!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
CEBS GBA Exam 3 Questions and
answers/ complete solution
An employee welfare benefit plan has four basis elements. What are these
elements? (Mod 1.1) - ANSWER-1) There must be a plan, fund or program.
2) The plan, fund or program is established or maintained by an employer.
3) The plan, fund or program is for the purpose of providing specifically listed
benefits, through the purchase of insurance or otherwise.
4) Benefits are provided to participants and beneficiaries.
Explain how a "plan, fund or program" for an employee benefit plan is defined
(Mod 1.1) - ANSWER-The phrase "plan, fund or program" is not defined in
ERISA but rather has been laid out in several court cases. Courts have held a
"plan, fund or program" under ERISA is established if, from the surrounding
circumstances, a reasonable person can ascertain the intended benefits, the
class of beneficiaries, the source of financing and the procedure to receive
benefits.
Describe the procedures required to establish an ERISA employee welfare
benefit plan (Mod 1.1) - ANSWER-No particular formalities are required to create
an ERISA plan and no single action in and of itself necessarily constitutes
establishment of ERISA employee welfare benefit plan. Thus, ERISA plans have
been deemed to be "established or maintained" by a practice that would cause a
reasonable EE to perceive an ongoing commitment by the ER to provide EE
benefits. This would include any contributions by an ER toward payment of
benefits or by the ER simply administering the benefit.
It is easy to have a plan, fund or program - generally any ongoing administrative
scheme will satisfy this condition. Showing that an ER maintains a plan is also
easy - any contribution by the ER towards payment of benefits or administration
of the plan is enough (including a contribution toward insurance coverage).
!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
,!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
List the types of employee welfare benefit plans not covered under ERISA and
specifically excluded under the statute (Mod 1.1) - ANSWER-1) Governmental
Plans: includes plans established by the US Gov't, the gov't of any state or
political subdivision and any agency of any of the foregoing or a plan to which the
Railroad Retirement Act applies, as well as certain plans associated with Native
American Tribal gov'ts.
2) Church plans: a plan established and maintained for its EE's by a church or by
a convention or association of churches is exempt from tax under IRC Sec 501.
3) A plan maintained to comply with state laws on Worker's Comp,
Unemployment or Mandated Disability Insurance.
4) A plan maintained outside the US primarily for nonresident aliens.
5) Plans that cover only self-employed individuals and that cover no
"common-law employees" generally not subject to ERISA.
6) Plans that cover only married shareholders of a corporation are not treated as
ERISA plans.
ER should be aware that is may be required to comply with other federal laws
that affect EE benefit plans.
List the types of benefits provided by ERISA health and welfare, and provide
examples of such plans (Mod 1.1) - ANSWER-a) Medical, Surgical or Hospital
Care or Benefits
b) Benefits in the event of sickness, accident, disability, death or unemployment
c) Vacation Benefits
d) Apprenticeship or other training benefits
e) Day-care centers
f) Scholarship funds
g) Prepaid legal services
Ex: Medical Insurance, Dental, Vision, Prescription Drug Plans, Drug or Alcohol
Treatment programs, FSAs, EAPs, Wellness Programs, AD&D and STD/LTD
Plans.
Discuss whether plans that involve payroll practices are treated as ERISA health
and welfare plans (Mod 1.1) - ANSWER-The payment of an employee's normal
compensation in full or in part out of the
!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
,!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
employer's general assets for periods when the employee is physically or
mentally
unable to work—that is, an unfunded short-term disability plan—is generally not a
welfare benefit plan subject to ERISA. However, if a disability program provides
more than an employee's normal compensation or is funded in any way—for
example, it is provided through insurance - the program will be a welfare benefit
plan subject to ERISA.
The Dept of Labor (DOL) regulations list additional types of payroll practices as
not being ERISA plans. These include plans where compensation is paid to an
EE:
a) While absent on holiday/vacation
b) While absent on active military duty
c) While absent for jury duty/witness
d) On account of periods of time during which the EE performs little or no work
while in training
e) EE is relieved of duties while on sabbatical leave or while pursuing further
education.
For a voluntary benefit arrangement to be exempt from ERISA based on the DOL
safe harbor, it must meet certain requirements, which are? (Mod 1.1) -
ANSWER-a) No ER or EE organization contributions
b) Participation is completely voluntary
c) No ER consideration except for reasonable compensation and administration
d) No employer endorsement
Explain the meaning of the term "no employer endorsement" (Mod 1.1) -
ANSWER-Means an ER can publicize, collect premiums, remit premiums,
provide employee information to an insurance company and maintain a
file on the voluntary plan. However, an employer cannot express positive
normative
judgment and cannot urge/encourage employee participation. The participation of
the employer or employee organization should be limited to the duties specified
in
the regulation, none of which involve the exercise of discretionary duties. An
employer hoping to rely on this exemption should also be careful not to create
the
!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
,!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
impression that the benefit is part of its benefit package by, for example, including
it
in enrollment materials or encouraging employees to enroll. DOL warns in the
final
Family and Medical Leave (FMLA) regulations that if a plan is intended to be
exempt from ERISA under this provision, the ER should not pay an EE's
premium while the EE is on FMLA leave.
Define each of the following ERISA terms:
a) plan administrator/sponsor
b) participant
c) beneficiary (Mod 1.2) - ANSWER-(a) Plan administrator/plan sponsor
A plan administrator is a person with statutory responsibility for ensuring that all
of the required filings with the federal government are timely made and is the
person upon whom the statute imposes authority to make important disclosures
to participants about plan benefits. Generally, the plan administrator is
designated in the plan document. However, if the plan administrator is not so
designated, then the responsibility defaults to the plan sponsor, which is usually
the employer. Generally, in a single employer situation, the employer is the plan
sponsor. Therefore, the employer is ultimately responsible for all reporting and
disclosure requirements and should implement a process to make certain those
responsibilities are followed.
b) Participant:
The term participant has been interpreted broadly to include employees in, or
reasonably expected to be in, currently covered employment. This would include
employees who are eligible for a plan but who are not enrolled. However,
employees in a class not eligible to participate in a plan are not participants
under the ERISA definition. In addition, because the definition is not limited to
current employees, it can include COBRA-qualified beneficiaries, covered
retirees and other former EE's who may remain eligible under a plan.
(c) Beneficiary:
A beneficiary is any person designated by a participant (or by the terms of an
ERISA plan) who is or may become entitled to a benefit under the plan. A
beneficiary has rights provided under the plan in question, and the plan
!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
CEBS GBA Exam 3 Questions and
answers/ complete solution
An employee welfare benefit plan has four basis elements. What are these
elements? (Mod 1.1) - ANSWER-1) There must be a plan, fund or program.
2) The plan, fund or program is established or maintained by an employer.
3) The plan, fund or program is for the purpose of providing specifically listed
benefits, through the purchase of insurance or otherwise.
4) Benefits are provided to participants and beneficiaries.
Explain how a "plan, fund or program" for an employee benefit plan is defined
(Mod 1.1) - ANSWER-The phrase "plan, fund or program" is not defined in
ERISA but rather has been laid out in several court cases. Courts have held a
"plan, fund or program" under ERISA is established if, from the surrounding
circumstances, a reasonable person can ascertain the intended benefits, the
class of beneficiaries, the source of financing and the procedure to receive
benefits.
Describe the procedures required to establish an ERISA employee welfare
benefit plan (Mod 1.1) - ANSWER-No particular formalities are required to create
an ERISA plan and no single action in and of itself necessarily constitutes
establishment of ERISA employee welfare benefit plan. Thus, ERISA plans have
been deemed to be "established or maintained" by a practice that would cause a
reasonable EE to perceive an ongoing commitment by the ER to provide EE
benefits. This would include any contributions by an ER toward payment of
benefits or by the ER simply administering the benefit.
It is easy to have a plan, fund or program - generally any ongoing administrative
scheme will satisfy this condition. Showing that an ER maintains a plan is also
easy - any contribution by the ER towards payment of benefits or administration
of the plan is enough (including a contribution toward insurance coverage).
!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
,!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
List the types of employee welfare benefit plans not covered under ERISA and
specifically excluded under the statute (Mod 1.1) - ANSWER-1) Governmental
Plans: includes plans established by the US Gov't, the gov't of any state or
political subdivision and any agency of any of the foregoing or a plan to which the
Railroad Retirement Act applies, as well as certain plans associated with Native
American Tribal gov'ts.
2) Church plans: a plan established and maintained for its EE's by a church or by
a convention or association of churches is exempt from tax under IRC Sec 501.
3) A plan maintained to comply with state laws on Worker's Comp,
Unemployment or Mandated Disability Insurance.
4) A plan maintained outside the US primarily for nonresident aliens.
5) Plans that cover only self-employed individuals and that cover no
"common-law employees" generally not subject to ERISA.
6) Plans that cover only married shareholders of a corporation are not treated as
ERISA plans.
ER should be aware that is may be required to comply with other federal laws
that affect EE benefit plans.
List the types of benefits provided by ERISA health and welfare, and provide
examples of such plans (Mod 1.1) - ANSWER-a) Medical, Surgical or Hospital
Care or Benefits
b) Benefits in the event of sickness, accident, disability, death or unemployment
c) Vacation Benefits
d) Apprenticeship or other training benefits
e) Day-care centers
f) Scholarship funds
g) Prepaid legal services
Ex: Medical Insurance, Dental, Vision, Prescription Drug Plans, Drug or Alcohol
Treatment programs, FSAs, EAPs, Wellness Programs, AD&D and STD/LTD
Plans.
Discuss whether plans that involve payroll practices are treated as ERISA health
and welfare plans (Mod 1.1) - ANSWER-The payment of an employee's normal
compensation in full or in part out of the
!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
,!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
employer's general assets for periods when the employee is physically or
mentally
unable to work—that is, an unfunded short-term disability plan—is generally not a
welfare benefit plan subject to ERISA. However, if a disability program provides
more than an employee's normal compensation or is funded in any way—for
example, it is provided through insurance - the program will be a welfare benefit
plan subject to ERISA.
The Dept of Labor (DOL) regulations list additional types of payroll practices as
not being ERISA plans. These include plans where compensation is paid to an
EE:
a) While absent on holiday/vacation
b) While absent on active military duty
c) While absent for jury duty/witness
d) On account of periods of time during which the EE performs little or no work
while in training
e) EE is relieved of duties while on sabbatical leave or while pursuing further
education.
For a voluntary benefit arrangement to be exempt from ERISA based on the DOL
safe harbor, it must meet certain requirements, which are? (Mod 1.1) -
ANSWER-a) No ER or EE organization contributions
b) Participation is completely voluntary
c) No ER consideration except for reasonable compensation and administration
d) No employer endorsement
Explain the meaning of the term "no employer endorsement" (Mod 1.1) -
ANSWER-Means an ER can publicize, collect premiums, remit premiums,
provide employee information to an insurance company and maintain a
file on the voluntary plan. However, an employer cannot express positive
normative
judgment and cannot urge/encourage employee participation. The participation of
the employer or employee organization should be limited to the duties specified
in
the regulation, none of which involve the exercise of discretionary duties. An
employer hoping to rely on this exemption should also be careful not to create
the
!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
,!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
impression that the benefit is part of its benefit package by, for example, including
it
in enrollment materials or encouraging employees to enroll. DOL warns in the
final
Family and Medical Leave (FMLA) regulations that if a plan is intended to be
exempt from ERISA under this provision, the ER should not pay an EE's
premium while the EE is on FMLA leave.
Define each of the following ERISA terms:
a) plan administrator/sponsor
b) participant
c) beneficiary (Mod 1.2) - ANSWER-(a) Plan administrator/plan sponsor
A plan administrator is a person with statutory responsibility for ensuring that all
of the required filings with the federal government are timely made and is the
person upon whom the statute imposes authority to make important disclosures
to participants about plan benefits. Generally, the plan administrator is
designated in the plan document. However, if the plan administrator is not so
designated, then the responsibility defaults to the plan sponsor, which is usually
the employer. Generally, in a single employer situation, the employer is the plan
sponsor. Therefore, the employer is ultimately responsible for all reporting and
disclosure requirements and should implement a process to make certain those
responsibilities are followed.
b) Participant:
The term participant has been interpreted broadly to include employees in, or
reasonably expected to be in, currently covered employment. This would include
employees who are eligible for a plan but who are not enrolled. However,
employees in a class not eligible to participate in a plan are not participants
under the ERISA definition. In addition, because the definition is not limited to
current employees, it can include COBRA-qualified beneficiaries, covered
retirees and other former EE's who may remain eligible under a plan.
(c) Beneficiary:
A beneficiary is any person designated by a participant (or by the terms of an
ERISA plan) who is or may become entitled to a benefit under the plan. A
beneficiary has rights provided under the plan in question, and the plan
!CEBS
plete solution
GBA
CEBSExam.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########******************$&%^^^^^^^^^^^^^^^^^^^&*#(@(#(!#(!
GBA 3ExamQuestions
3 Questions
and answers_
and answers_
complete
complete
solutionsolution
.pdf!!!CEBS
.pdf!!!!!!!!!!!!!!!!!!!!!!!!()@@@@@@@@@@@@@###########****
GBA Exam 3 Questions and answers_ complete solution .pdfC
