M6:

Question 1

Default options for DC plans prior to PPA Act of 2006

Answer 1

Money Market Funds

Question 2

Most popular default DC investments post-PPA

Answer 2

TDFs

Question 3

One basis point

Answer 3

Equal to 1/100th of 1% or 0.01%

Question 4

Court case on fiduciary risks of not paying attention to investment fees

Answer 4

Tibble vs. Edison

Question 5

What is the time limit for filing a lawsuit for breach of fiduciary duty?

Answer 5

No more than six years after
the date of the last action

Question 6

Passing of this law is when DC plans
shifted from money market to TDF funds as a default

Answer 6

Pension Protection Act (PPA) of 2006

Question 7

Part of a 401(k) plan or pension plan, pooled into investment vehicles, and follow an investment strategy.

Answer 7

Collective Investment Trusts (CITs)

Question 8

Measurements of value of mutual funds in accounts owned by an insurance co.

Answer 8

Accumulation Unit Value

Question 9

How long is plan info kept under ERISA Sec. 107?

Answer 9

A minimum of 6 years after the filing date of Form 5500

Question 10

How long does ERISA Sec. 209 require records to be maintained?

Answer 10

Possibly Decades

Question 11

Under what requirement can physical documents be converted to
electronic?

Answer 11

If transferred documents are legible, accurate, & reproducible

Question 12

Ultimately responsible for ensuring that all plan transactions are executed in a timely fashion

Answer 12

Plan Sponsor

Question 13

Core services provided by TPAs

Answer 13

Plan documents, compliance
testing, filing form 5500 etc.

Question 14

Value per share of a mutual fund or ETF on a specific date/time.

Answer 14

Net Asset Value (NAV)

Question 15

Entity responsible for year-end
compliance testing

Answer 15

TPA

Question 16

Funds that seek higher returns by taking greater risk when workers are younger. As the worker gets older, the risky
proportion decreases
to mitigate potential
loss.

Answer 16

Target Date Funds (TDFs)

Question 17

Entity responsible for maintaining
required plan records

Answer 17

Plan Administrator

Question 18

Party that is obligated to assess and negotiate plan fees

Answer 18

Fiduciary

Question 19

How often committees should evaluate the plan’s TFDs

Answer 19

Quarterly

Question 20

Entity responsible for creation and maintenance of IPS policy statement

Answer 20

Fiduciary