Pension Consultant study plan

Map the statutory and regulatory skeleton that governs qualified plans: IRC §401(a) qualification requirements, §410 eligibility, §411 vesting, §415 limits, and the ERISA Title I and Title II counterparts, producing a one-page crosswalk of IRC section to ERISA section.

Distinguish DB, DC, and hybrid (cash balance, pension equity) plan structures and state for each who bears investment risk, how benefits accrue, and which nondiscrimination tests apply.

Define coverage testing mechanics under §410(b): ratio percentage test, average benefit test, and the nondiscriminatory classification test, working two numeric examples by hand.

Build a personal glossary of at least 40 terms (accrued benefit, vesting schedule, highly compensated employee, key employee, top-heavy plan) with a one-line definition and the governing citation for each.

Compute §415(b) and §415(c) annual limits for three hypothetical participants, applying the compensation cap, the 100% of compensation rule, and the 10-year participation phase-in for DB plans.

Apply top-heavy rules under §416: determine key employee status, calculate the top-heavy ratio, and identify the minimum benefit (2% per year of service, 20% cap) and minimum contribution (3% of compensation) consequences.

Trace the §401(a)(4) nondiscrimination requirements for contributions and benefits, including permitted disparity and the general test versus safe harbors.

Sequence the annual compliance calendar: plan document restatement deadlines, Form 5500 filing, ADP/ACP testing, §402(g) and §415 limit adjustments, and required participant disclosures.

Outline ERISA fiduciary duties under §404(a)(1): prudence, loyalty, diversification, and plan document adherence, and explain how the prudent expert standard applies to a consultant advising a plan sponsor.

Identify prohibited transactions under ERISA §406 and IRC §4975, and distinguish statutory and class exemptions (PTE 84-14, PTE 2020-02) and their conditions.

Describe the reporting and disclosure obligations: Summary Plan Description content and timing, Summary of Material Modifications, annual funding notice, fee disclosure under §408(b)(2) and §404a-5, and Form 5500 schedules.

Explain ERISA claims procedure under §503 and the 2016 disability claims regulation, including timelines and the full-and-fair-review standard.

Summarize the fiduciary implications of plan sponsor and service provider relationships, including co-fiduciary liability under §405(a).

Derive the present value of a defined benefit at normal retirement using a single life annuity and a lump-sum conversion basis, working three examples with different discount and mortality assumptions.

Distinguish the funding target, target normal cost, and the §430 minimum required contribution, and explain the role of the funding segment rates and the 24-month averaging corridor.

Explain the at-risk rules under §430(i) and when a plan is presumed at-risk, plus the consequences for the funding target.

Describe the PBGC premium structure (flat-rate per participant plus variable-rate premium based on unfunded vested benefits) and the guaranteed benefit limits.

Calculate a funded percentage and identify the benefit restriction tiers under §436 (shutdown, unpredictable contingent event, and accelerated benefit limits).

Apply the actuarial cost methods used in DB funding (unit credit, entry age normal, aggregate) and explain which is required for minimum funding versus permitted for accounting under ASC 715.

Compute an AFTAP and explain how it drives benefit restrictions and the certification timing requirements.

Contrast DB and DC consulting engagement scopes: plan design, vendor selection, fee benchmarking, and participant outcomes measurement.

Explain how plan design decisions (benefit formula, vesting, early retirement subsidies) affect cost, funding volatility, and workforce objectives.

Analyze plan design alternatives for a small employer: safe harbor 401(k), SIMPLE, SEP, cash balance, and combo DB/DC structures, comparing contribution limits, testing relief, and administrative burden.

Evaluate a cash balance plan design including pay credits, interest crediting rates, and the §411(b)(5) market rate of return rules and their effect on benefit accrual compliance.

Explain the consulting process for plan conversions and mergers: §411(d)(6) anti-cutback protection, protected benefits, and the role of §204(g) and §204(h) notices.

Draft recommendations on participant communication and default investment selection under §404(c) and the QDIA rules.

Synthesize across all four domains by working ten integrated case scenarios that combine design, compliance testing, fiduciary process, and funding calculations.

Identify and correct personal weak areas by reviewing missed items and re-deriving the underlying rule from the statute or regulation.

Practice explaining technical conclusions to a non-technical plan sponsor in under two minutes per topic, covering at least six topics.

Rehearse the compliance calendar and funding deadlines from memory, checking against the week 2 artifact.

Complete two full-length timed practice exams under exam conditions and record domain-level accuracy.

Close remaining gaps by re-studying only the lowest-scoring subdomains, targeting a 75% or better on each domain.

Consolidate a final one-page formula and citation sheet covering §415 limits, top-heavy minimums, funding targets, and ERISA deadlines.

Verify currency of all cited limits and thresholds against the current IRS COLA notice and DOL guidance.