CPFA EXAM NEWEST ACTUAL
EXAM TEST BANKNAPA CERTIFIED
PLAN FIDUCIARY ADVISOR
CERTIFICATION EXAM PREP
COMPLETE REAL EXAM
This test bank is based on official NAPA CPFA® exam materials and current
ERISA/fiduciary standards for 2025-2026. The CPFA credential demonstrates
expertise in acting as a plan fiduciary or helping plan fiduciaries manage their roles
and responsibilities under ERISA .
EXAM OVERVIEW
Feature Specification
Number of Questions 70 multiple-choice
Time Limit 2.5 hours
Passing Score 70%
Format Closed book, proctored online
Prerequisites None
Feature Specification
Cost $440
, 10 hours annually
CE Required Source:
SECTION 1: SERVICE PROVIDERS & ROLES (Questions 1-15)
Question 1
Which statement regarding service providers is TRUE?
A) A TPA performs annual compliance testing.
B) A recordkeeper has the legal obligation to provide an interpretation of a plan
provision.
C) An accountant processes the "money out" for a participant account.
D) A plan advisor is responsible for drafting annual safe harbor notices.
Correct ,,answer,,,: A
*Explanation: TPAs (Third Party Administrators) perform annual compliance
testing including ADP/ACP testing, top-heavy testing, and 415 limit testing.
Recordkeepers do not interpret plan provisions; that is the role of legal counsel.
Accountants do not process distributions. Plan advisors may assist with notices but
are not solely responsible .*
Question 2
Which statement regarding bundled service arrangements is TRUE?
A) Provides efficient contribution and distribution processes.
B) Requires less fiduciary oversight than an unbundled service arrangement.
C) Permits specific single providers within the arrangement to be easily removed.
,D) Typical arrangement involves a TPA and an insurance company.
Correct ,,answer,,,: A
Explanation: Bundled service arrangements provide efficient contribution and
distribution processes by consolidating recordkeeping, administration, and
investments under one provider. However, they still require fiduciary oversight and
can be difficult to change individual components. Typical bundled arrangements
involve a recordkeeper and custodian, not just TPA and insurance .
Question 3
All of the following service providers may assist with plan document maintenance,
EXCEPT:
A) ERISA attorney
B) Recordkeeper
C) TPA firm
D) Plan auditor
Correct ,,answer,,,: D
Explanation: Plan auditors perform financial statement audits and do not maintain
plan documents. ERISA attorneys draft and review documents, recordkeepers may
provide document templates, and TPAs maintain plan documents for compliance .
, Question 4
Which of the following reports can be used in measuring plan effectiveness and
participant outcomes?
A) Number of terminated participants who rolled accounts to IRAs
B) Average deferral rate of participants in the plan
C) Independent accountant's required annual audit of the plan
D) Summary Annual Report
Correct ,,answer,,,: B
Explanation: Average deferral rate measures participant savings behavior and
plan effectiveness. The audit and SAR are compliance documents, not effectiveness
measures. Rollover rates measure leakage, not effectiveness .
Question 5
All of the following are important factors when selecting a service provider,
EXCEPT:
A) Service provider's financial stability
B) Experience with plans of similar size and complexity
C) Willingness to provide revenue sharing to offset plan fees
D) Qualifications of personnel that will service the plan
Correct ,,answer,,,: C
Explanation: Revenue sharing should not be a primary selection factor.
Fiduciaries must select providers based on qualifications, stability, and service
capabilities—not revenue sharing arrangements, which may create conflicts of
interest .
EXAM TEST BANKNAPA CERTIFIED
PLAN FIDUCIARY ADVISOR
CERTIFICATION EXAM PREP
COMPLETE REAL EXAM
This test bank is based on official NAPA CPFA® exam materials and current
ERISA/fiduciary standards for 2025-2026. The CPFA credential demonstrates
expertise in acting as a plan fiduciary or helping plan fiduciaries manage their roles
and responsibilities under ERISA .
EXAM OVERVIEW
Feature Specification
Number of Questions 70 multiple-choice
Time Limit 2.5 hours
Passing Score 70%
Format Closed book, proctored online
Prerequisites None
Feature Specification
Cost $440
, 10 hours annually
CE Required Source:
SECTION 1: SERVICE PROVIDERS & ROLES (Questions 1-15)
Question 1
Which statement regarding service providers is TRUE?
A) A TPA performs annual compliance testing.
B) A recordkeeper has the legal obligation to provide an interpretation of a plan
provision.
C) An accountant processes the "money out" for a participant account.
D) A plan advisor is responsible for drafting annual safe harbor notices.
Correct ,,answer,,,: A
*Explanation: TPAs (Third Party Administrators) perform annual compliance
testing including ADP/ACP testing, top-heavy testing, and 415 limit testing.
Recordkeepers do not interpret plan provisions; that is the role of legal counsel.
Accountants do not process distributions. Plan advisors may assist with notices but
are not solely responsible .*
Question 2
Which statement regarding bundled service arrangements is TRUE?
A) Provides efficient contribution and distribution processes.
B) Requires less fiduciary oversight than an unbundled service arrangement.
C) Permits specific single providers within the arrangement to be easily removed.
,D) Typical arrangement involves a TPA and an insurance company.
Correct ,,answer,,,: A
Explanation: Bundled service arrangements provide efficient contribution and
distribution processes by consolidating recordkeeping, administration, and
investments under one provider. However, they still require fiduciary oversight and
can be difficult to change individual components. Typical bundled arrangements
involve a recordkeeper and custodian, not just TPA and insurance .
Question 3
All of the following service providers may assist with plan document maintenance,
EXCEPT:
A) ERISA attorney
B) Recordkeeper
C) TPA firm
D) Plan auditor
Correct ,,answer,,,: D
Explanation: Plan auditors perform financial statement audits and do not maintain
plan documents. ERISA attorneys draft and review documents, recordkeepers may
provide document templates, and TPAs maintain plan documents for compliance .
, Question 4
Which of the following reports can be used in measuring plan effectiveness and
participant outcomes?
A) Number of terminated participants who rolled accounts to IRAs
B) Average deferral rate of participants in the plan
C) Independent accountant's required annual audit of the plan
D) Summary Annual Report
Correct ,,answer,,,: B
Explanation: Average deferral rate measures participant savings behavior and
plan effectiveness. The audit and SAR are compliance documents, not effectiveness
measures. Rollover rates measure leakage, not effectiveness .
Question 5
All of the following are important factors when selecting a service provider,
EXCEPT:
A) Service provider's financial stability
B) Experience with plans of similar size and complexity
C) Willingness to provide revenue sharing to offset plan fees
D) Qualifications of personnel that will service the plan
Correct ,,answer,,,: C
Explanation: Revenue sharing should not be a primary selection factor.
Fiduciaries must select providers based on qualifications, stability, and service
capabilities—not revenue sharing arrangements, which may create conflicts of
interest .
