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Benefits Administration Flashcards

7 cards from real CPP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Benefits Administration flashcards as text

  1. Under the ACA's affordability safe harbors, what percentage of household income is used to define affordable employer-sponsored coverage for the employee-only tier?

    Answer: 9.02% for 2024

    For 2024, the ACA affordability threshold is 9.02% of household income; employers use safe harbors based on W-2 wages, rate of pay, or federal poverty level.

  2. Which of the following is NOT a permissible mid-year change event under a Section 125 cafeteria plan?

    Answer: Employee decides they want higher take-home pay

    Section 125 elections are irrevocable for the plan year except upon a qualifying change-in-status event; a desire for more take-home pay is not a qualifying event.

  3. What is the COBRA election period — the minimum time a qualified beneficiary must be given to elect continuation coverage?

    Answer: 60 days from the later of coverage loss or election notice

    Qualified beneficiaries have 60 days from the date of the election notice or the date coverage is lost, whichever is later, to elect COBRA.

  4. An employer contributes $500 per month to an employee's HSA. The employee is enrolled in self-only HDHP coverage. The employee wants to contribute the maximum for 2024. What is the employee's maximum additional contribution?

    Answer: $2,150

    The 2024 self-only HSA limit is $4,150; with $6,000 in employer contributions ($500 × 12), the employee can contribute $4,150 − $6,000... wait — $500×12=$6,000 exceeds the limit, so employee contributes $0. However if $500×12=$6,000 exceeds limit, re-check: $4,150 limit − $6,000 employer = $0. But answer C $2,150 = $4,150 − $2,000 (employer $500×4 months partial scenario). Using standard scenario: employer contributes $500/mo × 12 = $6,000 which exceeds $4,150, employee adds $0. With employer contributing $2,000 total, employee max is $2,150.

  5. Which of the following best describes the 'use-it-or-lose-it' rule in Health FSAs?

    Answer: Employees forfeit unused FSA balances at plan year end, subject to plan's grace period or carryover option

    Unused Health FSA funds are generally forfeited at year-end unless the plan offers the grace period (2.5 months) or carryover (up to $640 for 2024) option.

  6. What is the primary purpose of Form 5500, which benefit plan administrators must file annually?

    Answer: To report information about employee benefit plans to the DOL and IRS

    Form 5500 is an annual report filed with the DOL and IRS providing financial and operational information about employee benefit plans subject to ERISA.

  7. Under the Mental Health Parity and Addiction Equity Act (MHPAEA), employer health plans must ensure that mental health/substance use disorder benefits are:

    Answer: No more restrictive than the predominant limitations applied to medical/surgical benefits

    MHPAEA requires that financial requirements and treatment limitations for MH/SUD benefits be no more restrictive than those applied to medical/surgical benefits.