GBA 1 CEBS
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1. broad view employee benefits Any form of compensation other than direct wages paid to
employees.
2. Narrow view employee benefits Any type of plan sponsored benefit that resulted from the
employment relationship and that are not underwritten by
the government.
3. categories of benefits under Legally required benefits, payments for time not worked
broad view (lunch, vacation), Employers share of medical benefits, em-
ployer share of retirement and savings plan payments,
Misc. benefits.
4. excluded benefits in narrow Legally mandated benefits, social security and Medicare,
view unemployment insurance and workers comp benefits.
5. reasons for establishing em- Attract and retain employees, foster corporate efficiency,
ployee benefits productivity and improved morale.
6. what impact have labor unions labor unions have had an impact on the growth of employee
historically had on employee benefits.
benefits? 1948 National Labor Relations Board (NLRB) ruled in the
inland steel case that to bargain in good faith over wages
also included insurance and pension benefits.
7. What is the significance of the "The Labor Management Relations Act" also called Taft
Taft Hartley Act in employee Hartley Act
benefits planning? This act set the framework for good faith bargaining over
wages, hours, conditions, terms of employment and em-
ployee benefits
8. What are 3 major federal tax 1. Most contributions to employee benefits plans by em-
advantages associated with em- ployers are deductible
ployee benefit plans? 2. Employer contributions are not considered income to
, GBA 1 CEBS
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employees
3. Retirement and capital accumulation plans accumulate
tax-free to the employee
9. Why is the employee benefit Convenient, no need to search, less cost, easier to commu-
mechanism an effect and effi- nicate
cient way of providing insurance
coverage?
10. What is the starting point in the Setting overall objectives from the standpoint of both em-
design of an employee benefit ployer and employees
plan?
11. What questions should be What benefits?
asked when setting benefits ob- Who's covered?
jectives? 1, 3:2 Options?
How financed?
How administered?
How communicated?
12. What is the functional approach The application of a systematic method of analysis to an
of employee benefit planning? employers total employee benefit program.
Analyzes if the program meets the employees needs and if
its managing loss exposure
13. Why is the functional approach 1. Significant element of employee compensation, tax effec-
appropriate for effective plan- tive.
ning, designing & administering 2. Effective planning can avoid waste and be an employer
employee benefits? cost control
3. Eliminate overlap and fill gaps
4. Keeps plans current, competitive and compliant
5. Allows benefits to be integrated properly.
, GBA 1 CEBS
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14. What elements of its compensa- Basic wages & salary, current incentive compensation, long
tion system should an employer term compensation, employee benefits, meet needs of em-
seek to balance in designing a ployees while maintaining the compensation the employer
total compensation package? wants
15. What are the 3 types of compen- High - attempt to attract higher levels of management and
sation benefits policies employ- talent
ers can adopt? Average- follow general prevailing in a firms industry or
community or both
Low- comp and benefits are lower than average and more
modest
16. How does a type of industry - larger well established employers in a mature industry
in which a firm operates af- will take a very liberal approach to meet needs. (Financial
fects total compensation phi- institution or non profit)
losophy and employee benefit - developing firms and growth industries will rely on short
approach? term incentives
- highly competitive industries with fluctuation & are cur-
rently depressed will not be willing to add and may even
look to cut back on employee benefits
17. Compare compensation/service Comp and service is tied to your pay level & years of service
oriented benefit philosophy vs. Needs oriented focuses on needs of the employees and
the needs-oriented benefit their dependents
18. What are the steps used in ap- 1. Classify employee needs or objectives into logical func-
plying the functional approach tional categories
to the employee benefit design, 2. Classify persons employer may want to protect
review and revision? 3. Analyze benefits presently available, categorize persons
and required coverages
4. Determine gaps, overlaps from all sources.
5. Recommend changes to meet gaps or correct overlap
6. Estimate cost and savings of recommendations
, GBA 1 CEBS
Study online at https://quizlet.com/_gu2pom
7. Evaluate alternate methods of financing. Secure any cur-
rent or recommended benefits
8. Consider other cost saving techniques
9. Determine appropriate benefits, method of finance and
source
10. Implement changes
11. Communicate benefit changes
12. Periodically reevaluate benefits
19. describe types of needs and ex- 1. Medical expenses incurred by members of
posure to loss that may be cov- 2. Loss due to employee disability
ered under employee benefit 3. Loss from death
plans 4. Retirement needs
5. Capital accumulation needs or goals
6. Needs from unemployment, temp termination or sus-
pension
7. Needs for financial or retirement counseling
8. Property and liability exposure
9. Dependent - care expenses
10. Education
11. Needs for custodial care and retirees
12. Other employee needs or goals
20. What are the different types of 1. Dependents of FTEs
employees other than FTEs that 2. Retired former employees and their dependents
could be offered coverage? 3. Disabled employees & their dependents
4. Surviving dependents of deceased employees
5. Terminated employees and their dependents
6. Temporally separated employees
7. Part time employees
21.
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1. broad view employee benefits Any form of compensation other than direct wages paid to
employees.
2. Narrow view employee benefits Any type of plan sponsored benefit that resulted from the
employment relationship and that are not underwritten by
the government.
3. categories of benefits under Legally required benefits, payments for time not worked
broad view (lunch, vacation), Employers share of medical benefits, em-
ployer share of retirement and savings plan payments,
Misc. benefits.
4. excluded benefits in narrow Legally mandated benefits, social security and Medicare,
view unemployment insurance and workers comp benefits.
5. reasons for establishing em- Attract and retain employees, foster corporate efficiency,
ployee benefits productivity and improved morale.
6. what impact have labor unions labor unions have had an impact on the growth of employee
historically had on employee benefits.
benefits? 1948 National Labor Relations Board (NLRB) ruled in the
inland steel case that to bargain in good faith over wages
also included insurance and pension benefits.
7. What is the significance of the "The Labor Management Relations Act" also called Taft
Taft Hartley Act in employee Hartley Act
benefits planning? This act set the framework for good faith bargaining over
wages, hours, conditions, terms of employment and em-
ployee benefits
8. What are 3 major federal tax 1. Most contributions to employee benefits plans by em-
advantages associated with em- ployers are deductible
ployee benefit plans? 2. Employer contributions are not considered income to
, GBA 1 CEBS
Study online at https://quizlet.com/_gu2pom
employees
3. Retirement and capital accumulation plans accumulate
tax-free to the employee
9. Why is the employee benefit Convenient, no need to search, less cost, easier to commu-
mechanism an effect and effi- nicate
cient way of providing insurance
coverage?
10. What is the starting point in the Setting overall objectives from the standpoint of both em-
design of an employee benefit ployer and employees
plan?
11. What questions should be What benefits?
asked when setting benefits ob- Who's covered?
jectives? 1, 3:2 Options?
How financed?
How administered?
How communicated?
12. What is the functional approach The application of a systematic method of analysis to an
of employee benefit planning? employers total employee benefit program.
Analyzes if the program meets the employees needs and if
its managing loss exposure
13. Why is the functional approach 1. Significant element of employee compensation, tax effec-
appropriate for effective plan- tive.
ning, designing & administering 2. Effective planning can avoid waste and be an employer
employee benefits? cost control
3. Eliminate overlap and fill gaps
4. Keeps plans current, competitive and compliant
5. Allows benefits to be integrated properly.
, GBA 1 CEBS
Study online at https://quizlet.com/_gu2pom
14. What elements of its compensa- Basic wages & salary, current incentive compensation, long
tion system should an employer term compensation, employee benefits, meet needs of em-
seek to balance in designing a ployees while maintaining the compensation the employer
total compensation package? wants
15. What are the 3 types of compen- High - attempt to attract higher levels of management and
sation benefits policies employ- talent
ers can adopt? Average- follow general prevailing in a firms industry or
community or both
Low- comp and benefits are lower than average and more
modest
16. How does a type of industry - larger well established employers in a mature industry
in which a firm operates af- will take a very liberal approach to meet needs. (Financial
fects total compensation phi- institution or non profit)
losophy and employee benefit - developing firms and growth industries will rely on short
approach? term incentives
- highly competitive industries with fluctuation & are cur-
rently depressed will not be willing to add and may even
look to cut back on employee benefits
17. Compare compensation/service Comp and service is tied to your pay level & years of service
oriented benefit philosophy vs. Needs oriented focuses on needs of the employees and
the needs-oriented benefit their dependents
18. What are the steps used in ap- 1. Classify employee needs or objectives into logical func-
plying the functional approach tional categories
to the employee benefit design, 2. Classify persons employer may want to protect
review and revision? 3. Analyze benefits presently available, categorize persons
and required coverages
4. Determine gaps, overlaps from all sources.
5. Recommend changes to meet gaps or correct overlap
6. Estimate cost and savings of recommendations
, GBA 1 CEBS
Study online at https://quizlet.com/_gu2pom
7. Evaluate alternate methods of financing. Secure any cur-
rent or recommended benefits
8. Consider other cost saving techniques
9. Determine appropriate benefits, method of finance and
source
10. Implement changes
11. Communicate benefit changes
12. Periodically reevaluate benefits
19. describe types of needs and ex- 1. Medical expenses incurred by members of
posure to loss that may be cov- 2. Loss due to employee disability
ered under employee benefit 3. Loss from death
plans 4. Retirement needs
5. Capital accumulation needs or goals
6. Needs from unemployment, temp termination or sus-
pension
7. Needs for financial or retirement counseling
8. Property and liability exposure
9. Dependent - care expenses
10. Education
11. Needs for custodial care and retirees
12. Other employee needs or goals
20. What are the different types of 1. Dependents of FTEs
employees other than FTEs that 2. Retired former employees and their dependents
could be offered coverage? 3. Disabled employees & their dependents
4. Surviving dependents of deceased employees
5. Terminated employees and their dependents
6. Temporally separated employees
7. Part time employees
21.
