W14: ERISA & Benefits and Employee Privacy Flashcards
What does ERISA stand for?
Employee Retirement Income Security Act
What is the purpose of ERISA?
broadly governs pension & welfare benefit plans
Who is and isn’t covered under ERISA?
IS: Most private sector employer and labor union sponsored plans
ISN’T: government employer benefit plan
What are pension plans?
provide retirement income to employees or to otherwise defer income initial after employment ends
What are welfare plans?
are essentially any other benefit plans covered by ERISA that are not pension plans
What is an example of a pension plan?
-defined benefit pensions
-401(k)s
-employee stock ownership plans
What is an example of a welfare plan?
-health insurance
-child-care subsidies
-prepaid legal services
What are some exclusions of ERISA?
-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
ERISA has sweeping _ language, superseding all state laws even remotely relating to the regulation of benefit plans
preemption
What are ERISA requirements for employers?
-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
Employers are required to detail their benefit plans in _ _ _.
written plan documents
T/F: EEs have rights to sue employers on denial of benefits
true
What is a fiduciary?
anyone exercising discretionary authority or control over the administration of a benefit plan or its funds
What must a fiduciary provide?
accurate information and not withhold material facts that could affect the choices and interests of plan beneficiaries
What is the most important type of welfare plan covered by ERISA?
health insurance
What is the consolidated omnibus budget reconciliation act?
Offer continuation of medical coverage to employees when they experience a qualifying event
What is a qualified event under the consolidated omnibus budget reconciliation act that continues coverage for up to 18 months?
-voluntary or involuntary termination of employment for reasons other than “gross misconduct”
-reduced hours of employment
What is a qualified event under the consolidated omnibus budget reconciliation act that continues coverage for up to 36 months?
-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
