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. Under IRC Section 401(a)(9), if a participant died before the required beginning date and had no designated beneficiary, the entire interest must be distributed within how many years?

    Answer: 5 years

    Under the 5-year rule, if there is no designated beneficiary and the participant died before the RBD, the entire account must be distributed by December 31 of the fifth year after the participant's death.

  2. A cash balance plan credits participant accounts with a 5% annual pay credit and a 4% annual interest credit. Under IRC Section 411(b)(5), what is the maximum interest crediting rate generally permitted to avoid being treated as backloading?

    Answer: A market rate of return on plan assets or a reasonable rate

    IRC Section 411(b)(5) requires that the interest crediting rate for cash balance plans not exceed a market rate of return, and provides several safe harbor rates to satisfy this requirement.

  3. Under ERISA Section 514(a), which of the following laws is generally preempted by ERISA for employer-sponsored benefit plans?

    Answer: State laws that mandate specific benefit coverage for self-insured ERISA plans

    ERISA preempts state laws that 'relate to' employee benefit plans; under the deemer clause, self-insured plans cannot be deemed insurance companies, so state benefit mandate laws do not apply to them.

  4. Which SECURE 2.0 provision allows participants aged 60–63 to make catch-up contributions of the greater of $10,000 or 150% of the regular catch-up limit beginning in 2025?

    Answer: Super catch-up contributions under IRC Section 414(v)(7)

    SECURE 2.0 Section 109 created a super catch-up for participants aged 60–63, allowing contributions of the greater of $10,000 or 150% of the standard catch-up amount, effective for taxable years beginning after December 31, 2024.

  5. Under the Mental Health Parity and Addiction Equity Act (MHPAEA), group health plans may not impose financial requirements on mental health benefits that are more restrictive than the predominant requirements applied to what?

    Answer: Medical/surgical benefits in the same classification

    MHPAEA requires that financial requirements (copays, deductibles) and treatment limitations for mental health/substance use disorder benefits be no more restrictive than those applied to substantially all medical/surgical benefits in the same classification.

  6. Which Form must a plan administrator file with the IRS and PBGC to report a reportable event such as a funding waiver or a significant decrease in active participants?

    Answer: PBGC Form 10

    PBGC Form 10 is used to report reportable events under ERISA Section 4043, such as active participant reductions of 20% or more, missed contributions, or plan amendments that significantly reduce benefits.

  7. Under SECURE 2.0, beginning in 2024, plans may treat distributions for federally declared disaster relief as eligible for which special tax treatment?

    Answer: Disaster recovery distributions exempt from the 10% early withdrawal penalty, repayable within 3 years

    SECURE 2.0 Section 331 allows up to $22,000 in qualified disaster recovery distributions to be exempt from the 10% early withdrawal penalty and includible in income over three years, with the option to repay within three years.