CEBS GBA 2 PRACTICE EXAM END OF
COURSE STUDY GUIDE LATEST UPDATED
ACTUAL TESTED QUESTIONS AND
CORRECT ANSWERS
⩥ Narrow view of Employee Benefits (Mod 1.1).
Answer: Any type of plan sponsored or initiated by Employees and
Employers and engaged in providing benefits that result from the
employment relationship and that are not underwritten or paid directly
by the government; (Ex: Benefits excluded include those legally
mandated - WC, SS).
⩥ Impact of Labor Unions on Employee Benefits (Mod 1.2).
Answer: Through Collective Bargaining, Employee Benefit Plans have
been impacted. In 1948 ruling states that the duty to bargain in good
faith over wages also included insurance and fringes (pension). In WW
Cross & Co, NLRB ruled wages included health and accident plan.
⩥ What is the Taft-Hartley Act? (Mod 1.2).
Answer: The Labor Management Relations Act of 1947 is a United
States federal law that restricts the activities and power of labor unions.
This set forth good-faith collective bargaining over wages, hours, terms
of employment and benefits.
,⩥ 3 Examples of Tax Advantages of Employee Benefit Plans (Mod 1.2).
Answer: 1: Employer Contributions are Tax Deductible
2: Employer Contributions are not considered income to Employees
3: Certain Retirement Benefits Accumulate Tax-Free until distributed.
⩥ Examples of Questions that should be addressed when creating benefit
objectives (Mod 1.3).
Answer: Ex: What benefits should be provided? Who should be
covered? Should Employees have options? How should plan be
financed? How should plan be administered? How should plan be
communicated to Employees?
⩥ What is the Functional Approach to Employee Benefit Planning?
(Mod 1.4).
Answer: Application of a systematic method of analysis to an
Employer's Total Employee Benefits Program. It analyzes the
organization's EBP as a whole in terms of its ability to meet various
employee's needs and to manage loss exposures within the overall
compensation goals and parameters.
⩥ Why is the Functional Approach appropriate when planning,
designing and administering Employee Benefits? (Mod 1.4).
Answer: 1: EE Benefits Significant Element of EE Comp and are a Tax-
Effective Way to Compensate
,2: EE Benefit Represent Large Labor Cost, so ER's should effectively
plan/cost-control
3: In the past, EE Benefits were adopted on piece-meal basis; helps to
now fill gaps/overlap
4: Systematic Approach to planning helps to keep the EBP current,
competitive and in compliance with updated requirements (ACA)
5: Benefits to be integrated properly together
⩥ Compare Compensation/Service Oriented Benefit Philosophy with the
Needs-Oriented (Mod 1.4).
Answer: Compensation/Service: EBP comprised of primarily
compensation, service or both. Level of benefits tied to salary or pay
levels/years of service
Needs Orientated: Focuses on Needs of EE's and their dependents
⩥ Identify Steps in Applying Functional Approach (Mod 1.4).
Answer: 1: Classify EE/Dep Needs & Objectives (in logical/functional
categories)
2: Classify Categories of EE's to be protected
3: Analyze present benefits in terms of functional categories of
needs/objectives, persons to benefit, and regulatory requirements
4: Determine any gaps or overlap in benefits from all sources in terms of
functional categories of needs & the persons to be protected
5: Consider recommendations for changes
, 6: Estimate costs/savings from each recommendation
7: Evaluate alternative methods of financing for those recommended
benefits (and existing ben)
8: Consider other cost-saving techniques
9: Decide upon appropriate benefits and methods of financing as a result
of analysis
10: Implement Changes
11: Communication Changes to Employees
12: Periodically re-evaluate EBP
⩥ Define Needs/Exposures covered under EBP (Mod 1.4).
Answer: 1: Medical Expenses (EE/Dep)
2: Losses due to Disability (Short/Long Term)
3: Death (EE/Dep/Retirees)
4: Retirement Needs
5: Capital Accumulation Needs/Goals
6: Needs for Unemployment/Layoff/Termination
7: Needs for Financial/Retirement Counseling
8: Losses from property/liability exposures
9: Needs for Dependent Care Assistance
10: Needs for Educational Assistance (EE/Dep)
11: Needs for Custodial-Care Expenses (LTC)
12: Other Needs/Goals (Stock Purchase Plan)
COURSE STUDY GUIDE LATEST UPDATED
ACTUAL TESTED QUESTIONS AND
CORRECT ANSWERS
⩥ Narrow view of Employee Benefits (Mod 1.1).
Answer: Any type of plan sponsored or initiated by Employees and
Employers and engaged in providing benefits that result from the
employment relationship and that are not underwritten or paid directly
by the government; (Ex: Benefits excluded include those legally
mandated - WC, SS).
⩥ Impact of Labor Unions on Employee Benefits (Mod 1.2).
Answer: Through Collective Bargaining, Employee Benefit Plans have
been impacted. In 1948 ruling states that the duty to bargain in good
faith over wages also included insurance and fringes (pension). In WW
Cross & Co, NLRB ruled wages included health and accident plan.
⩥ What is the Taft-Hartley Act? (Mod 1.2).
Answer: The Labor Management Relations Act of 1947 is a United
States federal law that restricts the activities and power of labor unions.
This set forth good-faith collective bargaining over wages, hours, terms
of employment and benefits.
,⩥ 3 Examples of Tax Advantages of Employee Benefit Plans (Mod 1.2).
Answer: 1: Employer Contributions are Tax Deductible
2: Employer Contributions are not considered income to Employees
3: Certain Retirement Benefits Accumulate Tax-Free until distributed.
⩥ Examples of Questions that should be addressed when creating benefit
objectives (Mod 1.3).
Answer: Ex: What benefits should be provided? Who should be
covered? Should Employees have options? How should plan be
financed? How should plan be administered? How should plan be
communicated to Employees?
⩥ What is the Functional Approach to Employee Benefit Planning?
(Mod 1.4).
Answer: Application of a systematic method of analysis to an
Employer's Total Employee Benefits Program. It analyzes the
organization's EBP as a whole in terms of its ability to meet various
employee's needs and to manage loss exposures within the overall
compensation goals and parameters.
⩥ Why is the Functional Approach appropriate when planning,
designing and administering Employee Benefits? (Mod 1.4).
Answer: 1: EE Benefits Significant Element of EE Comp and are a Tax-
Effective Way to Compensate
,2: EE Benefit Represent Large Labor Cost, so ER's should effectively
plan/cost-control
3: In the past, EE Benefits were adopted on piece-meal basis; helps to
now fill gaps/overlap
4: Systematic Approach to planning helps to keep the EBP current,
competitive and in compliance with updated requirements (ACA)
5: Benefits to be integrated properly together
⩥ Compare Compensation/Service Oriented Benefit Philosophy with the
Needs-Oriented (Mod 1.4).
Answer: Compensation/Service: EBP comprised of primarily
compensation, service or both. Level of benefits tied to salary or pay
levels/years of service
Needs Orientated: Focuses on Needs of EE's and their dependents
⩥ Identify Steps in Applying Functional Approach (Mod 1.4).
Answer: 1: Classify EE/Dep Needs & Objectives (in logical/functional
categories)
2: Classify Categories of EE's to be protected
3: Analyze present benefits in terms of functional categories of
needs/objectives, persons to benefit, and regulatory requirements
4: Determine any gaps or overlap in benefits from all sources in terms of
functional categories of needs & the persons to be protected
5: Consider recommendations for changes
, 6: Estimate costs/savings from each recommendation
7: Evaluate alternative methods of financing for those recommended
benefits (and existing ben)
8: Consider other cost-saving techniques
9: Decide upon appropriate benefits and methods of financing as a result
of analysis
10: Implement Changes
11: Communication Changes to Employees
12: Periodically re-evaluate EBP
⩥ Define Needs/Exposures covered under EBP (Mod 1.4).
Answer: 1: Medical Expenses (EE/Dep)
2: Losses due to Disability (Short/Long Term)
3: Death (EE/Dep/Retirees)
4: Retirement Needs
5: Capital Accumulation Needs/Goals
6: Needs for Unemployment/Layoff/Termination
7: Needs for Financial/Retirement Counseling
8: Losses from property/liability exposures
9: Needs for Dependent Care Assistance
10: Needs for Educational Assistance (EE/Dep)
11: Needs for Custodial-Care Expenses (LTC)
12: Other Needs/Goals (Stock Purchase Plan)
