QUESTION: 49

Which of the following statements best describes defined contribution (DC) plans?

They require complex actuarial calculations and assumptions.
The benefit is based on a formula that considers pay and service.
They generally provide better benefits to employees with longer service.
The employee assumes the risk for the investments..

Answer(s): D

Carla's job at the XYZ Company evolved over the many years she worked there. As she gained additional knowledge and skills, her responsibilities expanded into many diverse areas.
When the time came to update her job description, her supervisor asked Carla to document all of the duties she performed in her area as well as those she had taken on over the years due to her versatility. Based on the above, which of the following statements is most accurate?

The supervisor should not have asked Carla to contribute to the job description. Job descriptions should be developed only by human resources and management.
The job description will be far more relevant than before because of the addition of duties that Carla has taken on over the years.
Although it is useful to have input from the job incumbent, care should be taken to avoid basing the job description on the specific individual who is filling the job.

Answer(s): C

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QUESTION: 51

Which of the following statements is most accurate regarding pay grades/bands?

They include incentives that are paid out at certain times of the year
They identify the actual compensation paid to each employee
They may overlap with minimums and maximums falling within adjoining grades
They represent the difference between the midpoint and the maximum of a given salary grade

Answer(s): C

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