Lesson 11 Benefits

Employers must provide benefits in the form of basic health insurance, paid vacation and pensions. True False

False

Pursuant to ERISA, a plan administrator under a fiduciary duty is required to act in the best interests of the employer. True False

False

The Employee Retirement Income Security Act (ERISA) governs pension plans exclusively. True False

False

An employee would likely prefer this kind of pension plan: a. a defined benefit plan b. a defined contribution plan c. a hybrid plan

a. a defined benefit plan

Defined benefit pension plans: a. promise a specific pension benefit upon retirement b. require a specific contribution each pay period c. are not insured through the Pension Benefit Guaranty Corporation (PBGC) d. are less regulated pension plans

a. promise a specific pension benefit upon retirement

An employer would likely prefer this kind of pension plan: a. a defined benefit plan b. a defined contribution plan c. a hybrid plan

b. a defined contribution plan

The Pregnancy Discrimination Act provides for each of the following EXCEPT:​ a. health plans must cover expenses for pregnancy-related medical care on the same basis as for other medical conditions b. because of the extreme costs and because men do not avail themselves of pregnancy benefits, larger deductibles or co-pays may be charged c. both married and unmarried employees must be covered d. the same level of coverage must be provided for the spouses of male employees as is provided for the spouses of female employees

b. because of the extreme costs and because men do not avail themselves of pregnancy benefits, larger deductibles or co-pays may be charged

Regarding the Pension Benefit Guarantee Corporation (PBGC), which of the following statements is true? a. The PBGC is an agency that insures undefined pension plans. b. The PBGC is an agency that insures defined contribution pension plans. c. The PBGC's fund is running out of money, due to the increase in the failure of the pension plans it insures. d. The PBGC has run out of money and has been disbanded

c. The PBGC's fund is running out of money, due to the increase in the failure of the pension plans it insures.

Which of the following is true of the Employee Retirement Income Security Act (ERISA)? a. it requires employers to provide pensions for most of their employees b. it is superseded by state laws that relate to employee benefit plans c. it does not apply to benefit plans administered by public employers d. it requires that once a plan is in place, it can not be changed or modified without the employees consent

c. it does not apply to benefit plans administered by public employers

Which of the following is true regarding vesting requirements under ERISA?​ a. once pension rights vest, employees are entitled to receive full pensions upon leaving employment b. once pension rights vest, employees' pension plans cannot be discontinued or changed c. vesting usually occurs after five or seven years of service d. vesting is never required but is purely a contractual provision negotiated between the employer and employee

c. vesting usually occurs after five or seven years of service

Which of the following is a qualifying event necessitating an offer of COBRA continuation coverage? a. an employee is reprimanded b. an employee leaves on vacation c. an employee adopts a child d. an employee quits his job

d. an employee quits his job

Regarding employment benefits, the general rule is that: a. employers are legally required to provide employment benefits in the form of basic health care, vacation pay, and pension or profit sharing plans b. employers are legally required to provide basic health care, but no other benefits, although they may do so voluntarily c. only employers with 50 or more employees are legally required to provide basic health care, but no other benefits, although they may do so voluntarily d. employers are not legally required to provide health care or pension plans

d. employers are not legally required to provide health care or pension plans

An employee whose wife suffered from breast cancer was terminated after a change of ownership of the company. He asked whether their health insurance would continue, and was told verbally that it would. Nine months later when his wife sought treatment, she was advised the policy had been terminated. He and his wife sued for a violation of COBRA. The court should rule: a. for the employer, since it was a new owner, and not the employer of the employee. b. for the employer, since the employee never requested in writing that their insurance be continued c. for the employee, since he was not given notice of his COBRA rights in writing d. for the employee's wife, because she was also an insured, but was given no notice of her COBRA rights

d. for the employee's wife, because she was also an insured, but was given no notice of her COBRA rights

An employee is terminated for poor attendance. The employer sends a letter on May 1 notifying him of his right to receive continuation health insurance coverage. The letter states that the former employee must respond by May 30 to be eligible for up to 6 months of continuation coverage. The employer's letter: a. accurately states the former employee's rights under COBRA b. should state that the employee has 45 days to decide on coverage that would last up to 3 years c. should state that the employee has 60 days to decide on coverage that would last up to 3 years d. should state that the employee has 60 days to decide on coverage that would last up to 18 months

d. should state that the employee has 60 days to decide on coverage that would last up to 18 months

The Patient Protection & Affordable Care Act was challenged in a lawsuit alleging that the federal government exceeded its authority under the constitution by requiring that people buy health insurance. The case went to the U.S. Supreme Court, which ruled: a. striking down the law, on the basis that the federal government had violated the commerce clause b. striking down the law, on the grounds that nothing in the c. Constitution authorized the law d. upholding the law as valid, on the grounds that it constituted a tax on the lack of health insurance

d. upholding the law as valid, on the grounds that it constituted a tax on the lack of health insurance