Exam (elaborations)
CEBS GBA Exam 3 (Latest) Questions With Complete Solutions, Graded A+
- Module
- Institution
CEBS GBA Exam 3 (Latest) Questions With Complete Solutions, Graded A+
[Show more]
Seller
Follow
stuuviaa
Reviews received
Content preview
Name: Score:349 Multiple choice questions
,Term 1 of 349
Discuss the deficiency involved with ERISA Section 408(b)(2), and explain why this deficiency is
important (Mod 5.4)
(a) Health benefits
(b) Qualified tuition reduction
(c) Meals and lodging provided as a condition of employment
(d) Dependent care benefits
(e) No-additional-cost services
(f) Qualified employee discounts
(g) Working condition fringe benefits
(h) Qualified transportation fringe benefits
(i) De minimis fringe benefits
(j) Qualified moving expenses
(k) Qualified retirement planning services
(l) Access to on-premises gyms and other athletic facilities.
Employee contributions to plans often are administered by payroll deductions. Auditors
sometimes find that while contribution amounts are deducted from payroll according to a
sound method, the funds are not always remitted timely to the employee benefit plan. For
plans with more than 100 participants, funds must be
remitted as soon as they reasonably can be segregated but not more than 15 days into the
month following the month in which they are withheld from payroll. The timing on this
transaction is critical, but it is not uncommon to find plan administrators are not following a
sound process for ensuring it.
One deficiency commonly noted by auditors is the lack of proper monitoring of service
provider fees and disclosures as required under ERISA Section 408(b)(2). Many plan
sponsors do not follow these regulations. They require the plan's covered third-party
service providers to disclose the administrative and investment costs incurred by the plan
and plan participants and the compensation received by the
service provider. This type of deficiency is important because a plan service provider is
considered a party in interest, and its services are considered party-in-interest
transactions.
Without the proper written disclosure required under ERISA Section 408(b)(2), the amounts
received by the service provider are considered unreasonable, per se, and the related
statutory exemption does not apply, resulting in a prohibited transaction.
(a) Conducting the audit in accordance with GAAS
(b) Obtaining reasonable rather than absolute assurance about whether the financial
statements are free of material misstatement, whether caused by error or fraud
, (c) Obtaining an understanding of the plan and its environment, including its internal
controls, sufficient to assess the risks of material misstatement of the financial statements
and to design the nature, timing and extent of further audit procedures
(d) The expression of an opinion on the plan's financial statements
Term 2 of 349
Which occupations are covered by Social Security? (Mod 10.2)
Unemployment insurance programs are federal-state programs that pay weekly cash
benefits to workers who are involuntarily unemployed. Each state has its own
unemployment insurance program. The objectives of these programs are:
(a) Provide cash income during involuntary unemployment
(b) Help unemployed workers find jobs
(c) Encourage employers to stabilize employment
(d) Help stabilize the economy
Most insurance carriers and third-party administrators (TPAs) do a good job of
administering self-funded plans, but maintaining regular oversight of health care
expenses is always prudent and is, in fact, a plan sponsor's fiduciary responsibility.
According to ERISA, it is the duty of plan trustees and other fiduciaries to act in the best
interests of plan participants, including reducing claims expenses and ensuring the quality
of administrative processes.
Virtually all private sector employees are covered under Social Security at the present
time. Federal civilian employees hired after 1983 are also covered on a compulsory basis. In
addition, state and local government employees can be covered by a voluntary agreement
between the state and federal government. The majority of state and local government
employees are covered. More than nine out of ten workers are working in occupations
covered by Social Security.
Part C, also known as the Medicare Advantage program, expands beneficiaries' options for
participation in private-sector health care plans. Medicare Parts A and B constitute the
original fee-for-service Medicare program. Although all Medicare beneficiaries can receive
their benefits through the traditional fee-for-service
program, most beneficiaries enrolled in both Part A and Part B can choose to participate in
a Medicare Advantage plan instead. Medicare Advantage plans are offered by private
companies and organizations and are required to provide at least those services covered
by Parts A and B, except hospice services. These plans may (and in certain situations must)
provide extra benefits (such as vision or hearing) or reduce cost sharing or premiums.
, Definition 3 of 349
Under ERISA Section 107, plans required to file the Form 5500 and related schedules must
maintain a copy of all the information used to arrive at these figures, such as financial reports
including:
(a) Statements from the trust, custodian, brokerage accounts and/or bank accounts that reflect
deposits, withdrawals, income, fees and other transactional activity
(b) Documentation that such accounts are properly maintained as plan (not company or personal)
accounts
(c) Certified audits and/or appraisals, depending on plan size and type of assets held
(d) Distribution records including withholding and Forms 1099-R
(e) Reconciliation of deposits to deductions taken on corporate income tax returns.
Explain the differences between a market-driven approach to employee benefit plan
communications and the traditional approach to such communications (Mod 3.3)
What items should be considered when customizing a strategy to meet the challenges of
employee benefit plans confronting cyberthreats? (Mod 4.4)
How does the DOL define a "material reduction" in covered services/benefits in a health
plan that requires SMMs be distributed within 60 days after the modification or change?
(Mod 1.3)
Provide examples of financial reports that a plan filing Form 5500 is required to keep for a
minimum of six years after the filing date (Mod 6.3)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller stuuviaa. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £10.32. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
82013 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now