CEBS - GBA 1 Module 1 Question and answer already verified 2023

CEBS - GBA 1 Module 1 Question and answer already verified 20231.1 Distinguish between the broad view and the narrow view of employee benefits The broad view defines employee benefits as anything other than direct compensation, including both government-mandated benefits and private plans. (social security, pension plans etc.). The narrow view holds that employee benefits are any benefit sponsored unilaterally or jointly by employers and employees that is not subsidized by the government. 1.2 List the categories of benefits that generally are considered to fall under a broad view employee benefits • Legally required benefits (Social Security) • Payment for time not worked (rest, lunch, vacation, and holidays) • Medical • Retirement & savings plan payments • Miscellaneous benefits (employee discounts, severance pay, education, and child care) 1.3 What benefits are typically excluded when the term "employee benefits" is viewed and defined in a narrow sense? Those that are legally mandated (Social Security and workers' compensation) 2.1 Explain the types of businesses- or human resource-related reasons for firms establishing employee benefit plans So businesses may attract & retain capable employees. Good benefit plans foster corporate efficiency, productivity, and improve employee morale. 2.2 What impact have labor unions historically had in employee benefits? Through the practice of collective bargaining labor unions have had an impact on the growth of employee benefit plans. In 1948 the NLRB ruled in the Inland Steel case that the duty to bargain in good faith over wages also included insurance and fringes such as pension benefits. Following that, in the W.W. Cross & Co. case, the NLRB ruled that wages included health and accident plan. 2.3 Explain the significance of the Taft-Hartley Act in employee benefit planning. The Labor-Management Relations Act, also called the Taft-Hartley Act, sets forth the framework for good-faith collective bargaining over wages, hours, conditions and terms of employment and employee benefits. It established the distinction between retirement benefits and welfare benefits. It also provides framework for administration of those benefits. It's the legal basis on which jointly trusteed benefit plans are founded.