CEBS - GBA 1 Module 1 Exam 2026
Questions and Answers
1.1 Distinguish between the broad view and the narrow view of employee benefits
- Correct answer-The broad view defines employee benefits as anything other than
direct compensation, including both government-mandated benefits and private
plans. (social security, pension plans etc.). The narrow view holds that employee
benefits are any benefit sponsored unilaterally or jointly by employers and
employees that is not subsidized by the government.
1.2 List the categories of benefits that generally are considered to fall under a
broad view employee benefits - Correct answer-• Legally required benefits (Social
Security)
• Payment for time not worked (rest, lunch, vacation, and holidays)
• Medical
• Retirement & savings plan payments
• Miscellaneous benefits (employee discounts, severance pay, education, and child
care)
©COPYRIGHT 2025, ALL RIGHTS RESERVE 1
, 1.3 What benefits are typically excluded when the term "employee benefits" is
viewed and defined in a narrow sense? - Correct answer-Those that are legally
mandated (Social Security and workers' compensation)
2.1 Explain the types of businesses- or human resource-related reasons for firms
establishing employee benefit plans - Correct answer-So businesses may attract &
retain capable employees. Good benefit plans foster corporate efficiency,
productivity, and improve employee morale.
2.2 What impact have labor unions historically had in employee benefits? - Correct
answer-Through the practice of collective bargaining labor unions have had an
impact on the growth of employee benefit plans. In 1948 the NLRB ruled in the
Inland Steel case that the duty to bargain in good faith over wages also included
insurance and fringes such as pension benefits. Following that, in the W.W. Cross
& Co. case, the NLRB ruled that wages included health and accident plan.
2.3 Explain the significance of the Taft-Hartley Act in employee benefit planning. -
Correct answer-The Labor-Management Relations Act, also called the Taft-Hartley
Act, sets forth the framework for good-faith collective bargaining over wages,
hours, conditions and terms of employment and employee benefits. It established
the distinction between retirement benefits and welfare benefits. It also provides
©COPYRIGHT 2025, ALL RIGHTS RESERVE 2
Questions and Answers
1.1 Distinguish between the broad view and the narrow view of employee benefits
- Correct answer-The broad view defines employee benefits as anything other than
direct compensation, including both government-mandated benefits and private
plans. (social security, pension plans etc.). The narrow view holds that employee
benefits are any benefit sponsored unilaterally or jointly by employers and
employees that is not subsidized by the government.
1.2 List the categories of benefits that generally are considered to fall under a
broad view employee benefits - Correct answer-• Legally required benefits (Social
Security)
• Payment for time not worked (rest, lunch, vacation, and holidays)
• Medical
• Retirement & savings plan payments
• Miscellaneous benefits (employee discounts, severance pay, education, and child
care)
©COPYRIGHT 2025, ALL RIGHTS RESERVE 1
, 1.3 What benefits are typically excluded when the term "employee benefits" is
viewed and defined in a narrow sense? - Correct answer-Those that are legally
mandated (Social Security and workers' compensation)
2.1 Explain the types of businesses- or human resource-related reasons for firms
establishing employee benefit plans - Correct answer-So businesses may attract &
retain capable employees. Good benefit plans foster corporate efficiency,
productivity, and improve employee morale.
2.2 What impact have labor unions historically had in employee benefits? - Correct
answer-Through the practice of collective bargaining labor unions have had an
impact on the growth of employee benefit plans. In 1948 the NLRB ruled in the
Inland Steel case that the duty to bargain in good faith over wages also included
insurance and fringes such as pension benefits. Following that, in the W.W. Cross
& Co. case, the NLRB ruled that wages included health and accident plan.
2.3 Explain the significance of the Taft-Hartley Act in employee benefit planning. -
Correct answer-The Labor-Management Relations Act, also called the Taft-Hartley
Act, sets forth the framework for good-faith collective bargaining over wages,
hours, conditions and terms of employment and employee benefits. It established
the distinction between retirement benefits and welfare benefits. It also provides
©COPYRIGHT 2025, ALL RIGHTS RESERVE 2
