Exam 13: Benefit Options

The Employee Retirement Security Act states that employers must offer a retirement plan to their employees if they work at least 1250 hours per year.

In a _____ plan an employer agrees to provide a specific level of retirement pension,which is expressed as either a fixed dollar or a percentage-of-earnings amount that may vary (increase)with years of seniority in the company.

Companies are turning away from 401K type pension plans because they require putting money in "up front" rather than when workers retire.

Approximately _____ percent of social security benefits go to retirees and their dependents.

What is the central challenge of social security payments? How are they tackled?

A 401K is an example of a defined benefit plan.

_____ relieve an employer's liability when a pre-employment injury combines with a work-related injury to produce a disability greater than that caused by the latter alone.