Question 1

The endorsement approach designates the employer as owner. (Split-Dollar Life Insurance)

Accepted Answer

A) True 
 B)False  True

Question 2

An employee in a high policymaking role manages the overall company and directs the work of two or more people. (Mandatory Retirement Age)

Accepted Answer

A) True 
 B)False  False

Question 3

For funded plans,executives generally pay federal income taxes when they begin to receive payments from these plans. (Funding Mechanisms and Tax Obligations)

Accepted Answer

A) True 
 B)False  False

Question 4

Which one of the following is not true about stock appreciation rights? (Stock Appreciation Rights)

Accepted Answer

A) Provide income to executives at the end of a designated period, much as with restricted stock options 
B) Executives always have to exercise their stock rights to receive income 
C) The company simply awards payment to executives based on the difference in stock price between the time the company granted the stock rights at fair market value to the end of the designated period, permitting the executives to keep the stock 
D) Neither the employee nor employer pays taxes when stock appreciation rights are granted 
A) Provide income to executives at the end of a designated period, much as with restricted stock options 
B) Executives always have to exercise their stock rights to receive income 
C) The company simply awards payment to executives based on the difference in stock price between the time the company granted the stock rights at fair market value to the end of the designated period, permitting the executives to keep the stock 
D) Neither the employee nor employer pays taxes when stock appreciation rights are granted

Question 5

Which of the following is not true of the endorsement approach under the split dollar insurance plan? (Split-Dollar Life Insurance)

Accepted Answer

A) Employee pays for most or the entire premium 
B) Employer has the right to borrow against the cash value of the policy for business purposes 
C) Executive reimburses the employer for the portion of the premium cost 
D) Employer names itself as beneficiary 
A) Employee pays for most or the entire premium 
B) Employer has the right to borrow against the cash value of the policy for business purposes 
C) Executive reimburses the employer for the portion of the premium cost 
D) Employer names itself as beneficiary

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Excess benefits plans can only be funded plans. (Excess Benefit Plans)

Accepted Answer

A) True 
 B)False

Question 8

What was the IRS limit for annual earnings amount for determining qualified plan benefits in 2012? (Objectives of Nonqualified Plans)

Accepted Answer

A) $150,000 
B) $175,000 
C) $200,000 
D) $250,000 
A) $150,000 
B) $175,000 
C) $200,000 
D) $250,000

Question 9

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 10

Companies use platinum parachutes to avoid legal battles or negative media publicity by paying off a CEO to give up his or her post. (Platinum Parachutes)

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

The Age Discrimination in Employment Act does not forbid employers from setting a mandatory retirement age for employees who are 65 years old. (Mandatory Retirement Age)

Accepted Answer

A) True 
 B)False

Question 13

A stock option is a company's offering of stock to an employee. (Basic Terminology)

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Rabbi trusts are characterized by which one of the following features? (Rabbi Trusts)

Accepted Answer

A) Is a revocable grantor trust 
B) Employer maintains ownership 
C) No financial lending institutions are involved 
D) Are funded plans 
A) Is a revocable grantor trust 
B) Employer maintains ownership 
C) No financial lending institutions are involved 
D) Are funded plans

Question 16

Discount stocks are similar to which one of the following? (Discount Stock Options)

Accepted Answer

A) Incentive stock options 
B) Phantom stocks 
C) Nonstatutory stock options 
D) Restricted stocks 
A) Incentive stock options 
B) Phantom stocks 
C) Nonstatutory stock options 
D) Restricted stocks

Question 17

Nonstatutory stock options are characterize by which one of the following features? (Nonstatutory Stock Options)

Accepted Answer

A) They qualify for favorable tax treatment 
B) They are awarded at discounted prices 
C) Executives do not have any ownership control over the disposition of the stock for 5 to 10 years 
D) Executives pay taxes in the future when they choose to exercise their nonstatutory stock options 
A) They qualify for favorable tax treatment 
B) They are awarded at discounted prices 
C) Executives do not have any ownership control over the disposition of the stock for 5 to 10 years 
D) Executives pay taxes in the future when they choose to exercise their nonstatutory stock options

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Discuss the main features of top hat plans. (Supplemental Executive Retirement Plans (SERPs))

Accepted Answer

Main Points
-Companies maintain top hat

Question 20

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

Accepted Answer

A) True 
 B)False

The endorsement approach designates the employer as owner. (Split-Dollar Life Insurance)

An employee in a high policymaking role manages the overall company and directs the work of two or more people. (Mandatory Retirement Age)

For funded plans,executives generally pay federal income taxes when they begin to receive payments from these plans. (Funding Mechanisms and Tax Obligations)

Which one of the following is not true about stock appreciation rights? (Stock Appreciation Rights)

Which of the following is not true of the endorsement approach under the split dollar insurance plan? (Split-Dollar Life Insurance)

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

Excess benefits plans can only be funded plans. (Excess Benefit Plans)

What was the IRS limit for annual earnings amount for determining qualified plan benefits in 2012? (Objectives of Nonqualified Plans)

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

Companies use platinum parachutes to avoid legal battles or negative media publicity by paying off a CEO to give up his or her post. (Platinum Parachutes)

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

The Age Discrimination in Employment Act does not forbid employers from setting a mandatory retirement age for employees who are 65 years old. (Mandatory Retirement Age)

A stock option is a company's offering of stock to an employee. (Basic Terminology)

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

Rabbi trusts are characterized by which one of the following features? (Rabbi Trusts)

Discount stocks are similar to which one of the following? (Discount Stock Options)

Nonstatutory stock options are characterize by which one of the following features? (Nonstatutory Stock Options)

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

Discuss the main features of top hat plans. (Supplemental Executive Retirement Plans (SERPs))

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

Introducing Employee Benefits

The Psychology and Economics of Employee Benefits

Regulating Employee Benefits

Employer-Sponsored Retirement Plans

Employer-Sponsored Health Insurance Programs

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

Government-Mandated Social Security Programs

Paid Time-Off and Flexible Work Schedules

Accommodation and Enhancement Benefits

Managing the Employee-Benefits System

Global Employee Benefits at a Glance

Filters

Exam 11: Nonqualified Deferred Compensation Plans for Executives

The endorsement approach designates the employer as owner. (Split-Dollar Life Insurance)

An employee in a high policymaking role manages the overall company and directs the work of two or more people. (Mandatory Retirement Age)

For funded plans,executives generally pay federal income taxes when they begin to receive payments from these plans. (Funding Mechanisms and Tax Obligations)

Which one of the following is not true about stock appreciation rights? (Stock Appreciation Rights)

Which of the following is not true of the endorsement approach under the split dollar insurance plan? (Split-Dollar Life Insurance)

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

Excess benefits plans can only be funded plans. (Excess Benefit Plans)

What was the IRS limit for annual earnings amount for determining qualified plan benefits in 2012? (Objectives of Nonqualified Plans)

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

Companies use platinum parachutes to avoid legal battles or negative media publicity by paying off a CEO to give up his or her post. (Platinum Parachutes)

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

The Age Discrimination in Employment Act does not forbid employers from setting a mandatory retirement age for employees who are 65 years old. (Mandatory Retirement Age)

A stock option is a company's offering of stock to an employee. (Basic Terminology)

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

Rabbi trusts are characterized by which one of the following features? (Rabbi Trusts)

Discount stocks are similar to which one of the following? (Discount Stock Options)

Nonstatutory stock options are characterize by which one of the following features? (Nonstatutory Stock Options)

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

Discuss the main features of top hat plans. (Supplemental Executive Retirement Plans (SERPs))

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

Introducing Employee Benefits

The Psychology and Economics of Employee Benefits

Regulating Employee Benefits

Employer-Sponsored Retirement Plans

Employer-Sponsored Health Insurance Programs

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

Government-Mandated Social Security Programs

Paid Time-Off and Flexible Work Schedules

Accommodation and Enhancement Benefits

Managing the Employee-Benefits System

Global Employee Benefits at a Glance

Filters