CPFO Compensation & Benefits Practice Exam

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• What is a potential benefit of allowing designated Roth accounts in a 457(b) plan?
• What do brokerage window options in defined contribution plans allow participants to do?
• What agency does GFOA suggest for measuring inflation effectively?
• Which of the following is an example of a fringe benefit?
• What is the primary responsibility of the investment advisor in trust administration?
• Which type of pension and retirement plan is known to be portable?
• What does the Family and Medical Leave Act (FMLA) provide eligible employees?
• Under the GASB standards, how should OPEB liabilities be measured?
• What is the purpose of the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
• A section 125 cafeteria plan allows employees to select what combination of benefits?
• Which of the following best describes a function of position management?
• In terms of job evaluation, what could be considered a "compensable factor"?
• Why is it important for employers to track employee time?
• Which of the following is a characteristic of a defined benefit plan?
• What is a core element of a pension funding policy?
• What is a key aspect of participant education for defined contribution plans?
• What is a "flexible benefits plan"?
• Is it required for OPEB to be prefunded according to GASB regulations?
• How is the term "hybrid" used in the context of retirement plans?
• How often should organizations update their actuarial valuations?
• What does the balance in a Hybrid Pension Equity Plan account represent?
• What is the aim of target-risk funds in investment strategy?
• Which of the following is NOT a qualifying condition for FMLA leave?
• What does "salary compression" refer to in the context of human resources?
• Which components are typically included in an employee benefits program?
• What should an actuarial firm and supervising actuary possess?
• What is meant by "non-monetary compensation"?
• Which of the following is an example of a non-monetary benefit?
• Which of the following accurately describes the nature of life cycle funds?
• What is the primary purpose of predictive modeling in retirement plans?
• Which statement correctly describes a defined benefit plan?
• Why is compliance with compensation regulations important?
• Which of the following is an example of indirect compensation?
• What is the primary purpose of salary surveys?
• What characterizes the Merit Pay Model of Compensation?
• For what purpose does GFOA recommend creating a qualified trust fund?
• Who benefits from a Health Savings Account (HSA)?
• What type of services can actuarial firms provide?
• Which of the following is a component of a wellness program?
• What is a key feature of a 401(h) trust?
• Can a governmental 457(b) plan allow designated Roth accounts?
• What is the primary aim of ERISA?
• Which of the following is NOT a recommended action when determining an OPEB funding approach?
• What is a characteristic of a governmental 457(b) plan compared to other retirement plans?
• Does the Employee Retirement Income Security Act (ERISA) apply to public entities?
• What should be recognized on the face of the financial statements according to the GASB standard?
• What is the significance of the Summary Plan Description?
• Who controls a single-employer trust?
• What is the primary function of job evaluation in compensation management?
• How can organizations promote fair compensation practices?
• Which are the two main types of pay structures?
• Which analytical tools help assess cost drivers and health risk factors for plan participants?
• Why is it advised not to issue OPEB bonds?
• What is the role of the compensation committee within an organization?
• How is "base salary" defined?
• What does FLSA stand for?
• Who typically funds a defined benefit plan?
• What is the purpose of job classification?
• What element typically triggers communication of changes to plan participants?
• How frequently should the Summary Plan Description be reviewed and updated?
• How can an organization ensure employee satisfaction regarding salary?
• What is the purpose of conducting a compensation audit?
• What role do actuaries play in relation to public employee benefit plans?
• What is the primary focus of merit pay systems?
• What does an amortization policy define?
• Health Reimbursement Arrangements (HRAs) are primarily what type of plans?
• What does an employee's return to work after FMLA leave guarantee?
• What is meant by "pay transparency"?
• What is an important feature of designated Roth contributions in a 457(b) plan?
• What code are actuaries bound by in their professional conduct?
• What is the time frame in which FMLA leave for birth and bonding must conclude?
• What does the concept of longevity refer to in compensation systems?
• What impact did the Affordable Care Act have on employee benefits?
• What does "fully-insured health plan" imply?
• Which of the following is considered a qualifying life event for changes in an FSA?
• Which of these is NOT a consideration for managing OPEB costs?
• What does total compensation encompass?
• What is typically a result of implementing a good compensation strategy?
• What is the advantage of a tax-deferred retirement plan?
• Who is ultimately responsible for managing a retirement plan?
• Which of these situations qualifies for FMLA leave?
• What is a key consideration for ensuring the sustainability of Other Post-Employment Benefits (OPEB)?
• Which of the following statements about Paid Time Off (PTO) is true?
• How often does GFOA recommend that an actuarial experience study be conducted?
• How are the governance structures of VEBA typically characterized?
• Which step is NOT recommended by GFOA for procuring actuarial services?
• What are stock options?
• Which term describes the deductions taken from an employee’s paycheck for taxes and benefits?
• Why is compliance important in benefits administration?
• What differentiates "exempt" employees from "non-exempt" employees?
• Which type of investment fund is characterized by a specific risk profile?
• How can organizations effectively analyze their compensation structure?
• What does prefunding OPEB involve?
• Which plan provides benefits based on a formula determined by the employee's salary history?
• Which employers are required to comply with FMLA?
• What is an example of a qualified benefit in a cafeteria plan?
• How is overtime pay typically calculated?
• Which aspect is critical when working with benefit costs in relation to position management?
• How can organizations utilize market data in compensation planning?
• What is a feature of the Merit Pay Model's pay range?
• What does DROP stand for in retirement planning?
• What does retirement plan vesting determine?
• What is one outcome of effectively utilizing market compensation data?
• How do mandatory benefits differ from voluntary benefits?
• What characterizes the custodian role in trust administration?
• What should a sound investment strategy include to manage varying market conditions?
• Which of the following is NOT a retirement plan design option?
• What hours count towards the 1,250 hours requirement under FMLA?
• What is a likely consequence of poor compensation practices in an organization?
• In the context of employee benefits, what is an Employee Stock Purchase Plan (ESPP) used for?
• Which of the following is NOT a cost-containment measure for health benefits?
• What is the primary purpose of actuarial services in pension plans?
• What is a key component of position control in an organization?
• What is the role of employee demographics in shaping benefit offerings?
• How frequently should a comprehensive actuarial audit be conducted according to recommendations?
• What type of modeling might actuaries provide for plan administration?
• According to FMLA rules, what is required regarding group health benefits during leave?
• For what purpose might an organization conduct ongoing actuarial valuations?
• What is the primary purpose of an actuarial valuation?
• Which of the following are considered pass-through costs resulting from new ACA fees and taxes?
• What is the GASB standard regarding the reporting of other post-employment benefits?
• What is a Section 218 Agreement?
• In hybrid cash balance plans, how is the employee’s account credited?
• What does "pay for performance" refer to?
• What does a Civil Service Model of Compensation provide?
• What type of plan allows employees to save and invest a portion of their paycheck before taxes?
• What does the duty of prudence entail?
• What benefit does brokerage investment options provide to retirement plan participants?
• How frequently does GFOA recommend actuarial audits to be conducted?
• How does the Affordable Care Act (ACA) define a full-time employee?
• What does pay equity analysis aim to achieve?
• What characterizes hybrid plans?
• What type of benefits can be part of employee cafeteria plans?
• When calculating net OPEB liability, what is significant to consider?
• Which of the following is NOT a component of Health Reimbursement Arrangements (HRAs)?
• What is the main goal of a wellness program in employee benefits?
• Which of the following aspects is essential to ensure sustainability of benefits?
• What is the primary characteristic of a profit-sharing plan?
• What does QDIA stand for in retirement planning?
• What is the purpose of the Comparative Effectiveness Research Fee under the ACA?
• What does SPD stand for in a benefits context?
• Which of the following best describes a Long-Term Incentive Plan (LTIP)?
• What aspect of a benefits program can significantly affect its attractiveness to employees?
• What does the efficiency ratio of a health care plan measure?
• What is the role of the trust administrator?
• What does the Fair Labor Standards Act (FLSA) establish?
• What system of pay increases is based on individual performance evaluations?
• What might a company do to address pay compression?
• Which ACA fee is associated with the Cadillac Excise Tax?
• What are anti-spiking provisions designed to exclude?
• Which investment characteristic reduces exposure to significant losses through diversification?
• Who is eligible to take FMLA leave?
• What is defined as an organization's guiding principles on how it values and determines employee compensation?
• Paid time off (PTO) is generally more common in which sector?
• What should be established to work effectively with an actuary?
• What is the main role of compensation professionals?
• What does "total rewards" refer to in a compensation context?
• What does a pay compression issue indicate?
• What is the purpose of pay equity?
• What is one primary purpose of asset allocation?
• What does the actuarial cost method focus on?
• Which of the following can be included in a cafeteria plan?
• What does the Employee Retirement Income Security Act (ERISA) establish?
• Multiple employer trusts are primarily designed for which purpose?
• What is predictive modeling primarily used for in health benefits?
• What does "withholding" refer to in payroll processing?
• What characterizes life-style funds?
• When was the minimum wage last set, and what is its rate?
• What is the primary focus of benefits administration?
• What tax benefit do contributions and earnings in a 457(b) retirement plan enjoy?
• What type of measures might influence participant behavior in health benefits?
• What is the implication of having a retirement plan design that includes defined contributions?
• What is the primary purpose of compensation in an organization?
• What is the primary obligation indicated by the duty of loyalty in a fiduciary relationship?
• What is the primary focus of a surplus management policy?
• How would you define a compensation strategy?
• What defines a discretionary advisor in trust management?
• Which of the following best defines a fringe benefit?
• In a defined contribution plan, who bears the investment-related risk?
• Which type of account offers tax advantages for medical expenses?
• What is a common feature of a Section 115 trust?
• Which of the following best describes "compensable factors" in job evaluation?
• What is the primary feature of a cafeteria plan?
• Does the GFOA recommend offering early retirement incentives?
• What is the purpose of asset smoothing in pension funding?
• What is a salary range?
• What type of contribution does the Government Finance Officers Association (GFOA) recommend employees make to their defined contribution plans?
• Which of the following best describes data warehousing in the context of health benefits?
• Why is employee engagement critical in compensation practices?
• What defines a "contributory pension plan"?
• Which benefits are considered mandatory?
• What is typically NOT included in total rewards?
• Which of the following describes an actuarial accrued liability?
• How often should contributions be reviewed in a surplus management policy?
• How frequently should investment portfolio performance be reviewed according to best practices?
• Which of the following is a core element of a compensation philosophy?
• What does the acronym COBRA represent in employee benefits?
• What is the primary goal of implementing a Merit Pay Model within an organization?
• When should employers inform plan participants of changes?
• What is a bonus in the context of employee compensation?
• What typically happens to unspent funds in a Flexible Spending Account?
• How is the term "living wage" best defined?
• What is asset allocation in investment management?
• Which factors typically influence employee benefit offerings?
• What does carried interest represent in investment management?
• How long does GFOA recommend contracts for actuarial valuations should typically last?
• Which compensation model utilizes a step and grade system?
• What is the purpose of an Employee Stock Purchase Plan (ESPP)?
• A Flexible Spending Account (FSA) is primarily used for what purpose?
• What is the fundamental financial objective of public employee defined benefit and hybrid plans?
• What is a requirement of the Employee Retirement Income Security Act (ERISA)?
• What type of compensation strategy can help retain top talent?
• When does the GFOA recommend governments prefund their OPEB obligations?
• Which of the following is NOT an actuarial service?
• What distinguishes a non-discretionary bonus under FLSA?
• How do life cycle or target date funds manage investments over time?
• What is a Health Savings Account (HSA)?
• What is the role of a non-discretionary advisor in investment decisions?
• Which option is NOT one of the three main legal forms for a trust and its governance?
• What area does position management primarily influence in an organization?
• What is the purpose of an asset smoothing method?
• What characterizes a short-term incentive plan?
• What is a major benefit of defined contribution plans regarding portability?
• What is classified as extraordinary income in retirement plans?
• Which of the following best describes a defined benefit plan?
• What is the primary goal of salary benchmarking?
• What role does the IRS play in employee benefits?