CRPC Exam Questions with Complete Solutions
Which is a key disadvantage of a power of attorney? - Answer-some financial institutions may be hesitant to recognize the agent's authority it is more complicated than a trust document
- Some financial institutions may be hesitant to recognize the ag...
CRPC Exam Questions with Complete
Solutions
Which is a key disadvantage of a power of attorney? - Answer-some financial
institutions may be hesitant to recognize the agent's authority it is more complicated
than a trust document
- Some financial institutions may be hesitant to recognize the agent's authority,
especially if the power of attorney was executed a long time before its use. The
competency hearing associated with a conservatorship is avoided with a power of
attorney. A power of attorney is simple compared to a trust document.
Trends in retirement have changed over the years with more people working past
traditional retirement age. Which one of the following is a reason for these changes in
recent decades? - Answer-There has been a decline in employers offering retiree health
care insurance.
-There has been a decline in employers offering retiree health care insurance.
Legislation passed in 1986 outlawed mandatory retirement almost entirely yet age
discrimination is alive and well; as compared to their younger peers, workers in the 63-
to 67-year-old age range are less likely to find jobs and more likely to be passed over
for promotions. Defined contribution plans continue to supplant defined benefit plans.
Which one of the following classes of employees is protected from early mandatory
retirement laws? - Answer-Blue-collar employees
- Police officers and airline pilots are not protected against early mandatory retirement.
This is due to the danger and physical demands of keeping us safe. Also subject to
mandatory early retirement are high-level executives, and "high policy-making"
employees-positions that require significant mental skill.
Regarding defined contribution plans - Answer-- participants are offered their vested
benefit in a lump sum at retirement.
- there are no "reduced benefit" provisions.
- they provide a separate account for each participant.
Unlike defined benefit plans, defined contribution plans do not promise to pay a specific
benefit at retirement. Instead, benefits are determined by the account balance which is
a function of the amount of contributions and the performance of the underlying
investments. Defined contribution plans provide a separate account for each participant,
, and participants are generally given their vested benefit in a lump sum at retirement or
termination. Defined contribution plan benefits are not reduced by the same retirement
plan mathematical calculations that cause benefit reductions in defined benefit plans.
All of the following are true regarding COBRA-mandated continuation of group medical
coverage for terminated employees - Answer-- continued coverage must be made
available for at least 18 months.
- the terminated employee must pay full premiums including up to a 2% increase.
- certain small employers are not covered by COBRA.
COBRA requires employers to provide continued group medical coverage without proof
of insurability. Continued coverage must be made available for at least 18 months, and
for up to 36 months in certain circumstances. Terminated employees are required to
pay full premiums and up to a 2% administrative cost. Employers with less than 20 full-
time employees do not have to extend COBRA coverage.
At age 56, Frank began taking substantially equal payments from his IRA using the
fixed amortization method. Two years later, Frank now wants to take smaller IRA
distributions because the value of his account has declined by 40% during the recent
bear market. If he switches to the required minimum distribution method - Answer--
switching to the required minimum distribution method will drastically reduce his
required withdrawal.
- he will avoid the 10% penalty on premature distributions.
- he must continue to take substantially equal payments using a method approved by
the IRS for five years or until age 59 1/2, whichever comes later, or he will trigger the
10% penalty on previous payments.
A worker's primary insurance amount (PIA) is the amount they receive from Social
Security - Answer-if he or she began payments at full retirement age
Carla is collecting $600 per month from a government pension and is also eligible to
receive a Social Security spousal benefit of $1,000 per month. Due to the GPO, her
Social Security spousal benefit will be reduced to - Answer-$600
David began receiving Social Security benefits in June 2023. He later learned that he
should have delayed receipt of his benefits until a later age. He has until _______ to
pay back all payments and refile for increase benefits at a future date. - Answer-June
2024
Which one of the following is a correct statement about old-age Social Security
benefits? - Answer-Old-age Social Security benefits are not reduced for persons who
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