Question 1

Top hat plans are unfunded plans.(Supplemental Executive Retirement Plans (SERPs))

Accepted Answer

A) True 
 B)False

Question 2

Under SERP,nonexecutive employees earn an annual retirement benefit equal to 50% of the highest average annual salary for a consecutive three-year period.Defining Nonqualified Deferred Compensation Plans (NQDC))

Accepted Answer

A) True 
 B)False

Question 3

This provides income to executives at the end of a designated period and executives never have to exercise their stock rights to receive income.(Stock Appreciation Rights)

Accepted Answer

A) Restricted stock plan 
B) Stock appreciation rights 
C) Phantom stock plan 
D) Nonstatutory stock options
Essay Questions 
A) Restricted stock plan 
B) Stock appreciation rights 
C) Phantom stock plan 
D) Nonstatutory stock options
Essay Questions

Question 4

Explain the difference between a golden parachute and a platinum parachute.(Separation Agreements)

Accepted Answer

Main Points 
-Separation agreements spec

Question 5

Who are executives? Explain.(Defining Executive Employment Status)

Accepted Answer

Main Points
 -From a tax regulation pers

Question 6

Disposition is the sale of stock by the stockholder.(Basic Terminology)

Accepted Answer

A) True 
 B)False

Question 7

Stock grant refers to sale of stock by the stockholder.(Basic Terminology)

Accepted Answer

A) True 
 B)False

Question 8

Briefly discuss the issue of mandatory retirement age with regard to nonqualified plans.(Mandatory Retirement Age)

Accepted Answer

Main Points 
-Normal retirement age is t

Question 9

The IRS limits the annual benefit amounts for a defined benefit plans to the lesser of $185,000 in 2017.(Defining Nonqualified Deferred Compensation Plans (NQDC))

Accepted Answer

A) True 
 B)False

Question 10

Which one of the following is not a characteristic of employee owned annuities? (Employee-Owned Annuities)

Accepted Answer

A) Offers financial security 
B) Third party vendors are involved 
C) Employee pays the cost of the annuity 
D) Not subject to ERISA provisions 
A) Offers financial security 
B) Third party vendors are involved 
C) Employee pays the cost of the annuity 
D) Not subject to ERISA provisions

Question 11

ERISA Title I exempts nonqualified plans from fiduciary responsibility.(Supplemental Executive Retirement Plans (SERPs))

Accepted Answer

A) True 
 B)False

Question 12

The IRS uses the term "key employees" for nondiscrimination rules in employer-sponsored health insurance plans.(Who are Executives?)

Accepted Answer

A) True 
 B)False

Question 13

What was the IRS limit for annual earnings amount for determining qualified plan benefits in 2017? (Objectives of Nonqualified Plans)

Accepted Answer

A) $150,000 
B) $170,000 
C) $200,000 
D) $270,000 
A) $150,000 
B) $170,000 
C) $200,000 
D) $270,000

Question 14

Exercise of stock option refers to an employee's purchase of stock using stock options.(Basic Terminology)

Accepted Answer

A) True 
 B)False

Question 15

Excess benefit plans generally have longer vesting periods than SERPs.(Contrasting Excess Benefit Plans and SERPs)

Accepted Answer

A) True 
 B)False

Question 16

These clauses in the employment agreement provide pay and benefits to executives after a termination that results from a change in ownership or corporate takeover.(Golden Parachutes)

Accepted Answer

A) Platinum Parachutes 
B) Mandatory Retirement 
C) Golden Parachutes 
D) Top Hat 
A) Platinum Parachutes 
B) Mandatory Retirement 
C) Golden Parachutes 
D) Top Hat

Question 17

Define and provide main characteristics of one unfunded funding mechanism and one funded funding mechanism.(Funding Mechanisms)

Accepted Answer

Main Points: 
-Students may choose from

Question 18

When considering funding mechanisms,employee-owned annuities offer the highest level of security.(Funding Mechanisms)

Accepted Answer

A) True 
 B)False

Question 19

Trust funds and insurance contracts do not secure an employer's promise to make future payments.(Funding Status)

Accepted Answer

A) True 
 B)False

Question 20

According to the IRS,for nonqualified plans employers typically deduct expenses only when the employee receives income from the plan in the future.(Defining Nonqualified Deferred Compensation Plans (NQDC))

Accepted Answer

A) True 
 B)False

Top hat plans are unfunded plans.(Supplemental Executive Retirement Plans (SERPs))

Under SERP,nonexecutive employees earn an annual retirement benefit equal to 50% of the highest average annual salary for a consecutive three-year period.Defining Nonqualified Deferred Compensation Plans (NQDC))

This provides income to executives at the end of a designated period and executives never have to exercise their stock rights to receive income.(Stock Appreciation Rights)

Explain the difference between a golden parachute and a platinum parachute.(Separation Agreements)

Who are executives? Explain.(Defining Executive Employment Status)

Disposition is the sale of stock by the stockholder.(Basic Terminology)

Stock grant refers to sale of stock by the stockholder.(Basic Terminology)

Briefly discuss the issue of mandatory retirement age with regard to nonqualified plans.(Mandatory Retirement Age)

The IRS limits the annual benefit amounts for a defined benefit plans to the lesser of $185,000 in 2017.(Defining Nonqualified Deferred Compensation Plans (NQDC))

Which one of the following is not a characteristic of employee owned annuities? (Employee-Owned Annuities)

ERISA Title I exempts nonqualified plans from fiduciary responsibility.(Supplemental Executive Retirement Plans (SERPs))

The IRS uses the term "key employees" for nondiscrimination rules in employer-sponsored health insurance plans.(Who are Executives?)

What was the IRS limit for annual earnings amount for determining qualified plan benefits in 2017? (Objectives of Nonqualified Plans)

Exercise of stock option refers to an employee's purchase of stock using stock options.(Basic Terminology)

Excess benefit plans generally have longer vesting periods than SERPs.(Contrasting Excess Benefit Plans and SERPs)

These clauses in the employment agreement provide pay and benefits to executives after a termination that results from a change in ownership or corporate takeover.(Golden Parachutes)

Define and provide main characteristics of one unfunded funding mechanism and one funded funding mechanism.(Funding Mechanisms)

When considering funding mechanisms,employee-owned annuities offer the highest level of security.(Funding Mechanisms)

Trust funds and insurance contracts do not secure an employer's promise to make future payments.(Funding Status)

According to the IRS,for nonqualified plans employers typically deduct expenses only when the employee receives income from the plan in the future.(Defining Nonqualified Deferred Compensation Plans (NQDC))

Introducing Employee Benefits

The Psychology and Economics of Employee Benefits

Regulating Employee Benefits

Employer-Sponsored Retirement Plans

Employer-Sponsored Health-Care Plans

Employer-Sponsored Disability Insurance, life Insurance, and Workers Compensation

Government-Mandated Social Security Programs

Paid Time-Off and Flexible Work Schedule Benefits

Accommodation and Enhancement Benefits

Managing the Employee-Benefits System

Global Employee Benefits at a Glance

Filters

Exam 11: Nonqualified Deferred Compensation Plans for Executives

Top hat plans are unfunded plans.(Supplemental Executive Retirement Plans (SERPs))

Under SERP,nonexecutive employees earn an annual retirement benefit equal to 50% of the highest average annual salary for a consecutive three-year period.Defining Nonqualified Deferred Compensation Plans (NQDC))

This provides income to executives at the end of a designated period and executives never have to exercise their stock rights to receive income.(Stock Appreciation Rights)

Explain the difference between a golden parachute and a platinum parachute.(Separation Agreements)

Who are executives? Explain.(Defining Executive Employment Status)

Disposition is the sale of stock by the stockholder.(Basic Terminology)

Stock grant refers to sale of stock by the stockholder.(Basic Terminology)

Briefly discuss the issue of mandatory retirement age with regard to nonqualified plans.(Mandatory Retirement Age)

The IRS limits the annual benefit amounts for a defined benefit plans to the lesser of $185,000 in 2017.(Defining Nonqualified Deferred Compensation Plans (NQDC))

Which one of the following is not a characteristic of employee owned annuities? (Employee-Owned Annuities)

ERISA Title I exempts nonqualified plans from fiduciary responsibility.(Supplemental Executive Retirement Plans (SERPs))

The IRS uses the term "key employees" for nondiscrimination rules in employer-sponsored health insurance plans.(Who are Executives?)

What was the IRS limit for annual earnings amount for determining qualified plan benefits in 2017? (Objectives of Nonqualified Plans)

Exercise of stock option refers to an employee's purchase of stock using stock options.(Basic Terminology)

Excess benefit plans generally have longer vesting periods than SERPs.(Contrasting Excess Benefit Plans and SERPs)

These clauses in the employment agreement provide pay and benefits to executives after a termination that results from a change in ownership or corporate takeover.(Golden Parachutes)

Define and provide main characteristics of one unfunded funding mechanism and one funded funding mechanism.(Funding Mechanisms)

When considering funding mechanisms,employee-owned annuities offer the highest level of security.(Funding Mechanisms)

Trust funds and insurance contracts do not secure an employer's promise to make future payments.(Funding Status)

According to the IRS,for nonqualified plans employers typically deduct expenses only when the employee receives income from the plan in the future.(Defining Nonqualified Deferred Compensation Plans (NQDC))

Introducing Employee Benefits

The Psychology and Economics of Employee Benefits

Regulating Employee Benefits

Employer-Sponsored Retirement Plans

Employer-Sponsored Health-Care Plans

Employer-Sponsored Disability Insurance, life Insurance, and Workers Compensation

Government-Mandated Social Security Programs

Paid Time-Off and Flexible Work Schedule Benefits

Accommodation and Enhancement Benefits

Managing the Employee-Benefits System

Global Employee Benefits at a Glance

Filters