NAPA CPFA Certification Exam
(Certified Plan Fiduciary Advisor)
2026/2027 | Certified Plan Fiduciary
Advisor | Verified Questions &
Answers | Grade A
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?
*All fiduciaries have personal liability
What does it meant to be a plan fiduciary? It means you have the responsibility to...?
1.) Act prudently
2.) Operate the plan according to the plan document
3.) Act exclusively in the interests of the plan participants and beneficiaries
4.) Run the plan for the exclusive purposes of providing benefits and paying plan expenses
Which of the following is a fiduciary duty under ERISA?
*Following the plan's governing documents
I have other people working as the Trustee and Plan Administrator. As the Plan Sponsor, what are
my fiduciary duties to the plan?
1.) Prudently select and monitor one or more named fiduciaries to operate the plan
2.) Maintain plan records
(Certified Plan Fiduciary Advisor)
2026/2027 | Certified Plan Fiduciary
Advisor | Verified Questions &
Answers | Grade A
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?
*All fiduciaries have personal liability
What does it meant to be a plan fiduciary? It means you have the responsibility to...?
1.) Act prudently
2.) Operate the plan according to the plan document
3.) Act exclusively in the interests of the plan participants and beneficiaries
4.) Run the plan for the exclusive purposes of providing benefits and paying plan expenses
Which of the following is a fiduciary duty under ERISA?
*Following the plan's governing documents
I have other people working as the Trustee and Plan Administrator. As the Plan Sponsor, what are
my fiduciary duties to the plan?
1.) Prudently select and monitor one or more named fiduciaries to operate the plan
2.) Maintain plan records
