CBP Benefits Compliance and Regulations 3

Question 1

What is a 'wrap document' in employee benefits compliance?

Accepted Answer

A single ERISA plan document that incorporates multiple benefit programs into one plan

Answer

A wrap document is a master ERISA plan document that wraps around multiple insured benefits (health, dental, vision) to satisfy ERISA's plan document and SPD requirements.

Question 2

Which section of the Internal Revenue Code governs cafeteria plans that allow employees to choose between taxable and non-taxable benefits?

Accepted Answer

Section 125

Answer

IRC Section 125 enables cafeteria plans, allowing employees to choose between taxable cash and non-taxable qualified benefits without the value of non-taxable benefits being included in income.

Question 3

The Pregnancy Discrimination Act (PDA) requires that pregnancy be treated in employee benefits as:

Accepted Answer

A temporary disability, with benefits comparable to other temporary disabilities

Answer

The PDA requires that pregnancy, childbirth, and related conditions be treated the same as other temporary disabilities for all employment purposes, including benefits.

Question 4

Under the Equal Pay Act, fringe benefits provided to employees must be:

Accepted Answer

Equal in value for men and women doing substantially equal work

Answer

The Equal Pay Act requires that fringe benefits, including health insurance and retirement plans, be provided equally in value to male and female employees performing substantially equal work.

Question 5

What is the penalty for failure to provide a Summary of Benefits and Coverage (SBC) to plan enrollees under the ACA?

Accepted Answer

Up to $1,362 per willful failure to provide

Answer

The ACA imposes a penalty of up to $1,362 (indexed for inflation) per willful failure to provide the SBC to applicants and enrollees.

CBP - Certified Benefit Professional Practice Test

CBP - Certified Benefit Professional Practice Test

CBP Benefits Compliance and Regulations 3