CPFA License Exam- (Certified Plan Fiduciary Advisor) (Online Practice Qu
tions)
1. What are the 4 basic fiduciary standards 1.) Loyalty - (Exclusive purpose rule - Provid-
under the Fiduciary Standard of Care? ing benefits to participants and their benefi-
(Section 404) ciaries; and defraying reasonable expenses of
administering the plan)
2.) Prudence - (Act with prudence by inves-
tigating 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 tak-
ing action if not
3.) Diversification - (Diversify investment in a
prudent manner in order to minimize risk; In-
vestment 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)
2. How many fiduciaries does a retirement All retirement plans have one or more fiducia-
plan? ries
3. Plan fiduciaries have a legal obligation to Plan participants and their beneficiaries, and
operate the plan on behalf of ...? (Primary not on behalf of owners, the employer, or key
rule of ERISA) employees
4. Who will almost always be a fiduciary to 1.) Plan Sponsor
the plan? 2.) Plan Trustee
3.) Plan Administrator
1/6
, CPFA License Exam- (Certified Plan Fiduciary Advisor) (Online Practice Qu
tions)
5. Which of these statements about person- *All fiduciaries have personal liability
al liability is true?
6. What does it meant to be a plan fiduciary? 1.) Act prudently
It means you have the responsibility to...? 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
7. Which of the following is a fiduciary duty *Following the plan's governing documents
under ERISA?
8. I have other people working as the 1.) Prudently select and monitor one or more
Trustee and Plan Administrator. As the named fiduciaries to operate the plan
Plan Sponsor, what are my fiduciary duties 2.) Maintain plan records
to the plan?
9. Classify the task as the responsibility of a Plan Administrator
plan administrator or a trustee - File Form
5500?
10. Classify the task as the responsibility of a Trustee
plan administrator or a trustee - Prudent-
ly select and monitor investment man-
agers?
11. Classify the task as the responsibility of a Plan Administrator
plan administrator or a trustee - Provide
participant fee disclosures?
2/6
tions)
1. What are the 4 basic fiduciary standards 1.) Loyalty - (Exclusive purpose rule - Provid-
under the Fiduciary Standard of Care? ing benefits to participants and their benefi-
(Section 404) ciaries; and defraying reasonable expenses of
administering the plan)
2.) Prudence - (Act with prudence by inves-
tigating 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 tak-
ing action if not
3.) Diversification - (Diversify investment in a
prudent manner in order to minimize risk; In-
vestment 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)
2. How many fiduciaries does a retirement All retirement plans have one or more fiducia-
plan? ries
3. Plan fiduciaries have a legal obligation to Plan participants and their beneficiaries, and
operate the plan on behalf of ...? (Primary not on behalf of owners, the employer, or key
rule of ERISA) employees
4. Who will almost always be a fiduciary to 1.) Plan Sponsor
the plan? 2.) Plan Trustee
3.) Plan Administrator
1/6
, CPFA License Exam- (Certified Plan Fiduciary Advisor) (Online Practice Qu
tions)
5. Which of these statements about person- *All fiduciaries have personal liability
al liability is true?
6. What does it meant to be a plan fiduciary? 1.) Act prudently
It means you have the responsibility to...? 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
7. Which of the following is a fiduciary duty *Following the plan's governing documents
under ERISA?
8. I have other people working as the 1.) Prudently select and monitor one or more
Trustee and Plan Administrator. As the named fiduciaries to operate the plan
Plan Sponsor, what are my fiduciary duties 2.) Maintain plan records
to the plan?
9. Classify the task as the responsibility of a Plan Administrator
plan administrator or a trustee - File Form
5500?
10. Classify the task as the responsibility of a Trustee
plan administrator or a trustee - Prudent-
ly select and monitor investment man-
agers?
11. Classify the task as the responsibility of a Plan Administrator
plan administrator or a trustee - Provide
participant fee disclosures?
2/6
