COMPENSATION COMPREHENSIVE REVIEW
2026 VERIFIED QUESTIONS AND
SOLUTIONS
◉What type of pension plan commonly includes profit-sharing
plans, stock bonus plans, and employee stock ownership plans?
Answer: Defined contribution
◉Which type of plan appeared as one of the first discretionary
benefits practices? Answer: Retirement Plans
◉Which set of rules prohibit employers from discriminating in favor
of highly compensated employees in contributions or benefits,
availability of benefits, rights, or plan features? Answer:
Nondiscrimination rules
◉Which of the following contributed to the use of flexible benefits
plans? Answer: Greater workforce diversity
◉Under a cliff vesting arrangement, after how many years must full
vesting rights be granted? Answer: 3
,◉Which of the following laws permit employers to automatically
enroll employees in a defined contribution plan? Answer: Pension
Protection Act
◉The tax advantage afforded companies from offering particular
discretionary benefits has strategic value for which of the following
reasons? Answer: It translates into cost savings to companies.
◉Unscheduled absenteeism has climbed to its highest levels in the
XYZ Company last month. In order to reduce costs, HR professionals
in the XYZ Company changed their paid time off policy. This
company used to grant each employee 10 vacation days, 5 paid days
for sick leave, and 4 days for personal leave. With the new policy, this
company combines vacation, sick leave, and personal leave policies
into one paid time off policy (i.e., 19 days). The management kept
funeral leave as a stand-alone policy. What is the XYZ Company's
new policy called? Answer: integrated paid time off
◉Which of the following benefits was previously offered on a
discretionary basis, but, is now mandatory? Answer: Health
Insurance
◉You broke your neck at work. The company called to inform you
that they had to switch your benefits from the short-term disability
account to the long-term disability account. Based on this decision,
how long have you been off work? Answer: 6 months to life
, ◉Which of the following is NOT a provision of the Employee
Retirement Income Security Act? Answer: employer matching
contributions
◉Which of the following do qualified plans provide? Answer:
substantial tax breaks to employers and employees
◉Which of the following is rationale to apply a probationary period
prior to permitting participation in an employee benefits plan?
Answer: Companies view such periods as an opportunity to ensure
that they have made sound hiring decisions.
◉In 2017, approximately what percentages of private-sector
employees and government employees, respectively, had access to
an EAP? Answer: 51 percent, 78 percent
◉What is coinsurance? Answer: The insured pays a percentage of
covered expenses.
◉To be eligible for unemployment insurance benefits, an individual
must meet which of the following requirements Answer: Has not
been terminated because of gross violations of workplace conduct.
2026 VERIFIED QUESTIONS AND
SOLUTIONS
◉What type of pension plan commonly includes profit-sharing
plans, stock bonus plans, and employee stock ownership plans?
Answer: Defined contribution
◉Which type of plan appeared as one of the first discretionary
benefits practices? Answer: Retirement Plans
◉Which set of rules prohibit employers from discriminating in favor
of highly compensated employees in contributions or benefits,
availability of benefits, rights, or plan features? Answer:
Nondiscrimination rules
◉Which of the following contributed to the use of flexible benefits
plans? Answer: Greater workforce diversity
◉Under a cliff vesting arrangement, after how many years must full
vesting rights be granted? Answer: 3
,◉Which of the following laws permit employers to automatically
enroll employees in a defined contribution plan? Answer: Pension
Protection Act
◉The tax advantage afforded companies from offering particular
discretionary benefits has strategic value for which of the following
reasons? Answer: It translates into cost savings to companies.
◉Unscheduled absenteeism has climbed to its highest levels in the
XYZ Company last month. In order to reduce costs, HR professionals
in the XYZ Company changed their paid time off policy. This
company used to grant each employee 10 vacation days, 5 paid days
for sick leave, and 4 days for personal leave. With the new policy, this
company combines vacation, sick leave, and personal leave policies
into one paid time off policy (i.e., 19 days). The management kept
funeral leave as a stand-alone policy. What is the XYZ Company's
new policy called? Answer: integrated paid time off
◉Which of the following benefits was previously offered on a
discretionary basis, but, is now mandatory? Answer: Health
Insurance
◉You broke your neck at work. The company called to inform you
that they had to switch your benefits from the short-term disability
account to the long-term disability account. Based on this decision,
how long have you been off work? Answer: 6 months to life
, ◉Which of the following is NOT a provision of the Employee
Retirement Income Security Act? Answer: employer matching
contributions
◉Which of the following do qualified plans provide? Answer:
substantial tax breaks to employers and employees
◉Which of the following is rationale to apply a probationary period
prior to permitting participation in an employee benefits plan?
Answer: Companies view such periods as an opportunity to ensure
that they have made sound hiring decisions.
◉In 2017, approximately what percentages of private-sector
employees and government employees, respectively, had access to
an EAP? Answer: 51 percent, 78 percent
◉What is coinsurance? Answer: The insured pays a percentage of
covered expenses.
◉To be eligible for unemployment insurance benefits, an individual
must meet which of the following requirements Answer: Has not
been terminated because of gross violations of workplace conduct.
