NAPA CPFA CERTIFICATION EXAM - NATIONAL ASSOCIATION OF PLAN ADVISORS CERTIFIED PLAN
FIDUCIARY ADVISOR - 2026/2027 EDITION - QUESTIONS AND ANSWERS ALREADY GRADED A+| 100%
VERIFIED SOLUTIONS………...
Core Domains
ERISA Fiduciary Fundamentals and Statutory Framework
Plan Governance and Committee Oversight Structures
Investment Fiduciary Responsibilities and Duty of Prudence
Participant Outcomes, Retirement Readiness, and Education
Plan Fees, Compensation, and Service Provider Evaluation
Regulatory Compliance, Risk Management, and Corrective Programs
Qualified Default Investment Alternatives (QDIAs) and Automatic Enrollment
Ethics, Professional Standards, and the ARA Code of Conduct
Retirement Plan Operations, Administration, and Documentation
Fiduciary Decision-Making, Liability Mitigation, and Case Analysis
Introduction
,This comprehensive examination is designed to assess the knowledge and competencies required for the National
Association of Plan Advisors (NAPA) Certified Plan Fiduciary Advisor (CPFA®) credential, as established by the
American Retirement Association. The exam evaluates understanding of ERISA fiduciary standards, plan
governance, investment management, participant communication, regulatory compliance, fee evaluation, and
ethical responsibilities. Questions are structured as multiple-choice and scenario-based items that require critical
thinking, application of statutory and regulatory requirements, and sound professional judgment. Emphasis is
placed on real-world fiduciary decision-making, risk management, participant outcome optimization, and
compliance with the ARA Code of Professional Conduct to ensure the delivery of high-quality retirement plan
advisory services.
SECTION ONE: QUESTIONS 1–100
Question 1
Under ERISA Section 3(21)(A), a person is considered a fiduciary to the extent they exercise which type of
authority or control over a retirement plan?
A. Ministerial or administrative functions without discretion
B. Any discretionary authority or control over plan management or assets, or renders investment advice for a fee
C. Only when specifically named in the plan document as a fiduciary
D. Only when they have signed a formal fiduciary acknowledgment letter
,🟢B
🔴 RATIONALE: Under ERISA Section 3(21)(A), a person is a fiduciary to the extent they exercise any
discretionary authority or control over plan management or assets, or render investment advice for a fee.
Ministerial functions without discretion do not confer fiduciary status.
Question 2
Which of the following is NOT one of the four basic fiduciary standards under the ERISA Fiduciary Standard of
Care?
A. Loyalty to plan participants and beneficiaries
B. Prudence in decision-making
C. Maximization of plan sponsor profits
D. Diversification of plan investments
🟢C
🔴 RATIONALE: The four basic fiduciary standards are loyalty (exclusive purpose rule), prudence, diversification,
and following the plan document. Maximization of plan sponsor profits is not a fiduciary standard; fiduciaries
must act exclusively for the benefit of participants and beneficiaries.
Question 3
, A plan sponsor is considering hiring a third-party administrator (TPA) to handle daily plan operations. Which
statement correctly describes the fiduciary status of a TPA?
A. A TPA is always a fiduciary because they handle plan assets
B. A TPA is typically not a fiduciary when performing ministerial functions without discretion
C. A TPA cannot be a fiduciary under any circumstances
D. A TPA automatically becomes a fiduciary by signing a service agreement
🟢B
🔴 RATIONALE: Third-party administrators performing ministerial or administrative functions without
discretionary authority are typically not considered fiduciaries. However, if a TPA exercises discretion over plan
management or assets, fiduciary status may attach.
Question 4
The ERISA "Exclusive Purpose Rule" requires that fiduciaries act for which primary purpose?
A. To maximize returns for the plan sponsor
B. To provide benefits to participants and their beneficiaries and defray reasonable expenses of administering
the plan
C. To minimize the plan sponsor's contribution costs
D. To achieve the highest possible investment returns regardless of risk
🟢B
FIDUCIARY ADVISOR - 2026/2027 EDITION - QUESTIONS AND ANSWERS ALREADY GRADED A+| 100%
VERIFIED SOLUTIONS………...
Core Domains
ERISA Fiduciary Fundamentals and Statutory Framework
Plan Governance and Committee Oversight Structures
Investment Fiduciary Responsibilities and Duty of Prudence
Participant Outcomes, Retirement Readiness, and Education
Plan Fees, Compensation, and Service Provider Evaluation
Regulatory Compliance, Risk Management, and Corrective Programs
Qualified Default Investment Alternatives (QDIAs) and Automatic Enrollment
Ethics, Professional Standards, and the ARA Code of Conduct
Retirement Plan Operations, Administration, and Documentation
Fiduciary Decision-Making, Liability Mitigation, and Case Analysis
Introduction
,This comprehensive examination is designed to assess the knowledge and competencies required for the National
Association of Plan Advisors (NAPA) Certified Plan Fiduciary Advisor (CPFA®) credential, as established by the
American Retirement Association. The exam evaluates understanding of ERISA fiduciary standards, plan
governance, investment management, participant communication, regulatory compliance, fee evaluation, and
ethical responsibilities. Questions are structured as multiple-choice and scenario-based items that require critical
thinking, application of statutory and regulatory requirements, and sound professional judgment. Emphasis is
placed on real-world fiduciary decision-making, risk management, participant outcome optimization, and
compliance with the ARA Code of Professional Conduct to ensure the delivery of high-quality retirement plan
advisory services.
SECTION ONE: QUESTIONS 1–100
Question 1
Under ERISA Section 3(21)(A), a person is considered a fiduciary to the extent they exercise which type of
authority or control over a retirement plan?
A. Ministerial or administrative functions without discretion
B. Any discretionary authority or control over plan management or assets, or renders investment advice for a fee
C. Only when specifically named in the plan document as a fiduciary
D. Only when they have signed a formal fiduciary acknowledgment letter
,🟢B
🔴 RATIONALE: Under ERISA Section 3(21)(A), a person is a fiduciary to the extent they exercise any
discretionary authority or control over plan management or assets, or render investment advice for a fee.
Ministerial functions without discretion do not confer fiduciary status.
Question 2
Which of the following is NOT one of the four basic fiduciary standards under the ERISA Fiduciary Standard of
Care?
A. Loyalty to plan participants and beneficiaries
B. Prudence in decision-making
C. Maximization of plan sponsor profits
D. Diversification of plan investments
🟢C
🔴 RATIONALE: The four basic fiduciary standards are loyalty (exclusive purpose rule), prudence, diversification,
and following the plan document. Maximization of plan sponsor profits is not a fiduciary standard; fiduciaries
must act exclusively for the benefit of participants and beneficiaries.
Question 3
, A plan sponsor is considering hiring a third-party administrator (TPA) to handle daily plan operations. Which
statement correctly describes the fiduciary status of a TPA?
A. A TPA is always a fiduciary because they handle plan assets
B. A TPA is typically not a fiduciary when performing ministerial functions without discretion
C. A TPA cannot be a fiduciary under any circumstances
D. A TPA automatically becomes a fiduciary by signing a service agreement
🟢B
🔴 RATIONALE: Third-party administrators performing ministerial or administrative functions without
discretionary authority are typically not considered fiduciaries. However, if a TPA exercises discretion over plan
management or assets, fiduciary status may attach.
Question 4
The ERISA "Exclusive Purpose Rule" requires that fiduciaries act for which primary purpose?
A. To maximize returns for the plan sponsor
B. To provide benefits to participants and their beneficiaries and defray reasonable expenses of administering
the plan
C. To minimize the plan sponsor's contribution costs
D. To achieve the highest possible investment returns regardless of risk
🟢B
