CBP Retirement and Pension Plans 3

Question 1

Under ERISA, a plan must provide a Summary Plan Description (SPD) to new participants within how many days of becoming eligible?

Accepted Answer

90 days

Answer

ERISA requires that new plan participants receive the SPD within 90 days after becoming covered under the plan.

Question 2

What is the 'top-heavy' rule in qualified retirement plans?

Accepted Answer

A requirement for minimum benefits when key employees hold more than 60% of plan assets

Answer

A plan is top-heavy when key employees own more than 60% of the plan's total value, triggering minimum vesting and contribution requirements for non-key employees.

Question 3

Which IRS form must most private-sector employee benefit plans file annually to report plan information?

Accepted Answer

Form 5500

Answer

Form 5500 is the annual information return filed with the DOL/IRS to report on the financial condition, investments, and operations of employee benefit plans.

Question 4

What does 'vesting' mean in the context of employer retirement contributions?

Accepted Answer

The employee's non-forfeitable ownership of employer-contributed benefits

Answer

Vesting refers to the process by which an employee earns a non-forfeitable right to employer-contributed retirement benefits over time.

Question 5

Under the SECURE Act, what change was made to the required minimum distribution starting age?

Accepted Answer

Raised from 72 to 73 under SECURE 2.0

Answer

SECURE 2.0 (2022) raised the RMD starting age from 72 to 73, with a future increase to age 75 phased in starting in 2033.

CBP - Certified Benefit Professional Practice Test

CBP - Certified Benefit Professional Practice Test

CBP Retirement and Pension Plans 3