Test Your Knowledge About Retirement Plan Compliance! Trivia Quiz
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Have you identified the Fiduciaries to the plan?
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Yes
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No
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About This Quiz
Explore your understanding of retirement plan compliance! This trivia quiz assesses knowledge on plan fiduciaries, investment reviews, cost documentation, fiduciary responsibilities, and oversight mechanisms, ensuring adherence to relevant standards.
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- 2.
Does the plan have a way to INDEPENDENTLY review the investment choices on a regular basis?
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Yes
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No
Correct Answer
A. YesExplanation
The correct answer is "Yes" because it indicates that the plan does have a way to independently review the investment choices on a regular basis. This implies that there is a process in place to assess and evaluate the investment options available in the plan, ensuring that they are periodically reviewed and potentially updated if necessary. This is important for maintaining the quality and suitability of the investment choices offered to plan participants.Rate this question:
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- 3.
Have all costs of the plan been documented?
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Yes
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No
Correct Answer
A. YesExplanation
The answer is "Yes" because it indicates that all costs of the plan have been documented. This implies that there is a record or documentation of every expense or expenditure related to the plan. It suggests that there is clarity and transparency regarding the financial aspects of the plan, which is important for budgeting, tracking expenses, and ensuring accountability.Rate this question:
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- 4.
Have the Fiduciaries been educated on their responsibilities?
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Yes
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No
Correct Answer
A. YesExplanation
The fiduciaries have been educated on their responsibilities. This implies that they have received the necessary information and training regarding their duties and obligations as fiduciaries. They are likely to be aware of the legal and ethical standards they must adhere to in managing assets and making decisions on behalf of others. This education ensures that they are equipped to fulfill their fiduciary duties effectively and responsibly.Rate this question:
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- 5.
Is there a "Retirement Committee" in place to oversee the plan?
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Yes
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No
Correct Answer
A. YesExplanation
There is a "Retirement Committee" in place to oversee the plan. This suggests that there is a specific group or committee responsible for managing and monitoring the retirement plan. They are likely involved in making decisions, setting policies, and ensuring compliance with regulations related to retirement benefits.Rate this question:
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- 6.
Is there a documentation process for each plan decision? Department of Labor and IRS only recognize documented activities.
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Yes
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No
Correct Answer
A. YesExplanation
The explanation for the given answer "Yes" is that both the Department of Labor and IRS require documented activities for plan decisions. This implies that there is a documentation process in place for each plan decision. Without proper documentation, the activities may not be recognized by these authorities.Rate this question:
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- 7.
Does your plan have an "Investment Policy Statement"?
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Yes
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No
Correct Answer
A. YesExplanation
The given answer is "Yes" because an "Investment Policy Statement" is a document that outlines an individual's or organization's investment goals, objectives, risk tolerance, and strategies. It serves as a guideline for making investment decisions and helps to ensure that investments align with the overall financial plan. Having an Investment Policy Statement is important as it provides clarity and discipline in managing investments and helps to minimize emotional and impulsive investment decisions.Rate this question:
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- 8.
Have you identified goals to make a quality plan for the employees?
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Yes
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No
Correct Answer
A. YesExplanation
The given answer "Yes" indicates that the person has identified goals to make a quality plan for the employees. This suggests that they have set specific objectives or targets in order to develop a plan that ensures the employees' work meets certain quality standards. By having identified goals, the person is likely to have a clear direction and focus when creating the quality plan, which can ultimately lead to improved performance and outcomes for the employees.Rate this question:
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- 9.
What are the total number of investment choices under your plan?
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Under 20 investment choices
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21 -30 investment choices
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31 -50 investment choices
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Over 50 investment choices
Correct Answer
A. Under 20 investment choicesExplanation
The total number of investment choices under the plan is less than 20. This means that there are fewer than 20 options available for investment.Rate this question:
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- 10.
When was the last time a fund change occurred in the plan investment choices?
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Under 6 months
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6 months to 1 year
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1 year to 2 years
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Over 2 years
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Never
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Unknown
Correct Answer
A. Under 6 monthsExplanation
The last time a fund change occurred in the plan investment choices was under 6 months ago. This means that within the past 6 months, there was a change made to the available funds for investment in the plan.Rate this question:
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- 11.
When was the last time the costs of the plan were reviewed to determine if reasonable?
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Within the last 3 years
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Over 3 years ago
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Only at the start of the plan
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Never
Correct Answer
A. Within the last 3 yearsExplanation
The correct answer is "Within the last 3 years". This means that the costs of the plan were reviewed at some point in the past three years to determine if they were reasonable. It suggests that the organization is actively monitoring and assessing the costs of the plan to ensure they remain reasonable and potentially make adjustments if necessary.Rate this question:
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- 12.
Are you confident that the required plan disclosures are being distributed to participants?
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Yes
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No
Correct Answer
A. YesExplanation
The given answer "Yes" suggests that the person is confident that the required plan disclosures are being distributed to participants. This implies that the necessary information regarding the plan is being shared with the participants as per the regulatory requirements.Rate this question:
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Quiz Review Timeline (Updated): Mar 19, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
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Current Version
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Mar 19, 2023Quiz Edited by
ProProfs Editorial Team -
Apr 04, 2016Quiz Created by
Dave Biddle
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