M9: Quizzes Flashcards by Mindy Rowland

ERISA empowers only participants and ___________ to seek enforcement of the civil penalty sanctions.

A. non-beneficiaries
B. beneficiaries
C. fiduciaries
D. administrators

B. beneficiaries

Study Guide pg 14, learning objective 4.4; text 364

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Government plans sponsored by a federal, state, or local government are _______relative to ERISA.

A. exempt
B. neither exempt or non-exempt
C. both exempt and non-exempt
D. non-exempt

A. exempt

Study Guide pg 12, learning objective 3.2; text 356

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An employee pays _________of their wages up to the Social Security Taxable Wage Base.

A. 7.65%
B. 6.20%
C. 7.45%
D. 1.45%

A. 7.65%

Study Guide pg 7, learning objective 1.2; text 342

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Can oral severance arrangements become regulated by ERISA?

A. It depends
B. Yes
C. Maybe
D. No

B. Yes

Study Guide pg 10, learning objective 2.4; text 351-352

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This section of ERISA that authorizes a court’s ability to impose stiff civil penalties against plan administrators who fail or refuse to produce certain plan documents upon request in a timely manner is:

A. 501(c)(1)
B. 502(c)(1)(B)
C. 502(c)
D. 502(c)(1)

C. 502(c)

Study Guide pg 13, learning objective 4.1; text 362

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The statute of limitations for asserting a fiduciary claim is ______ or six years, depending on the circumstances.

A. three
B. two
C. five
D. four

A. three

Study Guide pg 7, learning objective 1.5; text 343

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In the _______________________ decision, the Supreme Court agreed to a contractual limitations period, provided that it is reasonable in length and not subject to a controlling statute to the contrary.

A. Tibble v. Edison
B. Heimeshoff v. Hartford Life & Accident
C. Donovan v. Dillingham
D. Fort Halifax Packing Co., Inc., v. Coyne

B. Heimeshoff v. Hartford Life & Accident

Study Guide pg 7, learning objective 1.6; text 343

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Only __________________ may recover the civil penalty under Section 502(c)(1).

A. beneficiaries
B. participants
C. fiduciaries
D. participants and beneficiaries

D. participants and beneficiaries

Study Guide pg 14, learning objective 4.4; text 364

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All deferred compensation programs subject to ERISA, including executive compensation, SERPs, and similar arrangements are commonly referred to as _____________.

A. low hat plans
B. no hat plans
C. top hat plans
D. unfunded plans

C. top hat plans

Text page 345

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Section _______ is part of ERISA’s system of civil enforcement provisions articulated in several parts of Section 502.

A. 502(c)(1)
B. 502(b)(1)
C. 501(c)(1)
D. 501(b)(1)

A. 502(c)(1)

Text page 362

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The statute of limitations for asserting a fiduciary claims is two or six years.

True or False?

False

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Only participants and beneficiaries may recover the civil penalty under Section 502(c)(1).

True or False?

True

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ERISA provides an express preemption provision stating that Title IV shall supersede any state laws.

True or False?

True

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Unfunded excess benefit plans are not exempt from ERISA.

True or False?

False

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Shifting ordinary W-2 wages (or future wage increases) into employer contributions to a qualified retirement plan creates a relief from payroll taxes for both the employer and employee.

True or False?

True

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The fact that termination payments extend out over a period of years will not subject the plan to ERISA.

True or False?

True

An employee pays 6.65% on their wages up to the Social Security Taxable Wage Base for Social Security.

True or False?

False

7.65%?

It takes a great deal of administrative action to create an ERISA severance plan.

True or False?

False

It is likely that a one-time payment to an executive at the termination of employment will constitute an ERISA-regulated severance plan.

True or False?

False

ERISA Section 502(c)(1)(B) authorizes a court’s ability to impose stiff penalties against plan administrators who fail or refuse to timely produce certain plan documents on request.

True or False?

True

Section ______ of ERISA requires that employee benefit plans be established pursuant to a written instrument.

A. 107
B. 402(1)
C. 402
D. 403(1)

C. 402

Text pg 351

The fact that termination payments extend out over a period of years ___________subject the plan to ERISA.

A. Will not
B. Will
C. Will never
D. Might

A. Will not

Text pg 353

The Family and Medical Leave Act (FMLA) was enacted in ___________.

A. 2003
B. 1993
C. 1998
D. 2013

B. 1993

Text pg 358

FMLA provides for up to ________ weeks of unpaid, job-protected leave for serious health issues.

A. 20
B. 12
C. 10
D. 30

B. 12

Text pg 358

ERISA Section __________ prohibits direct regulation by states and local jurisdictions of ERISA plans. A. 401 B. 410 C. 414 D. 402

C. 414 Text pg 359

Section ____________ authorizes a court’s imposition of stiff civil penalties against plan administrators who fail or refuse to timely produce certain plan documents upon request. A. 501(c)(1)(B) B. 502(c)(1)(B) C. 502(1)(B) D. 501(1)(B)

B. 502(c)(1)(B) Text pg 362

The maximum amount of the civil penalty under Section 502(c)(1) is ___ a day applicable for all violations occurring after July 29, 1997. A. $125 B. $120 C. $100 D. $110

D. $110 Text pg 363

An employer pays ___________ percent on each employee’s wages up to the taxable wage base (TWB) and ___________percent on wages above the taxable wage base. A. 7.65 and 1.45 B. 7.65 and 1.40 C. 6.20 and 1.40 D. 6.20 and 1.45

A. 7.65 and 1.45 Text pg 342

A multi-employer plan is known as a ___________________ plan. A. De Novo B. Taft-Hartley C. Heimeshoff D. Top Hat

B. Taft-Hartley Text pg 344

The purpose of Section ___________’s civil penalty is not to compensate participants or beneficiaries for injuries, but to induce plan administrators to comply with ERISA’s statutory disclosure mandate and punish administrators for non-compliance with that mandate. A. 502(c)1 B. 502(c) C. 501(c)1 D. 502(c)2

A. 502(c)1 Text pg 365

In Donovan v. Dillingham, the court explained that in order to establish an ERISA severance plan, a reasonable person must be able to ascertain all of the following, EXCEPT: A. The source of financing B. The intended benefits C. The cost of the severance plan D. The intended beneficiaries and the procedures to follow for receiving benefits

C. The cost of the severance plan Study Guide, Module 9, Page 9, Learning Objective 2.1 Textbook, Page 349

The section of ERISA that authorizes a court’s ability to impose stiff civil penalties against plan administrators who fail or refuse to timely produce certain plan documents upon request is: A. 501(c)(1)(b) B. 502(b)(1)(c) C. 501(1)(b)(c) D. 502(c)(1)(B)

D. 502(c)(1)(B) Study Guide, Module 9, Page 13, Learning Objective 4.1, Textbook, p. 362