CEBS RPA 2 LATEST EVALUATION ALL
QUESTIONS AND ANSWERS RATED A+
✔✔Age-weighted profit-sharing plans - ✔✔Defined contribution hybrid plans that
allocate contributions more heavily to older participants
✔✔New comparability plans - ✔✔Defined contribution hybrid plans with separate
allocation groups to provide larger contributions to select participants
✔✔Nondiscrimination testing - ✔✔Complicated for age-weighted profit-sharing plans
and new comparability plans
✔✔Floor-offset plan - ✔✔Hybrid retirement plan with a defined benefit plan and a
defined contribution plan working together
✔✔Lifecycle investment strategy - ✔✔Addresses factors hindering successful individual
retirement planning
✔✔Investor engagement - ✔✔Factor impeding successful individual retirement planning
✔✔Fund choices - ✔✔Factor overwhelming investors in individual retirement planning
✔✔Basic investment knowledge - ✔✔Factor limiting investors in individual retirement
planning
✔✔Interest in investment issues - ✔✔Factor limiting investors in individual retirement
planning
✔✔Targeted-maturity funds - ✔✔Lifecycle funds targeting specific retirement year with
changing asset allocation
✔✔Static-allocation funds - ✔✔Lifecycle funds maintaining defined asset allocation
, ✔✔Risk profile - ✔✔Difference in risk between targeted-maturity and static-allocation
funds
✔✔Asset allocation shifts - ✔✔Difference in asset allocation changes between targeted-
maturity and static-allocation funds
✔✔Allocation monitoring - ✔✔Difference in monitoring between targeted-maturity and
static-allocation funds
✔✔Time horizon - ✔✔Difference in time horizon between targeted-maturity and static-
allocation funds
✔✔Investment methodology - ✔✔Factor to evaluate when choosing a lifecycle fund
provider
✔✔Glide path approach - ✔✔Transition approach with incremental asset allocation
changes
✔✔Tactical approach - ✔✔Transition approach with market timing for asset allocation
changes
✔✔Risk of lifecycle funds - ✔✔Risk of not adjusting portfolio allocations to changing
time horizons or spending needs
✔✔Growth of target-date funds - ✔✔Simplification of retirement investment decisions
and designation as qualified default investment alternative
✔✔Simplification of retirement plan investing - ✔✔Design of TDFs for easy selection
based on retirement date
✔✔Asset allocation glide path - ✔✔Key consideration in evaluating and adopting TDFs
✔✔Passive management strategy - ✔✔Factors to consider when assessing a passive
management strategy
✔✔Active management approach - ✔✔Factors to consider when assessing an active
management approach
✔✔Tactical asset allocation - ✔✔Dynamic asset allocation adjusting portfolio mix based
on short- to intermediate-term market conditions
✔✔Strategic asset allocation - ✔✔Establishing long-term target allocations based on
financial goals and risk tolerance
QUESTIONS AND ANSWERS RATED A+
✔✔Age-weighted profit-sharing plans - ✔✔Defined contribution hybrid plans that
allocate contributions more heavily to older participants
✔✔New comparability plans - ✔✔Defined contribution hybrid plans with separate
allocation groups to provide larger contributions to select participants
✔✔Nondiscrimination testing - ✔✔Complicated for age-weighted profit-sharing plans
and new comparability plans
✔✔Floor-offset plan - ✔✔Hybrid retirement plan with a defined benefit plan and a
defined contribution plan working together
✔✔Lifecycle investment strategy - ✔✔Addresses factors hindering successful individual
retirement planning
✔✔Investor engagement - ✔✔Factor impeding successful individual retirement planning
✔✔Fund choices - ✔✔Factor overwhelming investors in individual retirement planning
✔✔Basic investment knowledge - ✔✔Factor limiting investors in individual retirement
planning
✔✔Interest in investment issues - ✔✔Factor limiting investors in individual retirement
planning
✔✔Targeted-maturity funds - ✔✔Lifecycle funds targeting specific retirement year with
changing asset allocation
✔✔Static-allocation funds - ✔✔Lifecycle funds maintaining defined asset allocation
, ✔✔Risk profile - ✔✔Difference in risk between targeted-maturity and static-allocation
funds
✔✔Asset allocation shifts - ✔✔Difference in asset allocation changes between targeted-
maturity and static-allocation funds
✔✔Allocation monitoring - ✔✔Difference in monitoring between targeted-maturity and
static-allocation funds
✔✔Time horizon - ✔✔Difference in time horizon between targeted-maturity and static-
allocation funds
✔✔Investment methodology - ✔✔Factor to evaluate when choosing a lifecycle fund
provider
✔✔Glide path approach - ✔✔Transition approach with incremental asset allocation
changes
✔✔Tactical approach - ✔✔Transition approach with market timing for asset allocation
changes
✔✔Risk of lifecycle funds - ✔✔Risk of not adjusting portfolio allocations to changing
time horizons or spending needs
✔✔Growth of target-date funds - ✔✔Simplification of retirement investment decisions
and designation as qualified default investment alternative
✔✔Simplification of retirement plan investing - ✔✔Design of TDFs for easy selection
based on retirement date
✔✔Asset allocation glide path - ✔✔Key consideration in evaluating and adopting TDFs
✔✔Passive management strategy - ✔✔Factors to consider when assessing a passive
management strategy
✔✔Active management approach - ✔✔Factors to consider when assessing an active
management approach
✔✔Tactical asset allocation - ✔✔Dynamic asset allocation adjusting portfolio mix based
on short- to intermediate-term market conditions
✔✔Strategic asset allocation - ✔✔Establishing long-term target allocations based on
financial goals and risk tolerance
