CBP Legal and Regulatory Compliance in Benefits Administration — Questions and Answers
Question 1: Under the Employee Retirement Income Security Act (ERISA), which requirement must be met by employer-sponsored benefit plans?
- Plans must be funded entirely by employers.
- Employees must be automatically enrolled.
- Plan details must be disclosed to participants. (Correct answer)
- Employees must contribute equally to all benefits.
Correct answer: Plan details must be disclosed to participants.
ERISA mandates that employer-sponsored benefit plans provide plan participants with essential information about the plan's features and funding.
Question 2: What is the purpose of the Consolidated Omnibus Budget Reconciliation Act (COBRA)?
- It mandates equal pay for all employees.
- It guarantees lifetime health benefits for all workers.
- It ensures employees can continue health coverage after job loss. (Correct answer)
- It provides federal subsidies for all employer-sponsored plans.
Correct answer: It ensures employees can continue health coverage after job loss.
COBRA allows employees and their families to continue employer-sponsored health coverage for a limited time after losing their job or experiencing a qualifying event.
Question 3: Which federal law prohibits discrimination in employment benefits based on age?
- The Family and Medical Leave Act (FMLA)
- The Age Discrimination in Employment Act (ADEA) (Correct answer)
- The Equal Pay Act (EPA)
- The Affordable Care Act (ACA)
Correct answer: The Age Discrimination in Employment Act (ADEA)
The Age Discrimination in Employment Act (ADEA) protects employees aged 40 and older from discrimination in hiring, promotions, and benefits.
Question 4: Under the Affordable Care Act (ACA), what must employers with 50 or more full-time employees provide?
- Paid parental leave
- Subsidized retirement plans
- Health insurance coverage (Correct answer)
- Stock options for all employees
Correct answer: Health insurance coverage
The ACA mandates that large employers provide affordable health insurance coverage to full-time employees or face penalties.
Question 5: Which agency enforces compliance with the Family and Medical Leave Act (FMLA)?
- The Social Security Administration (SSA)
- The Equal Employment Opportunity Commission (EEOC)
- The Department of Labor (DOL) (Correct answer)
- The Occupational Safety and Health Administration (OSHA)
Correct answer: The Department of Labor (DOL)
The Department of Labor's Wage and Hour Division is responsible for ensuring compliance with FMLA regulations, which grant eligible employees unpaid leave for qualifying family and medical reasons.
Question 6: What is the purpose of the Health Insurance Portability and Accountability Act (HIPAA) in benefits administration?
- It eliminates pre-existing condition exclusions. (Correct answer)
- It provides free healthcare for unemployed individuals.
- It regulates employer contributions to benefits plans.
- It mandates employer-provided health coverage.
Correct answer: It eliminates pre-existing condition exclusions.
HIPAA protects employees' health information and ensures continuity of coverage when changing jobs.
CBP Legal and Regulatory Compliance in Benefits Administration
Under the Employee Retirement Income Security Act (ERISA), which requirement must be met by employer-sponsored benefit plans?