Question

Identify a benefit that would be least important to an employee. Explain why it would be least important

Answer 1

Answer:

The response options are:

A. Dual coverage

B. Benefit ceiling

C. Coinsurance

D. Defined benefit plans

The correct answer is: D. Defined benefit plans

Explanation:

A defined benefit plan is an employer-sponsored retirement plan, in which employee benefits are calculated using a formula that takes into account factors such as duration of employment and salary history. The company manages portfolio management and investment risk for the plan. There are also restrictions on when and by what method an employee can withdraw funds without fines.

Defined benefit plans are also known as pension plans or qualified benefit plans. The plan is called 'defined' because the formula for calculating the employer contribution is known in advance. This fund is different from other pension funds, where the amount of disbursements depends on the profitability of the funds invested. Therefore, if the return on investments reserved to finance employee retirement results in a funding deficit, employers must take advantage of the company's income to make up the difference.

Since the employer is responsible for making investment decisions and for managing the investments for the plan, the employer assumes all the investment risk. A tax-qualified benefit plan has the same characteristics as a pension plan, but it also offers the beneficiary of the plan additional tax incentives. However, these tax incentives are not available under unqualified plans.

Answer 2

mployee benefits 5th, A Primer for Human Resource Professionals, Martocchio, Joseph Martocchio

Chapter 1

1. Describe how employee benefits fit into the total compensation function.

Employ benefits are the nonmonetary compensation part of total compensation.

2. Offer some suggestions for how companies might lessen the entitlement mentality among employees toward employee benefits.

3. Companies possess limited budgets to fund employee benefits. From an employer’s perspective, which employee benefits practices should be funded? Which are easily dispensable? Now respond to these questions as a company representative. Explain your answers.

4. Describe the differences between strategic benefits plans and benefits tactics. Should strategic benefit plans be developed before setting strategic benefit tactics? Explain your answer.

5. Consider the varieties of internal and external information companies consider when planning the benefits programs. Which piece of information do you believe is most important to this planning process? Least important? Explain your answers.

Chapter 2

1. Discuss the concept of social exchange as it relates to the employment relationship. How does this concept apply to employee benefits practices?

2. Discuss how changes in the demographic composition of the American workforce will affect the employment relationship from the employer’s perspective. What possible impact will these changes have on employee benefits practices?

3. What are psychological contracts? Discuss the main features of psychological contracts and how they develop.

4. How do employee benefits form a part of employees’ psychological contracts? Discuss how employees’ psychological contracts might be violated and the consequences of these violations for employers.

5. Discuss the different types of justice perceptions employees hold about the employer and firm. How do a firm’s employee benefits practices contribute to employees’ justice or fairness perceptions?

6. What is organizational citizenship behavior? Discuss some of the employer outcomes of organizational citizenship. How can employers use employee benefits practices to encourage employee citizenship behaviors?