Deck 4: Employee Benefits

Question 1

All employees over 21 years of age who have completed one year of employment must be cov-
ered by the employer 's pension plan under ERISA.

Answer 1

True

Question 2

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
Health care continuation coverage provisions of ERISA.

Answer 2

i

Question 3

ERISA established a fiduciary duty for all individuals who manage money or property under
ERISA regulations.

Answer 3

True

Question 4

COBRA applies to all employer group health plans that provide medical, dental, vision, or pre-
scription drug coverage, regardless of whether the benefits are paid by the employer or through
the employer 's insurance carriers.

Question 5

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
A program by which a health care provider controls or influences the utilization of health care
services.

Question 6

The amount of an employer 's annual contribution to a money purchase plan is discretionary
from year to year.

Question 7

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
A plan that offers the employee a choice between cash and certain statutory nontaxable benefits
provided under either insured or self-funded plans.

Question 8

Pension benefits vest after ten years.

Question 9

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
An individual account plan that requires that an employer commit to a specific contribution for-
mula.

Question 10

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
A plan established by an employer to systematically provide a pension to employees over a
period of years after retirement, based on factors such as years of service, the participant's age,
compensation, and possibly other variables.

Question 11

Health care benefits are the most common types of welfare plan benefits.

Question 12

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
An individual account plan that contains a contribution formula.

Question 13

An employer contributes to a qualified retirement plan on behalf of the employee participants
in the plan.

Question 14

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
A written plan established by an employer to provide retirement benefits for its employees.

Question 15

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
Individual account plan.

Question 16

An employee is taxed on deferred compensation either when the compensation was received or
was subject to the employee's control.

Question 17

ERISA applies to employee benefit plans.

Question 18

The IRS may not disqualify a qualified retirement plan.

Question 19

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
Absolute, accrued, or complete portion of the participant's plan benefits.

Question 20

Matching
a. 401(k) plan
b. defined contribution plan
c. profit sharing plan
d. managed care program
e. qualified retirement plan
f. vested
g. defined benefit pension plan
h. money purchase plan
i. COBRA
j. cafeteria plan
A profit sharing plan that permits employees to make salary deferral contributions to the profit
sharing plan on a before-tax basis.