CEBS GBA Exam Study Guide –
Practice Questions with Verified
Answers. GRADED A+. Latest
2026/2027 Update
What is the Functional Approach to Employee Benefit Planning? (Mod 1.4) -
answer✔✔ -
Application of a systematic method of analysis to an Employer's Total Employee
Benefits Program. It analyzes the organization's EBP as a whole in terms of its
ability to meet various employee's needs and to manage loss exposures within the
overall compensation goals and parameters.
Why is the Functional Approach appropriate when planning, designing and
administering Employee
Benefits? (Mod 1.4) - answer✔✔ - 1: EE Benefits Significant Element of EE Comp
and are a Tax-
Effective Way to Compensate
2: EE Benefit Represent Large Labor Cost, so ER's should effectively plan/cost-
control
3: In the past, EE Benefits were adopted on piece-meal basis; helps to now fill
gaps/overlap
,4: Systematic Approach to planning helps to keep the EBP current, competitive
and in compliance with updated requirements (ACA)
5: Benefits to be integrated properly together
Compare Compensation/Service Oriented Benefit Philosophy with the Needs-
Oriented (Mod 1.4) - answer✔✔ - Compensation/Service: EBP comprised of
primarily compensation, service or both.
Level of benefits tied to salary or pay levels/years of service
Needs Orientated: Focuses on Needs of EE's and their dependents
Identify Steps in Applying Functional Approach (Mod 1.4) - answer✔✔ - 1: Classify
EE/Dep
Needs & Objectives (in logical/functional categories)
2: Classify Categories of EE's to be protected
3: Analyze present benefits in terms of functional categories of needs/objectives,
persons to benefit, and regulatory requirements
4: Determine any gaps or overlap in benefits from all sources in terms of
functional categories of needs & the persons to be protected
5: Consider recommendations for changes
6: Estimate costs/savings from each recommendation
7: Evaluate alternative methods of financing for those recommended benefits (and
existing ben)
8: Consider other cost-saving techniques
9: Decide upon appropriate benefits and methods of financing as a result of
analysis
10: Implement Changes
,11: Communication Changes to Employees
12: Periodically re-evaluate EBP
Broad view of Employee Benefits (Mod 1.1) - answer✔✔ - Considers Employee
Benefits to be virtually any form of compensation other than direct wages paid to
Employees (Ex: WC, Unemployment,
State DI, SS, Vacation, Holidays, 401K/Retirement, Employer share of Medical,
Severance Pay, Child Care, etc..)
Narrow view of Employee Benefits (Mod 1.1) - answer✔✔ - Any type of plan
sponsored or initiated by Employees and Employers and engaged in providing
benefits that result from the employment relationship and that are not
underwritten or paid directly by the government; (Ex: Benefits excluded include
those legally mandated - WC, SS).
Impact of Labor Unions on Employee Benefits (Mod 1.2) - answer✔✔ - Through
Collective
Bargaining, Employee Benefit Plans have been impacted. In 1948 ruling states that
the duty to bargain in good faith over wages also included insurance and fringes
(pension). In WW Cross & Co, NLRB ruled wages included health and accident
plan.
What is the Taft-Hartley Act? (Mod 1.2) - answer✔✔ - The Labor Management
Relations Act of
1947 is a United States federal law that restricts the activities and power of labor
unions. This set forth good-faith collective bargaining over wages, hours, terms of
employment and benefits.
, 3 Examples of Tax Advantages of Employee Benefit Plans (Mod 1.2) - answer✔✔ -
1: Employer Contributions are Tax Deductible
2: Employer Contributions are not considered income to Employees
3: Certain Retirement Benefits Accumulate Tax-Free until distributed.
Examples of Questions that should be addressed when creating benefit objectives
(Mod 1.3) - answer✔✔ - Ex: What benefits should be provided? Who should be
covered? Should Employees have options? How should plan be financed? How
should plan be administered? How should plan be communicated to Employees?
Define Needs/Exposures covered under EBP (Mod 1.4) - answer✔✔ - 1: Medical
Expenses (EE/Dep)
2: Losses due to Disability (Short/Long Term)
3: Death (EE/Dep/Retirees)
4: Retirement Needs
5: Capital Accumulation Needs/Goals
6: Needs for Unemployment/Layoff/Termination
7: Needs for Financial/Retirement Counseling
8: Losses from property/liability exposures
9: Needs for Dependent Care Assistance
10: Needs for Educational Assistance (EE/Dep)
11: Needs for Custodial-Care Expenses (LTC)
12: Other Needs/Goals (Stock Purchase Plan)
Practice Questions with Verified
Answers. GRADED A+. Latest
2026/2027 Update
What is the Functional Approach to Employee Benefit Planning? (Mod 1.4) -
answer✔✔ -
Application of a systematic method of analysis to an Employer's Total Employee
Benefits Program. It analyzes the organization's EBP as a whole in terms of its
ability to meet various employee's needs and to manage loss exposures within the
overall compensation goals and parameters.
Why is the Functional Approach appropriate when planning, designing and
administering Employee
Benefits? (Mod 1.4) - answer✔✔ - 1: EE Benefits Significant Element of EE Comp
and are a Tax-
Effective Way to Compensate
2: EE Benefit Represent Large Labor Cost, so ER's should effectively plan/cost-
control
3: In the past, EE Benefits were adopted on piece-meal basis; helps to now fill
gaps/overlap
,4: Systematic Approach to planning helps to keep the EBP current, competitive
and in compliance with updated requirements (ACA)
5: Benefits to be integrated properly together
Compare Compensation/Service Oriented Benefit Philosophy with the Needs-
Oriented (Mod 1.4) - answer✔✔ - Compensation/Service: EBP comprised of
primarily compensation, service or both.
Level of benefits tied to salary or pay levels/years of service
Needs Orientated: Focuses on Needs of EE's and their dependents
Identify Steps in Applying Functional Approach (Mod 1.4) - answer✔✔ - 1: Classify
EE/Dep
Needs & Objectives (in logical/functional categories)
2: Classify Categories of EE's to be protected
3: Analyze present benefits in terms of functional categories of needs/objectives,
persons to benefit, and regulatory requirements
4: Determine any gaps or overlap in benefits from all sources in terms of
functional categories of needs & the persons to be protected
5: Consider recommendations for changes
6: Estimate costs/savings from each recommendation
7: Evaluate alternative methods of financing for those recommended benefits (and
existing ben)
8: Consider other cost-saving techniques
9: Decide upon appropriate benefits and methods of financing as a result of
analysis
10: Implement Changes
,11: Communication Changes to Employees
12: Periodically re-evaluate EBP
Broad view of Employee Benefits (Mod 1.1) - answer✔✔ - Considers Employee
Benefits to be virtually any form of compensation other than direct wages paid to
Employees (Ex: WC, Unemployment,
State DI, SS, Vacation, Holidays, 401K/Retirement, Employer share of Medical,
Severance Pay, Child Care, etc..)
Narrow view of Employee Benefits (Mod 1.1) - answer✔✔ - Any type of plan
sponsored or initiated by Employees and Employers and engaged in providing
benefits that result from the employment relationship and that are not
underwritten or paid directly by the government; (Ex: Benefits excluded include
those legally mandated - WC, SS).
Impact of Labor Unions on Employee Benefits (Mod 1.2) - answer✔✔ - Through
Collective
Bargaining, Employee Benefit Plans have been impacted. In 1948 ruling states that
the duty to bargain in good faith over wages also included insurance and fringes
(pension). In WW Cross & Co, NLRB ruled wages included health and accident
plan.
What is the Taft-Hartley Act? (Mod 1.2) - answer✔✔ - The Labor Management
Relations Act of
1947 is a United States federal law that restricts the activities and power of labor
unions. This set forth good-faith collective bargaining over wages, hours, terms of
employment and benefits.
, 3 Examples of Tax Advantages of Employee Benefit Plans (Mod 1.2) - answer✔✔ -
1: Employer Contributions are Tax Deductible
2: Employer Contributions are not considered income to Employees
3: Certain Retirement Benefits Accumulate Tax-Free until distributed.
Examples of Questions that should be addressed when creating benefit objectives
(Mod 1.3) - answer✔✔ - Ex: What benefits should be provided? Who should be
covered? Should Employees have options? How should plan be financed? How
should plan be administered? How should plan be communicated to Employees?
Define Needs/Exposures covered under EBP (Mod 1.4) - answer✔✔ - 1: Medical
Expenses (EE/Dep)
2: Losses due to Disability (Short/Long Term)
3: Death (EE/Dep/Retirees)
4: Retirement Needs
5: Capital Accumulation Needs/Goals
6: Needs for Unemployment/Layoff/Termination
7: Needs for Financial/Retirement Counseling
8: Losses from property/liability exposures
9: Needs for Dependent Care Assistance
10: Needs for Educational Assistance (EE/Dep)
11: Needs for Custodial-Care Expenses (LTC)
12: Other Needs/Goals (Stock Purchase Plan)
