Pension Administration
Pension Administration
Pension administration is the operational core of the NIPA APA exam. It tests whether you can take a written plan document and apply it consistently to real participant data-census files, payroll, hours, compensation, and dates of birth and hire. Administrators must know eligibility, entry dates, vesting, contribution allocations, distribution processing, and recordkeeping, and must document every decision.
What the exam tests
- Reading the plan document as the controlling authority, including definitions of compensation, service, and covered employment.
- Applying eligibility and entry-date rules without importing rules from a different plan.
- Computing vesting and forfeitures using the plan's schedule and break-in-service rules.
- Reconciling trust assets to participant records and payroll deferrals.
- Producing required participant notices and keeping an audit trail.
Worked example
A plan uses age 21 and one year of service (1,000 hours) with semiannual entry dates, January 1 and July 1. An employee is hired March 10, 2023, and completes 1,000 hours by March 9, 2024. The employee attains age 21 in 2023. The one-year service requirement is met in March 2024, so the first entry date on or after that date is July 1, 2024. The employee enters the plan July 1, 2024, not January 1, 2024, because the service requirement was not yet met on the earlier entry date.
Traps
Confusing eligibility computation periods with plan years; counting hours incorrectly for part-time or seasonal employees; applying immediate entry when the document requires a waiting period; ignoring rehire and break-in-service rules; and using a compensation definition that excludes items the document includes. Always cite the plan section in the administrative file.