Benefits Administration and Management: A Comprehensive Guide for Higher Education Administrators

Question 1

What's the main purpose of managing employee benefits?

Accepted Answer

Hire and keep good workers

Answer

Lower the cost of replacing workers

Answer

Follow the law

Answer

Boost employee output

Question 2

Which of the following is not a common employee benefit?

Accepted Answer

Gym membership

Answer

Health insurance

Answer

Paid time off

Question 3

What is the key advantage of a Section 125 plan?

Accepted Answer

Allows employees to pay for qualified benefits with pre-tax dollars

Answer

Establishes a tax-advantaged savings account

Answer

Provides additional life insurance coverage

Question 4

What is the primary role of the Employee Retirement Income Security Act (ERISA) in benefits administration?

Accepted Answer

Protects the rights of participants in employee benefit plans

Answer

Sets minimum funding requirements for pension plans

Answer

Regulates the investment of retirement plan assets

Question 5

What is the fundamental difference between a copayment and a deductible in health insurance?

Accepted Answer

A copayment is a fixed amount paid for specific services, while a deductible is a set amount that must be met before insurance coverage begins

Answer

A deductible is paid by the employee, while a copayment is paid by the insurance company

Question 6

What is the primary purpose of a Health Savings Account (HSA)?

Accepted Answer

Allows individuals to save for qualified medical expenses on a pre-tax basis

Answer

Supplements traditional health insurance plans

Answer

Provides additional coverage for out-of-pocket healthcare costs

Question 7

Which of the following is NOT a predicted trend in the future of benefits administration?

Accepted Answer

Increased use of defined benefit pension plans

Answer

Personalized benefits packages

Answer

Focus on employee well-being

Answer

Use of technology to streamline administration

Question 8

When designing an employee benefits program, which of the following is a primary consideration?

Accepted Answer

Cost-benefit analysis

Answer

Market trends in isolation

Answer

Company culture in isolation

Answer

Employee preferences only

Question 9

Which of the following is a primary advantage of a flexible spending account (FSA)?

Accepted Answer

Tax savings

Answer

Increased employee morale

Answer

Higher investment returns

Answer

Earlier retirement age

Question 10

Which type of software is specifically designed to streamline and automate benefits administration tasks?

Accepted Answer

Benefit administration system

Answer

Database

Answer

Spreadsheet

Question 11

When evaluating the effectiveness of an employee benefits program, which of the following metrics is most important?

Accepted Answer

Employee satisfaction

Answer

Number of participants

Answer

Regulatory compliance

Answer

Plan costs

Question 12

Which of the following is an emerging trend in employee benefits?

Accepted Answer

Wellness programs

Answer

Pension plans

Answer

Defined-benefit plans

Answer

Traditional health insurance

Question 13

Which of the following is not considered a type of employee benefit in most organizations?

Accepted Answer

Paid Sick Leave

Answer

Health insurance

Answer

Paid time off

Answer

Retirement plans

Question 14

What is the primary purpose of the Employee Retirement Income Security Act of 1974 (ERISA)?

Accepted Answer

To set minimum standards for retirement and health benefits plans in the private sector.

Answer

To provide tax advantages for employers

Answer

To guarantee equal access to employee benefits

Answer

To regulate the design of employee benefit plans.

Question 15

What is the primary responsibility of a benefits administrator?

Accepted Answer

To administer and manage employee benefits programs and ensure compliance with relevant laws and regulations.

Answer

To provide financial advice to employees

Answer

To evaluate the effectiveness of employee benefits programs

Answer

To negotiate with insurance providers

Question 16

What is the primary purpose of a Flexible Spending Account (FSA)?

Accepted Answer

To allow employees to save money on eligible out-of-pocket medical expenses on a pre-tax basis.

Answer

To provide a tax-advantaged way to save for retirement

Answer

To cover the cost of health insurance premiums

Question 17

What is the key difference between a traditional 401(k) plan and a Roth 401(k) plan?

Accepted Answer

In a traditional 401(k) plan, contributions are made pre-tax and withdrawals are taxed in retirement whereas in a Roth 401(k) plan, contributions are made post-tax and withdrawals are tax-free in retirement.

Answer

Traditional 401(k) plans offer higher contribution limits than Roth 401(k) plans

Question 18

What is the purpose of a Health Savings Account (HSA)?

Accepted Answer

To allow individuals to save money for qualified medical expenses on a tax-advantaged basis.

Answer

To cover the cost of health insurance premiums.

Answer

To provide a tax-free way to save for retirement.

Question 19

Which of the following is NOT a standard employee benefit commonly offered by employers in the United States?

Accepted Answer

Paid leave for volunteering

Answer

Paid time off

Answer

Retirement plans

Answer

Health insurance

Question 20

What is a potential advantage of a flexible spending account (FSA) for employees?

Accepted Answer

Pre-tax contributions can reduce taxable income.

Answer

FSAs are fully funded by the employer.

Answer

Unused FSA funds can be rolled over to the next year.

Question 21

Which federal law requires employers to provide unpaid leave for certain family and medical reasons?

Accepted Answer

Family and Medical Leave Act (FMLA)

Answer

Employee Retirement Income Security Act (ERISA)

Answer

Affordable Care Act (ACA)

Question 22

An employer wants to control healthcare costs. Which of these strategies is typically considered the most effective?

Accepted Answer

Offering a high-deductible health plan (HDHP) with a Health Savings Account (HSA).

Answer

Offering only a single health insurance plan with limited choices.

Answer

Providing a fully-funded health insurance plan with no employee contributions.

Question 23

A company wants to ensure its employee benefits package is competitive. What is a common best practice for assessing competitiveness?

Accepted Answer

Conducting a benchmarking study comparing benefits offerings to other companies within the same industry.

Answer

Relying solely on employee feedback for benefit decisions.

Answer

Offering only the minimum benefits required by law.