Which statement regarding the Age Discrimination in Employment Act (ADEA) on group term life insurance benefits after age 65 is NOT true?

Prepare for the Certified Employee Benefit Specialist (CEBS) Group Benefits Associate (GBA) 2 Exam. Study with comprehensive flashcards and multiple choice questions. Each question provides detailed hints and explanations to ensure success!

The statement regarding the Age Discrimination in Employment Act (ADEA) that is not true is that an employer generally may terminate life insurance coverage for active employees at age 70. The ADEA prohibits age-based discrimination in employment practices, which includes benefits packages. Under the ADEA, it is unlawful for an employer to terminate group term life insurance coverage solely based on an employee's age.

While there can be certain reductions in benefits, particularly for active employees over age 65 regarding group term life insurance, outright termination of coverage at age 70 does not align with the protections afforded under the ADEA. This age-related coverage must be approached carefully to maintain compliance with the law, and actions taken must still uphold the principles of non-discrimination and fairness.

The other statements about coverage reductions and adjustments can be permissible under specific circumstances set forth by the ADEA, as they may involve gradual and reasonable adjustments rather than outright termination of benefits based solely on age.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy