Lesson 9.2/9.3 Quiz

Deferred Compensation - money that is ____________________________ at a later date usually in return for services that have been given or received at the ___________.

• paid; present time

• received; future date

• invested; past time

• saved; current time

Pension - Income given to an employee after _________________ that is given at the discretion of an employer.

• retirement

• promotion

• resignation

• transfer

Single life annuity - a pension that offers a ____________ monthly amount until death, when all benefits stop.

• fixed

• variable

• increasing

• decreasing

Qualified joint and Survivor Annuity - a pension that offers the retiree a smaller amount but upon death the _________ will continue to receive reduced payments until his or her death.

• survivor (usually spouse)

• employer

• plan administrator

• beneficiary charity

Pension Protection Act - passed in ________ which amended ERISA and offered legislation to strengthen and protect many times of pensions.

• 2006

• 1998

• 2012

• 1985

Consumer Price Index (CPI) - An indicator of inflation that measures the change in the total cost of a specific list of _____________ and ________________.

• goods; services

• stocks; bonds

• machines; tools

• land; buildings

Melissa retired in 2020 at 67 years old, meaning she qualified for full Social Security benefits.

For people turning 67 in 2020, the formula for computing Social Security Benefits was:

90% of the first $960 on monthly earnings

32% of the monthly earnings between $960 and $5,785

15% of the earnings over $5,785

Mary’s monthly earnings were $4,750.

What monthly Social Security benefits will this person receive?

• $2,076.50

• $2,076.60

• $2,076.70

• $2,076.80

• $2,076.90

When can you begin receiving Social Security benefits?

• Age 52

• Age 62

• Age 70

• Age 60

What happens if you want to collect social security payments at age 62?

• You can't unless you are disabled

• You will be paid less than if you wait until you are older

• You will get the same amount no matter what age you are.

When was the Social Security program created?

• 1935

• 1955

• 1945

• 1925