GBA 3 Practice Exam
1. A global trend taking place in defined contribution retirement plans is:
o CORRECT ANSWER-A. Greater reliance on plans with default investments
2. 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?
o CORRECT ANSWER-D. 1.50%
3. A person's Social Security primary insurance amount (PIA) is which of the
following?
o CORRECT ANSWER-E. The worker's monthly retirement benefit at full
retirement age
4. 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:
o CORRECT ANSWER-D. 40%
5. 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?
o CORRECT 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.
6. 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?
o CORRECT ANSWER-E. 120
7. Approximately how many individuals are working in occupations covered by
Social Security?
, o CORRECT ANSWER-E. 9 out of 10 workers
8. 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:
o CORRECT ANSWER-E. 10 years
9. Form 5500 and other financial reports statutorily must be kept for a
minimum of how many years after the filing date?
o CORRECT ANSWER-D. Six
10. Generally, under best practice standards, how often should an Employee
Retirement Income Security Act investment committee meet?
o CORRECT ANSWER-Quarterly or twice a year
11. 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?
o CORRECT ANSWER-This coverage must be available even if the child is
married.
12. Hospice care benefits available under Medicare are for terminally ill persons
who have a life expectancy of how many months or less?
o CORRECT ANSWER-Six months
13. 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?
o CORRECT ANSWER-Zero
14. 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?
o CORRECT ANSWER-Personalized medicine and prescriptive analytics
1. A global trend taking place in defined contribution retirement plans is:
o CORRECT ANSWER-A. Greater reliance on plans with default investments
2. 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?
o CORRECT ANSWER-D. 1.50%
3. A person's Social Security primary insurance amount (PIA) is which of the
following?
o CORRECT ANSWER-E. The worker's monthly retirement benefit at full
retirement age
4. 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:
o CORRECT ANSWER-D. 40%
5. 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?
o CORRECT 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.
6. 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?
o CORRECT ANSWER-E. 120
7. Approximately how many individuals are working in occupations covered by
Social Security?
, o CORRECT ANSWER-E. 9 out of 10 workers
8. 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:
o CORRECT ANSWER-E. 10 years
9. Form 5500 and other financial reports statutorily must be kept for a
minimum of how many years after the filing date?
o CORRECT ANSWER-D. Six
10. Generally, under best practice standards, how often should an Employee
Retirement Income Security Act investment committee meet?
o CORRECT ANSWER-Quarterly or twice a year
11. 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?
o CORRECT ANSWER-This coverage must be available even if the child is
married.
12. Hospice care benefits available under Medicare are for terminally ill persons
who have a life expectancy of how many months or less?
o CORRECT ANSWER-Six months
13. 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?
o CORRECT ANSWER-Zero
14. 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?
o CORRECT ANSWER-Personalized medicine and prescriptive analytics
