PFC-2 Examination Information

Plan Financial Consulting - 2

Attention QPFC Candidates – Spring Exam Window Extended to July 31
The Spring 2008 examination window for ASPPA’s Plan Financial Consulting exams, PFC-1 and PFC-2 has been extended to July 31! The testing window now runs from May 15-July 31. Also, register by May 14 (final day to register for a Spring exam) and receive the early registration discount fee of $199/$225 (member/nonmember). [Register today]

> PFC-2 Syllabus [PDF]
> PFC-2 Course Overview
> 2009 Education and Examination (E&E) Program Changes (ERPA Designation Impact)
> Exam Requirements & Procedures
> Exam Registration & Fees
> Required Reading and Supplementary Study Tools
> Study Guide References & Errata
> Subject Matter
> Deadlines & Fees
> Grading Process
> Register online

Related Links : Register for Exams : Candidate Corner : Study Guide References print page

Course Overview

This course will build on the material learned from RPF 1 & 2, as well as PFC-1. It concentrates on the fiduciary issues in the establishment and administration of a qualified retirement plan, including the selection of appropriate investment vehicles, and also concentrates on the timing and tax rules for the distribution of plan assets to plan participants and beneficiaries.

ERISA defines who will be a plan fiduciary, how those fiduciaries must perform their duties, and how individuals might be personally liable to the plan should they breach their fiduciary duties. Some of the most important fiduciary duties concern the proper investment of plan assets. In some circumstances, financial consultants might find that their control over certain plan assets might elevate them to the status of plan fiduciary, even if it was unintended to do so. Therefore, financial consultants can only assist the plan fiduciaries in plan investment selections, and protect themselves from personal liability, if they are well versed in the ERISA rules and requirements for plan fiduciaries.

Additionally, there are very specific rules on how and when money can be distributed to plan participants and beneficiaries. Again, since the financial consultant frequently assists the plan administrator in requesting, authorizing or making plan distributions, it is expected that the financial consultants understand how the rules apply.

Finally, the financial consultant is required to be ethical in all aspects of professional activity, and ASPPA members are also required to comply with ASPPA’s Code of Professional Conduct.

2009 Education and Examination (E&E) Program Changes (ERPA Designation Impact)

Please refer to the 2009 Education and Examination (E&E) Program Changes webpage for information on the new and exciting enhancements to ASPPA’s educational programs.

Exam Requirements & Procedures

It is presumed that a candidate sitting for the PFC-2 examination will have the knowledge of material covered in the Pension Administrator (PA) or Retirement Plan Fundamentals (RPF) series and the PFC-1 examination. All required reading material is listed in each topic which can be found by downloading the syllabus. Candidates have two and one-half (2 ½) hours to complete this 65 multiple choice examination. Candidates will receive a grade immediately upon completing the PFC-2 exam at the testing center. The use of a calculator will be permitted if it conforms to the required specifications.

Exam Registration & Fees

It is the candidate’s responsibility to review all of ASPPA’s exam policies and procedures which can be found in the ASPPA Program Catalog or on Candidate Corner. You will also find additional helpful information such as test taking tips, directions for contacting your nearest Prometric testing site to schedule examinations, exam windows and dates and much more.

Exam Registration - Register online or download the Exam Registration Form and follow the directions on the form to fax or mail your registration. Confirmation e-mails will be sent to candidates beginning approximately eight weeks prior to the opening of an exam window. Once you receive your confirmation e-mail from ASPPA, you will need to contact Prometric to schedule your proctored exam appointment. Detailed instructions on scheduling your appointment will be included in the confirmation e-mail. Exams are given at Prometric Testing Centers. It is the candidate’s responsibility to schedule an exam. We strongly recommend you schedule an appointment upon receipt of the confirmation letter as testing centers fill up quickly. To find a Prometric Testing Center visit http://www.2test.com.

Exam Fees - To qualify for early registration, registration forms accompanied by the early registration fee must reach the ASPPA office no later than April 17 for the spring examinations and September 19 for the fall examinations. To qualify for final registration, registration forms accompanied by the final registration fee must reach the ASPPA office no later than May 14 for the spring examinations and October 31 for the fall examinations. There is a non-refundable $199 early/$259 final registration fee per exam for members and a $225 early/$285 final fee per exam for nonmembers. For more information visit the Exam Schedule & Fees page.

Required Reading and Supplementary Study Tools

Unless noted all study materials can be ordered by downloading the Publications Order Form and following the instructions to phone, fax or mail your order form and payment. You can also order your publications using the ASPPA Bookstore.

Required Reading
New Book This Year - the required reading for the PFC-2 exam is, 401(k) Fiduciary Governance, An Advisor’s Guide. Arlington, VA: ASPPA by Pete Swisher, CFP©, QPA.

Table of Contents
Chapter 1: Introduction to Retirement Plan Law
Chapter 2: ERISA’s General Provisions, Definitions, and Coverage
Chapter 3: Reporting and Disclosure, Participation and Vesting
Chapter 4: The Fiduciary Responsibility Provisions
Chapter 5: The Fiduciary Duties
Chapter 6: Co-Fiduciary Liability
Chapter 7: The Prohibited Transaction Rules
Chapter 8: Conclusion to Fiduciary Provisions
Chapter 9: Administration and Enforcement
Chapter 10: The Fiduciary Definition
Chapter 11: ERISA §404(c)
Chapter 12: Selection and Oversight of Service Providers
Chapter 13: Oversight of Plan Expenses
Chapter 14: ERISA Investment Management
Chapter 15: Qualified Default Investment Alternatives
Chapter 16: Considerations When Selecting Asset Types
Chapter 17: Analysis of GICs and Fixed Accounts
Chapter 18: Distributions
Chapter 19: Selected Administrative Topics
Chapter 20: Correction Programs
Chapter 21: The ASPPA Code of Conduct and the QPFC
Chapter 22: How to Maximize Your Impact as a 401(k) Advisor
Appendix A: Resources for 401(k) Advisors
Appendix B: 1999 DOL Model Fee Disclosure
Appendix C: Modified DOL Model Fee Disclosure Samples
Appendix D: Disclosure Concerning Potential Conflicts of Interest
Appendix E: GIC Analysis Template (Partial Only)
Appendix F: Excerpts from the Preamble to the 404(c) Regulation
Appendix G: Full Text of the QDIA Regulation
Appendix H: Treas. Reg. 1.72(p)-1, When Loans Are Treated as Distributions
Appendix I: ERISA §206(d), QDROs
Appendix J: FAB 2004-02 and Rev. Proc. 94-22, Missing Participants

To order this publication, visit our online bookstore or download the publication order form.

Supplementary Study Tools
The study tools below are not required preparation for the PFC-2 examination. They are offered as additional study aids and require separate purchase and/or registration fees.

2007 PFC-2 Practice Exam – available for $25 online through the online bookstore or download the publication order form. Please note this is the 2007 PFC-2 practice examination; if you ordered the 2007 practice exam last year you do not need to reorder this practice exam.

2007 PFC-2 Webcourse - It is expected that webcourse registrants preparing for an examination thoroughly study the topics covered in the required reading for the corresponding examination—outlined in the examination syllabus. The webcourse sessions should not be used as a substitute for these materials.

Study Guide References & Errata

For updates to ASPPA’s publications and examinations please visit: http://www.asppa.org/education/ed_study_guide_updates.htm. Please stop by regularly as new updates are posted.

Subject Matter

This examination concentrates on the fiduciary issues critical in the establishment and administration of a qualified retirement plan and the timing and tax rules for the effective distribution of plan assets. Topics include:

• Ethics and Professionalism
• Distributable Events
• Required Minimum Distributions
• Hardship and Corrective Distributions
• Automatic Payouts and Missing Participants
• Other Distribution Rules
• Investment Considerations and the Role of the Professional Advisor
• Fees and Disclosure
• Valuations, Conversions, and Transfers
• Special Investment Products
• Fiduciary Duties
• Prohibited Transactions and Self-Correction Programs
• Other Fiduciary Issues

Download and review the 2008 PFC-2 syllabus for detailed information on topics covered on the exam, learning objectives, exam topic weightings, etc.

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