CEBS GBA 1 AND 2 COMPREHENSIVE EXAM SCRIPT COMPLETE QUESTIONS VERIFIED
SOLUTIONS
CEBS GBA 1 AND 2 Complete EXAM Review
2026/2027 FULL Question SET 100% Questions and
Answers Verified Solutions Latest Update
Question:
Employee benefits defined as.
Answer:
all forms of financial returns and tangible services and benefits employees receive as part of an
employment relationship
Question:
in a broad view, employee benefits are virtually any form of compensation other than direct wages
and might be defined to include the following 5.
Answer:
1. employers share of legally required payments (social security, medicare, unemployment, workers
comp) 2. payments for time not worked (rest periods, sick leave, vacations, parental leave) 3.
employers share of medical and medically related payments 4. employers share of retirement and
savings plan payments 5. misc benefits (discounts, severance, educational expenditures, child care)
Question:
in a narrow view, employee benefits can be summarized as.
Answer:
any type of plan sponsored or initiated unilaterally or jointly by employers and employees in
providing benefits that stem from the employment relationship that are not underwritten by or paid
for directly by the government
Question:
LMRA
,Answer:
Labor Management Relations Act aka Taft-Hartley Act administered by the National Labor
Relations Board requires good faith collective bargaining over wages, hours, and other terms and
conditions of employment along with Internal Revenue Code (IRC), established distinction between
retirement benefits and welfare benefits such as life and health insurance
Question:
1948 Inland Steel Co. v. National Labor Relations Board (NLRB)
Answer:
ruled that meaning of term "wages" includes a pension plan
Question:
WW Cross & Co v. National Labor Relations Board (NLRB)
Answer:
good faith bargaining requirements were held to include a group health and accident plan
Question:
main tax advantages of employee benefit plans.
Answer:
1. most contributions to employee benefits plans by employers are deductible as long as they are
reasonable business expenses 2. contributions from employers within certain limits on behalf of
employees generally are not considered income to employees 3. also on certain types of retirement
and capital accumulation plans, assets set aside to fund such plans accumulate tax-free until
distributed
Question:
adverse selection
Answer:
,reduce the possibility that less-healthy individuals may join a group or be a larger percentage of a
group than anticipated because of the availability of insurance or other benefits
Question:
characteristics of group technique employee benefits.
Answer:
1. only certain groups are eligible (a group should not be formed solely for purpose of obtaining
insurance, must be incidental) 2. steady flow of lives through the group ( younger individuals flow
in to the group and older individuals leave. maintaining fairly constant mortality ratio, if not
regulated and average age of group steadily increases, cost could go up) 3. minimum number of
persons in group (typically 10, could be 2 or 3, intended to spread expenses of benefit plan over
larger group of people) 4. minimum portion of group must participate if group life/health plan is
noncontributory (solely paid by employer) 100% of employees must be covered) if plan is
contributory (employer and employee share cost) 75% of employees must participate. 5. eligibility
requirements employee must be actively at work on first day of eligibility employer may have
period of time (eligibility period) before employee may participate in benefit plan may require
elimination or waiting period to elapse before an employee receives a benefit for which they are
eligible if employee does not join when eligible and wants to enroll at a later date, some form of
med exam may be required 6. maximum limits for any one person 7. automatic determination of
benefits 8. central and efficient administrative agency
Question:
overall employee benefit concerns.
Answer:
benefit design, cost, funding, administration, and communication issues
Question:
TPA
Answer:
third party administrator
, Question:
functional approach to designing employee benefits can de defined as.
Answer:
organized system for classifying and analyzing the risks and needs of active employees, their
dependents, and various other categories of persons into logical categories of exposures to loss and
employee needs planning approach
Question:
Financial Accounting Standards Board (FASB) of Financial Accounting Standard (FAS) 106.
Answer:
generally requires employers to recognize during covered employees' periods of service the accrued
benefit cost of these post retirement benefits as a current business expense, and to recognize the
liabilities for and any plan assets funding these benefits for balance sheet purposes
Question:
cafeteria compensation
Answer:
optional benefits or employee choice making program, flexibility
Question:
the longer the probationary period required.
Answer:
the greater the exposure of employees and others to a loss not covered by the plan
Question:
protection oriented benefits.
Answer:
SOLUTIONS
CEBS GBA 1 AND 2 Complete EXAM Review
2026/2027 FULL Question SET 100% Questions and
Answers Verified Solutions Latest Update
Question:
Employee benefits defined as.
Answer:
all forms of financial returns and tangible services and benefits employees receive as part of an
employment relationship
Question:
in a broad view, employee benefits are virtually any form of compensation other than direct wages
and might be defined to include the following 5.
Answer:
1. employers share of legally required payments (social security, medicare, unemployment, workers
comp) 2. payments for time not worked (rest periods, sick leave, vacations, parental leave) 3.
employers share of medical and medically related payments 4. employers share of retirement and
savings plan payments 5. misc benefits (discounts, severance, educational expenditures, child care)
Question:
in a narrow view, employee benefits can be summarized as.
Answer:
any type of plan sponsored or initiated unilaterally or jointly by employers and employees in
providing benefits that stem from the employment relationship that are not underwritten by or paid
for directly by the government
Question:
LMRA
,Answer:
Labor Management Relations Act aka Taft-Hartley Act administered by the National Labor
Relations Board requires good faith collective bargaining over wages, hours, and other terms and
conditions of employment along with Internal Revenue Code (IRC), established distinction between
retirement benefits and welfare benefits such as life and health insurance
Question:
1948 Inland Steel Co. v. National Labor Relations Board (NLRB)
Answer:
ruled that meaning of term "wages" includes a pension plan
Question:
WW Cross & Co v. National Labor Relations Board (NLRB)
Answer:
good faith bargaining requirements were held to include a group health and accident plan
Question:
main tax advantages of employee benefit plans.
Answer:
1. most contributions to employee benefits plans by employers are deductible as long as they are
reasonable business expenses 2. contributions from employers within certain limits on behalf of
employees generally are not considered income to employees 3. also on certain types of retirement
and capital accumulation plans, assets set aside to fund such plans accumulate tax-free until
distributed
Question:
adverse selection
Answer:
,reduce the possibility that less-healthy individuals may join a group or be a larger percentage of a
group than anticipated because of the availability of insurance or other benefits
Question:
characteristics of group technique employee benefits.
Answer:
1. only certain groups are eligible (a group should not be formed solely for purpose of obtaining
insurance, must be incidental) 2. steady flow of lives through the group ( younger individuals flow
in to the group and older individuals leave. maintaining fairly constant mortality ratio, if not
regulated and average age of group steadily increases, cost could go up) 3. minimum number of
persons in group (typically 10, could be 2 or 3, intended to spread expenses of benefit plan over
larger group of people) 4. minimum portion of group must participate if group life/health plan is
noncontributory (solely paid by employer) 100% of employees must be covered) if plan is
contributory (employer and employee share cost) 75% of employees must participate. 5. eligibility
requirements employee must be actively at work on first day of eligibility employer may have
period of time (eligibility period) before employee may participate in benefit plan may require
elimination or waiting period to elapse before an employee receives a benefit for which they are
eligible if employee does not join when eligible and wants to enroll at a later date, some form of
med exam may be required 6. maximum limits for any one person 7. automatic determination of
benefits 8. central and efficient administrative agency
Question:
overall employee benefit concerns.
Answer:
benefit design, cost, funding, administration, and communication issues
Question:
TPA
Answer:
third party administrator
, Question:
functional approach to designing employee benefits can de defined as.
Answer:
organized system for classifying and analyzing the risks and needs of active employees, their
dependents, and various other categories of persons into logical categories of exposures to loss and
employee needs planning approach
Question:
Financial Accounting Standards Board (FASB) of Financial Accounting Standard (FAS) 106.
Answer:
generally requires employers to recognize during covered employees' periods of service the accrued
benefit cost of these post retirement benefits as a current business expense, and to recognize the
liabilities for and any plan assets funding these benefits for balance sheet purposes
Question:
cafeteria compensation
Answer:
optional benefits or employee choice making program, flexibility
Question:
the longer the probationary period required.
Answer:
the greater the exposure of employees and others to a loss not covered by the plan
Question:
protection oriented benefits.
Answer:
