Which common feature of a benefits plan allows companies to limit benefit participation to current employees? (Basic Design Considerations for Discretionary Benefits)

Question

Quizplus · Accepted Answer

Eligibility provisions allow companies to specify who is eligible to participate in their benefits plan. By limiting participation to current employees, the company can control their benefit costs and prevent former employees from continuing to receive benefits. Noncontributory financing, point-of-service plans, and wellness programs do not necessarily control participation in the benefits plan.

Which Common Feature of a Benefits Plan Allows Companies to Limit