FAR2C18 Postemployment Benefits

Question 1

State all content information.
What are employee benefits?
4
8
10
Part 1 Only

Answer 1

1) What are employee benefits?
2) What are postemployment benefits?
3) Give four (4) examples of employee benefits.
4) Give two (2) examples of other long-term employee benefits.

Question 2

State all content information.
What are employee benefits?
4
8
10
Part 1 Only

1) What are — benefits?
2) What are —- benefits?
3) Give four (4) examples of — benefits.
4) Give two (2) examples of —- —- employee benefits.

Answer 2

1) What are employee benefits?
2) What are postemployment benefits?
3) Give four (4) examples of employee benefits.
4) Give two (2) examples of other long-term employee benefits.

Question 3

State all content information.
What are employee benefits?
4
8
10
Part 2 Only

Answer 3

1) Give two (2) examples of termination benefits.
2) Can postemployment benefit plans be informal?
3) How can postemployment benefit plans be established by law?
4) What are the two (2) classifications of postemployment benefit plans?
5) What are the two (2) ways postemployment benefit plans may be structured in terms of contributions and funding?
6) What is a contributory plan?
7) What is a noncontributory plan?
8) What is a funded plan?

Question 4

State all content information.
What are employee benefits?
4
8
10
Part 2 Only

1) Give two (2) examples of —- benefits.
2) Can postemployment benefit plans be —?
3) How can postemployment benefit plans be — by —?
4) What are the two (2) — of — benefit plans?
5) What are the two (2) — postemployment benefit plans may be — in terms of — and —?
6) What is a — plan?
7) What is a — plan?
8) What is a — plan?

Answer 4

1) Give two (2) examples of termination benefits.
2) Can postemployment benefit plans be informal?
3) How can postemployment benefit plans be established by law?
4) What are the two (2) classifications of postemployment benefit plans?
5) What are the two (2) ways postemployment benefit plans may be structured in terms of contributions and funding?
6) What is a contributory plan?
7) What is a noncontributory plan?
8) What is a funded plan?

Question 5

State all content information.
What are employee benefits?
4
8
10
Part 3 Only

Answer 5

1) What is the responsibility of the funding agency in a funded plan?
2) What is an unfunded plan?
3) What is a defined contribution plan?
4) What is the employer’s obligation if the fund does not hold sufficient assets in a defined contribution plan?
5) How are contributions made in a defined contribution plan?
6) Who administers and manages the funds in a defined contribution plan?
7) What determines an employee’s retirement benefit in a defined contribution plan?
8) What happens if the plan provides exceptional investment performance?
9) What occurs if the plan performs poorly?
10) Who bears the investment risk in a defined contribution plan?

Question 6

State all content information.
What are employee benefits?
4
8
10
Part 3 Only

1) What is the responsibility of the — agency in a — plan?
2) What is an — plan?
3) What is a defined — plan?
4) What is the employer’s — if the fund does — hold — assets in a defined — plan?
5) How are contributions — in a defined —- plan?
6) Who — and —- the funds in a defined contribution plan?
7) What —- an employee’s — benefit in a defined contribution plan?
8) What happens if the plan provides — — performance?
9) What occurs if the plan performs —?
10) Who —- the investment — in a defined —- plan?

Answer 6

1) What is the responsibility of the funding agency in a funded plan?
2) What is an unfunded plan?
3) What is a defined contribution plan?
4) What is the employer’s obligation if the fund does not hold sufficient assets in a defined contribution plan?
5) How are contributions made in a defined contribution plan?
6) Who administers and manages the funds in a defined contribution plan?
7) What determines an employee’s retirement benefit in a defined contribution plan?
8) What happens if the plan provides exceptional investment performance?
9) What occurs if the plan performs poorly?
10) Who bears the investment risk in a defined contribution plan?

Question 7

State all content information.
What are employee benefits?
4
8
10

Answer 7

1) What are employee benefits?
2) What are postemployment benefits?
3) Give four (4) examples of employee benefits.
4) Give two (2) examples of other long-term employee benefits.

1) Give two (2) examples of termination benefits.
2) Can postemployment benefit plans be informal?
3) How can postemployment benefit plans be established by law?
4) What are the two (2) classifications of postemployment benefit plans?
5) What are the two (2) ways postemployment benefit plans may be structured in terms of contributions and funding?
6) What is a contributory plan?
7) What is a noncontributory plan?
8) What is a funded plan?

1) What is the responsibility of the funding agency in a funded plan?
2) What is an unfunded plan?
3) What is a defined contribution plan?
4) What is the employer’s obligation if the fund does not hold sufficient assets in a defined contribution plan?
5) How are contributions made in a defined contribution plan?
6) Who administers and manages the funds in a defined contribution plan?
7) What determines an employee’s retirement benefit in a defined contribution plan?
8) What happens if the plan provides exceptional investment performance?
9) What occurs if the plan performs poorly?
10) Who bears the investment risk in a defined contribution plan?

Question 8

What are employee benefits?

Answer 8

They are all forms of consideration given by an entity in exchange for services rendered by employees or for the termination of employment.

(For the purpose of this standard, employees include directors and other management personnel)

The employee benefits include:

1) Postemployment benefits
2) Short-term employee benefits
3) Other long-term employee benefits
4) Termination benefits

Question 9

What are employee benefits?

They are all forms of — given by an entity in exchange for — — by employees or for the — of employment.

(For the purpose of this standard, employees include — and other — personnel)

The employee benefits include:

1) — benefits
2) — employee benefits
3) Other — employee benefits
4) — benefits

Answer 9

They are all forms of consideration given by an entity in exchange for services rendered by employees or for the termination of employment.

(For the purpose of this standard, employees include directors and other management personnel)

The employee benefits include:

1) Postemployment benefits
2) Short-term employee benefits
3) Other long-term employee benefits
4) Termination benefits

Question 10

They are all forms of consideration given by an entity in exchange for services rendered by employees or for the termination of employment.

(For the purpose of this standard, employees include directors and other management personnel)

The employee benefits include:

1) Postemployment benefits
2) Short-term employee benefits
3) Other long-term employee benefits
4) Termination benefits

Answer 10

Employee benefits

Question 11

What are postemployment benefits?

They are employee benefits, other than — benefits and — employee benefits, which are payable after — of employment.

Postemployment benefits:

1) — benefits, such as — and — —- payments on retirement.
2) Postemployment — insurance
3) Postemployment — care

Answer 11

They are employee benefits, other than termination benefits and short-term employee benefits, which are payable after completion of employment.

Postemployment benefits:

1) Retirement benefits, such as pensions and lump sum payments on retirement.
2) Postemployment life insurance
3) Postemployment medical care

Question 12

They are employee benefits, other than termination benefits and short-term employee benefits, which are payable after completion of employment.

Postemployment benefits:

1) Retirement benefits, such as pensions and lump sum payments on retirement.
2) Postemployment life insurance
3) Postemployment medical care

Answer 12

Postemployment benefits

Question 13

What are postemployment benefits?

Answer 13

They are employee benefits, other than termination benefits and short-term employee benefits, which are payable after completion of employment.

Postemployment benefits:

1) Retirement benefits, such as pensions and lump sum payments on retirement.
2) Postemployment life insurance
3) Postemployment medical care

Question 14

Give four (4) examples of short-term employee benefits.

Answer 14

1) Wages and salaries
2) Bonuses
3) Paid leave
4) Non-monetary benefits

Question 15

Give two (2) examples of other long-term employee benefits.

Answer 15

1) Long-term disability benefits: Coverage for employees who are unable to work due to long-term health issues.
2) Long-term incentive plans: Compensation based on performance over multiple years, often in the form of stock options or bonuses.

Question 16

Other long-term employee benefits.

1) Long-term disability benefits: Coverage for employees who are — to work due to long-term — issues.
2) Long-term incentive plans: — based on —- over — years, often in the form of — — or —.

Answer 16

1) Long-term disability benefits: Coverage for employees who are unable to work due to long-term health issues.
2) Long-term incentive plans: Compensation based on performance over multiple years, often in the form of stock options or bonuses.

Question 17

Give two (2) examples of termination benefits.

Answer 17

1) Severance pay: Compensation paid to employees when they are involuntarily terminated.
2) Other forms of compensation: Payment for unused vacation days or other benefits at termination.

Question 18

Termination benefits.

1) Severance pay: Compensation paid to employees when they are — terminated.
2) Other forms of compensation: Payment for — — days or other — at termination.

Answer 18

1) Severance pay: Compensation paid to employees when they are involuntarily terminated.
2) Other forms of compensation: Payment for unused vacation days or other benefits at termination.

Question 19

Can postemployment benefit plans be informal?

Answer 19

Yes, some plans are informal and evidenced only by the entity’s practice of paying postemployment benefits.

Question 20

How can postemployment benefit plans be established by law?

Answer 20

Some plans are established by law, requiring entities to contribute to national benefit plans.

Question 21

What are the two (2) classifications of postemployment benefit plans?

Answer 21

1. Defined contribution plans
2. Defined benefit plans

Question 22

What are the two (2) ways postemployment benefit plans may be structured in terms of contributions and funding?

Answer 22

1. Contributory or noncontributory
2. Funded or unfunded

Question 23

What is a contributory plan?

Answer 23

In this plan, both the employer and employee make contributions to the retirement benefit plan, but they do not necessarily contribute equal amounts. They share the retirement benefit cost.

Question 24

In this plan, both the employer and employee make contributions to the retirement benefit plan, but they do not necessarily contribute equal amounts. They share the retirement benefit cost.

Answer 24

Contributory plan

Question 25

What is a noncontributory plan?

Answer 25

In this plan, only the employer makes contributions to the retirement benefit plan, shouldering all the retirement benefit cost.

Question 26

In this plan, only the employer makes contributions to the retirement benefit plan, shouldering all the retirement benefit cost.

Answer 26

Noncontributory plan

Question 27

What is a funded plan?

Answer 27

This plan involves the transfer of assets to a separate entity, called the retirement fund, to meet obligations arising from a retirement benefit plan. The entity sets aside funds for future retirement benefits by making payments to a funding agency, such as a trustee, bank, or insurance company.

Question 28

What is a funded plan? This plan involves the --- of --- to a --- entity, called the --- ---, to meet --- arising from a ---- --- plan. The entity sets aside funds for future --- --- by making payments to a funding ----, such as a ---, bank, or --- company.

Answer 28

This plan involves the transfer of assets to a separate entity, called the retirement fund, to meet obligations arising from a retirement benefit plan. The entity sets aside funds for future retirement benefits by making payments to a funding agency, such as a trustee, bank, or insurance company.

Question 29

This plan involves the transfer of assets to a separate entity, called the retirement fund, to meet obligations arising from a retirement benefit plan. The entity sets aside funds for future retirement benefits by making payments to a funding agency, such as a trustee, bank, or insurance company.

Answer 29

Funded plan

Question 30

What is the responsibility of the funding agency in a funded plan?

Answer 30

The funding agency is responsible for accumulating funds and making payments to retired employees when the benefits become due.

Question 31

What is an unfunded plan?

Answer 31

In this plan, the entity retains the obligation for the payment of retirement benefits without establishing a separate fund.

Question 32

In this plan, the entity retains the obligation for the payment of retirement benefits without establishing a separate fund.

Answer 32

Unfunded plan

Question 33

What is a defined contribution plan?

Answer 33

It is a postemployment benefit plan where an entity pays fixed contributions into a separate entity known as the fund.

Question 34

It is a postemployment benefit plan where an entity pays fixed contributions into a separate entity known as the fund.

Answer 34

Defined contribution plan

Question 35

What is the employer's obligation if the fund does not hold sufficient assets in a defined contribution plan?

Answer 35

The entity will have no legal or constructive obligation to pay further contributions if the fund lacks sufficient assets to pay all employee benefits related to service in the current and prior periods.

Question 36

How are contributions made in a defined contribution plan?

Answer 36

Contributions can be a fixed amount, a percentage of the employer's income, a percentage of the employee's earnings, or a combination of these factors.

Question 37

Who administers and manages the funds in a defined contribution plan?

Answer 37

The entity makes contributions to a trustee, who administers, manages, and invests the funds.

Question 38

What determines an employee's retirement benefit in a defined contribution plan?

Answer 38

The employee's retirement benefit depends on how the plan has been managed by the trustee and the accumulated fund at the time of retirement.

Question 39

What happens if the plan provides exceptional investment performance?

Answer 39

If the plan performs well, the employee will receive a larger retirement benefit.

Question 40

What occurs if the plan performs poorly?

Answer 40

If the plan does poorly, the employee will receive a smaller retirement benefit.

Question 41

Who bears the investment risk in a defined contribution plan?

Answer 41

The employee bears the investment risk; their retirement benefit fluctuates based on the fund's performance.