CEBS GBA Exam 3 questions and answers
An employee welfare benefit plan has four basis elements. What are these elements?
c c c c c c c c c c c c
(Mod 1.1) - answer-1) There must be a plan, fund or program.
c c c c c c c c c c c c
2) The plan, fund or program is established or maintained by an employer.
c c c c c c c c c c c c
3) The plan, fund or program is for the purpose of providing specifically listed benefits,
c c c c c c c c c c c c c c
through the purchase of insurance or otherwise.
c c c c c c c
4) Benefits are provided to participants and beneficiaries.
c c c c c c c
Explain how a "plan, fund or program" for an employee benefit plan is defined (Mod 1.1)
c c c c c c c c c c c c c c c
- answer-The phrase "plan, fund or program" is not defined in ERISA but rather has
c c c c c c c c c c c c c c c
been laid out in several court cases. Courts have held a "plan, fund or program" under
c c c c c c c c c c c c c c c c
ERISA is established if, from the surrounding circumstances, a reasonable person can
c c c c c c c c c c c c
ascertain the intended benefits, the class of beneficiaries, the source of financing and
c c c c c c c c c c c c c
the procedure to receive benefits.
c c c c c
Describe the procedures required to establish an ERISA employee welfare benefit plan
c c c c c c c c c c c
(Mod 1.1) - answer-No particular formalities are required to create an ERISA plan and
c c c c c c c c c c c c c c
no single action in and of itself necessarily constitutes establishment of ERISA
c c c c c c c c c c c c
employee welfare benefit plan. Thus, ERISA plans have been deemed to be
c c c c c c c c c c c c
"established or maintained" by a practice that would cause a reasonable EE to perceive
c c c c c c c c c c c c c c
an ongoing commitment by the ER to provide EE benefits. This would include any
c c c c c c c c c c c c c c
contributions by an ER toward payment of benefits or by the ER simply administering
c c c c c c c c c c c c c c
the benefit.
c c
It is easy to have a plan, fund or program - generally any ongoing administrative scheme
c c c c c c c c c c c c c c c
cwill satisfy this condition. Showing that an ER maintains a plan is also easy - any
c c c c c c c c c c c c c c c
ccontribution by the ER towards payment of benefits or administration of the plan is
c c c c c c c c c c c c c
cenough (including a contribution toward insurance coverage).
c c c c c c
List the types of employee welfare benefit plans not covered under ERISA and
c c c c c c c c c c c c
specifically excluded under the statute (Mod 1.1) - answer-1) Governmental Plans:
c c c c c c c c c c c
includes plans established by the US Gov't, the gov't of any state or political subdivision
c c c c c c c c c c c c c c c
and any agency of any of the foregoing or a plan to which the Railroad Retirement Act
c c c c c c c c c c c c c c c c c
applies, as well as certain plans associated with Native American Tribal gov'ts.
c c c c c c c c c c c c
2) Church plans: a plan established and maintained for its EE's by a church or by a
c c c c c c c c c c c c c c c c
convention or association of churches is exempt from tax under IRC Sec 501.
c c c c c c c c c c c c c
3) A plan maintained to comply with state laws on Worker's Comp, Unemployment or
c c c c c c c c c c c c c
Mandated Disability Insurance.
c c c
4) A plan maintained outside the US primarily for nonresident aliens.
c c c c c c c c c c
5) Plans that cover only self-employed individuals and that cover no "common-law
c c c c c c c c c c c
employees" generally not subject to ERISA.
c c c c c c
,6) Plans that cover only married shareholders of a corporation are not treated as ERISA
c c c c c c c c c c c c c c
plans.
c
ER should be aware that is may be required to comply with other federal laws that affect
c c c c c c c c c c c c c c c c
EE benefit plans.
c c c
List the types of benefits provided by ERISA health and welfare, and provide examples
c c c c c c c c c c c c c
cof such plans (Mod 1.1) - answer-a) Medical, Surgical or Hospital Care or Benefits
c c c c c c c c c c c c c
b) Benefits in the event of sickness, accident, disability, death or unemployment
c c c c c c c c c c c
c) Vacation Benefits
c c
d) Apprenticeship or other training benefits
c c c c c
e) Day-care centers
c c
f) Scholarship funds
c c
g) Prepaid legal services
c c c
Ex: Medical Insurance, Dental, Vision, Prescription Drug Plans, Drug or Alcohol
c c c c c c c c c c
Treatment programs, FSAs, EAPs, Wellness Programs, AD&D and STD/LTD Plans.
c c c c c c c c c c
Discuss whether plans that involve payroll practices are treated as ERISA health and
c c c c c c c c c c c c
welfare plans (Mod 1.1) - answer-The payment of an employee's normal compensation
c c c c c c c c c c c c
in full or in part out of the
c c c c c c c c
employer's general assets for periods when the employee is physically or mentally
c c c c c c c c c c c
unable to work—that is, an unfunded short-term disability plan—is generally not a
c c c c c c c c c c c
welfare benefit plan subject to ERISA. However, if a disability program provides
c c c c c c c c c c c
more than an employee's normal compensation or is funded in any way—for
c c c c c c c c c c c
example, it is provided through insurance - the program will be a welfare benefit plan
c c c c c c c c c c c c c c
subject to ERISA.
c c c
The Dept of Labor (DOL) regulations list additional types of payroll practices as not
c c c c c c c c c c c c c
being ERISA plans. These include plans where compensation is paid to an EE:
c c c c c c c c c c c c c
a) While absent on holiday/vacation
c c c c
b) While absent on active military duty
c c c c c c
c) While absent for jury duty/witness
c c c c c
d) On account of periods of time during which the EE performs little or no work while in
c c c c c c c c c c c c c c c c c
training
c
e) EE is relieved of duties while on sabbatical leave or while pursuing further education.
c c c c c c c c c c c c c c
For a voluntary benefit arrangement to be exempt from ERISA based on the DOL safe
c c c c c c c c c c c c c c
harbor, it must meet certain requirements, which are? (Mod 1.1) - answer-a) No ER or
c c c c c c c c c c c c c c c
EE organization contributions
c c c
b) Participation is completely voluntary
c c c c
c) No ER consideration except for reasonable compensation and administration
c c c c c c c c c
d) No employer endorsement
c c c
,Explain the meaning of the term "no employer endorsement" (Mod 1.1) - answer-Means
c c c c c c c c c c c c
can ER can publicize, collect premiums, remit premiums, provide employee information
c c c c c c c c c c
cto an insurance company and maintain a
c c c c c c
file on the voluntary plan. However, an employer cannot express positive normative
c c c c c c c c c c c
judgment and cannot urge/encourage employee participation. The participation of
c c c c c c c c
the employer or employee organization should be limited to the duties specified in
c c c c c c c c c c c c
the regulation, none of which involve the exercise of discretionary duties. An
c c c c c c c c c c c
employer hoping to rely on this exemption should also be careful not to create the
c c c c c c c c c c c c c c
impression that the benefit is part of its benefit package by, for example, including it
c c c c c c c c c c c c c c
in enrollment materials or encouraging employees to enroll. DOL warns in the final
c c c c c c c c c c c c
Family and Medical Leave (FMLA) regulations that if a plan is intended to be
c c c c c c c c c c c c c
exempt from ERISA under this provision, the ER should not pay an EE's premium while
c c c c c c c c c c c c c c
cthe EE is on FMLA leave.
c c c c c
Define each of the following ERISA terms:
c c c c c c c
a) plan administrator/sponsor
c c
b) participant
c
c) beneficiary (Mod 1.2) - answer-(a) Plan administrator/plan sponsor
c c c c c c c c
A plan administrator is a person with statutory responsibility for ensuring that all of the
c c c c c c c c c c c c c c
crequired filings with the federal government are timely made and is the person upon
c c c c c c c c c c c c c
cwhom the statute imposes authority to make important disclosures
c c c c c c c c
to participants about plan benefits. Generally, the plan administrator is designated in the
c c c c c c c c c c c c
cplan document. However, if the plan administrator is not so designated, then the
c c c c c c c c c c c c
cresponsibility defaults to the plan sponsor, which is usually c c c c c c c c
the employer. Generally, in a single employer situation, the employer is the plan
c c c c c c c c c c c c
csponsor. Therefore, the employer is ultimately responsible for all reporting and
c c c c c c c c c c
cdisclosure requirements and should implement a process to make certain those
c c c c c c c c c c
cresponsibilities are followed. c c
b) Participant:
c
The term participant has been interpreted broadly to include employees in, or
c c c c c c c c c c c
reasonably expected to be in, currently covered employment. This would include
c c c c c c c c c c c
employees who are eligible for a plan but who are not enrolled. However, employees in
c c c c c c c c c c c c c c c
a class not eligible to participate in a plan are not participants
c c c c c c c c c c c c
under the ERISA definition. In addition, because the definition is not limited to current
c c c c c c c c c c c c c
employees, it can include COBRA-qualified beneficiaries, covered retirees and other
c c c c c c c c c c
former EE's who may remain eligible under a plan.
c c c c c c c c c
(c) Beneficiary:
c
A beneficiary is any person designated by a participant (or by the terms of an ERISA
c c c c c c c c c c c c c c c
cplan) who is or may become entitled to a benefit under the plan. A beneficiary has rights
c c c c c c c c c c c c c c c c
cprovided under the plan in question, and the plan
c c c c c c c c
fiduciaries owe fiduciary duties to plan beneficiaries as well as to plan participants. A
c c c c c c c c c c c c c
cbeneficiary may sue under ERISA for plan benefits and to remedy ERISA violations. A
c c c c c c c c c c c c c
cbeneficiary also has the right to examine and c c c c c c c
request copies of plan documents. c c c c
, What are the main disclosure requirements under ERISA? (Mod 1.2) - answer-(a) A plan
c c c c c c c c c c c c c
cdocument must exist for each plan c c c c c
(b) A summary plan description (SPD) must be furnished automatically to participants
c c c c c c c c c c c
(c) A summary of material modifications (SMM) must be furnished automatically to
c c c c c c c c c c c
cparticipants when a plan is amended c c c c c
(d) A four-page summary of benefits and coverage (SBC) must be provided to applicants
c c c c c c c c c c c c c
cand enrollees before enrollment or reenrollment
c c c c c
(e) Copies of certain plan documents must be furnished to participants and beneficiaries
c c c c c c c c c c c c
cupon written request
c c
(f) Claim procedures must be established and followed when processing benefits claims
c c c c c c c c c c c
cand when reviewing appeals of denied claims
c c c c c c
What are the main requirements that pertain to ERISA plan assets? (Mod 1.2) - answer-
c c c c c c c c c c c c c c
a) Plan assets, including participant contributions, may be used only to pay plan benefits
c c c c c c c c c c c c c
and reasonable admin costs.
c c c c
b) For some plans, plan assets may have to be held in trust.
c c c c c c c c c c c c
c) A fidelity bond must be purchased to cover every person who handles plan funds.
c c c c c c c c c c c c c c
Define plan document and explain why it is vital to meet the written document
c c c c c c c c c c c c c
requirement (Mod 1.2) - answer-ERISA requires that every ERISA health and welfare
c c c c c c c c c c c c
plan be established and maintained in writing, and the scope of an ERISA plan is
c c c c c c c c c c c c c c c
defined by the official plan document. The plan document describes the plan's terms
c c c c c c c c c c c c c
and conditions related to the operation and administration of a plan. An insurance
c c c c c c c c c c c c c
company's master contract, certificate of coverage or summary of benefits is usually not
c c c c c c c c c c c c c
sufficient to serve as a legal plan document and rarely fully protects the plan sponsor.
c c c c c c c c c c c c c c c
Every plan participant has the right to examine the plan document.
c c c c c c c c c c c
What specific liabilities or problems exist for an ER that fails to have a plan document?
c c c c c c c c c c c c c c c
c(Mod 1.2) - answer-An ERISA plan may still exist even w/o a written plan document. A
c c c c c c c c c c c c c c c
cplan administrator's failure or refusal to put a plan in writing is merely a violation of
c c c c c c c c c c c c c c c
cERISA and does not avoid coverage of the plan by ERISA. Failure to have a plan
c c c c c c c c c c c c c c c
cestablished in writing can result in the following liabilities or problems for the
c c c c c c c c c c c c
employer:
(a) Participants and beneficiaries may bring suit to enforce the ERISA written plan
c c c c c c c c c c c c
cdocument requirement. Legal action may require the preparation of a formal document
c c c c c c c c c c c
cwhere none currently exists.
c c c
(b) A plan document must be furnished in response to a participant's written request.
c c c c c c c c c c c c c
cThe plan administrator may be charged up to $110 per day if the document is not
c c c c c c c c c c c c c c c
cprovided within 30 days of a request.* c c c c c c
(c) Criminal penalties may be imposed on any individual or company that willfully
c c c c c c c c c c c c
cviolates any requirement of Title I of ERISA, which includes disclosure rules. The
c c c c c c c c c c c c
cpenalty per conviction could be $100,000 and/or imprisonment for up to ten years. The
c c c c c c c c c c c c c
cfine can be increased up to $500,000 if it is against a company.
c c c c c c c c c c c c
(d) It can be difficult to prove plan terms and thus enforce plan provisions.
c c c c c c c c c c c c c
(e) Participants and beneficiaries who sue to enforce informal, unwritten plans can
c c c c c c c c c c c
An employee welfare benefit plan has four basis elements. What are these elements?
c c c c c c c c c c c c
(Mod 1.1) - answer-1) There must be a plan, fund or program.
c c c c c c c c c c c c
2) The plan, fund or program is established or maintained by an employer.
c c c c c c c c c c c c
3) The plan, fund or program is for the purpose of providing specifically listed benefits,
c c c c c c c c c c c c c c
through the purchase of insurance or otherwise.
c c c c c c c
4) Benefits are provided to participants and beneficiaries.
c c c c c c c
Explain how a "plan, fund or program" for an employee benefit plan is defined (Mod 1.1)
c c c c c c c c c c c c c c c
- answer-The phrase "plan, fund or program" is not defined in ERISA but rather has
c c c c c c c c c c c c c c c
been laid out in several court cases. Courts have held a "plan, fund or program" under
c c c c c c c c c c c c c c c c
ERISA is established if, from the surrounding circumstances, a reasonable person can
c c c c c c c c c c c c
ascertain the intended benefits, the class of beneficiaries, the source of financing and
c c c c c c c c c c c c c
the procedure to receive benefits.
c c c c c
Describe the procedures required to establish an ERISA employee welfare benefit plan
c c c c c c c c c c c
(Mod 1.1) - answer-No particular formalities are required to create an ERISA plan and
c c c c c c c c c c c c c c
no single action in and of itself necessarily constitutes establishment of ERISA
c c c c c c c c c c c c
employee welfare benefit plan. Thus, ERISA plans have been deemed to be
c c c c c c c c c c c c
"established or maintained" by a practice that would cause a reasonable EE to perceive
c c c c c c c c c c c c c c
an ongoing commitment by the ER to provide EE benefits. This would include any
c c c c c c c c c c c c c c
contributions by an ER toward payment of benefits or by the ER simply administering
c c c c c c c c c c c c c c
the benefit.
c c
It is easy to have a plan, fund or program - generally any ongoing administrative scheme
c c c c c c c c c c c c c c c
cwill satisfy this condition. Showing that an ER maintains a plan is also easy - any
c c c c c c c c c c c c c c c
ccontribution by the ER towards payment of benefits or administration of the plan is
c c c c c c c c c c c c c
cenough (including a contribution toward insurance coverage).
c c c c c c
List the types of employee welfare benefit plans not covered under ERISA and
c c c c c c c c c c c c
specifically excluded under the statute (Mod 1.1) - answer-1) Governmental Plans:
c c c c c c c c c c c
includes plans established by the US Gov't, the gov't of any state or political subdivision
c c c c c c c c c c c c c c c
and any agency of any of the foregoing or a plan to which the Railroad Retirement Act
c c c c c c c c c c c c c c c c c
applies, as well as certain plans associated with Native American Tribal gov'ts.
c c c c c c c c c c c c
2) Church plans: a plan established and maintained for its EE's by a church or by a
c c c c c c c c c c c c c c c c
convention or association of churches is exempt from tax under IRC Sec 501.
c c c c c c c c c c c c c
3) A plan maintained to comply with state laws on Worker's Comp, Unemployment or
c c c c c c c c c c c c c
Mandated Disability Insurance.
c c c
4) A plan maintained outside the US primarily for nonresident aliens.
c c c c c c c c c c
5) Plans that cover only self-employed individuals and that cover no "common-law
c c c c c c c c c c c
employees" generally not subject to ERISA.
c c c c c c
,6) Plans that cover only married shareholders of a corporation are not treated as ERISA
c c c c c c c c c c c c c c
plans.
c
ER should be aware that is may be required to comply with other federal laws that affect
c c c c c c c c c c c c c c c c
EE benefit plans.
c c c
List the types of benefits provided by ERISA health and welfare, and provide examples
c c c c c c c c c c c c c
cof such plans (Mod 1.1) - answer-a) Medical, Surgical or Hospital Care or Benefits
c c c c c c c c c c c c c
b) Benefits in the event of sickness, accident, disability, death or unemployment
c c c c c c c c c c c
c) Vacation Benefits
c c
d) Apprenticeship or other training benefits
c c c c c
e) Day-care centers
c c
f) Scholarship funds
c c
g) Prepaid legal services
c c c
Ex: Medical Insurance, Dental, Vision, Prescription Drug Plans, Drug or Alcohol
c c c c c c c c c c
Treatment programs, FSAs, EAPs, Wellness Programs, AD&D and STD/LTD Plans.
c c c c c c c c c c
Discuss whether plans that involve payroll practices are treated as ERISA health and
c c c c c c c c c c c c
welfare plans (Mod 1.1) - answer-The payment of an employee's normal compensation
c c c c c c c c c c c c
in full or in part out of the
c c c c c c c c
employer's general assets for periods when the employee is physically or mentally
c c c c c c c c c c c
unable to work—that is, an unfunded short-term disability plan—is generally not a
c c c c c c c c c c c
welfare benefit plan subject to ERISA. However, if a disability program provides
c c c c c c c c c c c
more than an employee's normal compensation or is funded in any way—for
c c c c c c c c c c c
example, it is provided through insurance - the program will be a welfare benefit plan
c c c c c c c c c c c c c c
subject to ERISA.
c c c
The Dept of Labor (DOL) regulations list additional types of payroll practices as not
c c c c c c c c c c c c c
being ERISA plans. These include plans where compensation is paid to an EE:
c c c c c c c c c c c c c
a) While absent on holiday/vacation
c c c c
b) While absent on active military duty
c c c c c c
c) While absent for jury duty/witness
c c c c c
d) On account of periods of time during which the EE performs little or no work while in
c c c c c c c c c c c c c c c c c
training
c
e) EE is relieved of duties while on sabbatical leave or while pursuing further education.
c c c c c c c c c c c c c c
For a voluntary benefit arrangement to be exempt from ERISA based on the DOL safe
c c c c c c c c c c c c c c
harbor, it must meet certain requirements, which are? (Mod 1.1) - answer-a) No ER or
c c c c c c c c c c c c c c c
EE organization contributions
c c c
b) Participation is completely voluntary
c c c c
c) No ER consideration except for reasonable compensation and administration
c c c c c c c c c
d) No employer endorsement
c c c
,Explain the meaning of the term "no employer endorsement" (Mod 1.1) - answer-Means
c c c c c c c c c c c c
can ER can publicize, collect premiums, remit premiums, provide employee information
c c c c c c c c c c
cto an insurance company and maintain a
c c c c c c
file on the voluntary plan. However, an employer cannot express positive normative
c c c c c c c c c c c
judgment and cannot urge/encourage employee participation. The participation of
c c c c c c c c
the employer or employee organization should be limited to the duties specified in
c c c c c c c c c c c c
the regulation, none of which involve the exercise of discretionary duties. An
c c c c c c c c c c c
employer hoping to rely on this exemption should also be careful not to create the
c c c c c c c c c c c c c c
impression that the benefit is part of its benefit package by, for example, including it
c c c c c c c c c c c c c c
in enrollment materials or encouraging employees to enroll. DOL warns in the final
c c c c c c c c c c c c
Family and Medical Leave (FMLA) regulations that if a plan is intended to be
c c c c c c c c c c c c c
exempt from ERISA under this provision, the ER should not pay an EE's premium while
c c c c c c c c c c c c c c
cthe EE is on FMLA leave.
c c c c c
Define each of the following ERISA terms:
c c c c c c c
a) plan administrator/sponsor
c c
b) participant
c
c) beneficiary (Mod 1.2) - answer-(a) Plan administrator/plan sponsor
c c c c c c c c
A plan administrator is a person with statutory responsibility for ensuring that all of the
c c c c c c c c c c c c c c
crequired filings with the federal government are timely made and is the person upon
c c c c c c c c c c c c c
cwhom the statute imposes authority to make important disclosures
c c c c c c c c
to participants about plan benefits. Generally, the plan administrator is designated in the
c c c c c c c c c c c c
cplan document. However, if the plan administrator is not so designated, then the
c c c c c c c c c c c c
cresponsibility defaults to the plan sponsor, which is usually c c c c c c c c
the employer. Generally, in a single employer situation, the employer is the plan
c c c c c c c c c c c c
csponsor. Therefore, the employer is ultimately responsible for all reporting and
c c c c c c c c c c
cdisclosure requirements and should implement a process to make certain those
c c c c c c c c c c
cresponsibilities are followed. c c
b) Participant:
c
The term participant has been interpreted broadly to include employees in, or
c c c c c c c c c c c
reasonably expected to be in, currently covered employment. This would include
c c c c c c c c c c c
employees who are eligible for a plan but who are not enrolled. However, employees in
c c c c c c c c c c c c c c c
a class not eligible to participate in a plan are not participants
c c c c c c c c c c c c
under the ERISA definition. In addition, because the definition is not limited to current
c c c c c c c c c c c c c
employees, it can include COBRA-qualified beneficiaries, covered retirees and other
c c c c c c c c c c
former EE's who may remain eligible under a plan.
c c c c c c c c c
(c) Beneficiary:
c
A beneficiary is any person designated by a participant (or by the terms of an ERISA
c c c c c c c c c c c c c c c
cplan) who is or may become entitled to a benefit under the plan. A beneficiary has rights
c c c c c c c c c c c c c c c c
cprovided under the plan in question, and the plan
c c c c c c c c
fiduciaries owe fiduciary duties to plan beneficiaries as well as to plan participants. A
c c c c c c c c c c c c c
cbeneficiary may sue under ERISA for plan benefits and to remedy ERISA violations. A
c c c c c c c c c c c c c
cbeneficiary also has the right to examine and c c c c c c c
request copies of plan documents. c c c c
, What are the main disclosure requirements under ERISA? (Mod 1.2) - answer-(a) A plan
c c c c c c c c c c c c c
cdocument must exist for each plan c c c c c
(b) A summary plan description (SPD) must be furnished automatically to participants
c c c c c c c c c c c
(c) A summary of material modifications (SMM) must be furnished automatically to
c c c c c c c c c c c
cparticipants when a plan is amended c c c c c
(d) A four-page summary of benefits and coverage (SBC) must be provided to applicants
c c c c c c c c c c c c c
cand enrollees before enrollment or reenrollment
c c c c c
(e) Copies of certain plan documents must be furnished to participants and beneficiaries
c c c c c c c c c c c c
cupon written request
c c
(f) Claim procedures must be established and followed when processing benefits claims
c c c c c c c c c c c
cand when reviewing appeals of denied claims
c c c c c c
What are the main requirements that pertain to ERISA plan assets? (Mod 1.2) - answer-
c c c c c c c c c c c c c c
a) Plan assets, including participant contributions, may be used only to pay plan benefits
c c c c c c c c c c c c c
and reasonable admin costs.
c c c c
b) For some plans, plan assets may have to be held in trust.
c c c c c c c c c c c c
c) A fidelity bond must be purchased to cover every person who handles plan funds.
c c c c c c c c c c c c c c
Define plan document and explain why it is vital to meet the written document
c c c c c c c c c c c c c
requirement (Mod 1.2) - answer-ERISA requires that every ERISA health and welfare
c c c c c c c c c c c c
plan be established and maintained in writing, and the scope of an ERISA plan is
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defined by the official plan document. The plan document describes the plan's terms
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and conditions related to the operation and administration of a plan. An insurance
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company's master contract, certificate of coverage or summary of benefits is usually not
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sufficient to serve as a legal plan document and rarely fully protects the plan sponsor.
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Every plan participant has the right to examine the plan document.
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What specific liabilities or problems exist for an ER that fails to have a plan document?
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c(Mod 1.2) - answer-An ERISA plan may still exist even w/o a written plan document. A
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cplan administrator's failure or refusal to put a plan in writing is merely a violation of
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cERISA and does not avoid coverage of the plan by ERISA. Failure to have a plan
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cestablished in writing can result in the following liabilities or problems for the
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employer:
(a) Participants and beneficiaries may bring suit to enforce the ERISA written plan
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cdocument requirement. Legal action may require the preparation of a formal document
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cwhere none currently exists.
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(b) A plan document must be furnished in response to a participant's written request.
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cThe plan administrator may be charged up to $110 per day if the document is not
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cprovided within 30 days of a request.* c c c c c c
(c) Criminal penalties may be imposed on any individual or company that willfully
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cviolates any requirement of Title I of ERISA, which includes disclosure rules. The
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cpenalty per conviction could be $100,000 and/or imprisonment for up to ten years. The
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cfine can be increased up to $500,000 if it is against a company.
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(d) It can be difficult to prove plan terms and thus enforce plan provisions.
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(e) Participants and beneficiaries who sue to enforce informal, unwritten plans can
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