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Most employees are willing to accept less cash compensation in return for health benefits.

As an actuary, you are helping Roadster Custom Auto Shop determine the annual cost of its defined benefit plan. In making your calculations, you must make reasonable assumptions about:

Only highly compensated employees are covered by a legal services plan.

Participants who have reached the age of 50 during the plan year may be permitted to make “catch-up” contributions.

What is the maximum number of years of service a plan may require before a participant is 100% vested in a qualified defined benefit plan?

If the plan covers only a single person and was individually negotiated, some courts have found that ERISA is not applicable.

Which of the following is not true about employee discounts?

The average age of employees at Baker Manufacturing is close to 30, and about two-thirds of current employees have children under age 10 at home. Most of these employees earn relatively low wages. The remaining employees have no dependent care needs. Baker Manufacturing is considering installing a dependent care assistance plan as an employee benefit. The advantages to Baker Manufacturing of doing so include which of the following?

Acorn Booksellers is a small business interested in adopting a qualified retirement plan. The owner of Acorn wants to be able to choose from more than one financial institution when implementing the plan. Acorn’s owner also wants to determine such things as the vesting schedule and the contribution or benefit formula. As a small business, Acorn wants to keep costs down. You recommend that Acorn use

If more than the maximum allowable amount is contributed in any year, an excise tax is imposed on the excess contribution.