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Defined Contribution Administrative Issues – Compliance Issues (DC-2)
2012 DC-2 Syllabus
Course Overview
Exam Details
Required and Supplementary Reading
Exam Waivers and Grandfathering Rules
Exam & Publication References and Errata
Earn College Credit for ASPPA Examinations
Course Overview
Over the past 15 to 20 years, 401(k) plans have become an enormously popular plan design. These plans permit pre-tax retirement savings by both the employer and the employee. While these plans provide a great deal of flexibility when it comes to providing retirement plan benefits, they also have complex rules regarding plan qualification and nondiscrimination requirements.
The subject matter of DC-2:
- This course begins with 401(k) basics like elective deferral limits and catch-up contributions and moves to coverage and nondiscrimination rules applicable to 401(k) plans.
- Candidates will learn how to correct failed ADP and ACP tests along with some of the more intricate rules associated with these nondiscrimination tests like double-counting limits and shifting techniques.
- Candidates will also learn how to design a plan to avoid these nondiscrimination tests, the safe harbor 401(k) plan, and the many requirements applicable to such plans.
- Candidates will learn how compliance with ERISA §404(c) may help a fiduciary limit liability for investment choices made by participants.
- Candidates will also be exposed to the different types of allocation methods and learn how different allocation methods satisfy nondiscrimination requirements. The emphasis here is on permitted disparity allocations but candidates will also see how non safe harbor plan designs may use general (rate group) testing to satisfy nondiscrimination.
- The course also covers cross-testing as a method of satisfying nondiscrimination requirements.
- Candidates will learn about the various types of distributions, including participant loans, available to plan participants along with the taxation and reporting rules applicable to such transactions.
- Candidates will learn about the ASPPA Code of Professional Conduct and be able to identify ethical dilemmas that may be faced by retirement plan professionals.
It is presumed that a candidate sitting for the DC-2 examination will have the knowledge of material covered in the Pension Administrator (PA) or Retirement Plan Fundamentals (RPF) series and the DC-1 examination. Please refer to the DC-2 syllabus for specific learning objectives, exam topic weightings, etc.
Exam Details
The DC-2 examination consists of 65 multiple choice question and candidates have two and half (2 ½) hours to complete it. Candidates will receive a grade immediately upon completing the exam. Exams are given at Prometric Testing Centers during the examination window, please refer to the Education calendar for dates.
To register, a candidate must have an account with ASPPA, to create an account please click here. Candidates can register online or download the registration form and send via mail or fax to 703.516.9308.
Once registered, eligibility e-mails will be sent to candidates beginning approximately eight weeks prior to the opening of an exam window. The eligibility e-mail has detailed instructions on scheduling your appointment with Prometric. It is the candidate’s responsibility to schedule an exam. We strongly recommend you schedule an appointment upon receipt of the confirmation letter as testing centers fill up quickly. To find a Prometric Testing Center visit www.prometric.com/asppa.
2012 Exam Fees - The registration fee is a non-refundable.
- To qualify for early registration, registration forms accompanied by the early registration fee of $215 for members and $245 for non-members must reach the ASPPA office no later than March 12 for the spring examinations and July 9 for the fall examinations.
- To qualify for final registration, registration forms accompanied by the final registration fee of $289 for members and $315 for non-members must reach the ASPPA office no later than May 1 for the spring examinations and September 12 for the fall examinations.
For more information visit the Exam Schedule & Fees page.
Estimated hours needed to study - Study time depends greatly on the experience level of the student. The average candidate reports it takes 60-80 hours study time per examination.
Required and Supplementary Reading
All study materials can be ordered by using the online ASPPA Bookstore or downloading the Publications Order Form and following the instructions to phone, fax or mail your order form and payment.
The required reading for the 2012 DC-2 exam is:
Recommended Reading:
Supplementary Study Tools
The study tools below are not required preparation for the DC-1 examination. They are offered as additional study aids.
Note: The material in 2010 and 2011 Practice Exams is valid and can be used as a study tool for the 2012 exam.
It is the candidate’s responsibility to review all of ASPPA’s exam policies and procedures which can be found on Candidate Corner.
Exam and Publication References & Errata
For updates to ASPPA’s publications and examinations please click here. Stop by regularly as new updates are posted.It is recommended that the candidate check the errata before preparing for and sitting for an ASPPA examination.
Earn College Credit for ASPPA Examinations
The American Council on Education’s College Credit Recommendation Service (ACE CREDIT) has evaluated and recommended college credit for most ASPPA’s examination programs. Candidates may be able to receive college credit for successful completion of most ASPPA examinations (includes current and previous (no longer offered) examinations. For more information such as which exams credit is awarded, how to obtain credit, etc. please click here.