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CEBS GBA1 EXAM
1. Broad view of employee benefits
Answer Any form of compensation other than direct wages paid to employees
2. Narrow view of employee benefits
Answer Any form of compensation other than direct wages that results from the employment relationship
that is not underwritten or paid by the government
3. Social Security, Medicare, unemployment insurance, workers compensation-
Answer A legally mandated benefit paid by the employer that is excluded in the narrow view
4. Inland Steel
Answer A 1948 NLRB legal case that stipulated the duty to bargain in good faith over wages; also included
insurance and fringe benefits such as pension
5. W.W. Cross & Co. v. National Labor Relations Board
Answer A NLRB case that ruled that 'wages' in good faith bargaining include health and accident plans
6. Taft-Hartley Act
, Answer An alternative name for the Labor Management Relations Act
7. Labor Management Relations Act
Answer This act set the framework for good-faith collective bargaining over wages, hours, working
conditions, terms of employment, and benefits
8. Categories of persons covered by employee benefit plans
Answer A stipulation of categories of individuals that will be covered in a benefit plan. Categories can be
based on employment status and dependent status.
9. Non-contributory benefit plans
Answer A benefit funding option where the employer pays all the cost
10. Contributory benefit plans
Answer A benefit funding approach where the employer and employees share the cost
11. Functional approach
Answer A systematic method of analysis of an employer's benefit program that analyzes the program's
ability to meet participants' needs, manage loss exposures, and fit compensation and cost parameters
12. Total compensation philosophy
,Answer A program that includes all types of employer-ottered compensa- tion, long-term incentives, and
employee benefits
13. Compensation/service-oriented philosophy
Answer A benefit philosophy that ties salary or pay levels of employees to their tenure
14. Benefits/needs-oriented approach
Answer A benefit philosophy where the employer focuses on the needs of the participants
15. Serious loss exposures
Answer Disability, death, and property damage insurance can all be provided to employees to prevent
what?
16. Replacement ratio
Answer The formula used to determine the level of retirement or disability pay an employee may receive
expressed as a percentage
, 17. Protection-orientated benefits
Answer Benefits that are provided to protect employees and dependents against financial loss
including life insurance and disability income have this type of orientation
18. Accumulation-oriented benefits
Answer What type of orientation do pension plans, profit-sharing plans, and other savings-type plans
that reward employees for length of service have?
19. Risk
Answer Uncertainty of the actual number and value of claims a benefits plan will incur
20. Peril
Answer The cause of a loss, such as a fire or car accident
21. Hazard
Answer A condition or action that increases the probability that a peril will occur
22. Physical hazard
Answer Behavior such as failure to replace the machine guards on manufacturing equipment is this type of
hazard
CEBS GBA1 EXAM
1. Broad view of employee benefits
Answer Any form of compensation other than direct wages paid to employees
2. Narrow view of employee benefits
Answer Any form of compensation other than direct wages that results from the employment relationship
that is not underwritten or paid by the government
3. Social Security, Medicare, unemployment insurance, workers compensation-
Answer A legally mandated benefit paid by the employer that is excluded in the narrow view
4. Inland Steel
Answer A 1948 NLRB legal case that stipulated the duty to bargain in good faith over wages; also included
insurance and fringe benefits such as pension
5. W.W. Cross & Co. v. National Labor Relations Board
Answer A NLRB case that ruled that 'wages' in good faith bargaining include health and accident plans
6. Taft-Hartley Act
, Answer An alternative name for the Labor Management Relations Act
7. Labor Management Relations Act
Answer This act set the framework for good-faith collective bargaining over wages, hours, working
conditions, terms of employment, and benefits
8. Categories of persons covered by employee benefit plans
Answer A stipulation of categories of individuals that will be covered in a benefit plan. Categories can be
based on employment status and dependent status.
9. Non-contributory benefit plans
Answer A benefit funding option where the employer pays all the cost
10. Contributory benefit plans
Answer A benefit funding approach where the employer and employees share the cost
11. Functional approach
Answer A systematic method of analysis of an employer's benefit program that analyzes the program's
ability to meet participants' needs, manage loss exposures, and fit compensation and cost parameters
12. Total compensation philosophy
,Answer A program that includes all types of employer-ottered compensa- tion, long-term incentives, and
employee benefits
13. Compensation/service-oriented philosophy
Answer A benefit philosophy that ties salary or pay levels of employees to their tenure
14. Benefits/needs-oriented approach
Answer A benefit philosophy where the employer focuses on the needs of the participants
15. Serious loss exposures
Answer Disability, death, and property damage insurance can all be provided to employees to prevent
what?
16. Replacement ratio
Answer The formula used to determine the level of retirement or disability pay an employee may receive
expressed as a percentage
, 17. Protection-orientated benefits
Answer Benefits that are provided to protect employees and dependents against financial loss
including life insurance and disability income have this type of orientation
18. Accumulation-oriented benefits
Answer What type of orientation do pension plans, profit-sharing plans, and other savings-type plans
that reward employees for length of service have?
19. Risk
Answer Uncertainty of the actual number and value of claims a benefits plan will incur
20. Peril
Answer The cause of a loss, such as a fire or car accident
21. Hazard
Answer A condition or action that increases the probability that a peril will occur
22. Physical hazard
Answer Behavior such as failure to replace the machine guards on manufacturing equipment is this type of
hazard
