Question :
81.Which of the following an advantage for employers who implement : 1243117
81.Which of the following is an advantage for employers who implement flexible benefits plans?
A.Low initial design costs
B.Low administrative costs
C.Control over the size of the contribution
D.Low adverse selection
E.Easy estimation of the costs of benefits
82.In cafeteria-style plans, adverse selection can be controlled by:
A.allowing employees to choose benefits based on their personal needs.
B.removing the limitations on coverage amounts.
C.pricing benefits subject to adverse selection lower.
D.increasing the choices that cater to individual needs.
E.using a limited set of packaged options.
83.Which of the following statements is true about flexible spending accounts?
A.They can only be used for dependent-care expenses.
B.They restrict pretax employee contributions.
C.They work best to the extent that employees have unpredictable expenses.
D.Funds must be used by the plan’s year end or they revert to the employer.
E.These accounts cause a reduction in the take-home pay.
84.The major advantage of a flexible spending account is that:
A.dependent care expenses are covered through the same account.
B.it increases the employees’ take-home pay.
C.unused funds revert to the employee.
D.the account covers unpredictable expenses.
E.it permits post tax contribution to an employee’s account.
85.In the 1978 Manhart ruling, the Supreme Court declared it illegal for employers to require:
A.physical examinations as a precondition for employment offers.
B.employees to accept health insurance coverage.
C.employees to retire at age 65.
D.women to contribute more than men to a defined benefit plan.
E.employees to attend health benefits programs.
86.According to the Age Discrimination in Employment Act (ADEA), in early retirement incentive programs, _____.
A.it is the employees’, and not the employers’, responsibility to gather all information about available options
B.employers should ensure employees only above the age of 60 receive the benefits of the program
C.employees meet a stringent deadline in making their decision about early retirement
D.employers can cease accrual of retirement benefits at about 65 years to induce older employees to retire
E.employees should not be coerced to accept an incentive and retire
87.To be a qualified benefits plan, a pension plan should not discriminate in favor of _____.
A.part-time employees
B.older employees
C.highly compensated employees
D.disabled employees
E.ex-employees (retired)
88.According to the Americans with Disabilities Act (ADA),
A.the terms and conditions of health insurance should not be based on risk factors.
B.the terms of health insurance should not be a subterfuge to deny benefits to those with disabilities.
C.employers with no risk-based programs are in stronger positions.
D.employers who make changes after hiring employees with disabilities are in a stronger position.
E.employees with disabilities have more access to whatever health coverage other employees have access to.
89.Which type of retiree benefits plan is excluded from the rule of Financial Accounting Statement 106 that states that benefits should not be provided on pay-as-you-go basis?
A.Health care
B.Pensions
C.Life insurance
D.Stock ownership
E.Disability insurance
90.Financial Accounting Statement 106 requires that any benefits provided after retirement must be paid on a(n) _____ basis.
A.pay-as-you-go
B.accrual
C.annual
D.subtraction
E.monthly
