation and
enhancement benefits
7. Being able to spread the administrative costs to larger groups of
employees, to reduce the health insurance cost per employee, is referred to as
what? (Cost Advantage)
A. Insurance pooling
B. Economies of scale
C. Economies of scope
D. Administrative underwriting
8. Workers are classified as key employees if they meet one of which three
criteria? (The Internal Revenue Code)
A. An officer making over $150,000, an employee who for 2012 is either
a 5% owner or 2% owner of the business that makes more than $150,000
B. An officer making over $165,000, an employee who for 2012 is either a
3% owner or 1% owner of the business that makes more than $150,000
C. An officer making over $150,000, an employee who for 2012 is either a
5% owner or 1% owner of the business that makes more than $150,000
D. An officer making over
$165,000, an employee who for 2012 is either a 5% owner or 1% owner of the
business that makes more than $150,000
9. COBRA is an amendment to which federal law(Title I: Protection of Employee Rights)?
A. IRCA
B. HIPPA
C. ERISA
D. FLSA
10. Under NLRA, subjects for collective
bargaining fall into one of which three
categories? (Labor Unions and Employee Benefits:
The National Labor Relations Act of 1935)
A. Mandatory, probable, legal
B. Mandatory, permissive,
illegal
C. Mandatory, probable, illegal
D. Mandatory, permissive, legal
11. This Title of ERISA has the IRC provisions pertaining to the taxation
of employee benefits and pension plans. (Title II: Amendments to the Internal
Revenue Code Relating to Retirement Plans)
A. Title I
B. Title II
C. Title III
D. Title IV
12. This type of hybrid plan is based on income and years of service, uses
individual accounts, passes the IRS’s cross-testing rules and the total
benefits are based on the investment performance of the plan’s
assets. (Target Benefit Plans)
A. Target benefit plan
B. Money purchase plan
C. Age-weighted profit sharing plan
D. Cash balance plan
13. Which of the following are characteristics of the flat benefit formula
used in defined benefits plans? (Defined Benefit Plans)
A. An employee’s years of service are considered, is determined using
a flat amount formula or a flat percentage formula, the benefit is based on a
percentage of the employee’s final average wage or salary
B. Is determined using a flat amount formula or a flat percentage formula
an employee’s years of service are considered, the benefit is based on a
percentage of the employees final average wage or salary, is based on the
employee’s last 3-4 years of service
C. Is based on the employee’s last 3-4 years of service an employee’s
years of service are considered, The benefit is based on a percentage of the
employees final average wage or salary, an employee’s years of service are
considered
D. The benefits are based
on a percentage of the employees final average wage or salary, are based on the
employee’s last 3-4 years of service and are determined using a flat amount
formula or a flat percentage formula
14.The 1331/3% rule refers to what? (Defined Benefit
Plans)
A. The annual accrual rate
for defined benefits plans
B. The annual accrual rate for defined contribution plans
C. The annual accrual rate for qualified benefit plans
D. The annual accrual rate for qualified contribution plans
15. What is the 3% rule used to determine? (Defined Benefit Plans)
A. Nondiscrimination in
defined benefits plans
B. Nondiscrimination in defined contribution plans
C. Tax benefit qualification for defined benefits plans
D. Tax benefit qualification for defined contribution plans
16. These indicate yearly probabilities of death based on such factors as
age and sex. (Individual versus Group Insurance Coverage)
A. Experience ratings
B. Formulary ratings
C. Mortality tables
D. Morbidity tables
17. What are the three common forms of managed care plans? (Managed
Care Plans)
A. Individual practice organizations, point-of-service plans, health maintenance
organizations
B. Health maintenance
organizations, preferred provider organizations, point-of-service plans
C. Preferred provider organizations, point-of-service plans, individual
practice organizations
D. Preferred provider organizations, health maintenance organizations,
individual practice organizations
18. This federal law requires group health plans to provide medical and
surgical benefits for mastectomies. (The Employee Retirement Income
Security Act of 1974 (ERISA))
A. Women’s Health and Cancer
Rights Act
B. Health Insurance Portability and Accountability Act
C. Pregnancy Discrimination Act
D. Women with Disabilities Act
19. This consumer-driven health care option allows employees to contribute
pre-tax wages annually to pay for qualified medical expenses, but they will
lose the balance not used at year’s end. (Consumer-Driven Health Care)
A. Flexible spending
accounts
B. Health reimbursement arrangements
C. Health savings accounts
D. Flexible savings accounts
20. According to ADA guidelines, which of the following is true? (The
Americans with Disabilities Act of 1990)
A. Employers can require a longer preeligibility period for employees with
disabilities
B. Employers cannot exclude
qualified employees with disabilities from participating in its’ disability
retirement plans
C. Employers must offer the same benefits to all under its disability
retirement plans
D. Employers must include cost-of-living adjustments on its disability
benefits
21. Employer-sponsored disability insurance plans generally supplement
legally required benefits established by which law? (The Employee
Retirement Income Security Act of 1974)
A. Family Medical Leave Act
B. Employee Retirement
Income Security Act
C. Fair Labor Standards Act
D. Social Security Act
22. This ERISA Title specifies a variety of protections for participants
and beneficiaries. (The Employee Retirement Income Security Act of 1974)
A. Title II
B. Title III
C. Title I
D. Title IV
23. Most short-term disability insurance plans pay employees around how
much of their regular pre-tax salary? (Short-Term Disability Insurance
Programs)
A. 85 – 100%
B. 35 – 50%
C. 50 – 67%
D. 40 – 59%
24. In 2012, how much did an employee have to make to earn a credit for
OASDI? (Qualifying for OASDI Benefits)
A. $1,500
B. $2,240
C. $1,200
D. $1,130
25. This Medicare program offers voluntary supplemental medical
insurance. (Medicare Part B Coverage)
A. Medicare Part B
B. Medicare Part A
C. Medicare Advantage
D. Medicare Part C
26. Which of the following are eligible for OASDI? (OASDI and
Medicare)
A. Self-employed
individuals
B. Federal government workers
C. 10 year railroad employees
D. Children under 21 who work for their parents
27. This paid time-off policy is generally used by employees for professional
and managerial development activities. (Sabbatical Leave)
A. Sabbatical Leave
B. Academic Leave
C. Professional Development Leave
D. Personal Leave
28. In 2011, private industry employer costs for paid leave benefits was
(Defining and Exploring Paid Time-Off Programs)
A. 3.5%
B. 4.7%
C. 6.9%
D. 12%
29. Jury duty and witness duty are governed by which law(s)? (Jury
Duty and Witness Duty Leaves)
A. Both by federal and state laws
B. Jury duty by federal and
state laws, witness duty by some state laws only
C. Both by federal laws only
D. Both by state laws only
30. Which of the following is true concerning FMLA provisions? (Leave
Under the Family and Medical Leave Act of 1993)
A. The time-off is
unpaid, but medical insurance is continued
B. The time-off is paid, but medical insurance is discontinued
C. The time-off is unpaid and medical insurance is discontinued
D. The time-off is paid and medical insurance is continued
31. This type of EAP establishes contracts with sets of numerous smaller
employers. (EAP Delivery Options)
A. Full-service EAPs
B. Referral EAPs
C. Consortium EAPs
D. Third-party EAPs
32.Which of the following is not an example of a personal problem covered
under EAP programs? (Employee Assistance Programs)
A. Drug abuse
B. Domestic violence
C. Depression
D. Vacation buy back
33. How much can companies save by investing in preventative health care
programs? (Wellness Programs)
A. For every $1 invested, they can expect to save as much as $16 in
medical insurance costs
B. For every $1 invested, they can expect to save as much as $20 in
medical insurance costs
C. For every $1 invested, they can expect to save as much as $10 in
medical insurance costs
D. For every $1 invested,
they can expect to save as much as $6 in medical insurance costs
34.EAPs service providers must universally release information about
employees concerning what? (Release of Confidential Information)
A. Child abuse &
neglect only
B. Child abuse & neglect and alcoholism
C. Child abuse & neglect, alcoholism and drug abuse
D. Child abuse & neglect and drug abuse
35.These are the 4 most common types of cafeteria plans. (Types of
Flexible Benefit Plan Arrangements)
A. Premium-only, mix-and-match, core-plus-option, reduction
B. Reduction, modular,
core-plus-option, mix-and-match
C. Material modification, mix-and-match, core-plus-option, modular
D. Mix-and-match, material modification, premium-only, reduction
36. Which of the following compares the nontaxable benefits provided to key
employees to the nontaxable benefits provided to all employees?
(Nondiscrimination Rules)
A. Eligibility
B. Concentration
C. Concurrent reviews
D. Prospective reviews
37. If all employees are offered health insurance and retirement benefits,
but then get to select the rest of their benefits package, then they’re being
offered what type of cafeteria plan? (Core-Plus-Option Plans)
A. Core-plus-option
B. Mix-and-match
C. Modular
D. Flexible spending
38. These are the three types of utilization reviews. (Utilization
Reviews)
A. Qualified, modified, nondiscriminatory
B. Prospective, concurrent,
retrospective
C. Flexible, core-plus, mix-and-match
D. Precertification, prospective, retrospective
39.These are the 4 most common types of cafeteria plans. (Types of
Flexible Benefit Plan Arrangements)
A. Premium-only, mix-and-match, core-plus-option, reduction
B. Reduction, modular,
core-plus-option, mix-and-match
C. Material modification, mix-and-match, core-plus-option, modular
D. Mix-and-match, material modification, premium-only, reduction
40.Which of the following compares the nontaxable benefits provided to key
employees to the nontaxable benefits provided to all employees?
(Nondiscrimination Rules)
A. Eligibility
B. Concentration
C. Concurrent reviews
D. Prospective reviews
41. If all employees are offered health insurance and retirement benefits,
but then get to select the rest of their benefits package, then they’re being
offered what type of cafeteria plan? (Core-Plus-Option Plans)
A. Core-plus-option
B. Mix-and-match
C. Modular
D. Flexible spending
42. These are the three types of utilization reviews. (Utilization
Reviews)
A. Qualified, modified, nondiscriminatory
B. Prospective, concurrent,
retrospective
C. Flexible, core-plus, mix-and-match
D. Precertification, prospective, retrospective
43. This type of executive retirement plan is unfunded and can be issued
upon retirement or termination without cause, but the assets must be released
to creditors if the company files for insolvency or bankruptcy. (Rabbi Trusts)
A. Employee-owned annuities
B. Secular trusts
C. Rabbi trusts
D. Corporate-owned life insurance
44.Nonqualified retirement plans for executives are generally divided into
these two broad classes. (Nonqualified Retirement Plans for Executives)
A. Top hat plans and
supplemental executive retirement plans
B. Excess benefit plans and
supplemental executive retirement plans
C. Offset benefit plans and supplemental executive retirement plans
D. Target benefit plans and supplemental executive retirement plans
45.What was the IRS limit for annual earnings amount for determining
qualified plan benefits in 2012? (Objectives of Nonqualified Plans)
A. $150,000
B. $175,000
C. $200,000
D. $250,000
46. Which
of the following ERISA Title I parts does not apply to nonqualified plans?
(Supplemental Executive Retirement Plans (SERPs))
A. Funding
B. Reporting and disclosure
C. Fiduciary responsibility
D. Administration and enforcement
47.Which one of the following is not a characteristic of
NAFTA? (North America)
A. NAALC
B. Convergence of labor standards
C. Mexico and US are
members
D. Trade deals
48. In Canada, the amount of vacation pay is equal to what percentage of
the employee’s pay for the preceding year per week of vacation. (Canada,
Paid Time-Off Benefits)
A. 2%
B. 3%
C. 5%
D. 5.5%
49. Which one of the following is not true of paid time off benefits in
Mexico? (Mexico, Paid Time-Off Benefits)
A. Workers are entitled to paid time off during public holidays
B. Females are entitled to
6 weeks of maternity leave with full pay
C. Employees are entitled to 6 vacation days
D. Workers get double pay for working on a mandatory holiday
50. Which one of the following is not true of protection benefits in
Brazil? (Brazil, Protection Benefits)
A. Comprehensive benefits are provided to all workers
B. There is a unified healthcare system
C. Medical services are provided directly to patients
D. The social security
system went into effect only in 2001
Extra CreditQuestion(10 points):
What is the intention of the
Affordable Care Act and what does it impact?
