Chartered Retirement Planning Counselor (CRPC) Practice Exam 2025 - Free CRPC Practice Questions and Study Guide

Funded excess benefit plans are indeed not required to adhere fully to ERISA’s fiduciary standards. However, they do provide certain protections under ERISA, such as the requirement that employers cannot discriminate in favor of highly compensated employees when designing the plan.

The correct statement regarding funded excess benefit plans hinges on the fact that they are typically designed to provide benefits that exceed the limits set by ERISA for qualified retirement plans. While they might not have the same stringent funding requirements and protections as other ERISA-covered plans, there are still fiduciary aspects that must be considered, particularly since these plans deal with employee benefits and potential benefits for employees, including executives. Thus, understanding the fiduciary obligations is essential for those administering these plans, which aligns well with the principles of responsible plan management.

The other options do not accurately represent the nature of funded excess benefit plans. For instance, the statement regarding their exemption from ERISA regulations is misleading since while they may not be subject to all ERISA provisions, they still fall under certain guidelines. Furthermore, fully funding these plans at all times is not an absolute requirement, and their availability isn’t restricted solely to high-level executives, as some other employees may also benefit under certain provisions.