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Risk Management and Insurance

Business

Quiz 17 :

Employee Benefits: Retirement Plans

Quiz 17 :

Employee Benefits: Retirement Plans

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Which of the following statements concerning defined contribution pension plans is (are)true? I.The contribution rate is fixed. II.The retirement benefit varies.
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Multiple Choice
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Answer:

C

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A financial institution that provides for the accumulation or administration of the funds that will be used to pay pension benefits is called a
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Multiple Choice
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Answer:

D

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Which of the following distributions from a qualified retirement plan would be exempt from the 10 percent penalty tax if the distribution occurred before the covered employee was age 59.5? I.A distribution made to an employee with a qualifying disability. II.A distribution made to a beneficiary or to the employee estate's after the employee's death.
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Multiple Choice
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Answer:

C

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All of the following are potential disadvantages to employees covered by a defined contribution pension plan EXCEPT
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Which of the following statements about Section 401(k)plans is true?
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Which of the following statements about the tax implications of qualified pension plans is true?
Multiple Choice
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For a long-term employee who is covered by a defined benefit plan,the highest retirement income will be obtained if his/her retirement income is based on
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Which of the following statements about the protection provided by the Pension Benefit Guaranty Corporation is (are)true? I.Only defined benefit plans are insured. II.Only benefits that are not yet vested are guaranteed.
Multiple Choice
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Which of the following statements about the minimum vesting standards for a qualified defined benefit plan is (are)true? I.Under cliff vesting,an employee must be at least 50 percent vested after 5 years of service. II.Under graded vesting,an employee must be at least 20 percent vested after 3 years of service and 100 percent vested after 7 years.
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Under a unit-benefit formula,benefits are a function of both
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Vesting refers to
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Which of the following statements about withdrawals from Section 401(k)plans is (are)true? I.The penalty tax does not apply to hardship withdrawals. II.Withdrawals may be made without penalty at age 59.5 or older.
Multiple Choice
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Which of the following statements about pension funding agencies and funding instruments is true?
Multiple Choice
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As Social Security slants benefits in favor of lower-paid workers,the Internal Revenue Code permits employers to adjust pension contributions so that the overall contributions (pension plus Social Security)are nondiscriminatory.This adjustment permits employers to increase pension contributions for highly-compensated employees.Adjusting contributions to consider Social Security contributions is called
Multiple Choice
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Which of the following statements about retirement ages in defined benefit pension plans is (are)true? I.The normal retirement age in most plans is 65. II.For a defined benefit plan,the early retirement age is the earliest age an employee can retire with full,unreduced benefits.
Multiple Choice
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Which of the following statements concerning defined-benefit pension plans is (are)true? I.The contribution rate by the employer varies depending on the amount needed to fund the desired benefit. II.The retirement benefit is not known in advance.
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What are the minimum age and service requirements that can be imposed on employees eligible to participate in a retirement plan?
Multiple Choice
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Which of the following statements about trust fund plans is (are)true? I.The trustee typically purchases annuities for retiring employees. II.The trustee guarantees the adequacy of the fund to pay the promised benefits.
Multiple Choice
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Which of the following statements about retirement benefits under pension plans is true?
Multiple Choice
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Beta Corporation has 1,000 employees eligible to participate in the firm's pension plan,and 100 of these employees are considered highly compensated.All of the highly compensated employees are covered by the plan.What is the minimum number of the 900 non-highly compensated employees who must be covered by the plan in order for the plan to satisfy the ratio percentage test?
Multiple Choice
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