CBP Retirement and Pension Plans

Question 1

What is the primary regulatory statute governing private-sector retirement and welfare benefit plans in the United States?

Accepted Answer

ERISA

Answer

IRC

Answer

COBRA

Answer

PBGC Act

Question 2

In a defined benefit pension plan, the retirement benefit is based primarily on:

Accepted Answer

A formula using salary history and years of service

Answer

Investment performance of employee contributions

Answer

The amount the employee contributes each year

Answer

Social Security integration credits only

Question 3

What is the maximum annual elective deferral limit for a 401(k) plan for employees under age 50 (2024)?

Accepted Answer

$23,000

Answer

$19,500

Answer

$20,500

Answer

$22,500

Question 4

Which vesting schedule requires an employee to be fully vested after no more than 3 years of service?

Accepted Answer

Cliff vesting

Answer

Graded vesting

Answer

Immediate vesting

Answer

Rolling vesting

Question 5

Which government agency insures defined benefit pension plan benefits up to statutory limits if a plan terminates?

Accepted Answer

PBGC

Answer

ERISA Board

Answer

DOL

Answer

SEC

Question 6

What distinguishes a 401(k) plan from a profit-sharing plan?

Accepted Answer

401(k) plans include an elective deferral feature for employees

Answer

Only profit-sharing plans allow employer contributions

Answer

Profit-sharing plans have higher contribution limits

Answer

401(k) plans are only available to nonprofit employers