PHR - Compensation and Benefits Test

Question 1

Which of the following acts established uniform minimum standards for employer sponsored retirement and health and welfare benefit programs?

Accepted Answer

ERISA

Answer

The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry. It protects individuals in these plans by requiring fiduciaries to act in the best interest of plan participants and beneficiaries. ERISA also mandates disclosure requirements and provides remedies for violations.

Question 2

Which of the following acts applies to construction laborers and mechanics?

Accepted Answer

Davis-Bacon Act

Answer

The Davis-Bacon Act of 1931 requires contractors and subcontractors performing on federally funded or assisted contracts for the construction, alteration, or repair of public buildings or public works to pay their laborers and mechanics no less than the local prevailing wages and fringe benefits. This act ensures fair wages for workers on government construction projects. It specifically applies to construction laborers and mechanics.

Question 3

A point-of-service plan (POS) is a type of managed care plan that is a hybrid of which of the following types of plans?

Accepted Answer

HMO and PPO

Answer

A Point-of-Service (POS) plan is a type of managed care health insurance plan that combines features of both Health Maintenance Organizations (HMOs) and Preferred Provider Organizations (PPOs). Like an HMO, it typically requires a primary care physician (PCP) referral for specialists and offers lower costs for in-network providers. However, like a PPO, it also allows members to go out-of-network for care, albeit at a higher cost.

Question 4

To qualify for special tax treatment, a health savings account (HSA) for a single person must have a deductible of at least _______________ and out-of-pocket limits of no more than _______________.

Accepted Answer

$1,200, $5,950

Answer

To qualify for special tax treatment, a Health Savings Account (HSA) must be paired with a High Deductible Health Plan (HDHP). For a single person (as per the 2012 IRS guidelines, which these numbers reflect), the HDHP deductible had to be at least $1,200, and the out-of-pocket maximum could not exceed $5,950. These thresholds ensure the plan meets the IRS definition of an HDHP.

Question 5

Which of the following acts prohibits federal contractors from receiving kickbacks from employees or subcontractors for wages earned on federal projects?

Accepted Answer

Copeland Act

Answer

The Copeland Act, also known as the "Anti-Kickback Act," prohibits federal contractors from inducing any employee to give up any part of the compensation to which they are entitled under their employment contract. It specifically targets practices where contractors or subcontractors might demand kickbacks from employees or subcontractors for wages earned on federal projects. The act also requires contractors to submit weekly statements of compliance.

PHR Practice Test

PHR Practice Test

PHR - Compensation and Benefits Test