Society For Human Resource Management (SHRM) Certified Professional Practice Exam

A rolling 12-month period for benefits in a contract allows for what kind of time frame?

1. A calendar year

2. A 12-month period from the date of an event

3. Any 12-month period

4. A 12-month period when something begins

The correct answer is: Any 12-month period

A rolling 12-month period for benefits in a contract refers to a duration that can span any consecutive 12 months, regardless of when it starts or ends. This approach allows for flexibility in tracking benefits by providing a continually updated timeframe that rolls forward as time progresses. For example, if benefits are claimed in January, the rolling period would extend from January of the previous year to December of that year. If another claim is made in March, the rolling window would now cover March of one year to February of the following year. This method helps organizations manage benefits more dynamically and can be particularly useful for benefits that may have limits or caps based on a specific timeframe. The other choices imply fixed or less flexible limits. A calendar year is a static time frame, while a specific 12-month period from the date of an event or when something begins can restrict the overall applicability and tracking of benefits across the organization. Therefore, a clearly defined rolling 12-month period allows for a more adaptable approach to benefits management.