M9:

Question 1

The amount an employee pays on Social Security wages

Answer 1

7.65% on wages up to the Social Security TWB

Question 2

Statute of limitations for asserting a fiduciary claim

Answer 2

3 or 6 years, depending on circumstances

Question 3

An employer that makes a commitment systematically to pay certain benefits undertakes a host of obligations, such as determining the eligibility of claimants, calculating benefit levels, making disbursements, monitoring the availability of funds for benefit payments, and keeping appropriate records in order to comply with applicable reporting requirements.

Answer 3

An ongoing administrative scheme means plan is subject to ERISA

Question 4

Court conclusions on oral severance agreements

Answer 4

Court cases determined this type of agreement can be regulated
by ERISA

Question 5

Daycare centers

Answer 5

A benefit in a plan covered by ERISA

Question 6

Prepaid legal services

Answer 6

A benefit in a plan covered by ERISA

Question 7

Certain church plans

Answer 7

Plans exempt from ERISA

Question 8

Unfunded excess benefit plans

Answer 8

Plans exempt from ERISA

Question 9

ERISA section that authorizes a court’s ability to impose stiff penalties on plan administrators

Answer 9

ERISA Section 502(c)(1)(B)

Question 10

Penalty amount for violations of Section 502(c)(1)(B)

Answer 10

$1,000 per day (in 2021) ($2,259 with indexing)

Question 11

ERISA defined administrator

Answer 11

A person designated so by terms of the benefit plan

Question 12

The only individuals allowed to recover civil penalties under 502(c)(1]

Answer 12

Participants and beneficiaries

Question 13

Definition of dependents under group health care by the ACA

Answer 13

Biological, stepchild, foster child, adopted child

Question 14

A comprehensive statute designed to promote the interests of employees and their beneficiaries and employee benefit plans. It is a federal law intended to provide a uniform administrative scheme applicable to employee benefit plans.

Answer 14

1974 Employee Retirement Income Security Act (ERISA)

Question 15

ERISA law supersedes state law

Answer 15

ERISA Preemption

Question 16

a. The claim is barred by the statute of limitations.
b. The plaintiff lacks standing to request the documents.
c. The plaintiff sent the request to the wrong person.
d. The plaintiff requested documents not subject to the Section 502(c)(1) penalty.
e. The plaintiff failed to make a sufficiently specific request (no “clear notice”).
f. The administrator’s failure or refusal resulted from matters reasonably beyond the administrator’s control.

Answer 16

Standard defenses available to plan administrators

Question 17

Purpose of ERISA Section 502(c)(1)

Answer 17

Induces plan administrators to comply & punishes noncompliance

Question 18

9th Circuit court case that deemed severance pay over 2 yrs. – not an ongoing administrative scheme

Answer 18

Delaye v. Agripac, Inc.

Question 19

New 0.9% payroll tax

Answer 19

Taxes on higher levels of employee wages; not on employers

Question 20

Programs conferring deferred compensation for a “select group of management or highly compensated employees”

Answer 20

Top-Hat Plans

Question 21

o administrative convenience
o Consistent set of rulings
o Consistent legal environment

Answer 21

Benefits of a contractual venue selection clause

Question 22

The location of this type of litigation is important because regional circuit courts have a tendency to side with either Plan Administrators or Employee’s depending on location

Answer 22

The standard of judicial review in the context of top-hat plan benefit disputes

Question 23

A court case that stated a lump sum severance payment (for a plant closure), triggered by a single event that might never occur, was not a plan for purposes of ERISA.

Answer 23

Fort Halifax Packing Co., Inc. v. Coyne

Question 24

Court case that deemed a severance plan regulated by ERISA could be found so long as oral representations did not contravene “properly published written representations.”

Answer 24

Henglein v. Informal Plan for Plant Shutdown Benefits

Question 25

• Plan sponsor can vary the benefits
• Can arbitrarily choose among plan participants
• Can use its discretion in deciding when or whether severance benefits will be paid
• No planned documents need to be prepared and no governmental reports

Answer 25

Advantages of non-ERISA regulated retention incentive plans

Question 26

Court case that required an individual determination as to whether each employee was eligible for state unemployment compensation, which, in turn, depended on whether the employee was terminated for cause, the court ruled that the statue imposed an ongoing administrative scheme, thereby subjecting the arrangement to ERISA regulation

Answer 26

Simas v. Quaker Fabric Corp.

Question 27

The US Supreme Court upheld ERISA preemption of Vermont State law trying to require even self-funded plans to provide health data

Answer 27

Gobeille v. Liberty Mutual Ins. Co.

Question 28

Provides for up to 12 weeks of unpaid job-protected leave to employees for baby bonding or to attend and care for a serious health condition of the employee or his or her family member.

Answer 28

1993 Federal Family and Medical Leave Act (FMLA)

Question 29

Applies to those employing 50 or more on each working day for at least 20 or more calendar weeks in the current or preceding calendar year.

Answer 29

1993 Federal Family and Medical Leave Act (FMLA)

Question 30

a. The plaintiff must make a written request.
b. The request must be made to the plan administrator.
c. The request must give clear notice of the documents sought.

Answer 30

Requirements to pursue civil penalty for request for plan documents