CEBS - GBA 1 Questions with Correct Answers

CEBS - GBA 1 Questions with Correct Answers Broad View of Employee Benefits - Correct Answer Any from of compensation other than direct wages. Includes government mandated plans and private plans (Social Security, paid vacation and pension plans) Narrow View of Employee Benefits - Correct Answer Any type of plan sponsored or initiated unilaterally or jointly by employers and employees and engaged in providing benefits that result from the employment relationship and that are not underwritten or paid directly by government Categories that fall under the broad view of employee benefits - Correct Answer 1) Legally required benefits (social security etc) 2) Payments for time not worked 3) Employers share of medical and medically related benefits 4) Employers share of retirement and savings plan payments 5) Misc. benefits What benefits are excluded when the term employee benefits is defined in a narrow sense? - Correct Answer Legally mandated benefits - Social security, medicare, unemployment etc. What impact have labor unions historically had in employee benefits? - Correct Answer In 1948 when the National Labor Relations Board (NLRB) ruled in the Inland Steel Case the duty to bargain in good faith over wages. Then, in the W.W. Cross & Co Case, NLRB ruled that wages include a health and accident plan Explain the significance of the Taft Harley Act in employee benefit planning - Correct Answer The Labor-Management Relations Act, also called the Taft-Harley Act sets forth the framework for good-faith collective bargaining over wages, hours, conditions, and terms of employment for employee benefits. The act, along with the internal revenue code (IRC), established the distinction between retirement and welfare benefits. It also provides the regulatory framework for admin of these benefits in a collective bargaining agreement. As such, it is the legislative basis on which jointly trusteed benefit plans are founded Summarize three major federal tax advantages associated with employee benefit plans - Correct Answer 1) Most contributions to employee benefit plans are tax deductible 2) Within certain limits, these emplo