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: ERISA
7. 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. True
14. The main problem with sick leave benefits is that they can encourage employees to come
to work even though they are sick. False
15. The Family and Medical Leave Act requires employers to provide 12 weeks of paid sick
leave for the birth or adoption of a child. False
16. An employer must provide severance pay and 60 days notice to employees under ERISA
rules. False
17. Worker's Compensation is income and medical benefits provided to employees who are
injured at work through no fault of their own. False
18. An HMO receives an annual fee from an employer for each employee, even when no
medical services are provided. True
19. Companies that specialize in helping employers reduce their health care costs are PPOs.
20. With defined contribution plans, the employee knows ahead of time the pension benefits
he or she will receive. False
With 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. False

The PBGC guarantees only defined benefit plans. False 22. Cafeteria benefit plans are popular because they allow an employee to buy only the benefits he or she wants. 21. False . Job sharing refers to a temporary reduction in work hours by a group of employees to prevent layoffs. not defined contribution plans.