Deck 3: Regulating Employee Benefits

Question 1

Qualified benefit plans are given favorable tax treatment,because they meet certain ERISA guidelines. (The Employee Retirement Income Security Act of 1974)

Answer 1

True

Question 2

The NLRA applies to private sector companies,except for companies whose main business is passenger or freight rail or air carrier. (Labor Unions and Employee Benefits: The National Labor Relations Act of 1935)

Answer 2

True

Question 3

Employees of the federal government are not protected by FLSA regulations. (The Fair Labor Standards Act of 1938)

Answer 3

False

Question 4

Cliff vesting schedules must grant employees 100% vesting after 3 years of service. (Title I: Protection of Employee Benefits)

Question 5

The Older Workers Benefit Protection Act set limits on the development and implementation of employer early retirement practices. (The Age Discrimination in Employment Act of 1967 (ADEA))

Question 6

Title I on ERISA requires employers to report detailed financial and actuarial data about their benefits plan to the US Department of Labor. (Title I: Protection of Employee Rights)

Question 7

According to OWBPA,employers are not required to offer older workers benefits equal to younger workers if it costs them too much. (The Age Discrimination in Employment Act of 1967 (ADEA))

Question 8

HIPPA reduced the exclusion from health insurance coverage,due to preexisting conditions,for up to 12 months. (The Health Insurance Portability and Accountability Act of 1996)

Question 9

The Equal Pay Act is an amendment to ERISA and is designed to insure that women and men receive equal pay for equal work. (The Equal Pay Act of 1963)

Question 10

According to FLSA guidelines,employees are entitled to pay at a rate of one-and-one-half times their regular pay,when they work over 8 hours in a work day. (The Fair Labor Standards Act of 1938)

Question 11

A partner in a partnership is considered an officer of a company,by the US Treasury Department,because of his voting rights. (The Internal Revenue Code)

Question 12

According to IRS guidelines,an employer can deduct the costs of their employees' benefits only during the year the benefits were paid. (The Internal Revenue Code)

Question 13

According to the Pregnancy Discrimination Act of 1978,employers must not treat pregnancy less favorably than other conditions covered under employee benefit plans,including health insurance and disability insurance. (The Pregnancy Discrimination Act of 1978)

Question 14

Diversifying a pension plan's investments to minimize the risk of large losses is considered a fiduciary responsibility. (Title I: Protection of Employee Rights)

Question 15

Employers can deduct the cost of the benefits they offer employees,from their annual income,as a business expense,if the cost is considered an ordinary and necessary expense. (The Internal Revenue Code)

Question 16

According to ERISA guidelines,companies can deduct benefit costs when they meet its nonqualification rules. (The Employee Retirement Income Security Act of 1974)

Question 17

The Federal Unemployment Tax Act is levied against employees to finance unemployment insurance benefits. (The Internal Revenue Code)

Question 18

The Americans with Disabilities Act of 1990 pertains to all private sector employees,all government employees and labor unions. (The Americans with Disabilities Act of 1990)

Question 19

Employer-provided health insurance is considered a permissible collective bargaining subject. (Labor Unions and Employee Benefits: The National Labor Relations Act of 1935)

Question 20

The Civil Rights Act of 1991 was enacted,in part,due to overturn several Supreme Court rulings that limited employee rights. (The Civil Rights Act of 1991)

Question 21

Patients' consent is required for use and disclosure of health records as of 2003. (The Health Insurance Portability and Accountability Act of 1996)

Question 22

The NLRA applies to agricultural and domestic workers. (Labor Unions and Employee Benefits: The National Labor Relations Act of 1935)

Question 23

The U.S.Department of Labor enforces HIPAA. (The Health Insurance Portability and Accountability Act of 1996)

Question 24

Under the Americans with Disabilities Act of 1990,an employer cannot refuse to hire a person with a disability. (The Americans with Disabilities Act of 1990)

Question 25

ERISA regulates paid time off programs. (The Employee Retirement Income Security Act of 1974)

Question 26

The Pension Protection Act does not provide any advantages for the Pension Benefit Guarantee Corporation. (The Pension Protection Act of 2006)

Question 27

The Equal Employment Opportunity Commission enforces the ADEA. (The Age Discrimination in Employment Act of 1967 (ADEA))

Question 28

Workers were at a disadvantage after the Great Depression. (Labor Unions and Employee Benefits: The National Labor Relations Act of 1935)

Question 29

FICA and FUTA are the main taxes that apply to employee benefits. (The Internal Revenue Code)

Question 30

The Portal-to-Portal act of 1974 defines work hours. (The Fair Labor Standards Act of 1938)

Question 31

FLSA applies to all types of employees across all industries. (The Fair Labor Standards Act of 1938)

Question 32

The Lorance v.AT&T Technologies decision is an important example of the Civil Rights Act of 1991. (The Civil Right Act of 1991)

Question 33

The Pension Protection Act of 2006 was passed for the protection of defined benefit plans only. (The Pension Protection Act of 2006)

Question 34

Title II of GINA restricts the deliberate acquisition of genetic information by employers and others covered by Title II and strictly limits such entities from disclosing genetic information. (Genetic Information Nondiscrimination Act of 2008)

Question 35

Paid time off is a permissive bargaining subject under NLRA provisions. (Labor Unions and Employee Benefits: The National Labor Relations Act of 1935)

Question 36

The Equal Pay Act is an amendment of ERISA. (The Equal Pay Act of 1963)

Question 37

Defined contribution plans are eligible to participate in PBGC. (Title IV: Plan Termination Insurance)

Question 38

The Equal Employment Opportunity Commission enforces FLSA. (The Fair Labor Standards Act of 1938)

Question 39

Business necessity is not a legally admissible defense against charges of employment discrimination. (The Civil Right Act of 1991)

Question 40

According to the WARN Act,employers must give employees at least 30 days advance notice of a plant closing or mass layoff. (Labor Unions and Employee Benefits: The National Labor Relations Act of 1935)

Question 41

Which of the following act terminates the process of the federal government giving subsidies to private banks that offer federally insured loans? (Patient Protection and Affordable Care Act of 2010)

A)ERISA
B)COBRA
C)PPACA
D)FUTA

Question 42

Health care reform aims to reduce the uninsured U.S.residents by how much in 2016? (Patient Protection and Affordable Care Act of 2010)

A)20 million
B)32 million
C)44 million
D)51 million

Question 43

The FLSA of 1938,contains provisions concerning which three topics? (The Fair Labor Standards Act of 1938)

A)Child labor, working conditions, minimum wage
B)Minimum wage, overtime pay, child labor
C)Working conditions, minimum wages, overtime pay
D)Overtime pay, child labor, working conditions

Question 44

This term refers to an unfunded deferred compensation plans for a select group of highly compensated employees? (The Employee Retirement Income Security Act of 1974)

A)Top hat plan
B)Safe harbor plan
C)Nonqualified plan
D)Fiduciary plan

Question 45

A person with this title manages employee benefits plans and pension plan funds to ensure the welfare of participants and beneficiaries while defraying reasonable plan expenses. (Title I: Protection of Employee Rights)

A)Executor
B)Actuary
C)Trustee
D)Fiduciary

Question 46

The term hours worked is defined in which law? (The Fair Labor Standards Act of 1938)

A)COBRA
B)ERISA
C)Portal to Portal Act
D)FSLA

Question 47

The Pension Protection Act of 2006 permits an employer to automatically enroll employees in its defined contribution retirement plan. (The Employee Retirement Income Security Act of 1974)

Question 48

Workers are classified as key employees if they meet one of which three criteria? (The Internal Revenue Code)

A)An officer making over $150,000, an employee who for 2012 is either a 5% owner or 2% owner of the business that makes more than $150,000
B)An officer making over $165,000, an employee who for 2012 is either a 3% owner or 1% owner of the business that makes more than $150,000
C)An officer making over $150,000, an employee who for 2012 is either a 5% owner or 1% owner of the business that makes more than $150,000
D)An officer making over $165,000, an employee who for 2012 is either a 5% owner or 1% owner of the business that makes more than $150,000

Question 49

Under NLRA,subjects for collective bargaining fall into one of which three categories? (Labor Unions and Employee Benefits: The National Labor Relations Act of 1935)

A)Mandatory, probable, legal
B)Mandatory, permissive, illegal
C)Mandatory, probable, illegal
D)Mandatory, permissive, legal

Question 50

According to HIPAA,preexisting condition exclusion can be imposed on health condition if medical advice,diagnosis,care,or treatment was received during the 12 months prior to an employee's enrollment date in the employer's health insurance plan. (The Health Insurance Portability and Accountability Act of 1996)

Question 51

Taxes fund programs for which of the following? (The Internal Revenue Code)

A)State and local governments
B)Federal and state governments
C)Federal, state and local governments
D)Local governments only

Question 52

Under the Equal Pay Act of 1963,what are skill,effort,responsibility and working conditions are referred to as? (The Equal Pay Act of 1963)

A)Classification factors
B)Compensable factors
C)Commendable factors
D)Performance factors

Question 53

Companies can follow which schedules to grant full vesting for their employees? (Title I: Protection of Employee Rights)

A)Cliff and graduated
B)Cliff or gradual
C)Standard and gradual
D)Graduated and standard

Question 54

COBRA is an amendment to which federal law (Title I: Protection of Employee Rights)?

A)IRCA
B)HIPPA
C)ERISA
D)FLSA

Question 55

Which of the following is a mandatory collective bargaining subject? (Labor Unions and Employee Benefits: The National Labor Relations Act of 1935)

A)Paid time-off
B)Retiree benefits
C)Workers' compensation
D)Minimum vesting standards

Question 56

Which ERISA Title contains terms for pension insurance programs and includes the establishment of the Pension Benefit Guarantee Corporation? (Title IV: Plan Termination Insurance)

A)I
B)II
C)III
D)IV

Question 57

The federal government funds the Social Security Old-Age,Survivor and Disability Insurance Program using which tax? (The Internal Revenue Code)

A)Federal Insurance Collections Act
B)Federal Income Contributions Act
C)Federal Insurance Contributions Act
D)Federal Insurance Tax Act

Question 58

This Title of ERISA has the IRC provisions pertaining to the taxation of employee benefits and pension plans. (Title II: Amendments to the Internal Revenue Code Relating to Retirement Plans)

A)Title I
B)Title II
C)Title III
D)Title IV

Question 59

This federal law was established to regulate the establishment and implementation of discretionary benefits practices. (The Employee Retirement Income Security Act of 1974)

A)NLRA
B)FLSA
C)COBRA
D)ERISA

Question 60

This equal employment opportunity law prohibits illegal discrimination against protected class individuals in employment. (Title VII of the Civil Rights Act of 1964)

A)Title VII of the Civil Rights Act of 1964
B)Civil Rights Act of 1991
C)Equal Pay Act of 1963
D)Equal Employment Opportunity Act of 1965

Question 61

Give a brief overview of the main provisions of HIPAA. (The Health Insurance Portability and Accountability Act of 1996)

Question 62

Discuss the role of labor unions with regard to employee benefits. (Labor Unions and Employee Benefits: The National Labor Relations Act of 1935)

Question 63

Briefly discuss the key provisions of the Pension Protection Act of 2006. (The Pension Protection Act of 2006)

Question 64

Which of following is NOT a government agency that shares responsibility for the administration of ERISA provisions? (Title I: Protection of Employee Rights)

A)U.S.Department of Labor
B)IRS
C)NLRB
D)PBGC

Question 65

In 2011,the PBGC provided payments to how many retirees? (Title IV: Plan Termination Insurance)

A)Less than 2 million
B)Around 3.5 million
C)Around 5 million
D)More than 8.5 million

Question 66

Discuss the recent enactment of GINA (2008)and its relevance to benefit plans. (Genetic Information Nondiscrimination Act of 2008)