GBA/RPA 3 Questions and Answers |Complete Solutions Graded A+ |100% Correct
The purpose of ERISA Section 502(c)(1)(B): authorizes a court's ability to impose stiff civil
penalties against plan administrators who fail or refuse to timely produce certain plan
documents upon request.
this statutory power has been invoked often
An administrator's penalty under ERISA Section 502(c)(1)(B) was until recently _______ a day. In
2017, the penalty was _________. $110; $149
Not to be confused with the broader ERISA term fiduciary, ERISA defines administrator to
mean: - the person specifically so designated by the terms of the instrument under which
the benefit plan is operated
- if an administrator is not so designated, then the plan sponsor; or
- in the case of a plan for which an administrator is not designated and a plan sponsor cannot
be identified, then such other person as the U.S. secretary of labor may prescribe by regulation
Section 501(c)(1) of ERISA can impose civil penalties against plan admin who fail or refuse to
produce these plan documents upon request: - a copy of the latest SPD
- the latest annual report
- any terminal report, bargaining agreement, trust agreement or contract; or
- other instruments under which the plan was established or operated
,The requirements to peruse civil penalty under Section 502(c)(1): - the plaintiff must make a
written request
- the request must be made to the plan administrator
- the request must give clear notice of the documents sought (the courts do not require a
plaintiff to request by name the specific documents being sought)
Characteristics of social insurance programs that distinguish them from other government
programs: - compulsory programs
- floor of income
- emphasis on social adequacy rather than individual equity
- benefits loosely related to earnings
- benefits prescribed by law
- no means test
- full funding unnecessary
- financially self-supporting
Advantages of compulsory programs: 1. goal of providing a floor of income to the
population can be achieved more easily
,2. adverse selection is reduced because both healthy and unhealthy lives are covered
3. in a large compulsory program, fewer random or accidental fluctuations in loss experience
are likely to occur and the necessity of providing margins in contingency reserves is reduced
Social adequacy the benefits paid should provide a certain standard of living to all
contributors. This means that the benefits paid are heavily weighted in favor of certain groups,
such as low-income persons, large families and the presently retired aged.
the actuarial value of the benefits received by these groups exceeds the actuarial value of their
contributions
Individual equity contributors receive benefits directly related to their contributions
the actuarial value of the benefits is closely related to the actuarial value of the contributions
Several reasons that make it unnecessary to fully fund the Social Security program: - the
program will operate indefinitely and not terminate in the predictable future, full funding is
unnecessary
- the program is compulsory, new workers will always enter the program and pay taxes to
support it
- the federal gov't can use its taxing and borrowing powers to raise additional revenues if the
program has financial problems
- from an economic standpoint, full funding would require substantially higher Social Security
taxes, which would be deflationary and cause substantial unemployment. In contrast, private
pension plans must emphasize full funding bc private pension plans can and do terminate
, For Social Security purposes, a person is fully insured if they have ____ credits.
They are currently insured if they have earned at least ___ credits during the last ____ calendar
quarters ending with the quarter of death, disability or entitlement to retirement benefits.
40
6; 13
For persons born in 1960 or later, the full retirement age for Social Security benefits is ______.
For individuals born before 1960, the full retirement ages range from __________________.
67
65 to 67
Workers and their spouses can retire as early as the age of _____ with actuarial reduced
benefits. A person may start receiving benefits as early as the age of ______ irrespective of his
or he full retirement age. 62
Categories of family members entitled to Social Security survivor benefits: - unmarried
children younger than 18
- unmarried disabled children (disabled before turning 22)
- surviving spouse with children younger than 16
- surviving spouse aged 60 or older
- disabled widow or widower the ages 50 - 59
The purpose of ERISA Section 502(c)(1)(B): authorizes a court's ability to impose stiff civil
penalties against plan administrators who fail or refuse to timely produce certain plan
documents upon request.
this statutory power has been invoked often
An administrator's penalty under ERISA Section 502(c)(1)(B) was until recently _______ a day. In
2017, the penalty was _________. $110; $149
Not to be confused with the broader ERISA term fiduciary, ERISA defines administrator to
mean: - the person specifically so designated by the terms of the instrument under which
the benefit plan is operated
- if an administrator is not so designated, then the plan sponsor; or
- in the case of a plan for which an administrator is not designated and a plan sponsor cannot
be identified, then such other person as the U.S. secretary of labor may prescribe by regulation
Section 501(c)(1) of ERISA can impose civil penalties against plan admin who fail or refuse to
produce these plan documents upon request: - a copy of the latest SPD
- the latest annual report
- any terminal report, bargaining agreement, trust agreement or contract; or
- other instruments under which the plan was established or operated
,The requirements to peruse civil penalty under Section 502(c)(1): - the plaintiff must make a
written request
- the request must be made to the plan administrator
- the request must give clear notice of the documents sought (the courts do not require a
plaintiff to request by name the specific documents being sought)
Characteristics of social insurance programs that distinguish them from other government
programs: - compulsory programs
- floor of income
- emphasis on social adequacy rather than individual equity
- benefits loosely related to earnings
- benefits prescribed by law
- no means test
- full funding unnecessary
- financially self-supporting
Advantages of compulsory programs: 1. goal of providing a floor of income to the
population can be achieved more easily
,2. adverse selection is reduced because both healthy and unhealthy lives are covered
3. in a large compulsory program, fewer random or accidental fluctuations in loss experience
are likely to occur and the necessity of providing margins in contingency reserves is reduced
Social adequacy the benefits paid should provide a certain standard of living to all
contributors. This means that the benefits paid are heavily weighted in favor of certain groups,
such as low-income persons, large families and the presently retired aged.
the actuarial value of the benefits received by these groups exceeds the actuarial value of their
contributions
Individual equity contributors receive benefits directly related to their contributions
the actuarial value of the benefits is closely related to the actuarial value of the contributions
Several reasons that make it unnecessary to fully fund the Social Security program: - the
program will operate indefinitely and not terminate in the predictable future, full funding is
unnecessary
- the program is compulsory, new workers will always enter the program and pay taxes to
support it
- the federal gov't can use its taxing and borrowing powers to raise additional revenues if the
program has financial problems
- from an economic standpoint, full funding would require substantially higher Social Security
taxes, which would be deflationary and cause substantial unemployment. In contrast, private
pension plans must emphasize full funding bc private pension plans can and do terminate
, For Social Security purposes, a person is fully insured if they have ____ credits.
They are currently insured if they have earned at least ___ credits during the last ____ calendar
quarters ending with the quarter of death, disability or entitlement to retirement benefits.
40
6; 13
For persons born in 1960 or later, the full retirement age for Social Security benefits is ______.
For individuals born before 1960, the full retirement ages range from __________________.
67
65 to 67
Workers and their spouses can retire as early as the age of _____ with actuarial reduced
benefits. A person may start receiving benefits as early as the age of ______ irrespective of his
or he full retirement age. 62
Categories of family members entitled to Social Security survivor benefits: - unmarried
children younger than 18
- unmarried disabled children (disabled before turning 22)
- surviving spouse with children younger than 16
- surviving spouse aged 60 or older
- disabled widow or widower the ages 50 - 59
