GBA 3 Practice Exam with complete
solutions
A global trend taking place in defined contribution retirement plans is: - ANSA. Greater
reliance on plans with default investments
A pension plan investment carries an expense of 2 %. If the expenses are decreased by
50 basis points, what will be the new level of expenses? - ANSD. 1.50%
A person's Social Security primary insurance amount (PIA) is which of the following? -
ANSE. The worker's monthly retirement benefit at full retirement age
A recent Department of Labor audit quality study showed the percentage of employee
benefit plan audits that had "Unacceptable-Major" deficiencies that adversely affected
overall audit quality. This percentage was approximately: - ANSD. 40%
A social security totalization agreement might be involved when an employee takes an
international assignment. Which of the following statements best describes the purpose
of this type of agreement? - ANSC. The agreement provides relief from dual social
security coverage and taxation under both systems and integrates or synchronizes the
benefits earned under more than one system.
An initial Summary Plan Description must be distributed to participants within how many
days after the date the plan becomes subject to Employee Retirement Income Security
Act (ERISA) disclosure requirements? - ANSE. 120
Approximately how many individuals are working in occupations covered by Social
Security? - ANSE. 9 out of 10 workers
At a minimum, if there have been no material changes in the plan, the Employee
Retirement Income Security Act requires employers to prepare and distribute new
Summary Plan Descriptions to participants at least every: - ANSE. 10 years
Form 5500 and other financial reports statutorily must be kept for a minimum of how
many years after the filing date? - ANSD. Six
Generally, under best practice standards, how often should an Employee Retirement
Income Security Act investment committee meet? - ANSQuarterly or twice a year
, Group health plans that provide dependent coverage must continue to make such
coverage available to an adult child up to the age of 26. Which of the following
statements regarding this coverage is correct? - ANSThis coverage must be available
even if the child is married.
Hospice care benefits available under Medicare are for terminally ill persons who have a
life expectancy of how many months or less? - ANSSix months
How much are the civil penalties imposed by the Employee Retirement Income Security
Act against certified public accounting (CPA) firms that perform deficient plan audits? -
ANSZero
Leaders in the data analytics industry developed a Healthcare Analytics Adoption Model
that has a number of levels of analytics adoption that an organization passes through as
it gains sophistication in using its data to drive improvement. In this model, what is the
highest level of sophistication? - ANSPersonalized medicine and prescriptive analytics
One of the basic disclosure documents required by the Employee Retirement Income
Security Act is the Summary of Benefits and Coverage. It must be presented in a
uniform format and cannot exceed how many double-sided pages? - ANS4
Plan fiduciaries must understand the core difference between "active" and "passive"
investment strategies. Which of the following statements best describes this difference?
- ANSPassive funds typically seek to match the performance of an index of securities,
while active funds attempt to outperform the market.
Provider network contracts of an administrative services only (ASO) agreement for a
self-funded health plan allow a limited time period for recovering claims that were
identified as overpaid. This period is usually: - ANSOne year
Skilled nursing facility benefits under Medicare Part A are provided only if the
beneficiary has had a hospitalization of at least how many days? - ANSSeven days
The cost of an administrative claims audit in a self-funded health plan typically will be: -
ANSLess than 1% of total annual claim spending
The Federal Trade Commission (FTC) case against a medical transcription services
company dealt with the exposure of personal medical information. According to the
FTC, the settlement in this case demonstrated: - ANSThat companies must be held to
high standards with regard to third-party vendor management and oversight when it
involves personal information
What is the highest rate at which Social Security benefits can be taxed, depending on
the person's income and tax bracket? - ANS85%
solutions
A global trend taking place in defined contribution retirement plans is: - ANSA. Greater
reliance on plans with default investments
A pension plan investment carries an expense of 2 %. If the expenses are decreased by
50 basis points, what will be the new level of expenses? - ANSD. 1.50%
A person's Social Security primary insurance amount (PIA) is which of the following? -
ANSE. The worker's monthly retirement benefit at full retirement age
A recent Department of Labor audit quality study showed the percentage of employee
benefit plan audits that had "Unacceptable-Major" deficiencies that adversely affected
overall audit quality. This percentage was approximately: - ANSD. 40%
A social security totalization agreement might be involved when an employee takes an
international assignment. Which of the following statements best describes the purpose
of this type of agreement? - ANSC. The agreement provides relief from dual social
security coverage and taxation under both systems and integrates or synchronizes the
benefits earned under more than one system.
An initial Summary Plan Description must be distributed to participants within how many
days after the date the plan becomes subject to Employee Retirement Income Security
Act (ERISA) disclosure requirements? - ANSE. 120
Approximately how many individuals are working in occupations covered by Social
Security? - ANSE. 9 out of 10 workers
At a minimum, if there have been no material changes in the plan, the Employee
Retirement Income Security Act requires employers to prepare and distribute new
Summary Plan Descriptions to participants at least every: - ANSE. 10 years
Form 5500 and other financial reports statutorily must be kept for a minimum of how
many years after the filing date? - ANSD. Six
Generally, under best practice standards, how often should an Employee Retirement
Income Security Act investment committee meet? - ANSQuarterly or twice a year
, Group health plans that provide dependent coverage must continue to make such
coverage available to an adult child up to the age of 26. Which of the following
statements regarding this coverage is correct? - ANSThis coverage must be available
even if the child is married.
Hospice care benefits available under Medicare are for terminally ill persons who have a
life expectancy of how many months or less? - ANSSix months
How much are the civil penalties imposed by the Employee Retirement Income Security
Act against certified public accounting (CPA) firms that perform deficient plan audits? -
ANSZero
Leaders in the data analytics industry developed a Healthcare Analytics Adoption Model
that has a number of levels of analytics adoption that an organization passes through as
it gains sophistication in using its data to drive improvement. In this model, what is the
highest level of sophistication? - ANSPersonalized medicine and prescriptive analytics
One of the basic disclosure documents required by the Employee Retirement Income
Security Act is the Summary of Benefits and Coverage. It must be presented in a
uniform format and cannot exceed how many double-sided pages? - ANS4
Plan fiduciaries must understand the core difference between "active" and "passive"
investment strategies. Which of the following statements best describes this difference?
- ANSPassive funds typically seek to match the performance of an index of securities,
while active funds attempt to outperform the market.
Provider network contracts of an administrative services only (ASO) agreement for a
self-funded health plan allow a limited time period for recovering claims that were
identified as overpaid. This period is usually: - ANSOne year
Skilled nursing facility benefits under Medicare Part A are provided only if the
beneficiary has had a hospitalization of at least how many days? - ANSSeven days
The cost of an administrative claims audit in a self-funded health plan typically will be: -
ANSLess than 1% of total annual claim spending
The Federal Trade Commission (FTC) case against a medical transcription services
company dealt with the exposure of personal medical information. According to the
FTC, the settlement in this case demonstrated: - ANSThat companies must be held to
high standards with regard to third-party vendor management and oversight when it
involves personal information
What is the highest rate at which Social Security benefits can be taxed, depending on
the person's income and tax bracket? - ANS85%
