CPC Cheat Sheet 2026

The 30 highest-yield CPC facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. A CPC is approached by a plan sponsor to help 'backdate' plan documents to qualify for a retroactive amendment. What should the CPC do? → Refuse, as backdating documents constitutes fraud and is a serious ethical violation
2. What is the purpose of the Affordable Care Act (ACA)? → Expand healthcare coverage
3. The DOL's 2024 fiduciary rule expansion primarily targeted which type of financial advice interaction? → One-time rollover recommendations to IRA accounts
4. Which asset-liability management (ALM) technique freezes pension liability growth by closing the plan to new entrants while honoring accrued benefits? → Soft freeze
5. What does COBRA provide to employees? → Continuation of health insurance
6. A plan's funding target for the current year is $10 million and plan assets are $8 million. What is the funding shortfall? → $2 million
7. Which law governs private pension plans in the U.S.? → ERISA
8. A plan sponsor must obtain a waiver of minimum funding requirements from the IRS when? → Making the minimum required contribution would impose a substantial business hardship
9. Which IRS correction program allows plan sponsors to self-correct significant operational failures without IRS approval, effective after SECURE 2.0? → Self-Correction Program (SCP)
10. Which ERISA section governs the fiduciary duty of prudence for plan administrators? → ERISA Section 404(a)(1)(B)
11. How can fiduciaries demonstrate compliance? → Document decisions and processes
12. Under ERISA, which action by a plan fiduciary constitutes a prohibited transaction? → Lending plan assets to a party in interest at market rates without exemption
13. A plan sponsor wants to add a cash balance formula alongside an existing final average pay formula in the same plan. What is this arrangement called? → Hybrid plan
14. A defined benefit plan terminates in a standard termination. Which agency must the plan sponsor notify before distributing plan assets? → Pension Benefit Guaranty Corporation (PBGC)
15. The ASPPA Code of Conduct requires CPCs to be 'competent' when providing services. What does competence require? → Possessing the knowledge, skills, and experience necessary for the specific engagement
16. Under ERISA Section 203, what is the maximum cliff vesting schedule permitted for employer matching contributions in a 401(k) plan? → 3 years
17. A plan sponsor amends a defined benefit plan to eliminate the early retirement subsidy for future accruals. Is this permissible under ERISA's anti-cutback rule? → Yes, if eliminated only for future accruals with proper notice to participants
18. Which of the following best describes the 'at-risk' liability used in defined benefit funding calculations? → Liability assuming maximum lump-sum elections and early retirement
19. Under ERISA Section 3(38), an 'investment manager' must be all of the following EXCEPT: → A licensed broker-dealer registered with FINRA
20. Under IRC Section 411, what is the maximum cliff vesting schedule permitted for employer contributions to a non-top-heavy qualified plan? → 3 years
21. When evaluating an active equity manager, which statistic BEST isolates skill from luck over a short time period? → Information ratio (IR)
22. What is a mutual fund? → A pooled investment managed by professionals
23. A pension plan holds alternative investments including private equity and hedge funds primarily to achieve: → Enhanced returns and diversification through low correlation with public markets
24. Under the graded vesting schedule for non-top-heavy defined contribution plans, what percentage must an employee be vested after completing 4 years of service? → 60%
25. ESG (Environmental, Social, and Governance) factors may be considered in pension investing when they: → Are economically relevant material risks that affect risk-adjusted returns
26. What is the required beginning date (RBD) for required minimum distributions (RMDs) for an employee who retired in 2024? → April 1 following the later of the year the employee turns 73 or the year they retire
27. Which mortality table is currently mandated for determining minimum funding liabilities for single-employer defined benefit plans? → IRS-prescribed mortality tables updated periodically under IRC Section 430(h)(3)
28. A plan sponsor wants to reduce the pension plan's balance sheet volatility recognized under ASC 715. Which strategy MOST directly achieves this? → Implementing a liability-driven investment strategy to match asset and liability movements
29. What is the purpose of the 'credit balance' in a defined benefit plan's funding standard account? → To track excess contributions that can offset future minimum required contributions
30. Which actuarial cost method spreads the present value of future benefits as a level percentage of projected future compensation? → Entry Age Normal