M3: Quizzes Flashcards
The ____ should provide guidelines for selecting, monitoring, measuring, and making decisions for a plan?s investments.
A. SPD
B. IPS
C. SMM
D. RFI
B. IPS
Study Guide, Pg. 10, Learning Outcome 2.4; Text, Pg. 77
A document that contains a summary of the provisions of a plan is called a(n) ___________.
A. Supplemental Plan Description
B. Summary Plan Description
C. ERISA Plan Description
D. DOL Plan Description
B. Summary Plan Description
Study Guide, Pg. 8, Learning Outcome 1.6; Text, Pg. 72
Subsequent to sending an initial SPD, an SPD reflecting plan changes must be distributed every years.
A. ten
B. six
C. five
D. three
C. five
Study Guide, Pg. 8, Learning Outcome 1.6; Text, Pg. 72
All of the following are components of a well-constructed Investment Policy Statement (IPS), EXCEPT:
A. Statement of purpose
B. Asset allocation
C. Plan cost
D. Investment guidelines
C. Plan cost
Study Guide, Pg. 11, Learning Outcome 2.5; Text, Pg. 78
It is recommended that ideally, investment committees meet _____________.
A. Annually
B. Monthly
C. Quarterly or semi-annually
D. Weekly
C. Quarterly or semi-annually
Study Guide, Pg. 13, Learning Outcome 2.9; Text, Pg. 80
RFP stands for ______________________.
A. Repeat for Proposal
B. Request for Proposal
C. Request for Petition
D. Request for Program
B. Request for Proposal
The factors that influence the shape and scope of an organization’s benefit communications include all the following, EXCEPT:
A. Highlights the value of employee benefits
B. Encourages better utilization of benefits
C. Satisfies legal requirements
D. Discourages open communication
D. Discourages open communication
Study Guide, Pg. 15, Learning Outcome 3.3; Text, Pg. 83-85
There are ___________ significant differences between a market-driven approach to employee benefit plan communications and the traditional approach to such communications.
A. three
B. five
C. ten
D. six
B. five
Study Guide, Pg. 16, Learning Outcome 3.5; Text, Pg. 87
When a plan closes, an SPD must be distributed by the _____ day of the relevant plan year to which the SPD applies.
A. 150th
B. 200th
C. 210th
D. 220th
C. 210th
Study Guide, Pg. 8, Learning Outcome 1.6; Text, Pg. 72
A ________ Report is prepared by an auditor engaged by the third-party administrator to review and assess controls at that service organization. The service organization provides the report to any entity relying on its controls.
A. SOC 1
B. SOC 3
C. SOC 4
D. SOC 5
A. SOC 1
Study Guide, Pg. 20, Learning Outcome 4.6; Text, Pg. 94
The plan sponsor and plan administrator are responsible for establishing and maintaining an effective system of controls.
TRUE
Employee contributions to plans are not usually administered by payroll deductions.
FALSE
The Summary Plan Description (SPD) contains a summary of the provisions of the plan.
TRUE
The investment committee should be very large in order to be more effective.
FALSE
The total compensation statement offers a realistic view of what an employee’s total pay and benefits are really worth.
TRUE
For retirement plans with more than 100 participants, funds must be submitted as soon as possible, but not more than 20 days into the month following the month in which they are withheld from payroll.
FALSE
(15 days)
The IPS is the foundation for how the plan investment program is expected to operate.
TRUE
An investment committee should meet annually at a minimum.
TRUE
Good plan internal controls can shorten the turnaround time on requests for additional information.
TRUE
Plans that are subject to ERISA do not have to be established and maintained pursuant to a written plan document.
FALSE
Plans that are subject to ERISA must be established and maintained in a _________ form.
A. Oral
B. Partially oral, partially written
C. Written
D. Legal
C. Written
Text, pg 70
The document that contains a summary of the provisions of the plan, including details about the eligibility, benefits, plan operations, funding, and claims procedures as well as a statement of ERISA rights is known as the _________.
A. SBC
B. SPD
C. IPS
D. SMM
B. SPD
Text, pg 76
Which communication approach for employee benefits focuses on informing or explaining the benefits?
A. Market-driven approach
B. Traditional approach
C. Direct approach
D. Indirect approach
B. Traditional approach
Text, pg 87
The document that is the foundation for how a retirement plan investment program is expected to operate is the ________.
A. IPS
B. IRS
C. DOL
D. SPD
A. IPS
Text, pg 77
At a minimum, an investment committee should meet ________.
A. Biannually
B. Monthly
C. Quarterly
D. Annually
D. Annually
Text, pg 80
A ________ is responsible for establishing and maintaining an effective system of internal controls over employee benefit plans.
A. IPS committee
B. Plan sponsor
C. Plan sponsor and plan administrator
D. Plan administrator
C. Plan sponsor and plan administrator
Text, pg 90
What is a common problem encountered by auditors regarding the allocation of funds in plans to employee accounts?
A. Funds are not always remitted in a timely manner.
B. Funds are always remitted in a timely manner.
C. Funds are insufficient.
D. Funds are remitted in 10 days.
A. Funds are not always remitted in a timely manner.
Text, pg 92
What is the communication tone in a market-driven approach?
A. Affects changing attitudes or behaviors
B. Neutral
C. Specific
D. Direct
D. Direct
Text, pg 87
It is recommended that a plan sponsor issue a record keeper Request for Proposal (RFP) within _______.
A. Five to ten years
B. Three to five years
C. One to three years
D. Four to six years
B. Three to five years
Text, pg 80
An initial SPD must be distributed to participants and beneficiaries within days.
A. 30 days
B. 90 days
C. 120 days
D. 210 days
C. 120 days
Text, pg 72
- All of the following are ERISA reporting and disclosure requirements, EXCEPT:
A. A summary plan description
B. A summary of material modification
C. A biannual financial report (Form 5500)
D. A written plan document
Answer: C
Study Guide: Module 3, Pg. 6, Learning Outcome 1.2 Text, Pg. 69
- The SPD must be distributed by the _________day following the close of the relevant plan year to which the SPD applies, unless there is a material reduction in benefits.
A. 215th
B. 220th
C. 210th
D. 365th
Answer: C
Study Guide, Module 3, Pg. 8, Learning Outcome 1.6 Text, Pg. 72
