Multiple choice

Question 1 

The two methods of vesting under ERISA are:

A. graduated vesting and partial vesting.

B. full vesting and partial vesting.

C. graduated vesting and vesting after five years of employment.

D. partial vesting and vesting after five years of employment.

Question 2 

The employer's retirement plans provide for vesting 

 percent per year, beginning in the third year of employment. An employee who begins employment in 2002 will be fully vested in:

A. 2005.

B. 2007.

C. 2009.

D. 2011.

Question 3

By terminating an employee to prevent him or her from receiving benefits under its retirement plan, an employer is:

A. liable for age discrimination.

B. not liable because employers are not required to establish pension plans.

C. not liable if the employee is at-will.

D. liable for discrimination under ERISA.

Question 4

The Employee Retirement Income Security Act (ERISA) was passed to:

A. require employers to set up pension plans.

B. replace private pension plans with a government plan.

C. establish basic eligibility requirements and assure the soundness of private pension plans.

D. provide a government subsidy to private pension plans.