Question

A non-contributory plan requires _____ participation of all eligible employees.

A) Voluntary
B) Partial
C) Mandatory
D) Optional

Answer 1

A non-contributory plan requires mandatory participation from all eligible employees, where the employer covers the full premium cost and employees are automatically enrolled. The correct option is C.

Step-by-step explanation:

A non-contributory plan requires the mandatory participation of all eligible employees.

This means that in a non-contributory employee benefit plan, the employer pays the full premium, and all eligible employees are automatically enrolled in the plan.

These types of plans are often used for benefits such as life insurance or disability insurance, where the employer wants to ensure that all eligible employees have a basic level of coverage.