GBA 3 Practice Exam Comprehensive
Questions (Frequently Tested) with
Verified Answers Graded A+
A global trend taking place in defined contribution retirement plans is: - Answer: A. Greater
reliance on plans with default investments
A pension plan investment carries an expense of 2 %. If the expenses are decreased by 50 basis
points, what will be the new level of expenses? - Answer: D. 1.50%
A person's Social Security primary insurance amount (PIA) is which of the following? - Answer:
E. The worker's monthly retirement benefit at full retirement age
A recent Department of Labor audit quality study showed the percentage of employee benefit
plan audits that had "Unacceptable-Major" deficiencies that adversely affected overall audit
quality. This percentage was approximately: - Answer: D. 40%
A social security totalization agreement might be involved when an employee takes an
international assignment. Which of the following statements best describes the purpose of this
type of agreement? - Answer: C. The agreement provides relief from dual social security
coverage and taxation under both systems and integrates or synchronizes the benefits earned
under more than one system.
An initial Summary Plan Description must be distributed to participants within how many days
after the date the plan becomes subject to Employee Retirement Income Security Act (ERISA)
disclosure requirements? - Answer: E. 120
Approximately how many individuals are working in occupations covered by Social Security? -
Answer: E. 9 out of 10 workers
,At a minimum, if there have been no material changes in the plan, the Employee Retirement
Income Security Act requires employers to prepare and distribute new Summary Plan
Descriptions to participants at least every: - Answer: E. 10 years
Form 5500 and other financial reports statutorily must be kept for a minimum of how many
years after the filing date? - Answer: D. Six
Generally, under best practice standards, how often should an Employee Retirement Income
Security Act investment committee meet? - Answer: Quarterly or twice a year
Group health plans that provide dependent coverage must continue to make such coverage
available to an adult child up to the age of 26. Which of the following statements regarding this
coverage is correct? - Answer: This coverage must be available even if the child is married.
Hospice care benefits available under Medicare are for terminally ill persons who have a life
expectancy of how many months or less? - Answer: Six months
How much are the civil penalties imposed by the Employee Retirement Income Security Act
against certified public accounting (CPA) firms that perform deficient plan audits? - Answer:
Zero
Leaders in the data analytics industry developed a Healthcare Analytics Adoption Model that
has a number of levels of analytics adoption that an organization passes through as it gains
sophistication in using its data to drive improvement. In this model, what is the highest level of
sophistication? - Answer: Personalized medicine and prescriptive analytics
One of the basic disclosure documents required by the Employee Retirement Income Security
Act is the Summary of Benefits and Coverage. It must be presented in a uniform format and
cannot exceed how many double-sided pages? - Answer: 4
, Plan fiduciaries must understand the core difference between "active" and "passive" investment
strategies. Which of the following statements best describes this difference? - Answer: Passive
funds typically seek to match the performance of an index of securities, while active funds
attempt to outperform the market.
Provider network contracts of an administrative services only (ASO) agreement for a self-funded
health plan allow a limited time period for recovering claims that were identified as overpaid.
This period is usually: - Answer: One year
Skilled nursing facility benefits under Medicare Part A are provided only if the beneficiary has
had a hospitalization of at least how many days? - Answer: Seven days
The cost of an administrative claims audit in a self-funded health plan typically will be: - Answer:
Less than 1% of total annual claim spending
The Federal Trade Commission (FTC) case against a medical transcription services company
dealt with the exposure of personal medical information. According to the FTC, the settlement
in this case demonstrated: - Answer: That companies must be held to high standards with
regard to third-party vendor management and oversight when it involves personal information
What is the highest rate at which Social Security benefits can be taxed, depending on the
person's income and tax bracket? - Answer: 85%
The maximum premium that can be paid for a qualified longevity annuity contract is the lesser
of an indexed statutory amount ($125,000 in 2017) or: - Answer: 25% of a participant's
aggregate account balance
Under federal law, the value of benefits provided to an employee's same sex civil union partner:
- Answer: Is not exempt from federal income tax
Questions (Frequently Tested) with
Verified Answers Graded A+
A global trend taking place in defined contribution retirement plans is: - Answer: A. Greater
reliance on plans with default investments
A pension plan investment carries an expense of 2 %. If the expenses are decreased by 50 basis
points, what will be the new level of expenses? - Answer: D. 1.50%
A person's Social Security primary insurance amount (PIA) is which of the following? - Answer:
E. The worker's monthly retirement benefit at full retirement age
A recent Department of Labor audit quality study showed the percentage of employee benefit
plan audits that had "Unacceptable-Major" deficiencies that adversely affected overall audit
quality. This percentage was approximately: - Answer: D. 40%
A social security totalization agreement might be involved when an employee takes an
international assignment. Which of the following statements best describes the purpose of this
type of agreement? - Answer: C. The agreement provides relief from dual social security
coverage and taxation under both systems and integrates or synchronizes the benefits earned
under more than one system.
An initial Summary Plan Description must be distributed to participants within how many days
after the date the plan becomes subject to Employee Retirement Income Security Act (ERISA)
disclosure requirements? - Answer: E. 120
Approximately how many individuals are working in occupations covered by Social Security? -
Answer: E. 9 out of 10 workers
,At a minimum, if there have been no material changes in the plan, the Employee Retirement
Income Security Act requires employers to prepare and distribute new Summary Plan
Descriptions to participants at least every: - Answer: E. 10 years
Form 5500 and other financial reports statutorily must be kept for a minimum of how many
years after the filing date? - Answer: D. Six
Generally, under best practice standards, how often should an Employee Retirement Income
Security Act investment committee meet? - Answer: Quarterly or twice a year
Group health plans that provide dependent coverage must continue to make such coverage
available to an adult child up to the age of 26. Which of the following statements regarding this
coverage is correct? - Answer: This coverage must be available even if the child is married.
Hospice care benefits available under Medicare are for terminally ill persons who have a life
expectancy of how many months or less? - Answer: Six months
How much are the civil penalties imposed by the Employee Retirement Income Security Act
against certified public accounting (CPA) firms that perform deficient plan audits? - Answer:
Zero
Leaders in the data analytics industry developed a Healthcare Analytics Adoption Model that
has a number of levels of analytics adoption that an organization passes through as it gains
sophistication in using its data to drive improvement. In this model, what is the highest level of
sophistication? - Answer: Personalized medicine and prescriptive analytics
One of the basic disclosure documents required by the Employee Retirement Income Security
Act is the Summary of Benefits and Coverage. It must be presented in a uniform format and
cannot exceed how many double-sided pages? - Answer: 4
, Plan fiduciaries must understand the core difference between "active" and "passive" investment
strategies. Which of the following statements best describes this difference? - Answer: Passive
funds typically seek to match the performance of an index of securities, while active funds
attempt to outperform the market.
Provider network contracts of an administrative services only (ASO) agreement for a self-funded
health plan allow a limited time period for recovering claims that were identified as overpaid.
This period is usually: - Answer: One year
Skilled nursing facility benefits under Medicare Part A are provided only if the beneficiary has
had a hospitalization of at least how many days? - Answer: Seven days
The cost of an administrative claims audit in a self-funded health plan typically will be: - Answer:
Less than 1% of total annual claim spending
The Federal Trade Commission (FTC) case against a medical transcription services company
dealt with the exposure of personal medical information. According to the FTC, the settlement
in this case demonstrated: - Answer: That companies must be held to high standards with
regard to third-party vendor management and oversight when it involves personal information
What is the highest rate at which Social Security benefits can be taxed, depending on the
person's income and tax bracket? - Answer: 85%
The maximum premium that can be paid for a qualified longevity annuity contract is the lesser
of an indexed statutory amount ($125,000 in 2017) or: - Answer: 25% of a participant's
aggregate account balance
Under federal law, the value of benefits provided to an employee's same sex civil union partner:
- Answer: Is not exempt from federal income tax
