CEBS GBA/RPA3 Exam Bundle

ERISA Title I - Answer- Intended to provide protections to plan participants and beneficiaries. Includes certain pension funding and vesting provisions ERISA Title Ii - Answer- Amended the IRS Code. Primarily includes various requirements that must be met so a plan can be tax favored or designate...

Old-Age, Survivor's & Disability Insurance - Answer- OASDI A basic characteristic of social insurance programs where income is high enough to provide a comfortable standard of living - Answer- Floor of Income This requires applicants to show their income/assets are below a certain level for p...

What is the basic law that governs employee benefit plans? - Answer- ERISA (Employee Retirement Income Security Act) - 1974 What is the name of the law that created parity between corporate and self-employed retirement plans? - Answer- TEFRA (Tax Equity and Fiscal Responsibility Act) - 1992 Th...

What is the basic assumption underlying concept of a free market and how is it challenged by the theory of "bounded rationality?" (Mod 1.1) - Answer- Assumption that rational customers will make informed decisions about value, quality and price, while producers who meet consumer's demands will be...

Broad view of Employee Benefits (Mod 1.1) - Answer- Considers Employee Benefits to be virtually any form of compensation other than direct wages paid to Employees (Ex: WC, Unemployment, State DI, SS, Vacation, Holidays, 401K/Retirement, Employer share of Medical, Severance Pay, Child Care, etc..) ...

The 4 basic elements of an employee welfare benefit plan are: - Answer- 1. there must be a plan, fund or program 2. the plan, fund or program is established or maintained by an ER 3. the plan, fund or program is for the purpose of providing specifically listed benefits, through the purchase of...

Top-Heavy - Answer- DC: Sum of account balance of key employees greater than 60% of all account balances DB: PV of accumulated accrued benefits of key employees greater than 60% of all accumulated accrued benefits Distribution Rules - Answer- 60 days of later of: Plan year of termination Com...

Which of the following statements correctly describes minimum requirements that group benefit plans typically must meet in order to be prospectively rated on contract renewal? - Answer- The more unpredictable the event that will trigger a claim, the larger the minimum group size and premium requirem...

Top-hat plan - Answer- A retirement plan that is unfunded and maintained by an employer primarily for the purpose of providing deferred compensation for a "select group of management or highly compensated employees" is called a (n): Economic Benefit - Answer- A theory of income taxation that im...

What are the four basic elements of an employee welfare benefit plan? - Answer- There must be a plan, fund, or program The plan, fund, or program is established or maintained by an employer The plan, fund, or program is for the purpose of providing specifically listed benefits, through the purchas...

Section 79 - Answer- The annual cost of insurance can represent taxable income to the employees Section 83 - Answer- Taxation of property transferred in connection with the performance of services Section 125 - Answer- Permits the adoption of cafeteria or flexible benefit plans and provides th...

Broad view of Employee Benefits (Mod 1.1) - Answer- Considers Employee Benefits to be virtually any form of compensation other than direct wages paid to Employees (Ex: WC, Unemployment, State DI, SS, Vacation, Holidays, 401K/Retirement, Employer share of Medical, Severance Pay, Child Care, etc..) ...