Chartered Retirement Planning Counselor (CRPC) Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success!

The payment of benefits in a pension plan is primarily triggered by specific events defined in the plan documents. These events usually include retirement, disability, or sometimes other qualifying situations such as termination of employment. This structured approach aligns with the nature of pension plans, which are designed to offer financial support based on an employee’s tenure and specific life events rather than arbitrary ages or a fixed number of contributions alone.

For instance, upon reaching retirement age, a participant is eligible to receive their accrued benefits as outlined in the plan. In the case of disability, if a participant is no longer able to work, the plan often provides benefits to support them during their inability to earn income. This emphasis on defined events reflects the objective of pension plans to assist individuals during critical transitions in their lives.

Other scenarios listed typically do not align with the standard triggers for pension benefit payouts. Just reaching an arbitrary age, contributing for a set number of years without regard for other factors, or having a fixed timeline without a defined circumstance does not accurately capture the events that activate these benefits.