W14: ERISA & Benefits and Employee Privacy

Question 1

What does ERISA stand for?

Answer 1

Employee Retirement Income Security Act

Question 2

What is the purpose of ERISA?

Answer 2

broadly governs pension & welfare benefit plans

Question 3

Who is and isn’t covered under ERISA?

Answer 3

IS: Most private sector employer and labor union sponsored plans
ISN’T: government employer benefit plan

Question 4

What are pension plans?

Answer 4

provide retirement income to employees or to otherwise defer income initial after employment ends

Question 5

What are welfare plans?

Answer 5

are essentially any other benefit plans covered by ERISA that are not pension plans

Question 6

What is an example of a pension plan?

Answer 6

-defined benefit pensions
-401(k)s
-employee stock ownership plans

Question 7

What is an example of a welfare plan?

Answer 7

-health insurance
-child-care subsidies
-prepaid legal services

Question 8

What are some exclusions of ERISA?

Answer 8

-social insurance programs -social security
-premium pay for shift, overtime, or holiday work
-scholarship or tuition reimbursement plans
-occasional gifts such as holiday gifts for employees

Question 9

ERISA has sweeping _ language, superseding all state laws even remotely relating to the regulation of benefit plans

Answer 9

preemption

Question 10

What are ERISA requirements for employers?

Answer 10

-provide reports to employees
-employers are to deliver on promised benefits
-manage plans wisely and in employee’s interests - fiduciary duties
-refrain from interference or retaliation for pension or welfare plan

Question 11

Employers are required to detail their benefit plans in _ _ _.

Answer 11

written plan documents

Question 12

T/F: EEs have rights to sue employers on denial of benefits

Answer 12

true

Question 13

What is a fiduciary?

Answer 13

anyone exercising discretionary authority or control over the administration of a benefit plan or its funds

Question 14

What must a fiduciary provide?

Answer 14

accurate information and not withhold material facts that could affect the choices and interests of plan beneficiaries

Question 15

What is the most important type of welfare plan covered by ERISA?

Answer 15

health insurance

Question 16

What is the consolidated omnibus budget reconciliation act?

Answer 16

Offer continuation of medical coverage to employees when they experience a qualifying event

Question 17

What is a qualified event under the consolidated omnibus budget reconciliation act that continues coverage for up to 18 months?

Answer 17

-voluntary or involuntary termination of employment for reasons other than “gross misconduct”
-reduced hours of employment

Question 18

What is a qualified event under the consolidated omnibus budget reconciliation act that continues coverage for up to 36 months?

Answer 18

-divorce or legal seperation
-death of an employee
-loss of dependent child status under the terms of the health plan
-covered employee becoming entitled to medicare