CPFA 1 QUESTIONS AND ANSWERS
Employee Retirement Income Security Act (ERISA) - Answer -Established 1974
ERISA was passed to establish - Answer -A set of federally-regulated provisions with
the primary purpose of protecting participants and beneficiaries
ERISA had the important function of - Answer -Pre-empting the patchwork of state
fiduciary laws
Before ERISA - Answer -Workers had no legal rights to their benefits
Before ERISA benefits were - Answer -Seen as a reward for those who were loyal to a
company their entire career
ERISA established when an employee - Answer -Is allowed to participate in a plan
How long an employee be required to wait before being entitled to benefits
How much & how often an employer must contribute to the plan
What information about the plan must be disclosed to participants
Rules of conduct for those administering the plan and it assets
Avenues for enforcing qualified plan rules
ERISA provisions are overseen by - Answer -DOL & IRS
ERISA established two important concepts - Answer -Plan termination insurance for
defined benefit plans &
Individual Retirement Accounts for taxpayers not covered by an employers qualified
plan
Who administers plan termination insurance for defined benefit plans - Answer -
Pension Benefit Guaranty Corporation
ERISA consists of four numbered sections known as Titles - Answer -Title 1: Protection
of Employee Rights under Employee Benefit Plans
Title 2: Specific Conditions for Tax Qualification of Qualified Retirement Plans
Title 3: Jurisdiction, Administration, and Enforcement of ERISA
Title 4: Pension Benefit Guarantee Corporation and Termination Insurance Programs
for Defined Benefit Plans
The Settlor is - Answer -The individual or entity that creates the trust
Holds employee deferrals and employer contributions
Settlor functions - Answer -Typically relate to plan design
Settlor functions are not - Answer -Subject to fiduciary duty
Employee Retirement Income Security Act (ERISA) - Answer -Established 1974
ERISA was passed to establish - Answer -A set of federally-regulated provisions with
the primary purpose of protecting participants and beneficiaries
ERISA had the important function of - Answer -Pre-empting the patchwork of state
fiduciary laws
Before ERISA - Answer -Workers had no legal rights to their benefits
Before ERISA benefits were - Answer -Seen as a reward for those who were loyal to a
company their entire career
ERISA established when an employee - Answer -Is allowed to participate in a plan
How long an employee be required to wait before being entitled to benefits
How much & how often an employer must contribute to the plan
What information about the plan must be disclosed to participants
Rules of conduct for those administering the plan and it assets
Avenues for enforcing qualified plan rules
ERISA provisions are overseen by - Answer -DOL & IRS
ERISA established two important concepts - Answer -Plan termination insurance for
defined benefit plans &
Individual Retirement Accounts for taxpayers not covered by an employers qualified
plan
Who administers plan termination insurance for defined benefit plans - Answer -
Pension Benefit Guaranty Corporation
ERISA consists of four numbered sections known as Titles - Answer -Title 1: Protection
of Employee Rights under Employee Benefit Plans
Title 2: Specific Conditions for Tax Qualification of Qualified Retirement Plans
Title 3: Jurisdiction, Administration, and Enforcement of ERISA
Title 4: Pension Benefit Guarantee Corporation and Termination Insurance Programs
for Defined Benefit Plans
The Settlor is - Answer -The individual or entity that creates the trust
Holds employee deferrals and employer contributions
Settlor functions - Answer -Typically relate to plan design
Settlor functions are not - Answer -Subject to fiduciary duty
