CEBS GBA Exam 1 2026 Questions and
Answers
Broad view of Employee Benefits (Mod 1.1) - Correct 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..)
Narrow view of Employee Benefits (Mod 1.1) - Correct 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) - Correct 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.
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,What is the Taft-Hartley Act? (Mod 1.2) - Correct 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) - Correct
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) - Correct 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) -
Correct 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.
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,Why is the Functional Approach appropriate when planning, designing and
administering Employee Benefits? (Mod 1.4) - Correct 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) - Correct 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) - Correct answer-1:
Classify EE/Dep Needs & Objectives (in logical/functional categories)
2: Classify Categories of EE's to be protected
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, 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) - Correct answer-1:
Medical Expenses (EE/Dep)
2: Losses due to Disability (Short/Long Term)
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Answers
Broad view of Employee Benefits (Mod 1.1) - Correct 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..)
Narrow view of Employee Benefits (Mod 1.1) - Correct 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) - Correct 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.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 1
,What is the Taft-Hartley Act? (Mod 1.2) - Correct 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) - Correct
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) - Correct 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) -
Correct 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.
©COPYRIGHT 2025, ALL RIGHTS RESERVE 2
,Why is the Functional Approach appropriate when planning, designing and
administering Employee Benefits? (Mod 1.4) - Correct 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) - Correct 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) - Correct answer-1:
Classify EE/Dep Needs & Objectives (in logical/functional categories)
2: Classify Categories of EE's to be protected
©COPYRIGHT 2025, ALL RIGHTS RESERVE 3
, 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) - Correct answer-1:
Medical Expenses (EE/Dep)
2: Losses due to Disability (Short/Long Term)
©COPYRIGHT 2025, ALL RIGHTS RESERVE 4
