Final Quiz Flashcards

1
Q

Failure or refusal to file the required Form 5500 with EBSA no later than the seventh month following the close of the plan year will result in a penalty amount of ________ per day.

A. $2,159
B. $1,259
C. $2,259
D. $1,953

A

C. $2,259

Text, Page 44

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2
Q

Criminal penalties may be imposed on any individual or company that willfully violates any ERISA reporting and disclosure requirements. The penalty per conviction could be up to _________.

A. $50,000
B. $150,000
C. $75,000
D. $100,000

A

D. $100,000

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3
Q

The ___________ statement is the foundation for how a plan’s investment program is expected to operate.

A. SPD
B. IPS
C. SOC
D. IPD

A

B. IPS

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4
Q

The cyber threat that deals with placing intrusive and harmful software on a network computer is ____________.

A. Ransomware
B. Wire transfer email fraud
C. Phishing
D. Malware via external devices

A

D. Malware via external devices

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5
Q

ASC Topic _______ establishes financial accounting and reporting standards for the annual financial statements of defined benefit pension plans.

A. 965
B. 962
C. 960
D. 963

A

C. 960

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6
Q

The Supreme Court’s decision in ___________ removed a major impediment that blocked plan participants from filing a lawsuit relating to improperly monitored plan investments where the initial decision to add that investment occurred beyond ERISA’s six-year statute of limitations.

A. Hughes
B. Tibble
C. Northwestern
D. Coyne

A

B. Tibble

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7
Q

Level 7 of the Healthcare Analytics Adoption Model is easily achievable within ________ months.

A. 12-15
B. 20-36
C. 24-30
D. 24-36

A

C. 24-30

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8
Q

The __________ is the minimum amount that a retiree must withdraw from tax-deferred retirement funds, starting at age 73 in 2023.

A. MDR
B. RMD
C. DMR
D. RMR

A

B. RMD

Text, Page 290
April 2023 Study Materials Update, Pgs. 3, 4, and 19

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9
Q

A one-time payment to an executive at the termination of their employment ___________constitute an ERISA-regulated severance plan.

A. does not
B. does
C. may
D. can

A

A. does not

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10
Q

A Medicare beneficiary has a lifetime reserve of __________ additional hospital days that may be used when the covered days within a benefit period have been exhausted.

A. 30
B. 90
C. 20
D. 60

A

D. 60

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11
Q

ERISA contains a special statutory provision governing venue, which is where a lawsuit under Title 1 can be brought. All of the following are a venue where an action can be commenced, EXCEPT:

A. In the district where the plan is administered
B. Where the breach took place
C. Where the defendant resides or may be found
D. In a district where the plan is not administered

A

D. In a district where the plan is not administered

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12
Q

All of the following deferred compensation programs subject to ERISA are commonly referred to as “top hat” plans, EXCEPT:

A. SERPs
B. Non-qualified Deferred Compensation
C. Non-executive compensation
D. Executive compensation

A

C. Non-executive compensation

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13
Q

All of the following critical principles are true regarding the high-impact HR operating module, EXCEPT:

A. It is about the business.
B. Being nimble is key. HR demonstrates agility and flexibility.
C. Industry and social networks, the organization’s customers, and the internal market must be integrated.
D. Industry and social networks, the organization’s customers, and the external market must be integrated.

A

C. Industry and social networks, the organization’s customers, and the internal market must be integrated.

Text, Page 53

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14
Q

The investment committee charter should do all of the following, EXCEPT:

A. Define how committee members are selected or appointed
B. Give committee members full liberty to set a schedule for committee meetings
C. Define the roles of any outside consultants
D. Define the governing bodies

A

B. Give committee members full liberty to set a schedule for committee meetings

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15
Q

The Summary Plan Description outlines the key features of the plan. All of the following are true, EXCEPT:

A. The SPD has to be written in easily understood language.
B. The SPD outlines the rules for employer contributions and vesting.
C. The SPD describes responsibilities for those involved with the investment program.
D. The SPD defines plan loans and withdrawals.

A

C. The SPD describes responsibilities for those involved with the investment program.

Text, Page 76

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16
Q

A cybersecurity risk management strategy for benefit plans includes all of the following, EXCEPT:

A. Hiring practices
B. Implementation
C. Training
D. Open access architecture

A

D. Open access architecture

Text, Page 156

17
Q

The DOL established a Delinquent Filer Voluntary Compliance Program for Form 5500. All of the following are true regarding penalties the entity filing the form must remit, EXCEPT:

A. The penalty is $20 per day for each day the annual report is filed after the due date.
B. The penalty for top hat plans and apprenticeship and training plans is $750.
C. The maximum penalty for a single late annual return is $750 for a small plan and $2,000 for a plan covering 100 or more participants.
D. The penalty is $10 per day for each day the annual report is filed after the due date.

A

A. The penalty is $20 per day for each day the annual report is filed after the due date.

Text, Page 44

18
Q

Taxation of OASDI benefits is based on your combined income amount. All of the following are true regarding combined income and taxation of OASDI benefits, EXCEPT:

A. If you are married, file a joint tax return, and have combined income between $32,000 and $44,000, up to 50 percent of benefits are subject to taxation.
B. If you are married, file a joint tax return, and have a combined income between $32,000 and $44,000, up to 85 percent of benefits are subject to taxation.
C. For married taxpayers who file separate tax returns and have lived together anytime during the year, the dollar threshold is zero.
D. If married taxpayers are not living together, they are considered to be a single people.

A

B. If you are married, file a joint tax return, and have a combined income between $32,000 and $44,000, up to 85 percent of benefits are subject to taxation.

Text, Page 401

19
Q

All of the following are factors to be taken into account when designing global employment jobs, EXCEPT:

A. Duration of an international assignment
B. Immigration and residency rules
C. Training programs for language acquisition
D. Tax treatment of the compensation package

A

C. Training programs for language acquisition

Text, Pages 481-482

20
Q

All of the following are key trends seen between 2019 and 2020 provided by data and analytics, EXCEPT:

A. A 20% increase in mental health plan payments year-over-year
B. Deferred care as a result of COVID-19
C. The use of predictive and diagnostic analytics to help companies get a picture of what has happened 5
D. The rise of telehealth adoption

A

C. The use of predictive and diagnostic analytics to help companies get a picture of what has happened 5

Text, Page 269

21
Q

Which of the following are true regarding requirements for a plan administrator distributing the original SPD to participants?

I. The plan administrator must distribute the SPD to participants within120 days
II. A plan that is not subject to ERISA must meet these requirements
III. For newly hired employees, an SPD should generally be furnished no later than 90 days after the employee becomes a participant
IV. A plan administrator must provide an SPD to dependents of a deceased retiree under a retiree medical plan

A. I & II
B. II only
C. I, III, IV
D. I, II, III, IV

A

C. I, III, IV

I. The plan administrator must distribute the SPD to participants within120 days
III. For newly hired employees, an SPD should generally be furnished no later than 90 days after the employee becomes a participant
IV. A plan administrator must provide an SPD to dependents of a deceased retiree under a retiree medical plan

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II. A plan that is not subject to ERISA must meet these requirements

22
Q

The DOL defines a “material reduction” under a health plan as any modification or change that:

I. Eliminates benefits under the plan
II. Reduces benefits payable under the plan
III. Increases deductibles, copayments, and other amounts paid by a participant or beneficiary
IV. Reduces the service area covered by an HMO

A. I only
B. II and III
C. I, II, III, IV
D. I and III

A

C. I, II, III, IV

I. Eliminates benefits under the plan
II. Reduces benefits payable under the plan
III. Increases deductibles, copayments, and other amounts paid by a participant or beneficiary
IV. Reduces the service area covered by an HMO

Text, Page 24

23
Q

Which of the following are basic characteristics of social insurance programs?

I. Benefits are not prescribed by law.
II. A means test is required.
III. Full funding is unnecessary.
IV. They provide a floor of income.

A. I and II
B. III and IV
C. II and III
D. II only

A

B. III and IV

III. Full funding is unnecessary.
IV. They provide a floor of income.

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I. Benefits are not prescribed by law.
II. A means test is required.

24
Q

Social insurance programs pay benefits based largely on social adequacy rather than on individual equity. Which of the following are characteristics of social adequacy?

I. The actuarial value of the benefits received exceeds the actuarial value of contributions.
II. Benefits paid are heavily weighted in favor of certain groups.
III. Benefits paid should provide a certain standard of living to all contributors.
IV. Contributors receive benefits directly related to their contributions.

A. I only
B. II only
C. I, II, III
D. I, II, III, IV

A

C. I, II, III

I. The actuarial value of the benefits received exceeds the actuarial value of contributions.
II. Benefits paid are heavily weighted in favor of certain groups.
III. Benefits paid should provide a certain standard of living to all contributors.

Text, Page 387

IV. Contributors receive benefits directly related to their contributions.

25
Q

Which of the following are characteristics of misappropriation of funds?

I. It is not intentional.
II. It is illegal use of property or funds.
III. It is not a felony.
IV. It is not a crime punishable by a prison sentence.

A. II only
B. I only
C. I, II, IV
D. I, II, III, IV

A

A. II only

II. It is illegal use of property or funds.

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I. It is not intentional.
III. It is not a felony.
IV. It is not a crime punishable by a prison sentence.

26
Q

A 2011 report by the Advisory Council on Employee Welfare and Pension Benefits Plans identified the ways breaches have occurred with respect to retirement plans, which includes:

I. Failure to install security system updates
II. Email hoaxes (phishing attacks)
III. Social Security numbers mailed to wrong addresses
IV. Downloads of plan information to a home computer

A. II & III
B. IV only
C. I, II, III, IV
D. III only

A

C. I, II, III, IV

I. Failure to install security system updates
II. Email hoaxes (phishing attacks)
III. Social Security numbers mailed to wrong addresses
IV. Downloads of plan information to a home computer

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27
Q

Phase I audits of covered entities under HIPAA identified additional data breaches of medical plans, including:

I. Encrypted information on laptops
II. Lost documents with protected health information (PHI)
III. Disposal of prescriptions in trash containers accessible to the public
IV. Implementation of physical safeguards at workstations

A. I, II, IV
B. II only
C. II and III
D. IV only

A

C. II and III

II. Lost documents with protected health information (PHI)
III. Disposal of prescriptions in trash containers accessible to the public

Text, Page 119

I. Encrypted information on laptops
IV. Implementation of physical safeguards at workstations

28
Q

A Summary Annual Report (SAR) is considered a plan disclosure requirement under ERISA. Characteristics of SARS include the following:

I. It is not necessary to file a SAR with the DOL.
II. A SAR is a summary of certain information contained on the Form 5500.
III. A SAR is a notification to participants of their rights under ERISA to receive additional information.
IV. ERISA does not require that a SAR be given to each participant, including former employees still covered by the plan.

A. II only
B. III only
C. I, II, III
D. I only

A

C. I, II, III

I. It is not necessary to file a SAR with the DOL.
II. A SAR is a summary of certain information contained on the Form 5500.
III. A SAR is a notification to participants of their rights under ERISA to receive additional information.

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IV. ERISA does not require that a SAR be given to each participant, including former employees still covered by the plan.

29
Q

The SOA/SCL report applies Modern Portfolio Theory concepts to the retirement income phase. There are different retirement income classes for generating regular cash-flow in retirement, such as:

I. Work
II. Annuities from insurance companies
III. Social Security
IV. Systematic withdrawal plans (SWPs) using invested assets

A. I only
B. II only
C. III and IV
D. I, II, III, IV

A

D. I, II, III, IV

I. Work
II. Annuities from insurance companies
III. Social Security
IV. Systematic withdrawal plans (SWPs) using invested assets

Text, Page 288

30
Q

Under the common law of industrial accidents, workers injured on the job had to sue their employers and prove negligence before they could collect damages. Which of the following common law defenses did employers use to defeat lawsuits?

I. Fellow-servant doctrine
II. Contributory negligence doctrine
III. Assumption-of-risk doctrine
IV. No fault accident

A. I, II, IV
B. I, II, III
C. I, III, IV
D. IV only

A

B. I, II, III

I. Fellow-servant doctrine
II. Contributory negligence doctrine
III. Assumption-of-risk doctrine

Text, Page 419

IV. No fault accident