Preview Questions Employee Benefits Lawyer | Role Specific Skill

Question 1: How does "self-insured" health plan status impact employer responsibilities under ERISA?

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Employers with self-insured plans are not required to file annual reports under ERISA

Employers with self-insured plans are responsible for managing and funding the health benefits, which exposes them to financial risks

Self-insured plans are exempt from ERISA and federal insurance requirements

Self-insured plans must offer broader coverage but are not subject to ERISA

Question 2: Under ERISA, what are the requirements for a "qualified pension plan"?

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It must meet certain funding, vesting, and participation standards, among others, to receive tax benefits

It must provide benefits to employees based on years of service only

It must guarantee full retirement benefits for all employees, regardless of contributions

It must have a minimum return rate for plan assets to avoid penalties

Question 3: Under ERISA, how are "plan assets" defined, and what does this mean for plan fiduciaries?

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Plan assets include the administrative costs incurred by the plan sponsor and are not subject to fiduciary oversight

Plan assets refer only to the employer's contributions to the plan, and fiduciaries manage those funds exclusively

Plan assets include all property held in the trust for the benefit of plan participants, and fiduciaries are responsible for managing these assets prudently

Plan assets are only the employee contributions and are managed by the Department of Labor

Question 4: What is the "ERISA preemption" rule, and how does it affect state law in relation to employee benefit plans?

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ERISA preemption applies only to health and welfare plans, not pension plans

ERISA preempts state laws that relate to employee benefit plans, meaning federal law takes precedence over conflicting state laws

ERISA preemption allows state laws to impose stricter rules on pension plan benefits than federal regulations

ERISA preemption ensures that only state law governs retirement plan investment strategies

Question 5: What is the significance of the "Pension Benefit Guaranty Corporation" (PBGC) under ERISA?

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The PBGC provides tax exemptions for qualified pension plans

The PBGC directly administers all pension plans under ERISA

The PBGC regulates 401(k) plans and ensures they meet federal standards

The PBGC insures pension benefits in private sector defined benefit plans and provides assistance if a plan terminates with insufficient assets

Question 6: What does the "anti-cutback" rule under ERISA prevent?

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It prevents the IRS from increasing taxes on retirement contributions

It prevents employers from reducing the benefits accrued by employees in pension plans

It prevents employers from imposing penalties on early withdrawals

It prevents employees from accessing their retirement benefits before retirement