Trivia Quiz On Employee Retirement Income Security Act Rules

17 Questions | Total Attempts: 74

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Trivia Quiz On Employee Retirement Income Security Act Rules

Below is a trivia quiz on employee retirement income security act rules. It is important for everyone to know what is due to them when they go into retirement either from their employer or the government and the Act was designed to protect them. Do take the test and see if you understand all its provisions. All the best!


Questions and Answers
  • 1. 
    The fiduciary duty provisions of ERISA are found in:
    • A. 

      Title I

    • B. 

      Title II

    • C. 

      Title III

    • D. 

      Title IV

  • 2. 
    As used in Title I of ERISA, a "pension plan" means any plan, fund, or program that:
    • A. 

      Provides benefits to union employees following termination of employment

    • B. 

      Provides retirement income to employees.

    • C. 

      Results in a deferral of income until the termination of employment or beyond

    • D. 

      B and C

  • 3. 
    As used in Title I of ERISA, a "welfare plan" means any plan, fund, or program that:
    • A. 

      Medical benefits

    • B. 

      Benefits in the event of sickness, accident, death or disability

    • C. 

      Vacation benefits

    • D. 

      All of the above

  • 4. 
    True or false - For the purposes of Title I, individual employment agreements providing for post-retirement compensation generally have been held not to plan.
    • A. 

      True

    • B. 

      False

  • 5. 
    The following is a type of plan that is maintained to provide benefits in excess of the maximum benefits permitted under Section 415 of the IRC (limits on benefits and contributions for tax-qualified retirement plans):
    • A. 

      Excess benefit plan

    • B. 

      Keogh plan

    • C. 

      Non-qualifed deferred compensation plan

    • D. 

      Cafeteria plan

  • 6. 
    True or false - excess benefit plans are subject to Title I of ERISA.
    • A. 

      True

    • B. 

      False

  • 7. 
    Plans that are unfunded plans maintained by an employer primarily for the purpose of providing deferred compensation for a select group of management or highly compensated employees are sometimes called:
    • A. 

      Keogh plans

    • B. 

      Top hat plans

    • C. 

      Welfare plans

    • D. 

      Profit sharing plans

  • 8. 
    Are severance payments considered welfare plans for the purposes of Title I?
    • A. 

      No

    • B. 

      Yes

    • C. 

      It depends on the amount of severance payments the plan provides for

    • D. 

      It depends on whether the plan is administered or requires individual benefit determinations

  • 9. 
    Is a policy or practice of paying terminated employees for unused vacation time a welfare plan?
    • A. 

      Yes

    • B. 

      No

    • C. 

      It depends on the amount of unused vacation that employees are permitted to accrue

    • D. 

      It depends on whether the plan is administered or requires individual determinations

  • 10. 
    A Keogh plan -
    • A. 

      Covers highly compensated individuals

    • B. 

      Covers employees

    • C. 

      Covers self-employed individuals

    • D. 

      Covers named executive officers

  • 11. 
    A _____________ trust is established to pay benefits to employees under a nonqualified deferred compensation plan or arrangement. 
  • 12. 
    Under ERISA, a person is a fiduciary to the extent that the person:
    • A. 

      Exercises discretionary authority or control respecting management of a plan or management or disposition of its assets

    • B. 

      Renders or has authority or responsilibty to render investment advice for a fee

    • C. 

      Has discretionary authority tor responsibility in the administration of a plan

    • D. 

      All of the above

  • 13. 
    True or false - a person's title and office govern the legal designation of a plan fiduciary. 
    • A. 

      True

    • B. 

      False

  • 14. 
    True or false - the following are all examples of "fiduciary functions" - selecting and monitoring other plan fiduciaries, selecting and monitoring third-party service providers, exercising discretion in denying or approving benefit claims, selecting and monitoring plan investments, and interpreting plan provisions.
    • A. 

      True

    • B. 

      False

  • 15. 
    Which of the following are not "fiduciary functions"?
    • A. 

      Deciding to establish, amend, or terminate a plan

    • B. 

      Deciding to include certain features in a plan (designing a plan)

    • C. 

      Deciding to provide benefits to a participant based on the terms of the plan

    • D. 

      A and B

  • 16. 
    True or false - attorneys and accountants who render advice to an employee benefit plan are plan fiduciaries -
    • A. 

      True

    • B. 

      False

    • C. 

      It depends on the type of advice or services rendered

  • 17. 
    True or false - where an employer maintains a plan, the employer's directors are fiduciaries with respect to the plan -
    • A. 

      True

    • B. 

      False

    • C. 

      Only to the extent they perform fiduciary functions

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