CCP Benefits Design & Administration 3

Question 1

Which retirement plan design feature allows employees to make after-tax contributions so that qualified withdrawals in retirement are tax-free?

Accepted Answer

Roth 401(k) feature

Answer

Traditional 401(k) feature

Answer

Profit-sharing provision

Answer

Safe harbor contribution

Question 2

When conducting a benefits cost analysis, the 'total benefit cost as a percentage of payroll' metric is primarily used to:

Accepted Answer

Benchmark the overall cost burden of benefits relative to compensation expense

Answer

Calculate individual employee take-home pay

Answer

Determine COBRA premium rates

Answer

Set the employer HSA contribution amount

Question 3

An employee assistance program (EAP) is primarily designed to:

Accepted Answer

Provide confidential counseling and referral services for personal problems

Answer

Manage workers' compensation claims

Answer

Administer prescription drug benefits

Answer

Offer financial planning and investment advice

Question 4

The concept of 'adverse selection' in benefits administration refers to:

Accepted Answer

High-risk individuals disproportionately enrolling in richer benefit plans

Answer

Employers choosing cheaper benefit plans to reduce costs

Answer

The government mandating minimum benefit standards

Answer

Employees waiving coverage due to a spouse's plan

Question 5

Which vesting schedule requires employees to be 100% vested in employer retirement contributions after no more than three years of service?

Accepted Answer

Cliff vesting

Answer

Graded vesting

Answer

Immediate vesting

Answer

Graduated cliff vesting

Question 6

A total rewards statement given to employees primarily serves which purpose?

Accepted Answer

Communicating the full value of compensation and benefits to improve perceived value

Answer

Legally required disclosure of ERISA plan terms

Answer

Calculating taxable income for W-2 reporting

Answer

Documenting benefit elections for plan administration

Question 7

Under the Family and Medical Leave Act (FMLA), eligible employees are entitled to how many weeks of unpaid, job-protected leave per year for qualifying reasons?

Accepted Answer

12 weeks

Answer

6 weeks

Answer

8 weeks

Answer

16 weeks