Practice Test GeeksCRPC - Chartered Retirement Planning Counselor Practice Test
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Social Security and Pensions Flashcards

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

Read the first 7 Social Security and Pensions flashcards as text

  1. A widow age 60 wants to claim survivor benefits. How does early claiming affect her benefit compared to claiming at her full retirement age?

    Answer: Benefit is reduced to 71.5% of the deceased spouse's PIA

    A widow claiming survivor benefits at age 60 receives 71.5% of the deceased worker's PIA due to early claiming.

  2. Under a defined benefit pension plan, which integration method credits the Social Security covered compensation level when calculating benefits?

    Answer: Step-rate integration

    Step-rate (excess) integration provides a higher accrual rate on earnings above the Social Security covered compensation level.

  3. An employee has 30 years of substantial earnings under Social Security. How does this affect the Windfall Elimination Provision (WEP)?

    Answer: WEP is fully eliminated after 30 years of substantial earnings

    Workers with 30 or more years of substantial Social Security earnings are completely exempt from the WEP reduction.

  4. Which Social Security benefit rule allows a divorced spouse to claim on an ex-spouse's record without affecting the ex-spouse's own benefit?

    Answer: Independent entitlement rule

    Under independent entitlement, a divorced spouse's claim on an ex-spouse's record does not reduce or affect the ex-spouse's benefits.

  5. A pension plan uses a 5-year cliff vesting schedule. An employee leaves after 4 years and 11 months. What is their vested percentage?

    Answer: 0% vested

    Under cliff vesting, an employee must complete the full required years (5) to be vested; leaving before that date results in 0% vesting.

  6. What is the primary purpose of the Government Pension Offset (GPO)?

    Answer: Offset spousal or survivor Social Security benefits for those receiving a non-covered government pension

    The GPO reduces Social Security spousal or survivor benefits by two-thirds of the non-covered government pension amount.

  7. A participant in a cash balance plan has an account balance of $400,000. The plan uses a 5% annual interest crediting rate. What is the projected balance after 3 years with no additional pay credits?

    Answer: $463,050

    Compounding $400,000 at 5% for 3 years: $400,000 × 1.05³ = $463,050.