CPFA EXAM 2026 COMPREHENSIVE
ASSESSMENT SCRIPT SOLVED QUESTIONS
ANSWERS UPDATED REVIEW SET
◉ Identify when plan documents should be updated.
Answer: whenever there is a change in the plan itself, relevant laws
or regulations, or at least every few years to ensure compliance, with
most pre-approved plans requiring an update every six years to
reflect legislative changes and maintain IRS approval
◉ Identify parties-in-interest to the plan.
Answer: • Employer, owners, officers, and certain relatives thereof
• Plan participants
• Fiduciaries, service providers (advisors, TPA, recordkeepers)
◉ Identify Prohibited Transactions and possible fiduciary breach
events.
Answer: PT: Any unauthorized transaction between a plan and a
"party-in-interest" (unless there is a specific exemption)
• Sale, exchange, or lease of property
• Lending of money or credit
• Furnishing goods or services
,• Transfer or use of plan assets
• Holding certain employer securities/real property
Breach = failure to fulfill any
obligation under ERISA
• Prudence, loyalty, diversification,
follow plan documents
• Maintain a plan document
• Provide information to participants
• Government reporting
◉ Identify possible consequences of Prohibited Transactions and
fiduciary breach events.
Answer: • Restore losses (make
plan "whole")
• Removal of fiduciary
• Civil/criminal charges
◉ Explain the DOL role in overseeing plans.
Answer: enforce the Employee Retirement Income Security Act
(ERISA) and PT rules
, Oversees employee benefit plans
◉ Explain how common problems can be corrected using DOL and
IRS correction programs.
Answer: Voluntary Fiduciary Correction Program (VFCP)
• Late 401(k) contributions
• Improper benefit payments
•Improper/excessive fee payments
• Improper payment of fees to a fiduciary
• Improper loan to a party-in-interest
• Asset purchase/sale to/from a party-in-interest
Delinquent Filer Voluntary Compliance Program (DFVCP)
Employee Plan Compliance Resolution System (EPCRS)
◉ Analyze situations for possible Ethics issues under conflicts of
interest.
Answer: Financial interests:
Owning stocks in a company that your organization is considering
doing business with.
Receiving personal gifts or benefits from vendors or clients.
ASSESSMENT SCRIPT SOLVED QUESTIONS
ANSWERS UPDATED REVIEW SET
◉ Identify when plan documents should be updated.
Answer: whenever there is a change in the plan itself, relevant laws
or regulations, or at least every few years to ensure compliance, with
most pre-approved plans requiring an update every six years to
reflect legislative changes and maintain IRS approval
◉ Identify parties-in-interest to the plan.
Answer: • Employer, owners, officers, and certain relatives thereof
• Plan participants
• Fiduciaries, service providers (advisors, TPA, recordkeepers)
◉ Identify Prohibited Transactions and possible fiduciary breach
events.
Answer: PT: Any unauthorized transaction between a plan and a
"party-in-interest" (unless there is a specific exemption)
• Sale, exchange, or lease of property
• Lending of money or credit
• Furnishing goods or services
,• Transfer or use of plan assets
• Holding certain employer securities/real property
Breach = failure to fulfill any
obligation under ERISA
• Prudence, loyalty, diversification,
follow plan documents
• Maintain a plan document
• Provide information to participants
• Government reporting
◉ Identify possible consequences of Prohibited Transactions and
fiduciary breach events.
Answer: • Restore losses (make
plan "whole")
• Removal of fiduciary
• Civil/criminal charges
◉ Explain the DOL role in overseeing plans.
Answer: enforce the Employee Retirement Income Security Act
(ERISA) and PT rules
, Oversees employee benefit plans
◉ Explain how common problems can be corrected using DOL and
IRS correction programs.
Answer: Voluntary Fiduciary Correction Program (VFCP)
• Late 401(k) contributions
• Improper benefit payments
•Improper/excessive fee payments
• Improper payment of fees to a fiduciary
• Improper loan to a party-in-interest
• Asset purchase/sale to/from a party-in-interest
Delinquent Filer Voluntary Compliance Program (DFVCP)
Employee Plan Compliance Resolution System (EPCRS)
◉ Analyze situations for possible Ethics issues under conflicts of
interest.
Answer: Financial interests:
Owning stocks in a company that your organization is considering
doing business with.
Receiving personal gifts or benefits from vendors or clients.
