CPFA License Exam- (Certified Plan Fiduciary Advisor) (Online Practice Qu
tions)
Study online at https://quizlet.com/_d0jh8h
1.) Loyalty - (Exclusive purpose rule -
Providing benefits to participants and
their beneficiaries; and defraying reason-
able expenses of administering the plan)
2.) Prudence - (Act with prudence by in-
vestigating before making any plan deci-
sions, documenting the decision-making
process, hiring experts when they don't
possess the knowledge or skills to make
a decision, and monitoring if their deci-
What are the 4 basic fiduciary standards
sions are still ideal based on the exclu-
under the Fiduciary Standard of Care?
sive purpose rule and taking action if not
(Section 404)
3.) Diversification - (Diversify investment
in a prudent manner in order to mini-
mize risk; Investment factors may include
purpose of plan, amount of assets, in-
vestment acumen of the participants and
participant demographics
4.) Following the plan's governing doc-
uments - (Follow plan documents to
the extent that they are not contrary to
ERISA rules)
How many fiduciaries does a retirement All retirement plans have one or more
plan? fiduciaries
Plan fiduciaries have a legal obligation to Plan participants and their beneficiaries,
operate the plan on behalf of ...? (Prima- and not on behalf of owners, the employ-
ry rule of ERISA) er, or key employees
1.) Plan Sponsor
Who will almost always be a fiduciary to
2.) Plan Trustee
the plan?
3.) Plan Administrator
Which of these statements about per-
*All fiduciaries have personal liability
sonal liability is true?
1.) Act prudently
2.) Operate the plan according to the
plan document
3.) Act exclusively in the interests of the
1/5
, CPFA License Exam- (Certified Plan Fiduciary Advisor) (Online Practice Qu
tions)
Study online at https://quizlet.com/_d0jh8h
plan participants and beneficiaries
What does it meant to be a plan fiducia-
4.) Run the plan for the exclusive purpos-
ry? It means you have the responsibility
es of providing benefits and paying plan
to...?
expenses
Which of the following is a fiduciary duty *Following the plan's governing docu-
under ERISA? ments
I have other people working as the 1.) Prudently select and monitor one or
Trustee and Plan Administrator. As the more named fiduciaries to operate the
Plan Sponsor, what are my fiduciary du- plan
ties to the plan? 2.) Maintain plan records
Classify the task as the responsibility of
a plan administrator or a trustee - File Plan Administrator
Form 5500?
Classify the task as the responsibility of a
plan administrator or a trustee - Prudent-
Trustee
ly select and monitor investment man-
agers?
Classify the task as the responsibility of a
plan administrator or a trustee - Provide Plan Administrator
participant fee disclosures?
Classify the task as the responsibility of a
plan administrator or a trustee - Provide Plan Administrator
Participant Benefit Statements?
Classify the task as the responsibility of
a plan administrator or a trustee - Pursue Trustee
monies owed to the plan?
Classify the task as the responsibility of a
plan administrator or a trustee - Serve as Trustee
a member of an investment committee?
If plan trustee or/and plan administrator
are not named in the Plan Document Plan Sponsor
then who assumes their roles?
1.) An acknowledgement of fiduciary sta-
tus
2/5
tions)
Study online at https://quizlet.com/_d0jh8h
1.) Loyalty - (Exclusive purpose rule -
Providing benefits to participants and
their beneficiaries; and defraying reason-
able expenses of administering the plan)
2.) Prudence - (Act with prudence by in-
vestigating before making any plan deci-
sions, documenting the decision-making
process, hiring experts when they don't
possess the knowledge or skills to make
a decision, and monitoring if their deci-
What are the 4 basic fiduciary standards
sions are still ideal based on the exclu-
under the Fiduciary Standard of Care?
sive purpose rule and taking action if not
(Section 404)
3.) Diversification - (Diversify investment
in a prudent manner in order to mini-
mize risk; Investment factors may include
purpose of plan, amount of assets, in-
vestment acumen of the participants and
participant demographics
4.) Following the plan's governing doc-
uments - (Follow plan documents to
the extent that they are not contrary to
ERISA rules)
How many fiduciaries does a retirement All retirement plans have one or more
plan? fiduciaries
Plan fiduciaries have a legal obligation to Plan participants and their beneficiaries,
operate the plan on behalf of ...? (Prima- and not on behalf of owners, the employ-
ry rule of ERISA) er, or key employees
1.) Plan Sponsor
Who will almost always be a fiduciary to
2.) Plan Trustee
the plan?
3.) Plan Administrator
Which of these statements about per-
*All fiduciaries have personal liability
sonal liability is true?
1.) Act prudently
2.) Operate the plan according to the
plan document
3.) Act exclusively in the interests of the
1/5
, CPFA License Exam- (Certified Plan Fiduciary Advisor) (Online Practice Qu
tions)
Study online at https://quizlet.com/_d0jh8h
plan participants and beneficiaries
What does it meant to be a plan fiducia-
4.) Run the plan for the exclusive purpos-
ry? It means you have the responsibility
es of providing benefits and paying plan
to...?
expenses
Which of the following is a fiduciary duty *Following the plan's governing docu-
under ERISA? ments
I have other people working as the 1.) Prudently select and monitor one or
Trustee and Plan Administrator. As the more named fiduciaries to operate the
Plan Sponsor, what are my fiduciary du- plan
ties to the plan? 2.) Maintain plan records
Classify the task as the responsibility of
a plan administrator or a trustee - File Plan Administrator
Form 5500?
Classify the task as the responsibility of a
plan administrator or a trustee - Prudent-
Trustee
ly select and monitor investment man-
agers?
Classify the task as the responsibility of a
plan administrator or a trustee - Provide Plan Administrator
participant fee disclosures?
Classify the task as the responsibility of a
plan administrator or a trustee - Provide Plan Administrator
Participant Benefit Statements?
Classify the task as the responsibility of
a plan administrator or a trustee - Pursue Trustee
monies owed to the plan?
Classify the task as the responsibility of a
plan administrator or a trustee - Serve as Trustee
a member of an investment committee?
If plan trustee or/and plan administrator
are not named in the Plan Document Plan Sponsor
then who assumes their roles?
1.) An acknowledgement of fiduciary sta-
tus
2/5
