901.20 EA Standards of Practice

Question 1

T/F an EA may perform service even if not qualified

Answer 1

False

Question 2

T/F an EA should not perform services for a client if they believe it may be used for fraudulent purposes.

Answer 2

True

Question 3

T/F If a plan admin asks a question about a report that the EA signed, they are required to provide supporting documention/answers.

Answer 3

TRUE

Question 4

Should an actuary perform services if there is a conflict of interest?

Answer 4

Only if

1. they reasonably believe it will not affect their work
2. all clients have signed off on this

Question 5

Could a conflict of interest exist based on a former employer?

Answer 5

Yes

Question 6

T/F A report or certification must include a reference as to the data, actuarial assumptions and
methods used (including prescribed assumptions and methods),

Answer 6

TRUE

Question 7

Jim feels an assumption isn’t reasonable but it is mandated by law - does Jim have to use it.

Answer 7

Yes…

Question 8

If an EA realizes the client never filed last year’s 4010 that they signed, what must they do?

Answer 8

Let the PBGC know in writing

Question 9

T/F an EA must return all necessary records for a client to comply with laws, but can keep a copy

Answer 9

TRUE

Question 10

T/F if there is a fee dispute and state law allows, the EA need only return client forms required by ERISA and IRC and must allow reasonable access to review and copy all records need for ERISA and IRC

Answer 10

TRUE

Question 11

T/F if a CBA representative with ees in the plan request additional info from the actuary that signed the request, they must comply

Answer 11

False - only plan administrator

Question 12

T/F One person could serve multiple fiduciary roles (e.g. trustee and plan administrator)

Answer 12

TRUE

Question 13

How many fiduciaries must be named in the plan document?

Answer 13

1

Question 14

What is the maximum number of fiduciaries a plan can have?

Answer 14

No limit

Question 15

Can a fiduciary be held personally liable for another fiduciary’s mistake?

Answer 15

Yes if they help cover it up or knew and did nothing

Question 16

Are all people that provide services to the plan a fiduciary?

Answer 16

No providing recommendations/services does not make a person a fiduciary

Question 17

How often do benefit statements need to be provided in a DB plan? in a DC plan?

Answer 17

1 every 3 years in a DB plan to ptps with a vested benefit (if employed)

every year in a DC plan

Question 18

When must an SPD be given to plan participants?

Answer 18

90 days after entering plan (90 days after receiving benefit for beneficiaries)

Question 19

After updating an SPD or SMM how long until you must give to participants?

Answer 19

210 days after the close of the plan year for which the SPD was updated or the amendment was passed.