Employee Benefits

Question 1

What does the acronym PBGC stand for?

Answer 1

Pension Benefit Guaranty Corporation.

Question 2

What is the purpose of pension and retirement plan liability?

Answer 2

Pension and retirement plan liability protects plans by establishing standards of responsibility and conduct upon plan fiduciaries.

Question 3

What are the duties of a fiduciary?

Answer 3

Act with reasonable care and discharge duties solely in interests of plan’s participants.

Question 4

What is the purpose of the Employee Retirement Income Security Act of 1974 (ERISA)?

Answer 4

1. Protect employee rights in existing pension plans;

2. Offer tax incentives to employers and employees to fund employee benefit plans.

Question 5

List the two types of plans to which the Employee Retirement Income Security Act of 1974 (ERISA) apply.

Answer 5

1. Employee pension benefit plans;

2. Employee welfare benefit plans.