Exam 19: Employee Benefits

Which of the following is not a factor that has caused the decline in defined benefit plans in the U.S.?

One requirement of group insurance is that the group be formed for the purpose of purchasing coverage.

Explain how employees are taxed on group life insurance supplied as an employee benefit.

A defined contribution retirement plan defines the amount of benefits to be contributed to the employee during retirement.

The maximum tax-deductible contribution an employer can take on a profit-sharing plan distribution is:

The term "tax deferral" refers to the ability to pay taxes at a later date on otherwise currently taxable income.

Wex Enterprises hires you as a benefit consultant. Mr. Wex wants to reduce the number of employees covered by the company's group health insurance plan. Which of the following reasons would you advise him to use to legally determine who to exclude from the health insurance plan?

Major medical insurance provides first dollar coverage for any in-hospital expenses.

A group disability plan that considers Social Security disability benefits is referred to as an integrated plan.

Which of the following plans provide retirement benefits?

Generally, the justification from the employer's point of view in providing employee benefits is to attract, retain and motivate employees.

What are the rules to be considered a qualified plan?

Which of the following is not a goal of the government, employer or employee in providing employee benefits?

The maximum amount that can be contributed to an IRA is:

Which of the following is not required for qualification of a group health or disability plan?

Mary Jane divorces her husband Dustin. Dustin was previously covered by Mary Jane's group health insurance plan offered by her employer. How long can Dustin continue his health coverage, according to COBRA provisions?

Short term disability programs continue the employee's salary for six or fewer months.

A qualified benefit plan must not discriminate in favor of highly compensated employees.

In the historic tripod approach to economic security, how much of an individual's economic security was the employer anticipated to provide?

Which of the following is/are advantages of tax-deferred income benefits? I. Postponing tax payments allows interest to accrue on dollars owed to the government. II. Deferral allows compound interest to also accumulate on a tax-deferred basis.