CPFA Practice Exam
(NAPA Questions) With
Complete Questions And
Correct Detailed
Answers| Brand New
Version!
ERISA requires that fiduciaries manage the plan for the exclusive
benefit of which of the following parties?
a. Participants and their beneficiaries
b. Plan Sponsor
,c. Plan Administrator
d. Business owner - {✔✔ANSWER✔✔}-a. Participants and their
beneficiaries
June is a Plan Sponsor of a small plan and decided she'll be acting as the
sole fiduciary of the plan. All of the following are her responsibilities,
EXCEPT:
a. Give investment advice to participants
b. Fill the role of Plan Administrator
c. Follow a prudent process when hiring service providers
d. Sign and file the Form 5500 - {✔✔ANSWER✔✔}-a. Give
investment advice to participants
Under ERISA, the Plan Administrator has the following roles, EXCEPT:
a. Providing participants with a summary plan description
,b. Redesigning the plan's employer matching contribution formula
c. Distributing required notices to participants
d. Providing the plan document to participants who request a copy -
{✔✔ANSWER✔✔}-b. Redesigning the plan's employer matching
contribution formula
Under ERISA, all of the following are Plan Trustee responsibilities,
EXCEPT:
a. Monitor the investment manager whom the Plan Trustee hired.
b. Oversee the Plan Administrator.
c. Delegate specific investment duties to a service provider and monitor
the service provider's performance.
d. Follow participant directions for the investment of contributions,
unless the
instructions conflict with ERISA. - {✔✔ANSWER✔✔}-b. Oversee
the Plan Administrator.
, All of the following may be named fiduciaries in a plan document,
EXCEPT:
a. Plan Sponsor
b. Plan Administrator
c. Plan Trustee
d. Legal counsel who prepares the plan document -
{✔✔ANSWER✔✔}-d. Legal counsel who prepares the plan
document
Sue is a plan advisor for the ABC Retirement Plan. On the agenda for
the upcoming ABC Plan Committee meeting is an action item to replace
Len and nominate a new member to the Committee. Len has been
asked to leave the Committee due to his unsatisfactory attendance at
monthly meetings. All of the following are best practices regarding
fiduciary changes, EXCEPT:
a. Per Len's request, the Committee minutes will exclude the reason
Len was asked to leave the committee.
b. Sue should educate the members on the importance of documenting
fiduciary changes.
c. The Committee minutes should document the process of naming
Len's replacement.
(NAPA Questions) With
Complete Questions And
Correct Detailed
Answers| Brand New
Version!
ERISA requires that fiduciaries manage the plan for the exclusive
benefit of which of the following parties?
a. Participants and their beneficiaries
b. Plan Sponsor
,c. Plan Administrator
d. Business owner - {✔✔ANSWER✔✔}-a. Participants and their
beneficiaries
June is a Plan Sponsor of a small plan and decided she'll be acting as the
sole fiduciary of the plan. All of the following are her responsibilities,
EXCEPT:
a. Give investment advice to participants
b. Fill the role of Plan Administrator
c. Follow a prudent process when hiring service providers
d. Sign and file the Form 5500 - {✔✔ANSWER✔✔}-a. Give
investment advice to participants
Under ERISA, the Plan Administrator has the following roles, EXCEPT:
a. Providing participants with a summary plan description
,b. Redesigning the plan's employer matching contribution formula
c. Distributing required notices to participants
d. Providing the plan document to participants who request a copy -
{✔✔ANSWER✔✔}-b. Redesigning the plan's employer matching
contribution formula
Under ERISA, all of the following are Plan Trustee responsibilities,
EXCEPT:
a. Monitor the investment manager whom the Plan Trustee hired.
b. Oversee the Plan Administrator.
c. Delegate specific investment duties to a service provider and monitor
the service provider's performance.
d. Follow participant directions for the investment of contributions,
unless the
instructions conflict with ERISA. - {✔✔ANSWER✔✔}-b. Oversee
the Plan Administrator.
, All of the following may be named fiduciaries in a plan document,
EXCEPT:
a. Plan Sponsor
b. Plan Administrator
c. Plan Trustee
d. Legal counsel who prepares the plan document -
{✔✔ANSWER✔✔}-d. Legal counsel who prepares the plan
document
Sue is a plan advisor for the ABC Retirement Plan. On the agenda for
the upcoming ABC Plan Committee meeting is an action item to replace
Len and nominate a new member to the Committee. Len has been
asked to leave the Committee due to his unsatisfactory attendance at
monthly meetings. All of the following are best practices regarding
fiduciary changes, EXCEPT:
a. Per Len's request, the Committee minutes will exclude the reason
Len was asked to leave the committee.
b. Sue should educate the members on the importance of documenting
fiduciary changes.
c. The Committee minutes should document the process of naming
Len's replacement.
