Which of the Following Is Not True Regarding Minimum Standards

question 62

Multiple Choice

Which of the following is not true regarding minimum standards under the Employee Retirement Income Security Act?

• A)The minimum standards for pension plans must be met for the employee pension plans to  qualify for preferential tax treatment.
• B)Preferential tax treatment enables an employer to deduct contributions to qualified benefit plans immediately.
• C)ERISA does not consider the deductions as income to participating employees until they receive the payments after retirement.
• D)Compliance to ERISA minimum standards by qualifying their benefit plans is mandatory.

Know the advantages and disadvantages of direct and indirect pay components.

Understand the importance of linking compensation with individual performance and organizational goals.

Recognize the role of benefits as part of the compensation package.

Grasp the concept of pay for knowledge systems and their benefits within high-flexibility organizations.

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Definitions:

Inheritance of Acquired Characteristics

An outdated scientific theory that proposed individuals can pass on traits acquired during their lifetime to their offspring.

Lamarck

Lamarck, Jean-Baptiste, was a French naturalist known for his early theory of evolution, proposing that organisms could pass on traits acquired in their lifetime to their offspring.

Hardy-Weinberg Equilibrium

A principle that states allele and genotype frequencies in a population will remain constant from generation to generation in the absence of evolutionary influences.