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

NQDC plans allow executives to defer compensation to a later period but are unsecured promises to pay and do not carry the same ERISA protections as qualified plans.

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

Improshare (Improved Productivity through Sharing) bases payouts on measurable improvements in labor productivity and production efficiency.

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

Accurate market pricing requires matching the actual duties, responsibilities, and scope of a job—not just the title—to comparable positions in survey data.

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

An HSA accumulates tax-free and funds roll over indefinitely; after age 65, withdrawals for any purpose are penalty-free (though non-medical ones are taxable).

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

A thorough regression analysis helps isolate legitimate pay drivers from discriminatory factors before remediation decisions are made.

(CPHR) Chartered Professional in Human Resources Practice Test

(CPHR) Chartered Professional in Human Resources Practice Test

CPHR Total Rewards and Compensation 3