CRPC Practice Exam 2025 – Complete Test Prep Guide

A funded excess benefit plan is indeed regulated by ERISA’s fiduciary, administrative, and enforcement requirements. This option accurately reflects the fact that while certain non-qualified deferred compensation plans may have more flexibility, a funded excess benefit plan is still subject to specific legal standards that govern its operation.

Under ERISA, fiduciaries have a duty to act in the best interests of plan participants, which includes high-ranking employees who benefit from such plans. The administrative requirements ensure that plans maintain proper documentation, provide necessary disclosures, and ensure compliance with established guidelines. Additionally, the enforcement aspect of ERISA allows participants to seek remedies in the event of a breach of fiduciary duty or other violations.

In summary, while excess benefit plans may have unique features compared to traditional plans, they remain under the purview of key ERISA regulations, ensuring that they are managed responsibly and transparently for the benefit of participants.