Benefits Design & Administration Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Benefits Design & Administration flashcards as text
Which type of health plan requires employees to select a primary care physician and obtain referrals to see specialists?
Answer: Health Maintenance Organization (HMO)
HMOs require members to choose a primary care physician who coordinates all care and provides referrals to specialists within the network.
Under ERISA, what is the maximum number of days an employer has to deposit employee 401(k) contributions into the plan trust after the pay date for large plans?
Answer: 15 business days
The DOL's safe harbor rule for large plans (generally 100+ participants) requires deposits within 15 business days following the month in which amounts are withheld.
A Health Savings Account (HSA) can only be used in conjunction with which type of health plan?
Answer: High-Deductible Health Plan (HDHP)
IRS rules require that an individual be enrolled in a qualified High-Deductible Health Plan to be eligible to contribute to an HSA.
Which benefit is classified as a legally required benefit under U.S. federal law?
Answer: Social Security contributions
Social Security (FICA) contributions are mandated by federal law for most employers and employees, making them a legally required benefit.
What is the primary purpose of a Flexible Spending Account (FSA) in an employee benefits program?
Answer: To allow employees to pay for eligible expenses with pre-tax dollars
An FSA allows employees to set aside pre-tax dollars from their paycheck to pay for qualified medical or dependent care expenses, reducing taxable income.
The Consolidated Omnibus Budget Reconciliation Act (COBRA) requires employers to offer continued health coverage to qualified beneficiaries for how long after a qualifying event such as termination?
Answer: 18 months
COBRA generally provides qualifying employees and covered dependents up to 18 months of continued health coverage following a qualifying event such as job loss.
Which of the following best describes a defined benefit pension plan?
Answer: The employer guarantees a specific retirement benefit based on a formula
In a defined benefit plan, the employer promises a specific monthly benefit at retirement calculated by a formula typically based on salary and years of service.