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Questions and Answers
What is the formula for calculating the vested benefit in a retirement plan?
What is the formula for calculating the vested benefit in a retirement plan?
- Credited services months * BPR = Vested benefit (correct)
- Credited services months - BPR = Vested benefit
- Credited services months / BPR = Vested benefit
- Credited services months + BPR = Vested benefit
What is a major advantage of a contributory insurance plan for employees?
What is a major advantage of a contributory insurance plan for employees?
- Employees must pay a portion of the premium from their own taxable income
- Employers cover 100% of the premium payments
- Employees have limited choices in coverage amount
- Employees get automatic-issue policies without medical examinations (correct)
What is a primary disadvantage of a contributory insurance plan?
What is a primary disadvantage of a contributory insurance plan?
- Employees get automatic-issue policies without medical examinations
- Employees must pay a portion of premiums from their taxable income (correct)
- Employers cover 100% of the premium payments
- Employees have complete control over coverage amount
Why can contributory insurance plans offer employees more comprehensive coverage?
Why can contributory insurance plans offer employees more comprehensive coverage?
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In a noncontributory plan, who covers the premium payments?
In a noncontributory plan, who covers the premium payments?
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