Question 1

Top-heavy provisions ensure minimum benefits for key employees. (Qualified Plans)

Accepted Answer

A) True 
 B)False

Question 2

Vesting rights focus on employer contributions. (Qualified Plans)

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a hybrid plan? (Hybrid Plans)

Accepted Answer

A) Money purchase 
B) Cash balance 
C) Stock option 
D) Target benefit 
A) Money purchase 
B) Cash balance 
C) Stock option 
D) Target benefit

Question 4

Retirement benefits are generally distributed in one of these three ways. (Qualified Plans)

Accepted Answer

A) Backloading, collateral payments, offset approach 
B) Periodic payments, lumps sums collateral payments 
C) Annuities, lumps sums offset payments 
D) Lumps sums, annuities, periodic payments 
A) Backloading, collateral payments, offset approach 
B) Periodic payments, lumps sums collateral payments 
C) Annuities, lumps sums offset payments 
D) Lumps sums, annuities, periodic payments

Question 5

Section 457 Plans are nonqualified retirement plans for government employees. (Section 457 Plans)

Accepted Answer

A) True 
 B)False

Question 6

Which legislative act made benefit and contribution limits permanent? (Qualified Plans)

Accepted Answer

A) ERISA Title I 
B) Economic Growth and Tax Relief Reconciliation Act of 2001 
C) Pension Protection Act of 2006 
D) ERISA Title III 
A) ERISA Title I 
B) Economic Growth and Tax Relief Reconciliation Act of 2001 
C) Pension Protection Act of 2006 
D) ERISA Title III

Question 7

Briefly discuss the origins and trends in retirement plans in the US. (Defining Retirement Plans)

Accepted Answer

Main Points
● According to Employee Bene

Question 8

To qualify as a nondiscriminating defined contribution plan,it must meet which two safe harbors? (Defined Contribution Plans)

Accepted Answer

A) Base contribution formula or collateral contribution formula 
B) Fixed first-dollar-of-profits formula or graduated first-dollar-of-profits formula 
C) Uniform allocation formula or uniform points allocation formula 
D) Profitability threshold formula or the backloading formula 
A) Base contribution formula or collateral contribution formula 
B) Fixed first-dollar-of-profits formula or graduated first-dollar-of-profits formula 
C) Uniform allocation formula or uniform points allocation formula 
D) Profitability threshold formula or the backloading formula

Question 9

Employees can participate in pension plans after they have reached the age of 25 (Qualified Plans)

Accepted Answer

A) True 
 B)False

Question 10

Defined contribution plans are costlier for employers than defined benefit plans. (Defined Contribution Plans)

Accepted Answer

A) True 
 B)False

Question 11

Wearaway occurs whenever benefits accrue at a substantially higher rate during the years close to an employee's eligibility to earn retirement benefits. (Converting Defined Benefit Plans to Cash Balance Plans)

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is not an accrual criteria? (Defined Benefit Plans)

Accepted Answer

A) Average benefit test 
B) 3% rule 
C) Fractional rule 
D) 113 1/3 rule 
A) Average benefit test 
B) 3% rule 
C) Fractional rule 
D) 113 1/3 rule

Question 13

Defined contribution plans guarantee particular benefit amounts to participating employees. (Defined Contribution Plans)

Accepted Answer

A) True 
 B)False

Question 14

Savings incentive match plans for employees (SIMPLEs)have the following characteristics (Savings Incentive Match Plans for Employees (SIMPLEs))

Accepted Answer

A) The company has at least 100 employees, the employees' preceding year's compensation totaled at least $5000, the company has no other employer-sponsored retirement plan 
B) The company has fewer than 100 employees, the employees' preceding year's compensation totaled less than $5000, the company has no other employer-sponsored retirement plan 
C) The company has fewer than 100 employees, the employees' preceding year's compensation totaled less than $5000, the company offers other employer-sponsored retirement plans 
D) The company has fewer than 100 employees, the employees' preceding year's compensation totaled at least $5,000, the company has no other employer-sponsored retirement plan 
A) The company has at least 100 employees, the employees' preceding year's compensation totaled at least $5000, the company has no other employer-sponsored retirement plan 
B) The company has fewer than 100 employees, the employees' preceding year's compensation totaled less than $5000, the company has no other employer-sponsored retirement plan 
C) The company has fewer than 100 employees, the employees' preceding year's compensation totaled less than $5000, the company offers other employer-sponsored retirement plans 
D) The company has fewer than 100 employees, the employees' preceding year's compensation totaled at least $5,000, the company has no other employer-sponsored retirement plan

Question 15

The benefits distributed from profit sharing plans are usually allocated using one of these three ways. (Profit Sharing Plans)

Accepted Answer

A) Lump sum payments, graduated payments, proportional payments based on their contributions to profits 
B) Equal payments, proportional payments based on salary, lump sum payments, graduated payments 
C) Equal payments, proportional payments based on salary, proportional payments based on their contributions to profits 
D) Equal payments based on contributions to profits, equal payments based on salary, lump sum payments 
A) Lump sum payments, graduated payments, proportional payments based on their contributions to profits 
B) Equal payments, proportional payments based on salary, lump sum payments, graduated payments 
C) Equal payments, proportional payments based on salary, proportional payments based on their contributions to profits 
D) Equal payments based on contributions to profits, equal payments based on salary, lump sum payments

Top-heavy provisions ensure minimum benefits for key employees. (Qualified Plans)

Vesting rights focus on employer contributions. (Qualified Plans)

Which of the following is not a hybrid plan? (Hybrid Plans)

Retirement benefits are generally distributed in one of these three ways. (Qualified Plans)

Section 457 Plans are nonqualified retirement plans for government employees. (Section 457 Plans)

Which legislative act made benefit and contribution limits permanent? (Qualified Plans)

Briefly discuss the origins and trends in retirement plans in the US. (Defining Retirement Plans)

To qualify as a nondiscriminating defined contribution plan,it must meet which two safe harbors? (Defined Contribution Plans)

Employees can participate in pension plans after they have reached the age of 25 (Qualified Plans)

Defined contribution plans are costlier for employers than defined benefit plans. (Defined Contribution Plans)

Wearaway occurs whenever benefits accrue at a substantially higher rate during the years close to an employee's eligibility to earn retirement benefits. (Converting Defined Benefit Plans to Cash Balance Plans)

Which of the following is not an accrual criteria? (Defined Benefit Plans)

Defined contribution plans guarantee particular benefit amounts to participating employees. (Defined Contribution Plans)

Savings incentive match plans for employees (SIMPLEs)have the following characteristics (Savings Incentive Match Plans for Employees (SIMPLEs))

The benefits distributed from profit sharing plans are usually allocated using one of these three ways. (Profit Sharing Plans)

Introducing Employee Benefits

The Psychology and Economics of Employee Benefits

Regulating Employee Benefits

Employer-Sponsored Health Insurance Programs

Employer-Sponsored Disability Insurance,life Insurance,and Workers Compensation Programs

Government-Mandated Social Security Programs

Paid Time-Off and Flexible Work Schedules

Accommodation and Enhancement Benefits

Managing the Employee-Benefits System

Nonqualified Deferred Compensation Plans for Executives

Global Employee Benefits at a Glance

Filters

Exam 4: Employer-Sponsored Retirement Plans

Top-heavy provisions ensure minimum benefits for key employees. (Qualified Plans)

Vesting rights focus on employer contributions. (Qualified Plans)

Which of the following is not a hybrid plan? (Hybrid Plans)

Retirement benefits are generally distributed in one of these three ways. (Qualified Plans)

Section 457 Plans are nonqualified retirement plans for government employees. (Section 457 Plans)

Which legislative act made benefit and contribution limits permanent? (Qualified Plans)

Briefly discuss the origins and trends in retirement plans in the US. (Defining Retirement Plans)

To qualify as a nondiscriminating defined contribution plan,it must meet which two safe harbors? (Defined Contribution Plans)

Employees can participate in pension plans after they have reached the age of 25 (Qualified Plans)

Defined contribution plans are costlier for employers than defined benefit plans. (Defined Contribution Plans)

Wearaway occurs whenever benefits accrue at a substantially higher rate during the years close to an employee's eligibility to earn retirement benefits. (Converting Defined Benefit Plans to Cash Balance Plans)

Which of the following is not an accrual criteria? (Defined Benefit Plans)

Defined contribution plans guarantee particular benefit amounts to participating employees. (Defined Contribution Plans)

Savings incentive match plans for employees (SIMPLEs)have the following characteristics (Savings Incentive Match Plans for Employees (SIMPLEs))

The benefits distributed from profit sharing plans are usually allocated using one of these three ways. (Profit Sharing Plans)

Introducing Employee Benefits

The Psychology and Economics of Employee Benefits

Regulating Employee Benefits

Employer-Sponsored Health Insurance Programs

Employer-Sponsored Disability Insurance,life Insurance,and Workers Compensation Programs

Government-Mandated Social Security Programs

Paid Time-Off and Flexible Work Schedules

Accommodation and Enhancement Benefits

Managing the Employee-Benefits System

Nonqualified Deferred Compensation Plans for Executives

Global Employee Benefits at a Glance

Filters