Exam Results Planning For Retirement

2. Les is a high-level executive with a seven-figure salary. Part of his executive compensation includes a pension. Les most likely has a _______ pension plan.A. qualifiedB. nonqualifiedC. average-rate compensatedD. highly compensatedStudent Answer: A Answer: IncorrectReference: PAGE 558 7. Which one of the following statements about contributory pension plans is most accurate?A. The least favorable contributory plan involves salary reduction.B. Employees appreciate their benefit plans more when they contribute to benefit funding.C. Contributory plans give employees some degree of choice in allocating their compensation between cash and deferred benefits.D. The contributory approach lowers the cost of pension benefit plans.Student Answer: D Answer: IncorrectReference: PAGE 592 9. Acme Co. uses a particular retirement plan to finance the business. This plan is called an employeeA. stock bonus plan.B. savings of pensions.C. savings option plan.D. security ownership plan.Student Answer: D Answer: IncorrectReference: PAGE 568 10. Under ERISA, the assets of all qualified plans must be valued by the actuary every _______ year(s).A. twoB. threeC. fourD. fiveStudent Answer: A Answer: IncorrectReference: PAGE 677 20. For all practical purposes, the primary source of significant regulations regarding employee benefits is theA. Department of Labor.B. Pension Benefit Guaranty Corporation.C. Internal Revenue Service.D. Constitution of the United States.Student