Sample interview questions: Can you explain your knowledge of different types of employee benefit funding mechanisms, such as defined contribution plans or employee stock ownership plans (ESOPs)?
Sample answer:
Defined Contribution Plans
- 401(k) plans: Employee-sponsored retirement savings plans where employers contribute a fixed amount into individual employee accounts. Contributions may be pre-tax or post-tax, and employees can choose how their investments are allocated.
- Profit-sharing plans: Employer contributions are based on the company’s profits. Employees may have limited or no control over investments.
- Money purchase plans: Employer contributions are a specific percentage of employee compensation. Employees do not have control over investments.
Defined Benefit Plans
- Traditional pensions: Employers promise a specific retirement benefit based on factors such as years of service and salary (defined benefit). Employees do not have individual accounts.
Employee Stock Ownership Plans (ESOPs)
- Employee Stock Purchase Plan (ESPP): Employees purchase company stock at a discounted price through payroll deduc… Read full answer
Source: https://hireabo.com/job/1_1_44/HR%20Employee%20Benefits%20Analyst