CHAPTER 22
Employee Benefits
1. ERISA covers pension, medical and insurance benefits.
2. In a defined benefit plan, the employee may make contributions.
3. An employee starting work at age 18 could not be eligible for a pension for 3 years.
4. In a defined contribution plan, the employer’s contribution is optional.
5. If an employee voluntarily leaves before being vested, he or she loses the contribution made
by the employer as well as his or her own.
6. An employee must be how old before being eligible to participate in a pension plan?
a) 16
b) 18
c) 21
d) 25
e) there is no minimum age
7. The following benefits are covered by ERISA.
a) medical
b) insurance
c) pension
d) a&c
e) all
8. Inflation will erode ________.
a) defined benefit plan
b) defined contribution plan
c) both
d) neither
9. A ________ pension plan is one in which several companies participate.
10. ________ will erode a defined benefit pension plan.
11. In a ________ plan, the employer may determine the risk of the investments.
12. The fiduciary’s duty is greater in a ________ plan.
13. The ________ guards against loss of benefits when pension plans are terminated.
14. ________ imposed minimum funding standards to guard against underfunded pensions.
15. ________ occurs when the employee acquires the right to the contributions made on his or
her behalf by the employer.