PART C: MULTIPLE CHOICE: (Two points each – 20 points total): For the following

Question

PART C: MULTIPLE CHOICE: (Two points each – 20 points total): For the following questions, please answer using one of the following choices:

A. Defined Benefit plans only

B. Defined Contribution plans only

C. Both DB and DC plans

D. Neither DB nor DC plans

1. _____ This type of plan “rewards” length of service with one company.

2. _____ This type of plan better supports mobility (moving from company to company) during a person’s employment career.

3. _____ ERISA governs this type of plan.

4. _____ This plan type uses a formula to figure benefits based on a flat benefit, a career average or a final pay formula.

5. _____ This type of plan requires an actuarial valuation.

6. _____ This type of plan requires annual ADP testing for discrimination testing purposes.

7. _____ Cash balance plans are really this type of plan.

8. _____ This type of plan requires employers to give employees who are married a Joint and Survivor Annuity option when they are eligible to collect benefits. 9. _____ Employees invest their balances and bear any risk in this type of plan.

10. _____ Employers are responsible to invest and bear any risk in this type of plan.

Explanation / Answer

1. B
2. D
3. A
4. B
6. B
7. A
8. A
9. B
10. B

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