Practice Test Geeks(CPC) Certified Pension Consultant Practice Test
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Employee Benefits Law & Regulatory Updates Flashcards

7 cards from real CPC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Employee Benefits Law & Regulatory Updates flashcards as text

  1. A defined benefit plan terminates in a standard termination. Which agency must the plan sponsor notify before distributing plan assets?

    Answer: Pension Benefit Guaranty Corporation (PBGC)

    In a standard termination, the plan sponsor must file a Notice of Intent to Terminate (NOIT) and then a Standard Termination Notice with the PBGC before distributing assets.

  2. Under ERISA Section 203, what is the maximum cliff vesting schedule permitted for employer matching contributions in a 401(k) plan?

    Answer: 3 years

    ERISA requires that employer matching contributions vest under either 3-year cliff vesting or 6-year graded vesting (2-year cliff for SIMPLE 401(k) plans).

  3. Which IRS notice must a plan administrator provide to a participant at least 30 days before an eligible rollover distribution, explaining rollover options and withholding rules?

    Answer: 402(f) Notice

    The 402(f) notice (safe harbor rollover notice) must be provided 30–180 days before distribution, informing participants of their right to a direct rollover and the 20% mandatory withholding on taxable distributions.

  4. Under ERISA Section 4(b), which type of plan is generally exempt from ERISA coverage?

    Answer: Governmental plans maintained by state and local governments

    ERISA Section 4(b) explicitly exempts governmental plans (federal, state, local) from ERISA's coverage, reporting/disclosure, and fiduciary rules.

  5. Under the HEART Act (Heroes Earnings Assistance and Relief Tax Act), what benefit must a plan provide to a participant who dies while performing qualified military service?

    Answer: The survivors must receive any additional benefits that would have been provided if the participant had resumed employment and then died

    The HEART Act requires that plans credit the military service period for benefit accrual and vesting purposes, meaning survivors receive any benefits that would have accrued had the participant returned and then died.

  6. Which IRS correction method under EPCRS requires the plan sponsor to pay a fee to the IRS and submit a formal application to correct plan failures?

    Answer: Voluntary Correction Program (VCP)

    VCP requires a formal submission to the IRS with an associated user fee; in exchange, the IRS issues a compliance statement confirming the correction is acceptable.

  7. Under SECURE 2.0, employers may make matching contributions on student loan repayments to 401(k), 403(b), SIMPLE IRA, or governmental 457(b) plans beginning in which year?

    Answer: 2024

    SECURE 2.0 Section 110 allows employers to treat qualified student loan payments as elective deferrals for purposes of employer matching contributions, effective for plan years beginning after December 31, 2023.