Preview Questions Employee Benefits Lawyer | Role Specific Skill

Question 1: What are the primary provisions of the "Summary of Benefits and Coverage" (SBC) requirement under the ACA for employer health plans?

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Employers must provide employees with an SBC that explains the health plan's benefits, coverage, and limitations

SBCs are required for self-insured health plans only

SBCs must be submitted to the Department of Labor annually

Employers must provide an SBC only if an employee requests it

Question 2: What is the "safe harbor" provision under ERISA, and how does it apply to fiduciaries of employee benefit plans?

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The safe harbor provision is automatically granted to all fiduciaries

The safe harbor provision applies only to retirement plans

The safe harbor provision protects fiduciaries from liability if they follow prescribed investment practices and adhere to the plan's governing rules

The safe harbor provision is irrelevant for self-insured health plans

Question 3: How does "automatic enrollment" in 401(k) plans work under ERISA, and what legal considerations must an Employee Benefits Lawyer take into account when designing such plans?

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Employees must opt-in to 401(k) plans, with no provision for automatic enrollment

Automatic enrollment is only permissible in defined benefit plans

Automatic enrollment requires that employees are enrolled in the 401(k) plan unless they opt out; the lawyer should ensure that the plan complies with opt-out provisions and notice requirements

Automatic enrollment is only required for large employers

Question 4: Under ERISA, what are the "vesting" requirements for pension plans?

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Vesting refers to the employee's ability to withdraw contributions immediately upon leaving employment

Vesting refers to the process by which participants gain ownership of their pension benefits, and ERISA sets minimum vesting schedules for both defined benefit and defined contribution plans

Vesting refers to the employer's ability to modify or cancel benefits if the employee changes jobs

Vesting applies only to pension benefits funded by employer contributions, not employee contributions

Question 5: What is the "taxation of wellness benefits" provided by employers, and how should an Employee Benefits Lawyer determine if they are taxable to employees?

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Wellness benefits are generally tax-free if they are part of an employer-sponsored program that promotes health and safety, but the lawyer must ensure that they meet IRS guidelines

Wellness benefits are always taxable as part of an employee's compensation

Wellness benefits are only taxable if the employee is on leave

Wellness benefits are exempt only for employees with children

Question 6: What is the "fiduciary duty" under ERISA, and how does it impact the administration of pension plans?

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Fiduciaries are only responsible for ensuring the plan is compliant with tax laws

Fiduciaries are required to maximize the plan's returns regardless of the participants' needs

Fiduciaries are required to act in the best interests of the plan participants and beneficiaries, managing the plan's assets prudently

Fiduciaries must avoid any decision that could benefit them personally, even if it benefits the plan participants