Retirement planning Exam 2 Past Exam QUESTIONS AND ANSWERS 100% score (reupdated 2025) Under the PPA 2006, pension plans can now provide for in- service distributions to participants who are age ______ or older. - Correct Answers ✅62 If during their annual review of a defined benefit pension plan, an actuary determines life expectancies of plan participants are increasing the the plan costs will decrease. - Correct Answers ✅False Which of the following is not a defined benefit plan funding formula? - Correct Answers ✅Excludable amount formula Which of the following is a characteristic of pension plans that does not apply to profit sharing plans? - Correct Answers ✅Mandatory annual funding Jake has worked for GT for the last 20 years and been a participant in its defined benefit plan. In the last ten years, his salary has increased significantly. Over the last ten years, his compensation was $290,000, $100,000, $120,000,
$100,000, $240,000, $200,000, $160,000, $180,000,
$150,000, and $210,000. In 2020, what is the most that he could receive as a pension payment? - Correct Answers ✅200k 1 / 2
Retirement planning Exam 2 Past Exam QUESTIONS AND ANSWERS 100% score (reupdated 2025) Plan sponsors pay premiums for the insurance coverage provided by the Pension benefit Guaranty Corporation. - Correct Answers ✅True Alfred has worked for BNV, a large manufacturer, for the last 20 years and is a participant in the traditional defined benefit pension plan. Alfred is concerned over the company's financial difficulties and is worried that management at BNV might modify his FUTURE benefit accruals, which would cause his expected benefits at retirement to be reduced. Which of the following laws is designed to prevent that from occurring?
- Correct Answers ✅There are no laws that prevent an
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employer from modifying FUTURE benefit accruals, even in a defined benefit plan.The Participant bears the investment risk in a Money Purchase Pension Plan. - Correct Answers ✅True Defined benefit pension plans and cash balance plans are both pension plans. However, they are significantly different plans. Which of the following statements is true? - Correct Answers ✅Both plans can provide for lump-sum benefits upon termination and/or full retirement age.Parker is a participant in his employer's traditional defined benefit pension plan. The XYZ Company Pension Plan provides an annual benefit of 2% times the years of