41) Social Security offers all of the following EXCEPT ________.
A) income for retirees 62 or older who are insured under the Social Security Act
B) survivor's benefits for those insured under the Social Security Act
C) disability payments to employees who become totally disabled
D) tax refunds for retirees who are 55 and older
E) Medicare program administration
42) How is the Social Security program funded?
A) sale of government bonds
B) tax on employee wages
C) interest earned on foreign loans
D) lottery ticket sales
E) sales tax on luxury goods
43) Which of the following provides a fixed sum when employees reach a predetermined retirement age or can no longer work due to disability?
A) 401(k) plan
B) workers' compensation
C) Social Security
D) pension plan
E) group life insurance
44) Taxes on employee wages are shared equally by employees and employers and apply to all earnings up to ________.
A) $46,500
B) $63,700
C) $87,900
D) $106,800
E) $124,300
45) Medicare provides a wide range of health services to people ________ or over.
A) 55
B) 59
C) 60
D) 62
E) 65
46) When an employer makes all of the contributions to the pension plan, the pension plan is classified as ________.
A) qualified
B) non-qualified
C) defined contribution
D) non-contributory
E) defined benefit
47) A plan that contains a formula for determining retirement benefits is known as a ________.
A) defined contribution pension plan
B) employee stock ownership plan
C) defined benefit pension plan
D) cash balance plan
E) 401(k) plan
48) Malcolm is interviewing for a new job and he is evaluating the quality of the pension plans offered for each company he is considering. One company offers a pension plan in which the company will make all contributions to the plan and will base his pension benefit on a formula linked to his pay at the time of retirement and the number of years he was with the firm. This pension plan could be classified as ________.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) non-contributory, defined contribution
D) contributory, qualified
E) contributory, defined benefit
49) Jenny must contribute at least 5% of her annual salary to her pension plan, and her employer contributes a set amount as well. She is given choices regarding how the money is invested. When she retires, the amount she has available will depend on how much she invested herself, and the rate of return on the investments she chose. This pension plan could be classified as ________.
A) qualified, defined benefit
B) non-contributory, defined benefit
C) contributory, defined contribution
D) contributory, non-qualified
E) contributory, defined benefit
50) A plan in which the employer's contribution to employees' retirement savings funds is specified is known as a ________.
A) portable plan
B) default investment plan
C) Social Security pension plan
D) defined benefit pension plan
E) defined contribution pension plan