South Carolina Life and Health Practice Exam

Which of the following is NOT a requirement under ERISA for pension plans?

1. Providing participants with plan information

2. Paying for health insurance coverage

3. Establishing a grievance and appeals process

4. Fiduciary responsibilities for plan assets

The correct answer is: Paying for health insurance coverage

Under the Employee Retirement Income Security Act (ERISA), certain requirements are established to ensure the protection of participants in pension and benefit plans. One of these requirements includes providing participants with important information about their plan. This includes details on benefits, rights, and obligations associated with the pension plan. Additionally, ERISA mandates that plans implement a grievance and appeals process, allowing participants to resolve disputes regarding their benefits. Fiduciary responsibilities are also a key aspect of ERISA, placing an obligation on plan fiduciaries to act in the best interest of plan participants and with prudence when handling plan assets. These responsibilities ensure accountability and protect the assets intended for participants’ retirement. However, while ERISA governs pension plans, it does not require pension plans to pay for health insurance coverage. Health insurance provides different types of benefits and is governed under a different set of regulations. Therefore, the requirement of paying for health insurance coverage does not fall under the purview of ERISA for pension plans, making this the correct choice for the question posed.