Accredited Wealth Management Advisor Practice Exam

Which entity is NOT involved in the administration of ERISA?

1. Securities and Exchange Commission.

2. Department of Labor.

3. Pension Benefit Guaranty Corporation.

4. Internal Revenue Service.

The correct answer is: Securities and Exchange Commission.

The Securities and Exchange Commission (SEC) is not involved in the administration of the Employee Retirement Income Security Act (ERISA). ERISA is a federal law that sets standards for retirement and health benefit plans in the private industry, primarily to protect the interests of employee benefit plan participants and their beneficiaries. The Department of Labor plays a crucial role in enforcing the provisions of ERISA, ensuring that employee benefit plans comply with the laws regarding reporting, disclosure, and fiduciary responsibilities. The Pension Benefit Guaranty Corporation (PBGC) is another key player; it protects retirement incomes by providing insurance for certain defined benefit pension plans and stepping in when plans fail. The Internal Revenue Service (IRS) is also involved, as it oversees the tax-related aspects of retirement plans, such as contributions, distributions, and qualification requirements. In contrast, the SEC primarily regulates the securities industry and enforces securities laws, which are distinct from the regulations governing employee benefit plans under ERISA. Therefore, it is not an entity that administers or enforces ERISA-related regulations.