1. Supplemental pay benefits are: Pay for time not worked. One of employer's most costly benefits.

2. _____ provide(s) for benefits if a person is unable to work through no fault of his or her own. Unemployment compensation

3. A problem with sick leave benefits is: Employees use them when they are not sick.4. A one-time payment of a terminated employee is: Severance pay.5. Employers should regard issuance of severance pay as: A humanitarian gesture. Good

public relations. Litigation avoidance.6. _____ rules requires covered employers to give employees severance pay: ERISA7. For Worker's Compensation to cover an injury or work-related illness, one must prove

that: It arose while the worker was on the job.8. Employers may reduce their Worker's Compensation premiums by: Screening out

accident-prone workers. Reducing accident-causing conditions. Instituting effective safety and health programs

9. A medical organization that receives a fixed annual fee per employee from the employer and provides routine medical services to employees for a nominal fee is a(n): HMO.

10. The major retirement benefit(s) for employees is (are): Social Security. Employer pension plans.

11. With _____ plans, the employee knows ahead of time the pension benefits he or she will receive. Defined benefit

12. _____ specify what contribution the employee and employer will make to the employee's retirement or savings fund: Defined contribution plans

13. Supplemental pay benefits are pay for time that employees do not work. True14. The main problem with sick leave benefits is that they can encourage employees to come

to work even though they are sick. False15. The Family and Medical Leave Act requires employers to provide 12 weeks of paid sick

leave for the birth or adoption of a child. False16. An employer must provide severance pay and 60 days notice to employees under ERISA

rules. False17. Worker's Compensation is income and medical benefits provided to employees who are

injured at work through no fault of their own. False18. An HMO receives an annual fee from an employer for each employee, even when no

medical services are provided. True19. Companies that specialize in helping employers reduce their health care costs are PPOs.

False20. With defined contribution plans, the employee knows ahead of time the pension benefits

he or she will receive. FalseWith defined contribution plans, the contribution is defined, not the pension.

21. The Pension Benefits Guarantee Corporation oversees and insures pensions should a defined contribution plan terminate without sufficient funds to meet its vested obligations. FalseThe PBGC guarantees only defined benefit plans, not defined contribution plans.

21. Cafeteria benefit plans are popular because they allow an employee to buy only the benefits he or she wants. False

22. Job sharing refers to a temporary reduction in work hours by a group of employees to prevent layoffs. False