CPFA License Exam- (Certified Plan Fiduciary Advisor) (Online Practice Questions) with Ans, Exams of Nursing

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CPFA License Exam- (Certified Plan Fiduciary Advisor) (Online Practice Questions) with Answers.

What are the 4 basic fiduciary standards under the Fiduciary Standard of Care? (Section 404) 1.) Loyalty - (Exclusive purpose rule - Providing benefits to participants and their beneficiaries; and defraying reasonable expenses of administering the plan) 2.) Prudence - (Act with prudence by investigating before making any plan decisions, documenting the decision-making process, hiring experts when they don't possess the knowledge or skills to make a decision, and monitoring if their decisions are still ideal based on the exclusive purpose rule and taking action if not 3.) Diversification - (Diversify investment in a prudent manner in order to minimize risk; Investment factors may include purpose of plan, amount of assets, investment acumen of the participants and participant demographics 4.) Following the plan's governing documents - (Follow plan documents to the extent that they are not contrary to ERISA rules) How many fiduciaries does a retirement plan? All retirement plans have one or more fiduciaries Plan fiduciaries have a legal obligation to operate the plan on behalf of ...? (Primary rule of ERISA) Plan participants and their beneficiaries, and not on behalf of owners, the employer, or key employees Who will almost always be a fiduciary to the plan? 1.) Plan Sponsor 2.) Plan Trustee 3.) Plan Administrator Which of these statements about personal liability is true?

Classify the task as the responsibility of a plan administrator or a trustee - Provide Participant Benefit Statements? Plan Administrator Classify the task as the responsibility of a plan administrator or a trustee - Pursue monies owed to the plan? Trustee Classify the task as the responsibility of a plan administrator or a trustee - Serve as a member of an investment committee? Trustee If plan trustee or/and plan administrator are not named in the Plan Document then who assumes their roles? Plan Sponsor What is best practice for a service provider's formal description of services? 1.) An acknowledgement of fiduciary status 2.) Clarification as to the extent of responsibilities Describe the best practice process for changing a plan fiduciary? The selection should be made according to the plan document and other governing plan documents. The committee should document changes in the committee meeting minutes and make sure new members have been apprised of their responsibilities as committee members

Your plan client asks you to provide recommendations about adding or replacing specific investments in the line-up. If you are working a s anon-fiduciary Advisor, what can you do without becoming an inadvertent fiduciary? 1.) Present several possible investments to replace the investment in the line-up for the Retirement Plan Committee consideration 2.) Tell the client that your recommendation is general guidance Company X's CFO was fired and a new CFO was hired. The name of the former CFO was specified as the Plan Administrator in the plan document. The new CFO agrees to take on the same roles as the former CFO. Describe the process for implementing this change? The Plan Sponsor should work with the document service provider and/or ERISA counsel to amend the plan document to reflect the changes in the fiuciaries What are a TPA's functions?

• Determine vesting and distribution amounts
• Assure plan operation is in compliance with Plan Administration and the plan document
• Prepare plan amendment What are a Recordkeepers functions?
• Create required notices
• Prepare 5500
• Store employee investment elections
• Track and invest participant contributions
• Process distributions
• Prepare plan amendment What are an ERISA Attorney functions?

Can my TPA serve as a fiduciary with regard to the plan's operation? 1.) It depends on the service agreement you have with your TPA. You should check with your TPA 2.) You can determine if your TPA can act in a fiduciary capacity by asking if they provide 3(16) Plan Administrator services