The ERISA Act Requires All of the Following Except

question 6

Multiple Choice

The ERISA Act requires all of the following except:

• A)All employees who have worked for more than one year and are over 21 years of age must be offered participation in any company-sponsored retirement plans.
• B)Federal vesting rules must be followed,with a maximum vesting period of 100% at five years,or 20% per year from years 3 through 7.
• C)Employee retirement accounts must be portable.When the employee changes jobs,their retirement funds can be transferred to their new employer or another qualified investment.
• D)Fiduciaries who manage company retirement programs must act under the prudent man concept that says they should use care and diligence when investing retirement funds.
• E)All employers must provide some form of employee retirement system for employees who are over the age of 21 and who request retirement accounts.

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Definitions:

Laissez-faire

An economic system in which transactions between private parties are free from state intervention, including restrictive regulations, taxes, and tariffs.

Capitalist Economy

An economic system where private individuals and business owners control the production, distribution, and exchange of goods and services, typically driven by profit motives.

Central Planning

An economic system where all major production, investment, and allocation decisions are made by the government or a central authority.

Government Ownership

The situation in which assets, enterprises, or industries are owned and operated by the government rather than private individuals or companies.