SOA RET DARetirement Benefits — Design & Accounting (U.S.)

Fellowship (FSA)

5 hours·≈10 written-answer questions·≈400 study hours

Score 0/0 · 4 MC

RET DA · Q1
Multiple choice
Plan design (DB, DC, hybrid) & policy
Which design shifts investment risk to participants while retaining a sponsor-guaranteed interest credit?
RET DA · Q2
Written answer
Plan design (DB, DC, hybrid) & policy
A manufacturer with an ageing workforce and volatile earnings wants to replace its final-average-pay DB plan. Compare converting to a cash balance plan versus freezing DB and enhancing the 401(k), from the perspectives of the sponsor, older employees and younger employees. Recommend one.