CEBS GBA/RPA3 – 2023 Version - Module 1 Questions with Answers

What are the four basic elements of an employee welfare benefit plan? - Answer- There must be a plan, fund, or program The plan, fund, or program is established or maintained by an employer The plan, fund, or program is for the purpose of providing specifically listed benefits, through the purchase of insurance or otherwise Benefits are provided to participants and beneficiaries How is a plan, fund, or program for an employee benefit plan defined? - Answer- 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 What plans are not covered under ERISA? - Answer- Government Church Plans maintained to comply with state laws on workers' comp, unemployment, or mandated disability Plans maintained outside the US primarily for nonresident aliens Plans that cover self-employed individuals and no common law employees Plans that cover only married shareholders of a corporation What do ERISA health and welfare plans provide? - Answer- Medical, surgical, or hospital care or benefits Benefits in the event of sickness, accident, disability, death, or unemployment Vacation benefits Apprenticeship or other training benefits Day-care centers Scholarship funds Prepaid legal services What are examples of ERISA plans? - Answer- Medical, Dental, Vision, Prescription drug plans, drug or alcohol treatment programs, Health FSA, EAP, wellness programs, AD&D, STD, and LTD ERISA generally does not apply to: - Answer- Cafeteria plans, Section 125 plans, Premium only Plans, Premium Conversion Plan, Pre-tax Premium Plan Dependent Care FSA HSA PTO Adoption Assistance State mandated benefits Education assistance or tuition reimbursement On-site medical clinics What are the procedures required to establish an ERISA plan? - Answer- A plan is deemed established or maintained by a practice that would cause a reasonable employee to perceive an ongoing contribution by the employer toward payment of benefits or by the employer simply administering the benefit. What plans involved in payroll practices are not treated as ERISA plans? - Answer- Plans where compensation is paid to an employee: while on PTO While on active military duty Jury duty or a witness in an official proceeding Training Sabbatical leave or pursuing further education What are the requirements for a VB benefit to be exempt from ERISA? - Answer- No employer or employee organization contributions Participation is completely voluntary No employer consideration except for reasonable compensation and administration No employer endorsement What does no employer endorsement mean? - Answer- an employer can publicize, collect premiums, remit premiums, provide employee information to an insurance company and maintain a file on a VB plan, but an employer cannot express positive normative judgment and cannot urge/encourage employee participation. The employer should not pay the employees portion when they are out on FMLA. What is a plan administrator? - Answer- 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 the plan benefit. What is plan sponsor? - Answer- The employer What is a participant? - Answer- anybody who is eligible for a plan whether they are enrolled or not unless they are in a class that is not eligible to participate in the plan. What is a beneficiary? - Answer- any person designated by a participant who is or may become entitled to a benefit under the plan. ERISA Title 1 - Answer- Intended to provide protections to plan participants and beneficiaries. This title also includes certain pension funding and vesting provisions. ERISA Title 2 - Answer- amended the IRS Code. This title primarily includes various requirements that must be met so that a plan can be tax favored or designated as a qualified plan. This title also includes a provision that created individual retirement accounts. IRAs are savings accounts that offer large tax breaks. Millions of people use these tax-deferred accounts to plan for their retirement. ERISA Title 3 - Answer- contains procedures for coordination of ERISA enforcement between the DOL and Treasury Department. ERISA Title 4 - Answer- created the Pension Benefit Guaranty Corporation. Congress set up the PBGC to insure the defined-benefit pensions of American workers. Defined benefit pension plans are traditional pensions that pay a certain amount each month after one retires. Another major feature is that it contains the procedures that all defined benefit plans must follow in order to terminate their plans. Please use this information along with the instructor notes and audios to help you in your studies. ERISA - Answer- Main federal statute that provides regulatory framework Material Reduction - Answer- Modification in a plan that eliminated benefit payable Church Plan - Answer- A plan exempt from taxes under IRS Section 501 SAR - Answer- Plan disclosure requirements under ERISA Participant - Answer- The term interpreted as employees in covered employment Plan Sponsor/Plan Administrator - Answer- Person with statutory responsibility for timely federal filings. SBC - Answer- A 4 page summary of benefits and coverage Beneficiary - Answer- Any person who may become eligible to a benefit Wrapper Plan Document - Answer- Typical way of supplementing an insurance company's certificate of coverage Summary of Material Modifications - Answer- Document must be finished when a plan is amended