Mixed Deck — All CBP Topics Flashcards

Which document must employers provide to employees describing the summary of benefits and coverage under a health plan?

Answer: Summary of Benefits and Coverage (SBC)

The ACA requires insurers and plan administrators to provide an SBC — a standardized, plain-language summary of plan benefits and coverage — to enrollees.

An HRA (Health Reimbursement Arrangement) is funded exclusively by:

Answer: Employer contributions only

HRAs are employer-funded accounts used to reimburse employees for qualified medical expenses; employees cannot contribute to an HRA.

When aligning benefits strategy with total rewards strategy, which business objective is benefits design most directly intended to support?

Answer: Attracting, retaining, and engaging a productive workforce

Benefits strategy is fundamentally aligned with the talent management objective of attracting top candidates, retaining valued employees, and driving engagement and productivity.

In a defined benefit pension plan, the retirement benefit is based primarily on:

Answer: A formula using salary history and years of service

Defined benefit plans promise a specific monthly benefit at retirement calculated using a formula that typically considers years of service and final average salary.

When communicating a benefits plan change that reduces coverage, best practice requires the employer to:

Answer: Communicate clearly and early, explaining the rationale and any offsetting changes

Early, transparent communication with clear rationale helps maintain trust and gives employees time to adjust their plan elections or personal finances accordingly.

An employer notices that 60% of employees re-enroll in the same plan each year without reviewing their options. What communication strategy would BEST address this passive enrollment behavior?

Answer: Eliminate passive re-enrollment and require active elections annually

Requiring active elections each year forces employees to consciously review and confirm their benefit selections, reducing passive default behavior and improving plan fit.

Which of the following BEST illustrates the concept of 'audience segmentation' in benefits communication?

Answer: Tailoring benefit messages to different employee groups such as new parents, near-retirees, or millennials

Audience segmentation means customizing messages for specific groups based on their unique needs and life stages, making communications more relevant and actionable.

Which approach allows employees to select from a 'menu' of different benefit options, tailoring their package to personal needs within employer-set limits?

Answer: Cafeteria plan / flexible benefits plan

Cafeteria plans (under IRC Section 125) allow employees to choose from a range of pre-tax benefit options — such as different health plans, FSAs, and supplemental coverage — to build a personalized benefits package.

When evaluating the effectiveness of a total rewards communication strategy, which approach provides the MOST comprehensive assessment?

Answer: Combining quantitative metrics (enrollment rates, cost trends) with qualitative data (employee surveys, focus groups)

A mixed-methods approach combining hard data on enrollment and costs with qualitative employee feedback provides the most complete picture of communication effectiveness.

Under the ADA, what must an employer do when an employee's disability requires modifications to their work schedule or duties?

Answer: Engage in an interactive process to identify a reasonable accommodation

The ADA requires employers to engage in an interactive, good-faith dialogue with the employee to identify effective reasonable accommodations that do not impose undue hardship.

What is the maximum duration of short-term disability benefits typically provided under employer-sponsored STD plans?

Answer: 3-6 months

Short-term disability plans typically provide benefits for 3 to 6 months (up to 26 weeks), after which long-term disability coverage may begin if the employee remains disabled.

Which term describes the amount an insured must pay out-of-pocket before the health plan begins paying covered expenses?

Answer: Deductible

A deductible is the fixed amount the insured pays for covered services before the insurance plan starts to pay.

An employer wants to measure employee comprehension of benefits, not just awareness. Which method is MOST effective?

Answer: Administering a short quiz or knowledge check after benefits education sessions

A knowledge check or quiz directly tests whether employees understood the material presented, as opposed to metrics that only measure exposure or subjective satisfaction.

Which law prohibits employment discrimination based on genetic information, including in employee benefits?

Answer: GINA

The Genetic Information Nondiscrimination Act (GINA) prohibits employers from using genetic information in employment decisions and from requesting genetic information for benefit eligibility.

Which of the following communication channels is MOST effective for reaching employees who do not have regular access to company email or computers?

Answer: Physical posters and printed paycheck stuffers

Physical posters and printed materials reach employees without computer access, such as manufacturing, retail, or field workers.

Under ERISA, a plan must provide a Summary Plan Description (SPD) to new participants within how many days of becoming eligible?

Answer: 90 days

ERISA requires that new plan participants receive the SPD within 90 days after becoming covered under the plan.

Which account type allows employees to pay for qualified medical expenses with pre-tax dollars and rolls over unused funds?

Answer: HSA

Health Savings Accounts (HSAs) allow pre-tax contributions that roll over year to year and are only available to those enrolled in a High-Deductible Health Plan.

What is the primary regulatory statute governing private-sector retirement and welfare benefit plans in the United States?

Answer: ERISA

ERISA (Employee Retirement Income Security Act of 1974) sets minimum standards for most voluntarily established retirement and health plans in the private sector.

Under the ACA's employer mandate, what is the affordability threshold for 2024 based on employee-only premium cost relative to household income?

Answer: 8.39%

For 2024, a plan is considered affordable under the ACA employer mandate if the employee's share of the self-only premium does not exceed 8.39% of their household income.

Which type of incentive plan gives employees the right to purchase company stock at a fixed price within a specified period?

Answer: Stock options

Stock options grant the holder the right to buy company shares at a predetermined exercise price (grant price) within a defined exercise period.