GFOA CPFO EXAM PREP QUESTIONS AND
ANSWERS
The sustainability of OPEB includes:
1. Structural considerations
2. Management of benefit costs
3. Establishment of a qualified trust fund to pre-fund obligations
4. Communication and Education to the APPROPRIATE stakeholders
Financing Consideration of OPEB
Finance benefits as earned but not as due. (Pre-funding and not Pay-as-you-go)
In determining an OPEB funding policy.
1. Require employee contributions
2. Not provide incentive packages for early separation
3. Not issue OPEB bonds to fund liabilities
PTO
Paid time off: More prevalent in private sector compared to local government;
prevents individual from building up large sick leave banks
FLSA
Fair Labor Standards Act. Establishes minimum wage, maximum hours,
prohibits child labor, comp time, Fire and Law enforcement employees
,FSA
Flexible Spending Account. Established through employer to pay for health
expenses. Pre-tax. Any amount not utilized is returned to employer "use it or
lose it".
Fringe benefit
Something added to an employee's regular pay, which can be retiree health
insurance, retiree pension, a company car, subsidized meals, bonus, etc.
Bonus, FLSA, non-discretionary
Bonus included in the employee's regular rate of pay: The employee typically
knows and expects this type of bonus. Examples of this type include bonuses for
quality and accuracy of work and attendance. Does not include severance,
employee of the month or bonus because of a stressful situation.
Section 218 Agreement
A voluntary agreement between the State and SSA to provide Social Security
and Medicare Hospital Insurance for State and local government employees. All
states have this agreement.
FSA Qualifying LIfe event changes:
1. employment status
2. legal marital status
3. number of dependents
4. dependent's eligibility
5. child or elder care provider
, FMLA
The Family and Medical Leave Act of 1933 entitles eligible employees to take
up to 12 workweeks of unpaid leave in a year while maintaining the employee's
and family's group health benefits during the leave. Employees are entitled to
return to their same or an equivalent job at the end of their FMLA leave.
NFLA Applies to:
1. All public employers
2. Private employers if they have 50 or more employees for 20 or more weeks
per year
Who is eligible for FMLA leave?
An employee must:
1. work for a covered employer
2. have worked 1,250 hours during the 12 months prior
3. worked for the employer for 12 months
What constitutes FMLA 1,250 hours requirement?
Only those hours worked for the employer. Leave hours are not included.
FMLA qualifying conditions
1. birth and bonding of child
2. adoption/foster care and bonding of child
3. to care for immediate family member
4. serious health condition
5. immediate family member on covered active duty
ANSWERS
The sustainability of OPEB includes:
1. Structural considerations
2. Management of benefit costs
3. Establishment of a qualified trust fund to pre-fund obligations
4. Communication and Education to the APPROPRIATE stakeholders
Financing Consideration of OPEB
Finance benefits as earned but not as due. (Pre-funding and not Pay-as-you-go)
In determining an OPEB funding policy.
1. Require employee contributions
2. Not provide incentive packages for early separation
3. Not issue OPEB bonds to fund liabilities
PTO
Paid time off: More prevalent in private sector compared to local government;
prevents individual from building up large sick leave banks
FLSA
Fair Labor Standards Act. Establishes minimum wage, maximum hours,
prohibits child labor, comp time, Fire and Law enforcement employees
,FSA
Flexible Spending Account. Established through employer to pay for health
expenses. Pre-tax. Any amount not utilized is returned to employer "use it or
lose it".
Fringe benefit
Something added to an employee's regular pay, which can be retiree health
insurance, retiree pension, a company car, subsidized meals, bonus, etc.
Bonus, FLSA, non-discretionary
Bonus included in the employee's regular rate of pay: The employee typically
knows and expects this type of bonus. Examples of this type include bonuses for
quality and accuracy of work and attendance. Does not include severance,
employee of the month or bonus because of a stressful situation.
Section 218 Agreement
A voluntary agreement between the State and SSA to provide Social Security
and Medicare Hospital Insurance for State and local government employees. All
states have this agreement.
FSA Qualifying LIfe event changes:
1. employment status
2. legal marital status
3. number of dependents
4. dependent's eligibility
5. child or elder care provider
, FMLA
The Family and Medical Leave Act of 1933 entitles eligible employees to take
up to 12 workweeks of unpaid leave in a year while maintaining the employee's
and family's group health benefits during the leave. Employees are entitled to
return to their same or an equivalent job at the end of their FMLA leave.
NFLA Applies to:
1. All public employers
2. Private employers if they have 50 or more employees for 20 or more weeks
per year
Who is eligible for FMLA leave?
An employee must:
1. work for a covered employer
2. have worked 1,250 hours during the 12 months prior
3. worked for the employer for 12 months
What constitutes FMLA 1,250 hours requirement?
Only those hours worked for the employer. Leave hours are not included.
FMLA qualifying conditions
1. birth and bonding of child
2. adoption/foster care and bonding of child
3. to care for immediate family member
4. serious health condition
5. immediate family member on covered active duty
