APA study guide
APA · Work through your exam, one topic at a time.
The Accredited Pension Administrator (APA) is a professional designation offered by the National Institute of Pension Administrators (NIPA), a membership association for retirement plan professionals headquartered in Chicago, Illinois. The APA is aimed at individuals who administer qualified retirement plans - day-to-day plan operations, compliance testing, distributions, and the reporting and fiduciary obligations that accompany plan sponsorship. The APA study guide has 4 sections and about 1,333 words.
01Pension Plan Administration: Operations, Records, and Participant Services
Pension plan administration is the day-to-day operation of the plan document: enrolling eligible employees, crediting service and compensation, computing benefits and vesting, processing distributions and loans, and maintaining records that support every one of those steps. Candidates should be fluent in the building blocks: eligibility computation periods, hours-of-service counting, vesting schedules and break-in-service rules, compensation definitions (including which pay items are excluded), and the mechanics of benefit accrual under a defined benefit formula versus allocation under a defined contribution formula.
351 words, about 2 min02Qualified Plan Design and Compliance: Coverage, Nondiscrimination, and Limits
A qualified plan earns its tax benefits by satisfying statutory requirements. The core tests a candidate must know: coverage under the minimum coverage rules, the actual deferral percentage test for elective deferrals, the actual contribution percentage test for matching and after-tax contributions, the top-heavy rules, and the annual limits on contributions, benefits, and compensation.
331 words, about 2 min03Distribution Rules and Taxation: Events, Forms, and Withholding
Distributions are permitted only on triggering events defined in the plan and the Code: termination of employment, attainment of normal retirement age, death, disability, plan termination, and - for some plans - hardship or in-service withdrawals at specified ages. Candidates must know which events apply to which money types: elective deferrals are the most restricted, while employer contributions and rollover money may be distributable earlier.
342 words, about 2 min04Fiduciary and Reporting Requirements: Duties, Prohibited Transactions, and Filings
A fiduciary is anyone who exercises discretionary authority or control over plan management or assets, or who renders investment advice for a fee. Fiduciaries owe duties of loyalty and prudence, must follow the plan documents, must diversify investments, and must act solely in participants' interest.
309 words, about 2 min