GBA 3 Practice Exam Questions & Answers 100% Correct!!
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GBA 3 Pract
Institution
GBA 3 Pract
A global trend taking place in defined contribution retirement plans is: - ANSWERA. Greater reliance on plans with default investments
A pension plan investment carries an expense of 2 %. If the expenses are decreased by 50 basis points, what will be the new level of expenses? - ANSWERD. 1.50%
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GBA 3 Practice Exam Questions & Answers 100%
Correct!!
A global trend taking place in defined contribution retirement plans is: - ANSWERA. Greater reliance
on plans with default investments
A pension plan investment carries an expense of 2 %. If the expenses are decreased by 50 basis
points, what will be the new level of expenses? - ANSWERD. 1.50%
A person's Social Security primary insurance amount (PIA) is which of the following? - ANSWERE. The
worker's monthly retirement benefit at full retirement age
A recent Department of Labor audit quality study showed the percentage of employee benefit plan
audits that had "Unacceptable-Major" deficiencies that adversely affected overall audit quality. This
percentage was approximately: - ANSWERD. 40%
A social security totalization agreement might be involved when an employee takes an international
assignment. Which of the following statements best describes the purpose of this type of
agreement? - ANSWERC. The agreement provides relief from dual social security coverage and
taxation under both systems and integrates or synchronizes the benefits earned under more than
one system.
An initial Summary Plan Description must be distributed to participants within how many days after
the date the plan becomes subject to Employee Retirement Income Security Act (ERISA) disclosure
requirements? - ANSWERE. 120
Approximately how many individuals are working in occupations covered by Social Security? -
ANSWERE. 9 out of 10 workers
At a minimum, if there have been no material changes in the plan, the Employee Retirement Income
Security Act requires employers to prepare and distribute new Summary Plan Descriptions to
participants at least every: - ANSWERE. 10 years
Form 5500 and other financial reports statutorily must be kept for a minimum of how many years
after the filing date? - ANSWERD. Six
,Generally, under best practice standards, how often should an Employee Retirement Income Security
Act investment committee meet? - ANSWERQuarterly or twice a year
Group health plans that provide dependent coverage must continue to make such coverage available
to an adult child up to the age of 26. Which of the following statements regarding this coverage is
correct? - ANSWERThis coverage must be available even if the child is married.
Hospice care benefits available under Medicare are for terminally ill persons who have a life
expectancy of how many months or less? - ANSWERSix months
How much are the civil penalties imposed by the Employee Retirement Income Security Act against
certified public accounting (CPA) firms that perform deficient plan audits? - ANSWERZero
Leaders in the data analytics industry developed a Healthcare Analytics Adoption Model that has a
number of levels of analytics adoption that an organization passes through as it gains sophistication
in using its data to drive improvement. In this model, what is the highest level of sophistication? -
ANSWERPersonalized medicine and prescriptive analytics
One of the basic disclosure documents required by the Employee Retirement Income Security Act is
the Summary of Benefits and Coverage. It must be presented in a uniform format and cannot exceed
how many double-sided pages? - ANSWER4
Plan fiduciaries must understand the core difference between "active" and "passive" investment
strategies. Which of the following statements best describes this difference? - ANSWERPassive funds
typically seek to match the performance of an index of securities, while active funds attempt to
outperform the market.
Provider network contracts of an administrative services only (ASO) agreement for a self-funded
health plan allow a limited time period for recovering claims that were identified as overpaid. This
period is usually: - ANSWEROne year
Skilled nursing facility benefits under Medicare Part A are provided only if the beneficiary has had a
hospitalization of at least how many days? - ANSWERSeven days
The cost of an administrative claims audit in a self-funded health plan typically will be: - ANSWERLess
than 1% of total annual claim spending
, The Federal Trade Commission (FTC) case against a medical transcription services company dealt
with the exposure of personal medical information. According to the FTC, the settlement in this case
demonstrated: - ANSWERThat companies must be held to high standards with regard to third-party
vendor management and oversight when it involves personal information
What is the highest rate at which Social Security benefits can be taxed, depending on the person's
income and tax bracket? - ANSWER85%
The maximum premium that can be paid for a qualified longevity annuity contract is the lesser of an
indexed statutory amount ($125,000 in 2017) or: - ANSWER25% of a participant's aggregate account
balance
Under federal law, the value of benefits provided to an employee's same sex civil union partner: -
ANSWERIs not exempt from federal income tax
What is the best description of the coverage provided by "Medigap" insurance policies? -
ANSWERMedigap covers health care service charges, such as copayments, coinsurance and
deductibles, not covered by Medicare Parts A and B.
What was the effect of the U.S. Supreme Court ruling in Tibble v. Edison? - ANSWERThe failure to
properly monitor an investment fund once selected would be exposed to fiduciary breach claims for
six years from the date of such monitoring failure.
When an employee takes an international assignment, the employee might be given "tax
protection." This practice refers to which of the following? - ANSWERReimbursing the employee only
in the event he or she pays higher taxes as a result of the international assignment
Which of the following is a group that has been explicitly identified as being vulnerable to significant
litigation risk when employer securities are part of a retirement plan's investment portfolio? -
ANSWERPlan fiduciaries
Which of the following is a Supreme Court case that made it difficult to argue that an Employee
Retirement Income Security Act plan should not have a contractual limitations period if certain
requirements are met? - ANSWERHeimeshoff v. Hartford Life & Accident Insurance Company
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