CEBS: GBA/RPA 3 (NEW CURRICULUM) EXAM PREP
2026/2027 | HIGH-YIELD PRACTICE QUESTIONS and
VERI
1. According to the new CEBS GBA/RPA 3 curriculum, what is a primary
focus of the course "Navigating the Plan Environment"?
A) Detailed investment portfolio construction strategies
B) How plan sponsors are influenced by compensation systems and social
security programs
C) Human resource recruitment and retention techniques
D) International accounting standards for pensions
Correct Answer: B
Rationale: The revised course focuses on the "context" in which plan
sponsors operate, highlighting the impact of compensation strategy and
social insurance/government-sponsored programs.
2. Which of the following is a key element of optimizing social programs
in retirement and health security planning, as covered in the updated
curriculum?
A) Focusing solely on employer-sponsored benefits
,
B) Understanding the interplay between government-sponsored benefits
and workplace plans
C) Eliminating all risk from the investment portfolio
D) Relying exclusively on defined benefit plans
Correct Answer: B
Rationale: The course teaches how to optimize the relationship between
company benefits and government programs for better overall security.
3. A plan sponsor is developing a retirement income strategy. Which of
the following is considered a Retirement Income Generator (RIG)?
A) A systematic withdrawal plan (SWP)
B) A stock option plan
C) A health savings account (HSA)
D) A group term life insurance policy
,
Correct Answer: A
Rationale: RIGs are designed to convert accumulated assets into a steady
income stream. Examples include systematic withdrawal plans,
guaranteed lifetime annuities, and temporary payouts to bridge to Social
Security.
4. A plan fiduciary is considering adding annuities as a distribution
option. What is a critical step in the due diligence process?
A) Selecting the annuity provider with the lowest cost
B) Documenting the conclusions on how the annuity provider meets the
criteria outlined in regulations
C) Guaranteeing the annuity's rate of return to participants
D) Relying on the insurance company's rating without further review
Correct Answer: B
Rationale: Fiduciaries must document the process and rationale for
selecting an annuity provider, ensuring it meets regulatory standards and
fiduciary duties.
5. What is a primary characteristic of a Closed-End Fund?
A) They continuously issue and redeem shares
,
B) They generally do not redeem shares; investors sell on the open
market
C) They are the same as ETFs
D) They are a type of collective investment trust
Correct Answer: B
Rationale: Unlike open-end mutual funds, closed-end funds generally do
not redeem shares from investors, who must sell on the secondary
market. This can present a problem for participant-directed plans.
6. What is a key concern associated with using "White Label" funds in a
retirement plan?
A) They are not subject to any investment regulations
B) They can be more expensive and burdensome due to higher
recordkeeping and audit fees
C) They are only available to large, Fortune 500 companies
2026/2027 | HIGH-YIELD PRACTICE QUESTIONS and
VERI
1. According to the new CEBS GBA/RPA 3 curriculum, what is a primary
focus of the course "Navigating the Plan Environment"?
A) Detailed investment portfolio construction strategies
B) How plan sponsors are influenced by compensation systems and social
security programs
C) Human resource recruitment and retention techniques
D) International accounting standards for pensions
Correct Answer: B
Rationale: The revised course focuses on the "context" in which plan
sponsors operate, highlighting the impact of compensation strategy and
social insurance/government-sponsored programs.
2. Which of the following is a key element of optimizing social programs
in retirement and health security planning, as covered in the updated
curriculum?
A) Focusing solely on employer-sponsored benefits
,
B) Understanding the interplay between government-sponsored benefits
and workplace plans
C) Eliminating all risk from the investment portfolio
D) Relying exclusively on defined benefit plans
Correct Answer: B
Rationale: The course teaches how to optimize the relationship between
company benefits and government programs for better overall security.
3. A plan sponsor is developing a retirement income strategy. Which of
the following is considered a Retirement Income Generator (RIG)?
A) A systematic withdrawal plan (SWP)
B) A stock option plan
C) A health savings account (HSA)
D) A group term life insurance policy
,
Correct Answer: A
Rationale: RIGs are designed to convert accumulated assets into a steady
income stream. Examples include systematic withdrawal plans,
guaranteed lifetime annuities, and temporary payouts to bridge to Social
Security.
4. A plan fiduciary is considering adding annuities as a distribution
option. What is a critical step in the due diligence process?
A) Selecting the annuity provider with the lowest cost
B) Documenting the conclusions on how the annuity provider meets the
criteria outlined in regulations
C) Guaranteeing the annuity's rate of return to participants
D) Relying on the insurance company's rating without further review
Correct Answer: B
Rationale: Fiduciaries must document the process and rationale for
selecting an annuity provider, ensuring it meets regulatory standards and
fiduciary duties.
5. What is a primary characteristic of a Closed-End Fund?
A) They continuously issue and redeem shares
,
B) They generally do not redeem shares; investors sell on the open
market
C) They are the same as ETFs
D) They are a type of collective investment trust
Correct Answer: B
Rationale: Unlike open-end mutual funds, closed-end funds generally do
not redeem shares from investors, who must sell on the secondary
market. This can present a problem for participant-directed plans.
6. What is a key concern associated with using "White Label" funds in a
retirement plan?
A) They are not subject to any investment regulations
B) They can be more expensive and burdensome due to higher
recordkeeping and audit fees
C) They are only available to large, Fortune 500 companies
