Asked by Edgar Quinones on Jul 05, 2024
Verified
In a meeting to discuss pension plans, management decides to offer retirement plans exclusively to the organization's owners and top managers. Jeremy, one of the top managers, disagrees with this decision because he believes the company can benefit more by providing pensions to a broad range of employees. Which statement strengthens Jeremy's belief?
A) Nondiscrimination rules provide tax benefits to plans that do not favor the organization's highly compensated employees.
B) The ADEA provides more favorable tax treatment of benefits when they are offered to a broad range of employees.
C) A top-heavy plan requires faster vesting for non-key employees.
D) Extending pension plans to employees at all levels will triple the costs.
E) Pension plans are determined exclusively by state and federal laws.
Nondiscrimination Rules
Regulations designed to prevent unfair treatment or bias in the workplace based on race, gender, age, disability, or other protected characteristics.
Highly Compensated Employees
Workers who receive compensation exceeding a specific threshold, often involving salary, bonuses, and other benefits.
- Recognize various pension schemes and their advantages for employees at distinct hierarchical levels in a company.
Verified Answer
TL
Thalia LawrenceJul 10, 2024
Final Answer :
A
Explanation :
This statement indicates that providing pensions exclusively to the organization's owners and top managers may not be tax-efficient or compliant with nondiscrimination rules, which would benefit the company more by extending pension plans to a broader range of employees.
Learning Objectives
- Recognize various pension schemes and their advantages for employees at distinct hierarchical levels in a company.
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