Certified Plan Sponsor Professional (CPSP) Practice Exam

What information must plan sponsors provide annually to participants and beneficiaries?

1. Investment returns, fees, and expenses

2. Market trends and forecasts

3. Self-assessment reports

4. Participant health and safety information

The correct answer is: Investment returns, fees, and expenses

Annual disclosures to participants and beneficiaries are mandated to promote transparency and help them make informed decisions about their retirement benefits. Providing information on investment returns, fees, and expenses is crucial because it allows participants to understand how their investments are performing and the costs associated with maintaining their retirement accounts. This information is essential in assessing whether a plan is meeting its financial objectives and how fees may impact overall investment growth. In contrast, the other options do not represent the standard requirement for annual disclosures. While market trends and forecasts may be useful information, they are not required disclosures for plan sponsors. Self-assessment reports and participant health and safety information, while potentially valuable in other contexts, do not fall under the purview of what must be disclosed to plan participants regarding their retirement plans. Thus, the focus on investment performance and costs is critical for fulfilling the fiduciary responsibility of plan sponsors and enhancing participants' understanding of their retirement plan options.