瑞达 Rejda 保险教材英文练习题17.doc

Principles of Risk Management and Insurance, 11e (Rejda) Chapter 17 Employee Benefits: Retirement Plans 1) All of the following statements about tax implications of qualified pension plans are correct EXCEPT A) Investment earnings on plan assets accumulate on a tax-deferred basis. B) Employer contributions are deductible up to certain limits as an ordinary business expense. C) Employer contributions are considered taxable income to employees but are taxed at capital gains rates. D) Pension benefits attributable to the employers contributions are not taxed until the employee retires or receives the funds. Answer: C Question Status: Previous Edition 2) Beta Corporation has 1,000 employees eligible to participate in the firms pension plan, and 100 of these employees are considered highly compensated. All of the highly compensated employees are covered by the plan. What is the minimum number of the 900 non-highly compensated employees who must be covered by the plan in order for the plan to satisfy the ratio percentage test? A) 500 B) 630 C) 667 D) 900 Answer: B Question Status: Previous Edition 3) What are the minimum age and service requirements that can be imposed on employees eligible to participate in a retirement plan? A) age 18 and 6 months of service B) age 21 and 1 year of service C) age 21 and 3 years of service D) age 25 and 4 years of service Answer: B Question Status: Previous Edition 4) Which of the following statements about retirement ages in defined benefit pension plans is (are) true? I. The normal retirement age in most plans is 65. II. The early retirement age is the earliest age at which an employee can retire without receiving actuarially reduced benefits. A) I only B) II only C) both I and II D) neither I nor II Answer: A Question Status: Previous Edition 5) Which of the following statements concerning defined-benefit pension plans is (are) true? I. The contribution rate by the employer varies from year to year. II. The retirement benef