CBP Benefits Compliance and Regulations 2 — Questions and Answers
Question 1: Which law requires employers with 100 or more employees to provide 60 days advance notice before a plant closing or mass layoff?
- ERISA
- WARN Act (Correct answer)
- FMLA
- ADEA
Correct answer: WARN Act
The Worker Adjustment and Retraining Notification (WARN) Act requires covered employers to give 60 calendar days advance notice before mass layoffs or plant closings.
Question 2: Under the Age Discrimination in Employment Act (ADEA), employees over what age are protected from benefits discrimination?
- 40 (Correct answer)
- 50
- 55
- 60
Correct answer: 40
The ADEA protects individuals who are 40 years of age or older from employment discrimination, including discrimination in employee benefits.
Question 3: What is a Special Enrollment Period (SEP) under HIPAA for group health plans?
- Open enrollment for the following plan year
- A period triggered by a qualifying life event allowing mid-year enrollment (Correct answer)
- Annual re-enrollment for FSA elections
- COBRA election period after termination
Correct answer: A period triggered by a qualifying life event allowing mid-year enrollment
HIPAA requires group health plans to allow special enrollment periods when employees experience qualifying events such as marriage, birth, adoption, or loss of other coverage.
Question 4: Which compliance obligation requires employers subject to Section 6056 to annually report health coverage information to the IRS and covered individuals?
- Form 5500 filing
- ACA Employer Reporting on Forms 1094-C and 1095-C (Correct answer)
- COBRA election notice
- ERISA Summary Annual Report
Correct answer: ACA Employer Reporting on Forms 1094-C and 1095-C
Under ACA Section 6056, applicable large employers must file Forms 1094-C (transmittal) and 1095-C (individual statement) reporting whether they offered minimum essential coverage.
Question 5: What does ERISA's claims and appeals regulation require plan administrators to do when a claim is denied?
- Immediately pay the claim and investigate later
- Provide a written explanation of denial and opportunity for full and fair review (Correct answer)
- Refer the claim to the DOL within 30 days
- File a Form 5500 amendment
Correct answer: Provide a written explanation of denial and opportunity for full and fair review
ERISA requires plan administrators to provide written denial notices stating specific reasons for denial and to give claimants the right to a full and fair review of the denial.
Question 6: Under USERRA, returning veterans must be reinstated to their employee benefit plans as if they had been continuously employed, within what general principle?
- No reinstatement required — they must re-enroll as new hires
- Immediate reinstatement without waiting periods or exclusions for service-related conditions (Correct answer)
- Reinstatement after a 30-day waiting period
- Reinstatement only if they were employed for at least 2 years before service
Correct answer: Immediate reinstatement without waiting periods or exclusions for service-related conditions
USERRA requires employers to reinstate returning veterans to benefit plans immediately, with no new waiting periods or exclusions for conditions that arose during military service.
CBP Benefits Compliance and Regulations 2
Which law requires employers with 100 or more employees to provide 60 days advance notice before a plant closing or mass layoff?