,CEBS (Certified Employee Benefit Specialist) EXAM
Complete Practice Question Bank - 250 Questions with
Answers & Rationales
Updated for 2026 | Graded A+ | 100% Correct
SECTION 1: EMPLOYEE BENEFITS FUNDAMENTALS
(Questions 1-50)
Question 1
Which of the following BEST describes the "broad view" of employee benefits?
A) Only employer-sponsored health insurance and retirement plans
B) Virtually any form of compensation other than direct wages paid to employees
C) Only legally required benefits such as Social Security and workers' compensation
D) Only benefits provided through insurance policies
Answer: B
Rationale: The broad view of employee benefits considers virtually any form of
compensation other than direct wages paid to employees. This includes workers'
compensation, unemployment insurance, state disability insurance, Social Security,
,vacation, holidays, 401(k) plans, employer share of medical payments, severance pay,
child care, and other benefits.
Question 2
Which of the following correctly describes the "narrow view" of employee benefits?
A) All forms of financial returns employees receive from employment
B) Any type of plan sponsored or initiated by employers and employees, enjoyed by
employees and their families
C) Only benefits mandated by federal law
D) Compensation excluding all forms of insurance
Answer: B
Rationale: The narrow view defines employee benefits as any type of plan sponsored or
initiated by employees and employers, and enjoyed by employees and their families.
This view focuses specifically on employer-sponsored benefit programs rather than all
forms of compensation. It excludes benefits that are legally mandated (such as workers'
compensation and Social Security).
Question 3
Which of the following is included in the broad view of employee benefits but
EXCLUDED from the narrow view?
A) Employer-paid health insurance
B) Retirement plan contributions
C) Workers' compensation
D) Group life insurance
Answer: C
Rationale: Workers' compensation is legally mandated by the government and is
included in the broad view but excluded from the narrow view. The narrow view focuses
, on plans sponsored unilaterally or jointly by employers and employees that are not paid
for directly by government.
Question 4
In a "contributory" employee benefit plan, employees:
A) Pay the full cost of benefits
B) Share in the cost of their benefits through payroll deductions
C) Receive benefits at no cost
D) Have no say in plan design
Answer: B
Rationale: A contributory plan is one in which employees share in the cost of their
benefits through payroll deductions or direct contributions. This is distinguished from a
noncontributory plan where the employer pays the full cost.
Question 5
What is the PRIMARY purpose of the Employee Retirement Income Security Act (ERISA)?
A) To require employers to offer health insurance
B) To set minimum standards for pension and health plans in private industry
C) To eliminate all employer-sponsored benefits
D) To mandate paid family leave
Answer: B
Rationale: ERISA sets minimum standards for pension and health plans in private
industry to protect individuals in these plans. It establishes reporting, disclosure, and
fiduciary requirements for plan sponsors.
Complete Practice Question Bank - 250 Questions with
Answers & Rationales
Updated for 2026 | Graded A+ | 100% Correct
SECTION 1: EMPLOYEE BENEFITS FUNDAMENTALS
(Questions 1-50)
Question 1
Which of the following BEST describes the "broad view" of employee benefits?
A) Only employer-sponsored health insurance and retirement plans
B) Virtually any form of compensation other than direct wages paid to employees
C) Only legally required benefits such as Social Security and workers' compensation
D) Only benefits provided through insurance policies
Answer: B
Rationale: The broad view of employee benefits considers virtually any form of
compensation other than direct wages paid to employees. This includes workers'
compensation, unemployment insurance, state disability insurance, Social Security,
,vacation, holidays, 401(k) plans, employer share of medical payments, severance pay,
child care, and other benefits.
Question 2
Which of the following correctly describes the "narrow view" of employee benefits?
A) All forms of financial returns employees receive from employment
B) Any type of plan sponsored or initiated by employers and employees, enjoyed by
employees and their families
C) Only benefits mandated by federal law
D) Compensation excluding all forms of insurance
Answer: B
Rationale: The narrow view defines employee benefits as any type of plan sponsored or
initiated by employees and employers, and enjoyed by employees and their families.
This view focuses specifically on employer-sponsored benefit programs rather than all
forms of compensation. It excludes benefits that are legally mandated (such as workers'
compensation and Social Security).
Question 3
Which of the following is included in the broad view of employee benefits but
EXCLUDED from the narrow view?
A) Employer-paid health insurance
B) Retirement plan contributions
C) Workers' compensation
D) Group life insurance
Answer: C
Rationale: Workers' compensation is legally mandated by the government and is
included in the broad view but excluded from the narrow view. The narrow view focuses
, on plans sponsored unilaterally or jointly by employers and employees that are not paid
for directly by government.
Question 4
In a "contributory" employee benefit plan, employees:
A) Pay the full cost of benefits
B) Share in the cost of their benefits through payroll deductions
C) Receive benefits at no cost
D) Have no say in plan design
Answer: B
Rationale: A contributory plan is one in which employees share in the cost of their
benefits through payroll deductions or direct contributions. This is distinguished from a
noncontributory plan where the employer pays the full cost.
Question 5
What is the PRIMARY purpose of the Employee Retirement Income Security Act (ERISA)?
A) To require employers to offer health insurance
B) To set minimum standards for pension and health plans in private industry
C) To eliminate all employer-sponsored benefits
D) To mandate paid family leave
Answer: B
Rationale: ERISA sets minimum standards for pension and health plans in private
industry to protect individuals in these plans. It establishes reporting, disclosure, and
fiduciary requirements for plan sponsors.
