CPHR Total Rewards and Compensation 3

Question 1

Which of the following describes a non-qualified deferred compensation (NQDC) plan?

Accepted Answer

An arrangement where executives defer income to a future date without ERISA protections

Answer

A plan subject to ERISA vesting and funding rules

Answer

A government-sponsored retirement savings account

Answer

A plan available to all employees regardless of income

Question 2

A company implements a gain-sharing program where employees receive bonuses tied to measurable reductions in production costs. Which specific gain-sharing plan is this most consistent with?

Accepted Answer

Improshare Plan

Answer

Rucker Plan

Answer

Scanlon Plan

Answer

Profit-sharing plan

Question 3

When benchmarking jobs to market data, which factor is MOST critical to ensuring valid salary comparisons?

Accepted Answer

Matching job content and scope, not just job title

Answer

Matching job titles exactly

Answer

Matching geographic location only

Answer

Using only government wage surveys

Question 4

Which tax-advantaged account allows employees to save for retirement and also permits penalty-free withdrawals for qualified medical expenses after age 65?

Accepted Answer

Health Savings Account (HSA)

Answer

Flexible Spending Account (FSA)

Answer

Health Reimbursement Arrangement (HRA)

Answer

Dependent Care FSA

Question 5

An organization's pay equity audit reveals that women in comparable roles earn 8% less than men after controlling for experience and tenure. The BEST next step is to:

Accepted Answer

Conduct a regression analysis to identify root causes before adjusting pay

Answer

Lower men's salaries to close the gap

Answer

Immediately raise all women's salaries by 8%

Answer

Attribute the gap to performance differences and take no action

Question 6

Which method of job evaluation ranks positions by comparing whole jobs to each other rather than analyzing compensable factors?

Accepted Answer

Whole-job ranking method

Answer

Point-factor method

Answer

Job classification method

Answer

Factor comparison method

Question 7

A retroactive pay increase given to employees whose wages were below a newly established minimum pay range is called:

Accepted Answer

A green-circle rate correction

Answer

A cost-of-living adjustment (COLA)

Answer

A red-circle rate freeze

Answer

A merit pay increase