An employer-funded plan with favorable tax advantages, which repays employees for medical care not covered by the employer’s standard medical plan is a(n) A) 401(k) account. B) individual retirement account (IRA). C) health reimbursement arrangement (HRA). D) flexible spending account (FSA). ANSWER Answer: C
Date: September 19th, 2020
What are the minimum age and service requirements that can be imposed on employees eligible to participate in a retirement plan? A) age 18 and 6 months of service B) age 21 and 1 year of service C) age 21 and 3 years of service D) age 25 and 4 years of service […]
Date: September 19th, 2020
Which of the following statements about retirement ages in defined benefit pension plans is (are) true? I. The normal retirement age in most plans is 65. II. For a defined benefit plan, the early retirement age is the earliest age an employee can retire with full, unreduced benefits. A) I only B) II only C) […]
Date: September 19th, 2020
Which of the following statements concerning defined-benefit pension plans is (are) true? I. The contribution rate by the employer varies from year to year. II. The retirement benefit is not known in advance. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: A
Date: September 19th, 2020
Beta Corporation has 1,000 employees eligible to participate in the firm’s pension plan, and 100 of these employees are considered highly compensated. All of the highly compensated employees are covered by the plan. What is the minimum number of the 900 non-highly compensated employees who must be covered by the plan in order for the […]
Date: September 19th, 2020
Which of the following statements concerning defined contribution pension plans is (are) true? I. The contribution rate is fixed. II. The retirement benefit varies. A) I only B) II only C) both I and II D) neither I nor II ANSWER Answer: C
Date: September 19th, 2020
Which of the following is a characteristic of a health maintenance organization (HMO)? A) unlimited choice of health-care providers B) no premiums until care is provided C) narrow, limited, medical services provided D) emphasis on cost containment ANSWER Answer: D
Date: September 19th, 2020
Which of the following statements about retirement benefits under pension plans is true? A) Under a flat percentage of annual earnings defined benefit formula, each employee receives the same dollar benefit. B) A benefit using final pay is usually based on an employee’s earnings during the last month of plan participation. C) A unit-benefit formula […]
Date: September 19th, 2020
Which of the following statements is (are) true with regard to group life insurance? I. Most group life insurance is whole life coverage. II. Most group life insurance plans allow a modest amount of life insurance on the employee’s spouse and dependent children. A) I only B) II only C) both I and II D) […]
Date: September 19th, 2020
All of the following are potential disadvantages to employees covered by a money-purchase pension plan EXCEPT A) The contribution rate by the employer is uncertain. B) The retirement benefit can only be estimated in advance of retirement. C) The benefit formula may produce an inadequate benefit if an employee enters the plan at an older […]
Date: September 19th, 2020
