Deck 22: Employee Benefits

Question 1

ERISA covers pension, medical and insurance benefits.

Answer 1

True

Question 2

In a defined benefit plan, the employee may make contributions.

Answer 2

False

Question 3

An employee starting work at age 18 could not be eligible for a pension for 3 years.

Answer 3

True

Question 4

In a defined contribution plan, the employer's contribution is optional.

Question 5

If an employee voluntarily leaves before being vested, he or she loses the contribution made by the employer as well as his or her own.

Question 6

An employee must be how old before being eligible to participate in a pension plan?

A) 16
B) 18
C) 21
D) 25
E) there is no minimum age

Question 7

The following benefits are covered by ERISA.

A) medical
B) insurance
C) pension
D) a&c
E) all

Question 8

Inflation will erode ________.

A) defined benefit plan
B) defined contribution plan
C) both
D) neither

Question 9

A ________ pension plan is one in which several companies participate.

Question 10

________ will erode a defined benefit pension plan.

Question 11

In a ________ plan, the employer may determine the risk of the investments.

Question 12

The fiduciary's duty is greater in a ________ plan.

Question 13

The ________ guards against loss of benefits when pension plans are terminated.

Question 14

________ imposed minimum funding standards to guard against underfunded pensions.

Question 15

________ occurs when the employee acquires the right to the contributions made on his or her behalf by the employer.