Kentucky Health Insurance Practice Exam

Under the Age Discrimination in Employment Act, what will an individual younger than 65 receive in retiree health benefits each year?

1. One-fourth of the benefits required under the Social Security Act.

2. At least 10,000.

3. At least the value of the Social Security benefits.

4. The minimum established by the employer.

The correct answer is: At least the value of the Social Security benefits.

The correct answer is that an individual younger than 65 will receive at least the value of the Social Security benefits in retiree health benefits each year under the Age Discrimination in Employment Act (ADEA). This legislation is designed to protect individuals from age-based discrimination in various aspects of employment, including benefits. The ADEA stipulates that when employers offer health benefits to retirees, they cannot discriminate based on age regarding those benefits. Therefore, individuals who are younger than 65 and eligible for retiree health benefits should receive a minimum that mirrors the Social Security benefits. This ensures that younger retirees have access to a level of benefits that is compliant with federal guidelines and equitable across age groups. In contrast, other options do not accurately reflect the provisions set forth by the ADEA, as one-fourth of benefits under the Social Security Act, a specific monetary amount like 10,000, or a minimum defined solely by the employer do not align with the standardized benefits tied to Social Security. Understanding this context helps in grasping the intention behind the legislation and ensures fairness in health benefit offerings for retirees of varying ages.