Question 1

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

Accepted Answer

The answer of Briefly discuss the issue of mandatory retirement...

Question 2

Corporate-owned life insurance can be used by employers to recover the costs of nonqualified deferred compensation. (Corporate-Owned Life Insurance)

Accepted Answer

A) True 
 B)False

Question 3

Unfunded plans are subject to employee rights protection under ERISA. (Funding Status)

Accepted Answer

A) True 
 B)False

Question 4

Top hat plans are exempt from which ERISA Title I regulation? (Supplemental Executive Retirement Plans (SERPs))

Accepted Answer

A) Funding 
B) Reporting and disclosure 
C) Continuation coverage 
D) Administration and enforcement

Question 5

Nonqualified retirement plans for executives are generally divided into these two broad classes. (Nonqualified Retirement Plans for Executives)

Accepted Answer

A) Top hat plans and supplemental executive retirement plans 
B) Excess benefit plans and supplemental executive retirement plans 
C) Offset benefit plans and supplemental executive retirement plans 
D) Target benefit plans and supplemental executive retirement plans

Question 6

Collateral approach is a term used to indicate employer ownership of an insurance policy. (Split-Dollar Life Insurance)

Accepted Answer

A) True 
 B)False

Question 7

Funded plans allocate money to trust funds or insurance companies in an executive's name. (Funding Status)

Accepted Answer

A) True 
 B)False

Question 8

One of the objectives of nonqualified plans is restoration. (Objectives of Nonqualified Plans)

Accepted Answer

A) True 
 B)False

Question 9

Companies benefit from golden parachute payments because they can treat these payments as business expenses. (Golden Parachutes)

Accepted Answer

A) True 
 B)False

Question 10

Coverage requirements limit the freedom of employers to exclude employees from participation. (ERISA Qualification Criteria)

Accepted Answer

A) True 
 B)False

Question 11

Capital gains is the term used to describe the market value of stock options as listed on the NYSE. (Incentive Stock Options)

Accepted Answer

A) True 
 B)False

Question 12

Sarbanes-Oxley Act of 2002 also commonly referred to as Dodd-Frank Act. (Securities and Exchange Commission)

Accepted Answer

A) True 
 B)False

Question 13

Which is not a factor associated with the decision to fund a nonqualified plan? (Funding Status)

Accepted Answer

A) Competitive pressures 
B) Corporate cultures 
C) Liability management 
D) Press coverage

Question 14

Which of the following is not one of the objectives of SERP? (Supplemental Executive Retirement Plans (SERPs))

Accepted Answer

A) Use of SERPs as a tool in executive-level succession planning 
B) Rewarding substantially higher retirement benefits 
C) Compensating for long-term employment 
D) Compensating for older new hires

Question 15

The IRS limits the annual benefit amounts for a defined benefit plans to the lesser of $185,000 in 2012. (Objectives of Nonqualified Plans)

Accepted Answer

A) True 
 B)False

Question 16

Secular trusts are subject to a company's creditors in the event of bankruptcy or insolvency. (Secular Trusts)

Accepted Answer

A) True 
 B)False

Question 17

The IRS has no impact on nonqualified plans. (The Internal Revenue Service)

Accepted Answer

A) True 
 B)False

Question 18

Which of the following ERISA Title I parts does not apply to nonqualified plans? (Supplemental Executive Retirement Plans (SERPs))

Accepted Answer

A) Funding 
B) Reporting and disclosure 
C) Fiduciary responsibility 
D) Administration and enforcement

Question 19

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

Accepted Answer

The answer of Who are executives? Explain. (Defining Executive Employment...

Question 20

This type of executive retirement plan is unfunded and can be issued upon retirement or termination without cause,but the assets must be released to creditors if the company files for insolvency or bankruptcy. (Rabbi Trusts)

Accepted Answer

A) Employee-owned annuities 
B) Secular trusts 
C) Rabbi trusts 
D) Corporate-owned life insurance

Exam 11: Nonqualified Deferred Compensation Plans for Executives

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

Corporate-owned life insurance can be used by employers to recover the costs of nonqualified deferred compensation. (Corporate-Owned Life Insurance)

Unfunded plans are subject to employee rights protection under ERISA. (Funding Status)

Top hat plans are exempt from which ERISA Title I regulation? (Supplemental Executive Retirement Plans (SERPs) )

Nonqualified retirement plans for executives are generally divided into these two broad classes. (Nonqualified Retirement Plans for Executives)

Collateral approach is a term used to indicate employer ownership of an insurance policy. (Split-Dollar Life Insurance)

Funded plans allocate money to trust funds or insurance companies in an executive's name. (Funding Status)

One of the objectives of nonqualified plans is restoration. (Objectives of Nonqualified Plans)

Companies benefit from golden parachute payments because they can treat these payments as business expenses. (Golden Parachutes)

Coverage requirements limit the freedom of employers to exclude employees from participation. (ERISA Qualification Criteria)

Capital gains is the term used to describe the market value of stock options as listed on the NYSE. (Incentive Stock Options)

Sarbanes-Oxley Act of 2002 also commonly referred to as Dodd-Frank Act. (Securities and Exchange Commission)

Which is not a factor associated with the decision to fund a nonqualified plan? (Funding Status)

Which of the following is not one of the objectives of SERP? (Supplemental Executive Retirement Plans (SERPs) )

The IRS limits the annual benefit amounts for a defined benefit plans to the lesser of $185,000 in 2012. (Objectives of Nonqualified Plans)

Secular trusts are subject to a company's creditors in the event of bankruptcy or insolvency. (Secular Trusts)

The IRS has no impact on nonqualified plans. (The Internal Revenue Service)

Which of the following ERISA Title I parts does not apply to nonqualified plans? (Supplemental Executive Retirement Plans (SERPs) )

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

This type of executive retirement plan is unfunded and can be issued upon retirement or termination without cause,but the assets must be released to creditors if the company files for insolvency or bankruptcy. (Rabbi Trusts)