Accredited Wealth Management Advisor Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the Accredited Wealth Management Advisor Exam with comprehensive quizzes. Enhance your skills with multiple choice questions, flashcards, hints, and detailed explanations. Gear up for success and ace the exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is a primary function of the Pension Benefit Guaranty Corporation?

To oversee the issuance of securities.
To ensure the security of pension plans.
To regulate the operations of mutual funds.
To administer the tax collection for retirement accounts.

The correct answer is: To ensure the security of pension plans.

The Pension Benefit Guaranty Corporation (PBGC) primarily exists to ensure the security of pension plans, particularly defined benefit plans. This means that PBGC steps in to protect the interests of plan participants in the event that a pension plan is terminated without having sufficient funds to pay the promised benefits. When such a situation occurs, PBGC will pay retirement benefits up to certain legal limits, thereby helping to provide financial security for retirees who depend on their pension plans for income. Understanding the role of PBGC highlights the importance of pension security in retirement planning. Unlike other financial instruments or entities such as those involved in the issuance of securities or the regulation of mutual funds, the PBGC's sole focus is on pension plans, making its mission crucial for safeguarding the retirement income of millions of Americans.