Employee Retirement Income Security Act; The primary purpose of ERISA is to protect the interests of employees (and their beneficiaries) who participate in employee benefit plans and to ensure that employees receive the pension and group-sponsored benefits promised by their employers.
What is erisa quizlet?
Employee Retirement Income Security Act. EISA. A federal law that sets minimum standards for pension plans in private industry. ERISA. Employers are not required to establish pension plans.
Which of the following is true of the Employee Retirement Income Security Act of 1974 quizlet?
Which of the following is true about the Employee Retirement Income Security Act of 1974 (ERISA)? It established vesting rights with respect to pensions. Which of the following is true about 529 savings plans? They allow parents and other family members to defer taxes on the earnings of their deposits.
What is the purpose of the pension benefit Guaranty Corporation quizlet?
The PBGC regulates plan termination and imposes certain reporting requirements on covered plans that are in financial distress or downsizing.
What is the function of a 401 K plan quizlet?
A 401k plan allows you to make a portion of your earnings available for later use, perhaps when you retire and are not earning a salary.
What is the purpose of ERISA?
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for most retirement and health insurance plans established voluntarily in private industry and protects individuals in these plans.
Which of the following is not a fiduciary responsibility under ERISA?
Fiduciaries under ERISA do not include attorneys, accountants, actuaries, third-party administrators, recordkeepers, individuals acting solely in a professional capacity, and individuals who perform only ministerial functions for a plan or plan administrator.
Which of the following coverages is not monitored by the Employee Retirement Income Security Act ERISA )?
The correct answer is “C.” ERISA covers most employer-sponsored retirement plans. However, public employee plans, such as the state pension plans in the “B” answer, are exempt from coverage. It is also not an “A” choice above. Individual retirement accounts are not offered by employers and are exempt from ERISA.
Which of the following employers is required to follow ERISA regulations?
All employers that offer group welfare benefits to their employees are required to have a formal written ERISA “wrap” plan document and summary plan document (SPD) for each benefit.
Which of the following is true regarding vesting requirements under ERISA?
Which of the following are fiduciary duties under ERISA? Which of the following applies with respect to the vesting requirements under ERISA? (b) Vesting is never required, but is purely a contractual provision negotiated between the employer and the employee.
What benefits are employers legally required to provide quizlet?
The employer is required to contribute to Social Security, unemployment insurance, and workers’ compensation on behalf of the employee.
What is the function of a 401 K plan?
A 401(k) is a retirement savings and investment plan offered by the employer. A 401(k) plan provides a tax deduction for money contributed by employees. Contributions are automatically withdrawn from the employee’s paycheck and invested in a fund of the employee’s choice (from a list of available services).
Which of the following is an advantage of a 401 K plan quizlet?
The main advantage of a 401(k) plan is that it
What does subject to ERISA mean?
What plans are covered by ERISA? Employers who contribute to a health or retirement plan are subject to ERISA rules. An employer-sponsored plan that receives payroll deductions or employer contributions from workers is an ERISA-qualified plan.
Which of the following statement is incorrect regarding ERISA?
Option (b) is incorrect. ERISA initiates some benefits to employees and cannot be enforced against anything. There is no preemption of ERISA-covered plans.
What are ERISA fiduciary duties?
Fiduciary responsibilities under an ERISA-covered plan include acting solely for the benefit of plan participants and their beneficiaries, with the exclusive purpose of providing benefits to them. Perform their duties prudently. Following the plan document (as long as it is not inconsistent with ERISA).
What did the Employee Retirement Income Security Act ERISA of 1974 do quizlet?
The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for the most voluntarily established pension and health plans in private industry to protect individuals in these plans. Plans to Pension Plans and Welfare Plans.
What are examples of ERISA plans?
Examples of ERISA Health and Retirement Plans Welfare benefit plans, including medical, dental, life insurance, apprenticeship and training, scholarship funds, retirement and disability insurance. Pension plans, profit sharing plans, stock bonus plans, money purchase plans, and 401(k) plans.
What is the difference between ERISA and non ERISA?
Non-ERISA includes employer involvement. In an ERISA plan, the employer chooses the investment options, controls the deposit and timing of employee contributions, and may provide matching contributions to the employer. Non-ERISA plans do not involve the employer except for compliance activities.
Which of the following ERISA requirements apply to a welfare plan?
Under ERISA, a welfare plan is a plan, program, or fund maintained by the employer to provide Medical, surgical, or hospital care. Benefits for illness, accident, disability, or death. Unemployment benefits.
Who is not subject to ERISA?
When does ERISA not apply? There are three instances in which ERISA does not apply. Government employers and organizations, unfunded excess benefit plans and plans maintained outside the United States.
What is the meaning of pension insurance?
An annuity policy is an insurance contract that specifies pension plan contributions to the policy in exchange for which pension plan benefits will be paid when the member reaches a specified retirement age or upon the previous member’s exit from the plan.
How do you know if you have an ERISA plan?
The easiest way to find out if you are enrolled in a self-funded ERISA plan or directly with a state-regulated HMO or insurance company is to ask your employer. At the time of this writing, Congress was considering adding consumer protections and mandated benefits to ERISA plans.
What area of health insurance is regulated under the employee Retirement Security Act of 1974?
What areas of group health insurance are regulated under the Employee Retirement Security Act of 1974 (ERISA)? The Employee Retirement Security Act of 1974 (ERISA) regulates group health insurance in the areas of disclosure and reporting.
Which of the following employee benefits is mandated by law quizlet?
REQUIRED BENEFITS: Certain other benefits, such as Social Security, unemployment insurance, workers’ compensation, and family and medical leave, are required under federal or state law.
Which of the following is a legally required benefit?
Medicare and Social Security, unemployment insurance, workers’ compensation, health insurance, and family and medical leave are all benefits that the federal government requires businesses to provide.
In what way does a 401 K differ from an individual retirement account IRA?
IRAs and 401(k)s are two common types of retirement accounts that offer tax advantages when investing. The primary difference between the two is that an IRA is a type of retirement account that you open, fund, and invest in yourself, while a 401(k) is a retirement account you open through your employer.
What type of retirement plan is a 401 K?
A 401(k) plan is a defined contribution plan that is a cash or deferred arrangement. Employees can choose to defer a portion of their salary, which is instead contributed to the 401(k) plan on a pre-tax basis instead. The employer may match these contributions.
What is an advantage of a qualified plan in retirement benefits quizlet?
Qualified Retirement Plans – The primary tax benefits are as follows Employer is entitled to a current tax deduction for plan contributions. Employees pay no current income tax on plan contributions. Plan earnings go up in the tax system until they are received by the employee or beneficiary.
Which of the following retirement plans is sponsored by not for profit organizations quizlet?
Which of the following retirement plans is sponsored by a nonprofit organization? 403(b) plan. How are 401(k) plans, 403(b) plans, and 457 plans similar? They each offer employees a tax-advantaged opportunity to save for retirement.
What does ERISA apply to?
ERISA applies to plans that (1) provide retirement income to employees; and (2) provide retirement income to employees.
What is an ERISA retirement plan?
What is ERISA? The Employee Retirement Income Security Act of 1974, or ERISA, protects the assets of millions of Americans who will retire when their retirement funds are retired during their working years. ERISA is a federal law that sets minimum standards for retirement plans in private industry.
Are ERISA plans tax exempt?
403(b) plans are commonly used by tax-exempt organizations to provide retirement benefits to their employees. Generally, plans established or maintained by private tax-exempt organizations are subject to ERISA (government and non-elected church plans are always exempt).
What are employers required to do under ERISA?
ERISA sets uniform minimum standards to ensure that employee benefit plans are established or maintained in a fair and fiscally sound manner. In addition, employers are obligated to provide promised benefits and to meet the requirements for administering and managing ERISA’s private retirement and benefit plans.
Which of the following is not a fiduciary responsibility under ERISA?
Fiduciaries under ERISA do not include attorneys, accountants, actuaries, third-party administrators, recordkeepers, individuals acting solely in a professional capacity, and individuals who perform only ministerial functions for a plan or plan administrator.
Which of the following is true of the Employee Retirement Income Security Act of 1974 quizlet?
Which of the following is true about the Employee Retirement Income Security Act of 1974 (ERISA)? It established vesting rights with respect to pensions. Which of the following is true about 529 savings plans? They allow parents and other family members to defer taxes on the earnings of their deposits.
Can you put your mother for the beneficiary on a ERISA plan?
Under the Employee Retirement Income Security Act (“ERISA”), there is no requirement as to who can be named as a beneficiary. .
Which of the following ERISA requirements apply to a welfare plan?
Under ERISA, a welfare plan is a plan, program, or fund maintained by the employer to provide Medical, surgical, or hospital care. Benefits for illness, accident, disability, or death. Unemployment benefits.