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Related Flashcards
Related Topics
Cards In This Set
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Identify the steps in a benefits needs assessment
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* Review the organization's strategy
* Review the total rewards philosophy
* Analyze workforce demographics
* Analyze benefits design & utilization data
* Conduct gap analysis
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What factors does a benefits gap analysis review?
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* employee demographics & corresponding benefit needs
* identify whether current benefits offerings & usage indicate needs are being met
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What is the Employee Retirement Income Security Act (ERISA)
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* Establishes minimum standards for benefits plans
* preempts any related state laws, except for regulation of insurance
* does not apply to many public-sector employers and churches
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What types of plans does ERISA regulate?
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* private retirement plans
* employer-sponsored group medical
* group life insurance
* LTD coverage
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What agencies have jurisdiction over enforcement of ERISA provisions?
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* DOL - reporting, disclosure, fiduciary responsibility
* IRS - tax-related matters
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What is the Pension Benefit Guaranty Corporation (PBGC)?
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It's like the FDIC - if something goes wrong with a pension plan, the PBGC will pay vested benefits (to a limit) to vested employees of the plan.
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LIst the ERISA rules relating to fiduciary responsibility
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* Prudent person rule
* Individuals may sue plan sponsors (401k, stock ownership, profit-sharing)
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List the ERISA rules relating to plan eligibility
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*General age/service requirements - 21 years or older, 12 months of service
* Company ability to change age/service thresholds - can lower them - can't exclude someone 21 or over
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List the ERISA rules relating to plan eligibility
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Defined benefit plans
- Cliff vesting - 100% by 5 years
- Graded vesting - 20%/year after 3 years, 100% by 7 years
Defined contribution plans
- Cliff vesting 100% by 3 years
- Graded vesting - 20%/year beginning 2nd year, 100% by 6 years
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Communication requirements under ERISA
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* Notify participants of claims and appeals process
* Prepare & distribute summary plan documents (SPDs)
* Distribute summaries of material modifications (SMMs) following any plan changes
* Provide summary annual report of the plan's finances (SAR)
* File annual report (5500) with IRS
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What is the purpose of the Retirement Equity Act? (REA)
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Provides legal protecctions for spousal beneficiaries of retirement plan participants; includes requirement for spousal consent to changes in distribution elections, withdrawals and beneficiary designation changes.
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Which of these is not a COBRA-qualifying event?
* Reduction in hours
* Termination or reduction in hours due to disability
* Dependent child loss of eligibility status
* Termination for gross misconduct
* Death or divorce of the employed spouse
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Gross misconduct - this category of termination reason is an exception to the COBRA continuation rules.
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What is the length of COBRA continuation for termination of employment for reasons other than gross misconduct, and for reduction in hours?
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18 months
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Which employers are required to comply with COBRA regulations?
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Employers with 20 or more employees, who provide health-care benefits.
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What are the penalties for non-compliance with COBRA?
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No tax penalties
Statutory penalties
Payment for incurred medical expenses
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