Segregated Funds & Annuities -
Chapter 8 questions and answers
Only the Sponsor can contribute.
(Reference: Chapter 8) - answer Who contributes to a Deferred Profit Sharing
Plan?
Membership Enrollment.
(Reference: Chapter 8) - answer When an employee becomes eligible to
participate in a group plan, what form is required to be completed before all
others?
In regards to group retirement and investment plans, whom is the agent
referring to when they talk about 'the client'? - answer With group retirement
and investment plans, the client is a group sponsor or administrator.
With which aspects of group plans must an agent be familiar? - answer -
Group structure
- Plans available
- Investment options
- Recommendation process
- Group documents
- Service requirements
- Claims process
What is a group plan made of? - answer Sponsor, administrator, and it's
members.
, Whose responsibility is it to make final decisions about a group plan? -
answer Final decisions are the responsibility of the sponsor
What is a group plan considered to have when both sponsor and group
member contribute to it? - answer It is said to have contributory funding.
These can be DBPP, CDPP, GRRSP, and PRPP.
When the sponsor alone contributes, what is the plan considered to be? -
answer Non-contributory DPSP
When can matching contributions be changed or stopped? - answer They can
be changed or stopped at any time if they are not a condition of an
employment contract or a collective bargaining agreement.
If someone changes jobs during the vesting period what happens to
contributions? - answer The employee only retains the contributions he made
(they do no retain the sponsor contributions).
Who can assume the role of administrator for a DCPP? - answer The plan
sponsor, a board of trustees, a financial institution, or a pension committee.
Who is responsible for management of a group pension plan? - answer The
administrator
What is the agent's role during the sale process of a group retirement plan? -
answer To help the sponsor identify available options and create the plan
that best meets its objectives, both for the present and the foreseeable
future.
What does MEPP stand for? - answer Multi-employer Pension Plan
What is a single employer plan? - answer It is a pension for a person who
works for one employer.
Chapter 8 questions and answers
Only the Sponsor can contribute.
(Reference: Chapter 8) - answer Who contributes to a Deferred Profit Sharing
Plan?
Membership Enrollment.
(Reference: Chapter 8) - answer When an employee becomes eligible to
participate in a group plan, what form is required to be completed before all
others?
In regards to group retirement and investment plans, whom is the agent
referring to when they talk about 'the client'? - answer With group retirement
and investment plans, the client is a group sponsor or administrator.
With which aspects of group plans must an agent be familiar? - answer -
Group structure
- Plans available
- Investment options
- Recommendation process
- Group documents
- Service requirements
- Claims process
What is a group plan made of? - answer Sponsor, administrator, and it's
members.
, Whose responsibility is it to make final decisions about a group plan? -
answer Final decisions are the responsibility of the sponsor
What is a group plan considered to have when both sponsor and group
member contribute to it? - answer It is said to have contributory funding.
These can be DBPP, CDPP, GRRSP, and PRPP.
When the sponsor alone contributes, what is the plan considered to be? -
answer Non-contributory DPSP
When can matching contributions be changed or stopped? - answer They can
be changed or stopped at any time if they are not a condition of an
employment contract or a collective bargaining agreement.
If someone changes jobs during the vesting period what happens to
contributions? - answer The employee only retains the contributions he made
(they do no retain the sponsor contributions).
Who can assume the role of administrator for a DCPP? - answer The plan
sponsor, a board of trustees, a financial institution, or a pension committee.
Who is responsible for management of a group pension plan? - answer The
administrator
What is the agent's role during the sale process of a group retirement plan? -
answer To help the sponsor identify available options and create the plan
that best meets its objectives, both for the present and the foreseeable
future.
What does MEPP stand for? - answer Multi-employer Pension Plan
What is a single employer plan? - answer It is a pension for a person who
works for one employer.
