CPFA LICENSE EXAM- (CERTIFIED PLAN FIDUCIARY
ADVISOR) 2025/2026 WITH 100% ACCURATE ANSWERS
1. Who is responsible for pursuing monies owed to the retirement plan?
Beneficiary
Plan Administrator
Trustee
Service Provider
2. Describe the importance of the prudence standard in fiduciary
responsibilities.
The prudence standard is irrelevant if the plan is performing well.
The prudence standard requires fiduciaries to act carefully and
thoughtfully, ensuring decisions are well-informed and
documented.
The prudence standard allows fiduciaries to make quick
decisions without documentation.
The prudence standard focuses solely on maximizing returns for
the plan.
3. Describe the role of a plan administrator in relation to ERISA
compliance.
The plan administrator is responsible for ensuring compliance
with ERISA, including filing necessary documents like Form
5500.
The plan administrator serves as a representative for plan
beneficiaries in legal matters.
The plan administrator is responsible for appointing trustees for
, the plan.
The plan administrator manages the investment decisions of the
plan.
4. Describe the role of a plan administrator in relation to participant fee
disclosures.
The plan administrator is responsible for providing participant
fee disclosures to ensure transparency and compliance with
ERISA requirements.
The plan administrator oversees the legal compliance of the
plan's governing documents.
The plan administrator selects and monitors service providers for
the plan.
The plan administrator manages the investment portfolio of the
plan.
5. If a retirement plan's Recordkeeper fails to properly track participant
contributions, what potential consequences could arise for the
fiduciaries involved?
No consequences, as Recordkeepers are not fiduciaries.
Improved compliance with ERISA regulations.
Legal liability for failing to act in the best interests of
participants.
Increased investment returns for participants.
6. To whom can a plan participant go to find out who is the responsible
fiduciary for any given aspect of the plan?
plan administrator
functional fiduciary
, trustee
named fiduciary
7. Who takes on the roles of plan trustee and plan administrator if they are
not specified in the Plan Document?
Plan Sponsor
Regulatory Authorities
Plan Participants
Service Providers
8. If a retirement plan has multiple fiduciaries, what is a critical
responsibility they must collectively uphold?
Minimizing administrative costs regardless of participant interests
Ensuring compliance with tax regulations only
Maximizing profits for the plan sponsors
Acting in the best interests of plan participants and
beneficiaries
9. Who is responsible for providing Participant Benefit Statements under
ERISA?
Investment Manager
Fiduciary Counsel
Plan Administrator
Trustee
10. Describe the role of fiduciaries in a retirement plan as outlined under
ERISA.
Fiduciaries can prioritize their own interests over participants.
ADVISOR) 2025/2026 WITH 100% ACCURATE ANSWERS
1. Who is responsible for pursuing monies owed to the retirement plan?
Beneficiary
Plan Administrator
Trustee
Service Provider
2. Describe the importance of the prudence standard in fiduciary
responsibilities.
The prudence standard is irrelevant if the plan is performing well.
The prudence standard requires fiduciaries to act carefully and
thoughtfully, ensuring decisions are well-informed and
documented.
The prudence standard allows fiduciaries to make quick
decisions without documentation.
The prudence standard focuses solely on maximizing returns for
the plan.
3. Describe the role of a plan administrator in relation to ERISA
compliance.
The plan administrator is responsible for ensuring compliance
with ERISA, including filing necessary documents like Form
5500.
The plan administrator serves as a representative for plan
beneficiaries in legal matters.
The plan administrator is responsible for appointing trustees for
, the plan.
The plan administrator manages the investment decisions of the
plan.
4. Describe the role of a plan administrator in relation to participant fee
disclosures.
The plan administrator is responsible for providing participant
fee disclosures to ensure transparency and compliance with
ERISA requirements.
The plan administrator oversees the legal compliance of the
plan's governing documents.
The plan administrator selects and monitors service providers for
the plan.
The plan administrator manages the investment portfolio of the
plan.
5. If a retirement plan's Recordkeeper fails to properly track participant
contributions, what potential consequences could arise for the
fiduciaries involved?
No consequences, as Recordkeepers are not fiduciaries.
Improved compliance with ERISA regulations.
Legal liability for failing to act in the best interests of
participants.
Increased investment returns for participants.
6. To whom can a plan participant go to find out who is the responsible
fiduciary for any given aspect of the plan?
plan administrator
functional fiduciary
, trustee
named fiduciary
7. Who takes on the roles of plan trustee and plan administrator if they are
not specified in the Plan Document?
Plan Sponsor
Regulatory Authorities
Plan Participants
Service Providers
8. If a retirement plan has multiple fiduciaries, what is a critical
responsibility they must collectively uphold?
Minimizing administrative costs regardless of participant interests
Ensuring compliance with tax regulations only
Maximizing profits for the plan sponsors
Acting in the best interests of plan participants and
beneficiaries
9. Who is responsible for providing Participant Benefit Statements under
ERISA?
Investment Manager
Fiduciary Counsel
Plan Administrator
Trustee
10. Describe the role of fiduciaries in a retirement plan as outlined under
ERISA.
Fiduciaries can prioritize their own interests over participants.
