Understanding Employee Benefit Plans

D

The answer is B. Cafeteria plan.

A cafeteria plan is a type of employee benefit plan that allows employees to choose from a menu of benefits provided by their employer. The name comes from the idea that employees can select from a "menu" of benefits, much like they would at a cafeteria. The plan is designed to give employees more control over their benefits and allow them to customize their benefits to meet their individual needs.

Under a cafeteria plan, an employer allocates a certain amount of money to each employee, which they can then use to purchase benefits from a selection of options. These options may include health insurance, dental insurance, vision insurance, life insurance, disability insurance, and retirement benefits, as well as other benefits such as flexible spending accounts, health savings accounts, and dependent care assistance.

The cafeteria plan allows employees to choose the benefits that are most important to them, and only pay for those benefits they select. This can help employees save money on benefits they don't need, while still providing them with access to important benefits.

In conclusion, a cafeteria plan is a type of employee benefit plan that allows employees to choose from a menu of benefits provided by their employer. It provides employees with more control over their benefits and allows them to customize their benefits to meet their individual needs.