Certified Employee Benefit Specialist (CEBS) – Group Benefits Associate (GBA) / Retirement Plans Associate (RPA) Course 3 Practice Test

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• What is the purpose of the ACP nondiscrimination test in 401(k) plans?
• Which of the following is listed as an eligibility category for Social Security retirement benefits?
• What fundamental ERISA requirement guides fiduciaries in selecting and monitoring investment options?
• Which option describes a RIG that delays Social Security to increase total retirement income?
• What does portability mean in retirement plans, and what is a common option when changing jobs?
• What does step therapy require?
• Delaye v. Agripac (9th Cir.) held that monthly payments over a two-year period did not require which ERISA condition?
• What standard did the Supreme Court endorse in Heimeshoff v. Hartford regarding contractual limitations periods in ERISA plans?
• SOC 3 differs from SOC 2 in that it is:
• Which Part B services typically have no deductible?
• How does an HSA differ from an FSA in terms of ownership and carryover?
• What happens if a 401(k) loan is not repaid?
• In Smith v Ageon, what issue was addressed?
• Home health services are covered by which parts of Medicare?
• Acquired rights laws have what effect on plan amendments?
• Which describes the effect of working an additional year on Social Security benefits?
• How are welfare benefit plans differentiated from pension plans under ERISA?
• What is the annual Form 5500 used for in employee benefit plans?
• What is the purpose of an Investment Policy Statement for a benefit plan?
• Chile and New Zealand retirement plans are characterized by what?
• Which statement about Part D financing is true?
• QLAC-prohibited features include:
• Regarding Disability Insured status, which statement about the two work tests is accurate?
• Name the two main stop-loss protections used with self-funded plans and explain each.
• What is a QDRO and how does it affect retirement plan benefits?
• Which Part C plan is designed for individuals eligible for both Medicare and Medicaid?
• Which statement about the Social Security lump-sum death benefit is correct?
• Which statement best describes the role of an IPS for innovative investments?
• If a 401(k) plan fails ADP/ACP nondiscrimination testing, common corrective steps include:
• Which retirement plan model involves personal pensions purchased through brokers using defined contribution savings?
• Medicare Part C plans typically do not cover which service?
• Misappropriation involves:
• Which statement best describes the purpose of actuarial valuations for funded defined benefit plans?
• In a defined benefit plan, what determines the retirement benefit?
• SOC 1 is primarily used for which purpose?
• Which option is NOT a financing source for Part A?
• Under Medicare eligibility, which provision can apply to those with Amyotrophic Lateral Sclerosis (ALS)?
• Which describes a retirement plan where the benefit is predetermined and the employer bears investment risk?
• Which of the following is a Part C plan type?
• In 2017, how much earnings are required to earn one Social Security credit?
• Which item is commonly included in an Investment Management Agreement?
• What is the purpose of a third-party administrator (TPA) in group benefits programs?
• What is the amended penalty amount for failure to produce documents timely under 502(c)(1)?
• Tribble v Edison is notable for what implication?
• Under ERISA fiduciary duties, what is the role of diversification?
• Which Medicare challenge is associated with rapid growth of costs as a percentage of GDP?
• Which statement about mutual funds for ERISA plans is accurate?
• What is the purpose of the Summary of Benefits and Coverage (SBC) in health plans?
• Which provision is commonly included in an Investment Management Agreement to protect information?
• How many credits/quarters of coverage are required to be Fully insured for retirement benefits?
• In ASC 960 accounting, accumulated plan benefits may be presented as one of which formats?
• Which of the following is typically covered by ERISA plans?
• What defines a white label fund?
• If leave laws provide more generous benefits than state law, which law generally governs for ERISA plans?
• Which area is the biggest concern for fraud aimed at deceiving plan participants?
• Which statement best describes the role of plan design features in plan funding and nondiscrimination planning?
• Under a Section 3121(l) agreement, which statement describes a potential reason a U.S. employer might not want to use it?
• Fort Halifax Packing Co. v. Coyne addresses ERISA coverage by focusing on whether the benefit package implicates what?
• Which of the following is NOT listed as subject to 502(c)(1) penalties?
• Which statement best describes the purpose of the Summary Plan Description (SPD) and the Summary of Material Modifications (SMM)?
• Czech Republic and Israel retirement plans involve what kind of market?
• Under ERISA, which statement correctly contrasts welfare and pension plans?
• A 3121(l) agreement allows an employee to continue paying payroll taxes into which system?
• Which statement about eligibility provisions in a benefits plan is correct?
• In a 3(21) investment advice arrangement, who has final decision-making authority?
• Which describes the trust service criteria covered by SOC 2?
• Which service is NOT covered by Medicare Hospital Insurance (HI)?
• Which tax provision governs pre-tax salary deductions for many employee benefits through a cafeteria plan?
• Which statement best describes the current relationship between Medicare's Supplemental Medical Insurance and Part D?
• What is a prohibited transaction in ERISA, and who enforces it?
• What is the role of a plan administrator in benefit program governance?
• Which statement about diversification in Modern Portfolio Theory under ERISA is most accurate?
• QLACs are available in which plans?
• To which agencies does Form 5500 report plan information?
• Which characterization of Collective Investment Trusts is true?
• In a top hat employee benefit plan, fiduciary duties apply as which standard?
• What does an Investment Policy Statement (IPS) typically document?
• Is there a fixed universal requirement for plan documents?
• Which entity processes all Part A and B Medicare claims for a given region?
• Top Hat Plans are best described as:
• Which item is typically included in an Investment Management Agreement?
• How do annual 401(k) contribution limits and catch-up contributions affect plan design?
• What does ERISA stand for?
• QLAC-maximum premium equals which amount?
• Which statement about QLACs compared to RMDs is true?
• What is a High-Deductible Health Plan (HDHP) and its relationship to HSAs?
• Which statement best describes utilization-management techniques used to contain health plan costs?
• Which of the following plans is exempt from ERISA?
• How does a Health Reimbursement Arrangement (HRA) differ from a Health Savings Account (HSA)?
• Home health agency services are covered by which Part of Medicare?
• ERISA preemption typically means that state laws regulating employee benefit plans are:
• Which three elements typically form the retirement benefit formula in a defined benefit plan?
• Germany and Belgium retirement plans are best described as what?
• How do global or expatriate benefits differ from domestic benefits?
• Who enforces prohibited transactions under ERISA?
• Which statement about FSAs is true relative to HSAs?
• A plan document should include which of the following elements?
• Which vesting pattern provides full vesting after a specified service period with no gradual vesting?
• What is a typical sequence of steps in retirement plan design from goals to implementation?
• Which of the following is a goal of retirement plans?
• Which development is described as part of pan-European capabilities for global DC plans?
• What is the key reason that effective employee communication is essential in benefits programs?
• Which method is performed by an external party to detect fraud?
• At what age are Social Security retirement benefits reduced?
• Which of the following is an opportunity for efficiencies in global defined contribution plans?
• How do FSAs differ from HSAs in terms of carryover and tax treatment?
• Regarding mutual fund liquidity, which statement is accurate?
• Which is a reason for Social Security to be fully funded?
• What are the three types of fraud risk?
• What are typical Form 5500 reporting and audit requirements for large plans?
• Under ASC 960, the actuarial present value of accumulated plan benefits is based on which of the following?
• Which of the following is a disability benefits beneficiary category for Social Security?
• Which feature would be tremendously convenient and efficient for plan sponsors when used across markets?
• SOC 2 reports are primarily used by which groups?
• Which retirement plan model is described as a government-mandated or collectively bargained guaranteed-return system with set returns on participant savings?
• In Social Security, a single credit is earned for earnings up to a threshold. In 2017, what is the earnings threshold for one credit?
• What information is typically included in the Summary Plan Description?
• FASB ASC 960 defines accounting and financial reporting standards for which plans?
• Which of the following is NOT listed among common methods of detecting fraud?
• Which of the following is potentially exempt from ERISA if certain criteria are met?
• What is the primary goal of fiscal intermediaries in Medicare claims processing?
• Which statements describe a Qualified Longevity Annuity Contract (QLAC)?
• What is meant by the term top-heavy in retirement plan testing?
• For workers born in 1943 or later, what is the annual increase in the primary insurance amount due to the delayed retirement credit?
• What do totalization agreements primarily achieve?
• What is the difference between vested and non-vested employer contributions?
• Under COBRA, how long does coverage typically extend after a qualifying event?
• In health plan utilization management, what is preauthorization?
• Under 502(c)(1) penalties for failure to produce documents timely, what is the primary purpose of these penalties?
• What does a delayed retirement credit do?
• Parity in mental health benefits typically affects what aspect of plan design?
• Who retains all investment decision‑making authority regarding investment data under ERISA?
• Which is a standard defense to 502(c)(1) penalties?
• Which statement best describes vesting in retirement plans?
• Which of the following is NOT a SOC 2 trust service criterion?
• To contribute to an HSA, you must be covered by what type of plan?
• Which of the following are the four principal ERISA fiduciary duties governing plan administration?
• Under Part A, how many hospital days are covered before coinsurance applies?
• To be Currently Insured, how many credits are required in the last 13 calendar quarters ending with the quarter of death, disability, or entitlement to retirement benefits?
• How many days of skilled nursing facility care are fully covered under Part A at the start of a benefit period?
• What is the fiduciary responsibility around diversification of plan investments?
• What benefits description applies to a disabled worker under full retirement age?
• What best describes utilization review?
• In a defined contribution plan, who bears the investment risk, and how is retirement benefit determined?
• What is the primary purpose of the Summary of Material Modifications (SMM)?
• Why is it important to monitor service provider fees under 408(b)(2)?
• What is the purpose of an out-of-pocket maximum in a health plan?
• Unfunded payroll practices such as vacation, sick, or paid time off (PTO) are example of what with respect to ERISA?
• Which annual form requires reporting a plan's financial condition, investments, and participation to the Department of Labor and the Internal Revenue Service?
• Who is eligible to recover the civil penalties for failure to produce documents timely?
• How often is the Part A hospital deductible charged?
• What is the purpose of a provider network in a health plan?
• What is a key fiduciary duty when purchasing an annuity contract for an ERISA plan?
• Deficiency 408(b)(2) relates to lack of proper monitoring of what?
• What does IRC 105(h) nondiscrimination require of group health plans?
• What does MHPAEA require regarding mental health and substance use disorder benefits?
• Which of the following is a Medicare eligibility criterion?
• Which statement best describes the due diligence process for converting defined contribution assets to retirement income?
• Which of the following describes a safe harbor option in a 401(k) plan?
• In Sulyma v. Intel, which statement about prudent investing is correct?
• Under ASC 960, plan investments are valued at fair value except for which contracts?
• A QDRO interacts with retirement benefits in divorce cases in what way?
• Which retirement plan model is described as an open-architecture, broad-investment choices system?
• Which of the following is exempt from ERISA?
• MPT and diversification in ERISA emphasize what aspect?
• Which item is identified as a challenge facing Medicare?
• RIGs include which items under SOA/SCL?
• Which regulation primarily governs mutual funds for plan sponsors?
• Which of the following is listed as an ERISA plan category?
• Which statement describes a state retirement plan approach as discussed?
• Which of the following is NOT listed as a deficiency type in the 2014 DOL audit quality study?
• Global defined contribution plans may allow a corporation to use a single vehicle rather than many separate DC plans.
• In a top-heavy plan, which group is typically subject to minimum contribution requirements?
• What is required to invoke 502(c)(1)(h)?
• What is the purpose of the ADP nondiscrimination test in 401(k) plans?
• What is the largest source of financing for Medicare Parts B and D?
• What is a top-heavy retirement plan and its effect on contributions?
• Which of the following is a Retirement Income Generator (RIG) under SOA/SCL?
• Which statement correctly describes Closed End Funds?
• SPD renewal rules require which of the following?
• Who is a "key employee" in retirement plan testing, and why does it matter for top-heavy status?
• Which of the following is a core ERISA fiduciary duty?
• Which statement accurately describes SOC 3 in relation to SOC 2?
• Gobielle v. Liberty Mutual is associated with ERISA preemption over state law in multi‑jurisdictional contexts. Which option correctly identifies the related issue?
• Which document must explain a retirement plan's purpose, benefits, eligibility, and administration to participants and be provided to new hires?
• Under FASB ASC 960 accounting and reporting, which basis is used and which statements are included?
• Which statement about white label funds represents a genuine concern?
• When designing benefits for an aging workforce, which considerations are appropriate?
• Which document is explicitly subject to 502(c)(1) penalties for failure to produce timely documents?
• Which document is designed to detail a retirement plan's purpose, benefits, eligibility rules, and how the plan is administered, and must be provided to new employees?
• Which departments are MOST likely to have fraud, and which are LEAST likely?
• In a plan document, which element is required?
• What makes a plan "qualified" under the Internal Revenue Code?
• According to the 2014 DOL audit quality study, what percentage of benefit plan audits had unacceptable major deficiencies?
• Which statement about Medicare Part C plans is true?
• Under totalization agreements, where is the employee generally taxed?
• What is a key benefit of effective employee communication in benefits programs?
• Under HIPAA, what are two common rights individuals have regarding their health information in group health plans?
• Which factors give a court discretion in assessing 502(c)(1) penalties?
• In retirement plan design, after establishing eligibility and vesting, what is the next step?
• SOC reports are primarily associated with which concept?
• Which statement about collective investment trusts is accurate with respect to ERISA?
• What is true about FMLA leave and continuation of group health coverage?
• In health insurance underwriting, guaranteed issue means what?
• What is the penalty period for not delivering a Summary of Material Modification within 30 days after a participant's request?
• When does a Medicare Part A benefit period begin?
• Which describes an investment management arrangement under ERISA?
• In Medicare terminology, what does SMI stand for?
• Which purpose of a Safe Harbor 401(k) is to automatically satisfy nondiscrimination tests?
• What is the additional Medicare payroll tax rate for high earners?