M3:

Question 1

Provides retirement income to employees, or results in a deferral of income by employees for periods extending to the termination of covered employment or beyond, regardless of the method of calculating the contributions made to the plan, the method of calculating the benefits under the plan, or the method of distributing benefits from the plan.

Answer 1

Pension benefit plan

Question 2

Distribution period of SPD for plans with no material changes

Answer 2

Every 10 years

Question 3

• Objectives are specific
• focus is on affecting or changing attitudes or behavior
• successes directly measurable
• messages are targeted to specific audience segments
• communication tone is direct

Answer 3

Market-Driven Approach

Question 4

a. Highlight benefit value
b. Create involvement and ownership
c. Encourage better utilization of benefits
d. Support and facilitate benefits administration
e. Satisfy legal requirements

Answer 4

Key elements of benefit communication in today’s standards

Question 5

Document that calculates and reveals the total of employee’s
pay

Answer 5

Total Compensation Statement

Question 6

Time frame for distribution of SPD for new plan participants

Answer 6

90 Days

Question 7

Through the purchase of insurance or otherwise, medical, surgical, or hospital care benefits or benefits in the event of sickness, accident, death, or unemployment, vacation benefits, apprenticeship or other training programs, daycare centers, scholarship funds, and prepaid legal services

Answer 7

Welfare benefit plans

Question 8

An audit control report from a third party administrator

Answer 8

Soc 1

Question 9

The foundation for how the retirement plan investment program is expected to operate

Answer 9

Investment Policy Statement (IPS)

Question 10

The time frame for distribution of SPD/SMM by the close of the relevant plan year

Answer 10

210th Day

Question 11

Extension of benefit rights to couples in same-sex marriage

Answer 11

Windsor Effect

Question 12

Any plan, fund, or program…established or maintained by an employer, an employee organization, or both.

Answer 12

ERISA definition of a plan

Question 13

These three plan documents together will outline the key features, philosophy, processes, and procedures of the retirement plan.

Answer 13

1. Summary plan description (SPD)
2. Investment committee charter
3. Investment policy statement (IPS)

Question 14

In place to find problems that preventative controls did not successfully prevent

Answer 14

Detective controls

Question 15

• Objectives are general
• focus is on informing or explaining
• success is often hard to measure
• messages are sent to a single mass audience
• Communication tone is neutral

Answer 15

Traditional Approach

Question 16

An important component of plan governance

Answer 16

Investment Committee Charter

Question 17

Somewhat less demanding that an RFP, but still compares costs and services with other providers

Answer 17

Request for Information (RFI)

Question 18

o Name of the plan fiduciaries
o policies and procedures relating to the plan administration
o funding requirements
o a description of how benefit payments will be made
o claims and appeals procedures
o plan amendment and termination authority and procedures
o method for distribution of plan assets upon termination
o a statement that plan assets can be used to pay reasonable costs of plan administration

Answer 18

ERISA plan doc requirements

Question 19

Distribution of SPDs for plans that become subject to ERISA

Answer 19

120 Days

Question 20

Outlines the key provisions of a plan

Answer 20

SPD

Question 21

A written plan document

Answer 21

ERISA plan requirement

Question 22

Best way to eliminate/reduce errors in benefit plan operations

Answer 22

Good internal controls

Question 23

A document that must be written in a clear, easily understood language

Answer 23

SPD

Question 24

Used to detect potential errors before they occur

Answer 24

Preventative controls

Question 25

Government plans sponsored by a federal, state, or local government and certain church plans sponsored primarily for church employees

Answer 25

Plans exempt from ERISA

Question 26

Retirement plan RFPs should be issued at a minimum of

Answer 26

Every 3 to 5 years

Question 27

1. Control environment
2. Risk assessment
3. Control activities
4. Information and communication
5. Monitoring

Answer 27

5 components of effective internal controls

Question 28

Any systematic measure that a company or other organization establishes to assure its business is conducted in an orderly manner, to safeguard its assets, to deter wrongdoing, to ensure accuracy and completeness of information, and to produce reliable and timely information.

Answer 28

Internal Controls

Question 29

 Written plan document
 SPD
 SMM
 Annual financial report (form 5500)
 SAR

Answer 29

ERISA documentation requirements

Question 30

The time frame that SMM’s must be distributed within

Answer 30

60 days of adopting the change (90 if done every 90 days regardless)

Question 31

The communication tone in market driven approach

Answer 31

Direct

Question 32

Typical number of members on investment committee

Answer 32

5-7 members meet objectives

Question 33

Distribution period of SPD for plans with material reductions and
changes

Answer 33

Every 5 years

Question 34

(a) Specify activities for which the committee is responsible, such as coordinating vendor analysis and recommending plan design features

(b) Define the governing bodies with whom the committee must consult and to whom they need to provide recommendations

(c) Define how committee members are selected or appointed

(d) Establish how often regular committee meetings should occur

(e) Define the roles of any outside consultants.

Answer 34

Responsibilities of the Investment Committee Charter