Page 1 of 221
CEBS GBA EXAM 3 | {LATEST 2026/ 2027
UPDATE} COMPLETE ACTUAL AND AUTHENTIC
EXAM | BRAND NEW!
In what areas of plan management are plan advisors likely to
possess a different kind, not just degree, of information from
TPAs? (Mod 6.2) - ✔✔✔ Correct Answer > Unlike TPAs, plan advisors
are particularly knowledgeable about mutual funds, collective
investment trusts (CITs), different share classes, active versus
passive investments, "to" versus "through" TDF glide paths, and
net asset value (NAV) versus accumulation unit value (AUV). The
latter terms refer to measurements of value of mutual funds that
are held directly or indirectly through accounts owned by
insurance companies. Other matters with which investment
advisors are also likely be more familiar than TPAs are Social
Security optimization, nonqualified deferred compensation
arrangements, distribution planning, and estate and trust issues.
What are the major challenges older workers confront when they
need to convert their DC plan assets to periodic lifetime income?
(Mod 8.1) - ✔✔✔ Correct Answer > (a) Retirement savings may need to
last anywhere from 20 to 30 years.
(b) Market volatility adds another level of complexity to the task
of managing savings in retirement.
,Page 2 of 221
(c) Many older workers are unable to accurately calculate the
amount of savings needed to generate lifetime retirement
income.
(d) Not many retirees have a formal strategy for how to draw
down their savings.
(e) Many older workers with moderate savings do not have
access to skilled and unbiased financial advisors, or they may
not know how to identify and select them.
(f) Older workers looking for retirement income solutions face a
rapidly evolving marketplace that is difficult to navigate.
What common goal do plan advisors and TPAs share? (Mod 6.2) -
✔✔✔ Correct Answer > The common goal plan advisors and TPAs
share is to design a plan that meets the objectives of the plan
sponsor yet falls within the framework allowed by Internal
Revenue Service (IRS) and Department of Labor (DOL) rules.
First, the advisor and TPA have to prompt plan sponsors to
communicate what is important to them.
While a free-form conversation can be productive, it is generally
more helpful to have a worksheet or outline to guide the
conversation and stimulate discussion. As a
prospective plan sponsor begins speaking, it may also be hard to
resist the inclination to mentally race ahead, searching for ways
in which the plan sponsor's needs can be molded into a qualified
plan design. Occasionally, what the plan sponsor or prospect
needs or wants simply is not within the scope of what the TPA
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can provide. The desired objective might be best met by
something other than a qualified retirement plan. Under such
circumstances, the advisor is in the best position to offer other
options after actively listening to the plan sponsor.
In developing an outline to serve as a guide to the various parties
establishing and subsequently administering a qualified
retirement plan, identify the key areas of responsibilities and
related functions within these areas (Mod 6.2) - ✔✔✔ Correct Answer >
In developing an outline to serve as a guide to the various parties
establishing a qualified retirement plan, four key areas of
responsibilities and their related functions are:
(1) Plan design and implementation
• Determine company objectives.
• Decide on plan provisions.
• Prepare plan and trust documents, summary plan description
and adopting resolution.
• Obtain proposals/provider search.
• Select service providers.
• Provide employee enrollment and education.
(2) Fiduciary responsibilities with plan investments
• Meet with plan committee and fiduciaries at least annually.
• Create and maintain investment policy statement (IPS).
• Select investments to be offered.
, Page 4 of 221
• Monitor investments; add, delete or replace investments as
directed by the IPS.
• Benchmark plan fees and services.
• Counsel terminating or retiring employees.
(3) IRS and DOL compliance
• Prepare year-end compliance testing:
(a) Coverage, 401(k) nondiscrimination tests
(b) Top-heavy, vesting.
• Prepare Form 5500 and applicable schedules.
• Prepare required participant disclosures.
• File Form 5500 and applicable schedules.
• Distribute summary annual report and other required
participant notices.
(4) Operational compliance
• Notify employees of eligibility.
• Ensure that contributions are deposited timely.
• Ensure that plan operates according to its terms.
While the plan sponsor is ultimately responsible for ensuring
that all plan transactions are executed in a timely fashion,
identify the entities who typically
carry out the responsibilities and functions listed in the previous
question (Mod 6.2) - ✔✔✔ Correct Answer > The plan sponsor, with
CEBS GBA EXAM 3 | {LATEST 2026/ 2027
UPDATE} COMPLETE ACTUAL AND AUTHENTIC
EXAM | BRAND NEW!
In what areas of plan management are plan advisors likely to
possess a different kind, not just degree, of information from
TPAs? (Mod 6.2) - ✔✔✔ Correct Answer > Unlike TPAs, plan advisors
are particularly knowledgeable about mutual funds, collective
investment trusts (CITs), different share classes, active versus
passive investments, "to" versus "through" TDF glide paths, and
net asset value (NAV) versus accumulation unit value (AUV). The
latter terms refer to measurements of value of mutual funds that
are held directly or indirectly through accounts owned by
insurance companies. Other matters with which investment
advisors are also likely be more familiar than TPAs are Social
Security optimization, nonqualified deferred compensation
arrangements, distribution planning, and estate and trust issues.
What are the major challenges older workers confront when they
need to convert their DC plan assets to periodic lifetime income?
(Mod 8.1) - ✔✔✔ Correct Answer > (a) Retirement savings may need to
last anywhere from 20 to 30 years.
(b) Market volatility adds another level of complexity to the task
of managing savings in retirement.
,Page 2 of 221
(c) Many older workers are unable to accurately calculate the
amount of savings needed to generate lifetime retirement
income.
(d) Not many retirees have a formal strategy for how to draw
down their savings.
(e) Many older workers with moderate savings do not have
access to skilled and unbiased financial advisors, or they may
not know how to identify and select them.
(f) Older workers looking for retirement income solutions face a
rapidly evolving marketplace that is difficult to navigate.
What common goal do plan advisors and TPAs share? (Mod 6.2) -
✔✔✔ Correct Answer > The common goal plan advisors and TPAs
share is to design a plan that meets the objectives of the plan
sponsor yet falls within the framework allowed by Internal
Revenue Service (IRS) and Department of Labor (DOL) rules.
First, the advisor and TPA have to prompt plan sponsors to
communicate what is important to them.
While a free-form conversation can be productive, it is generally
more helpful to have a worksheet or outline to guide the
conversation and stimulate discussion. As a
prospective plan sponsor begins speaking, it may also be hard to
resist the inclination to mentally race ahead, searching for ways
in which the plan sponsor's needs can be molded into a qualified
plan design. Occasionally, what the plan sponsor or prospect
needs or wants simply is not within the scope of what the TPA
,Page 3 of 221
can provide. The desired objective might be best met by
something other than a qualified retirement plan. Under such
circumstances, the advisor is in the best position to offer other
options after actively listening to the plan sponsor.
In developing an outline to serve as a guide to the various parties
establishing and subsequently administering a qualified
retirement plan, identify the key areas of responsibilities and
related functions within these areas (Mod 6.2) - ✔✔✔ Correct Answer >
In developing an outline to serve as a guide to the various parties
establishing a qualified retirement plan, four key areas of
responsibilities and their related functions are:
(1) Plan design and implementation
• Determine company objectives.
• Decide on plan provisions.
• Prepare plan and trust documents, summary plan description
and adopting resolution.
• Obtain proposals/provider search.
• Select service providers.
• Provide employee enrollment and education.
(2) Fiduciary responsibilities with plan investments
• Meet with plan committee and fiduciaries at least annually.
• Create and maintain investment policy statement (IPS).
• Select investments to be offered.
, Page 4 of 221
• Monitor investments; add, delete or replace investments as
directed by the IPS.
• Benchmark plan fees and services.
• Counsel terminating or retiring employees.
(3) IRS and DOL compliance
• Prepare year-end compliance testing:
(a) Coverage, 401(k) nondiscrimination tests
(b) Top-heavy, vesting.
• Prepare Form 5500 and applicable schedules.
• Prepare required participant disclosures.
• File Form 5500 and applicable schedules.
• Distribute summary annual report and other required
participant notices.
(4) Operational compliance
• Notify employees of eligibility.
• Ensure that contributions are deposited timely.
• Ensure that plan operates according to its terms.
While the plan sponsor is ultimately responsible for ensuring
that all plan transactions are executed in a timely fashion,
identify the entities who typically
carry out the responsibilities and functions listed in the previous
question (Mod 6.2) - ✔✔✔ Correct Answer > The plan sponsor, with
