HRCI PHR Exam - Topic 3 Question 118 Discussion

Actual exam question for HRCI's PHR exam

Question #: 118
Topic #: 3

[All PHR Questions]

Your organization has a retirement benefits plan that is covered by ERISA . Under ERISA, which of the following is your organization required to do for the plan participants?

AProvide each participant with plan information, specifically about the features and funding of the plan through a summary plan description at a cost of no more than $7 per participant, per year.

BProvide each participant with plan information, specifically about the features and funding of the plan through a summary plan description at no cost.

CProvide each participant with monthly plan information, specifically about the features and funding of the plan through a summary plan description at no more than $7 per participant, per month.

DProvide each participant with monthly plan information, specifically about the features and funding of the plan through a summary plan description at no cost.

Show Suggested Answer

Suggested Answer: B

The plan administrator is required to provide participants, at no cost, with plan information about the features and funding of the plan.

Answer option A is incorrect. The information must be provided to the participants from the plan administrator at no cost.

Answer option D is incorrect. Monthly information is not mandated so this choice isn't the best answer.

Answer option C is incorrect. Monthly information is not mandated, and the information must be provided at no cost to the plan participants.

by Darell at Nov 24, 2025, 07:43 AM

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Lauran

1 day ago

D sounds good, but monthly updates are excessive.

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Andrew

6 days ago

C is too much. Monthly fees are not needed.

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Gerald

11 days ago

Definitely B. ERISA should protect participants.

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Leandro

17 days ago

A seems reasonable too, but $7 adds up.

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Katina

22 days ago

I agree, B makes sense. Participants need info for free.

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Hubert

27 days ago

ERISA definitely mandates no cost for the summary, so B it is!

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Filiberto

2 months ago

Monthly info? That seems excessive, I doubt that's required.

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Gilma

2 months ago

Wait, are you sure it's not A? The $7 thing sounds familiar.

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Phung

2 months ago

Haha, imagine if they made us pay $7 per month. That's like a retirement tax! B is the way to go.

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Brinda

2 months ago

Definitely B. I don't want to be nickel and dimed for my retirement plan information.

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Jeniffer

2 months ago

B makes the most sense. $7 per participant per year is way too much. Gotta keep those costs down!

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Dan

2 months ago

I thought it was C. Who wants to read a summary plan description every month? That's just overkill.

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Wenona

3 months ago

I believe the summary plan description has to be provided at no cost, but I can't recall if it’s just once or if there are ongoing requirements. This is tricky!

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Crista

3 months ago

I remember practicing a question similar to this, and I think the correct answer is about providing the information at no cost. It seems like a key requirement under ERISA.

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Art

3 months ago

I think ERISA requires organizations to provide a summary plan description at no cost to participants, but I'm not entirely sure if it's monthly or just once a year.

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Shawna

3 months ago

Based on my understanding of ERISA, the organization is required to provide the summary plan description, but I'm not certain about the cost details. I'll make sure to double-check that part.

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Diego

3 months ago

I'm a little confused on the details here. Does ERISA specify a cost limit for the summary plan description, or is it supposed to be provided at no cost? I'll have to review my notes.

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Billye

3 months ago

Okay, I remember learning about this in class. I believe the correct answer is B - the organization must provide the summary plan description at no cost to the participants.

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Lawrence

4 months ago

I think it's B, no cost for the summary plan description.

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Kizzy

4 months ago

B is the correct answer. ERISA requires plans to provide participants with a summary plan description at no cost.

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Kris

4 months ago

I think it's B. No cost is fair.

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Glory

4 months ago

Totally agree, B is the right answer!

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Wilda

4 months ago

I’m really uncertain about the specifics. Was it $7 per participant per year or per month? I feel like I need to double-check that detail.

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Reynalda

5 months ago

Hmm, this one seems tricky. I'll need to think through the ERISA requirements carefully to determine the right answer.

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Alona

5 months ago

I think I know the answer to this one. ERISA requires employers to provide plan participants with a summary plan description, but I'm not sure if there's a cost limit.

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