CEBS GBA EXAM 3 ACTUAL EXAM 340
QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ 2026-2027.
Explain how workers can increase their future Social Security benefits by
working longer (Mod 10.4) - ANSWER-A person who works longer can increase
his or her benefits in two ways:
(1) Each additional year of work adds another year of earnings to his or her
Social Security earnings record. Higher lifetime earnings may result in higher
benefits when the person retires
(2) A delayed retirement credit is available if a person delays receiving
retirement benefits beyond full retirement age. The primary insurance
amount will be increased by a certain percentage from the time he or she
reaches full retirement age until the start of benefits, or until the age of 70.
The delayed credit does not
,extend past the age of 70. The percentage increase varies depending on the
year of birth. For workers born in 1943 or later, the primary insurance
amount is increased 8% per year (prorated monthly) for each year of delay
beyond full retirement age.
List the factors that a person should consider when determining when to start
Social Security Benefits (Mod 10.4) - ANSWER-The factors that a person should
consider when determining when to start Social Security benefits are the
present need for income, the individual's state of health, life expectancy, labor
force involvement and whether or not there are other assets that yield
income.
An employee welfare benefit plan has four basis elements. What are these
elements? (Mod 1.1) - ANSWER-1) There must be a plan, fund or program.
,2) The plan, fund or program is established or maintained by an employer.
3) The plan, fund or program is for the purpose of providing specifically listed
benefits, through the purchase of insurance or otherwise.
4) Benefits are provided to participants and beneficiaries.
Explain how a "plan, fund or program" for an employee benefit plan is defined
(Mod 1.1) - ANSWER-The phrase "plan, fund or program" is not defined in
ERISA but rather has been laid out in several court cases. Courts have held a
"plan, fund or program" under ERISA is established if, from the surrounding
circumstances, a reasonable person can ascertain the intended benefits, the
class of beneficiaries, the source of financing and the procedure to receive
benefits.
Describe the procedures required to establish an ERISA employee welfare
benefit plan (Mod 1.1) - ANSWER-No particular formalities are required to
, create an ERISA plan and no single action in and of itself necessarily
constitutes establishment of ERISA employee welfare benefit plan. Thus,
ERISA plans have been deemed to be "established or maintained" by a
practice that would cause a reasonable EE to perceive an ongoing
commitment by the ER to provide EE benefits. This would include any
contributions by an ER toward payment of benefits or by the ER simply
administering the benefit.
It is easy to have a plan, fund or program - generally any ongoing
administrative scheme will satisfy this condition. Showing that an ER
maintains a plan is also easy - any contribution by the ER towards payment of
benefits or administration of the plan is enough (including a contribution
toward insurance coverage).
List the types of employee welfare benefit plans not covered under ERISA and
specifically excluded under the statute (Mod 1.1) - ANSWER-1) Governmental
QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ 2026-2027.
Explain how workers can increase their future Social Security benefits by
working longer (Mod 10.4) - ANSWER-A person who works longer can increase
his or her benefits in two ways:
(1) Each additional year of work adds another year of earnings to his or her
Social Security earnings record. Higher lifetime earnings may result in higher
benefits when the person retires
(2) A delayed retirement credit is available if a person delays receiving
retirement benefits beyond full retirement age. The primary insurance
amount will be increased by a certain percentage from the time he or she
reaches full retirement age until the start of benefits, or until the age of 70.
The delayed credit does not
,extend past the age of 70. The percentage increase varies depending on the
year of birth. For workers born in 1943 or later, the primary insurance
amount is increased 8% per year (prorated monthly) for each year of delay
beyond full retirement age.
List the factors that a person should consider when determining when to start
Social Security Benefits (Mod 10.4) - ANSWER-The factors that a person should
consider when determining when to start Social Security benefits are the
present need for income, the individual's state of health, life expectancy, labor
force involvement and whether or not there are other assets that yield
income.
An employee welfare benefit plan has four basis elements. What are these
elements? (Mod 1.1) - ANSWER-1) There must be a plan, fund or program.
,2) The plan, fund or program is established or maintained by an employer.
3) The plan, fund or program is for the purpose of providing specifically listed
benefits, through the purchase of insurance or otherwise.
4) Benefits are provided to participants and beneficiaries.
Explain how a "plan, fund or program" for an employee benefit plan is defined
(Mod 1.1) - ANSWER-The phrase "plan, fund or program" is not defined in
ERISA but rather has been laid out in several court cases. Courts have held a
"plan, fund or program" under ERISA is established if, from the surrounding
circumstances, a reasonable person can ascertain the intended benefits, the
class of beneficiaries, the source of financing and the procedure to receive
benefits.
Describe the procedures required to establish an ERISA employee welfare
benefit plan (Mod 1.1) - ANSWER-No particular formalities are required to
, create an ERISA plan and no single action in and of itself necessarily
constitutes establishment of ERISA employee welfare benefit plan. Thus,
ERISA plans have been deemed to be "established or maintained" by a
practice that would cause a reasonable EE to perceive an ongoing
commitment by the ER to provide EE benefits. This would include any
contributions by an ER toward payment of benefits or by the ER simply
administering the benefit.
It is easy to have a plan, fund or program - generally any ongoing
administrative scheme will satisfy this condition. Showing that an ER
maintains a plan is also easy - any contribution by the ER towards payment of
benefits or administration of the plan is enough (including a contribution
toward insurance coverage).
List the types of employee welfare benefit plans not covered under ERISA and
specifically excluded under the statute (Mod 1.1) - ANSWER-1) Governmental
