What is Qualified Plan Financial Consultant (QPFC)?

Need help planning for retirement? Partnering with a qualified plan financial consultant (QPFC) can help you find the answers to your retirement-planning questions. Since QPFCs have extensive retirement planning training, they can help guide you through the process. Read on to discover how a QPFC can help you with your retirement obstacles.

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What Is a Qualified Plan Financial Consultant (QPFC)?

As an alternative designation to the certified plan fiduciary advisor (CPFA), candidates can choose to pursue the qualified plan financial consultant (QPFC) credential. Both credentials require the same course work and exams. However, if the financial firm or broker-dealer that the candidate works for doesn’t allow the CPFA designation, the candidate can become a QPFC.

A QPFC must prove expertise and experience working with retirement plans. Candidates typically spend about two months learning about fiduciary services for retirement plans to earn the QPFC certification. QPFCs help their clients objectively review their financial situation, isolate potential concerns, and provide recommendations and solutions for tending to these financial matters.

What QPFCs Do and Who They Work With

QPFCs primarily serve two types of clients: plan sponsors (employers who offer retirement plans) and individual participants within those plans. They act as trusted advisors who bridge the gap between complex retirement plan regulations and practical implementation.

For plan sponsors, QPFCs provide guidance on plan design, investment menu selection and fiduciary responsibilities. They help employers understand their legal obligations under ERISA and evaluate whether their current retirement offerings align with workforce needs and business objectives.

For individual participants, QPFCs offer education on maximizing retirement savings, understanding investment options within the plan and coordinating employer-sponsored benefits with personal retirement goals. They may conduct enrollment meetings, provide one-on-one consultations and create educational materials that demystify retirement planning concepts.

Unlike retail financial advisors who work primarily with individual investors, QPFCs specialize in the institutional side of retirement planning. Their expertise lies in navigating the regulatory framework governing employer-sponsored plans while ensuring both compliance and optimal outcomes for all stakeholders involved.

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Qualified Plan Financial Consultant Qualifications

The National Association of Plan Advisors (NAPA) administers the course work and exam requirements for the QPFC. To achieve a QPFC certification, candidates must have comprehensive knowledge of general retirement concepts, terminology, distinctive features of each plan and how financial professionals play a role in the retirement planning process.

Additionally, all candidates must pass the NAPA QPFC examination. According to NAPA, it requires between 50 and 100 hours of study to complete the QPFC. The exam, which costs $440, comprises 70 multiple-choice questions over 2 ½ hours.

Candidates who achieve the QPFC have proven their proficiency in plan administration, compliance, investment, fiduciary and ethical concerns.

QPFC Continuing Education

Once a candidate earns the QPFC designation, they must meet ongoing continuing education requirements to maintain it. Designees are required to complete 10 hours of continuing education each year, including at least one hour focused on ethics. New credential holders are exempt from the requirement in the year they earn the designation.

In addition to completing continuing education, QPFC holders must pay an annual credential maintenance fee, which is currently about $81, and maintain an active affiliation with NAPA.

QPFC vs. CPFA: What’s the Difference?

The QPFC and CPFA designations are virtually identical in terms of knowledge and competency. Both require the same coursework, examinations, and continuing education requirements through NAPA. Candidates study the same material, take the same exam and demonstrate equal expertise in retirement plan consulting.

The distinction is purely administrative. Some financial firms and broker-dealers restrict which professional designations their advisors can use, often due to compliance policies or branding preferences. When a firm prohibits the CPFA designation, qualified candidates can opt for the QPFC credential instead.

Think of it as two different titles for the same role, similar to how some companies use “financial advisor” while others prefer “financial consultant” for identical positions. The choice between QPFC and CPFA doesn’t reflect different skill levels or specializations; it simply accommodates varying employer requirements.

Should You Work with a QPFC?

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Planning for retirement comes with its own set of challenges. Many pre-retirees have numerous questions they don’t know the answers to. Some of these retirement concerns include how to manage distributions in retirement and what additional taxes they should expect once they finish working. Partnering with a QPFC can help you find answers to your retirement questions and guide you through the financial decision-making process.

QPFCs have years of experience in the field and have the knowledge and expertise you may need to address your retirement concerns. However, they are not the only financial professionals you should consider. You may want to compare other options, especially if you have a more complex financial situation.

For example, if you have a niche need, you may want to consider working with a chartered financial consultant (ChFC). Financial professionals who obtain the ChFC designation often have experience working with specific financial needs such as financial planning for divorce or small business planning. The American College of Financial Services runs this designation and requires four months of extensive studying and preparation.

Therefore, partnering with a ChFC might be a better solution for those who have more specialized planning needs. While a QPFC may be able to guide you and point you in the right direction, other designations may be a better match for your situation. Understanding the different types of certifications and designations will help you find the right financial advisor to help you reach your financial goals and objectives.

How to Find a QPFC

Start by clarifying your specific retirement planning needs. Are you an employer seeking guidance on plan design and fiduciary responsibilities? Or are you an individual participant looking for help maximizing your workplace retirement benefits? Understanding your goals will help you identify the right professional.

If you’re a plan sponsor, contact your current retirement plan provider or third-party administrator. Many already work with QPFCs and can make direct referrals. You can also search NAPA’s member directory for qualified consultants who specialize in your industry or plan size.

For individual participants, check whether your employer’s retirement plan already includes access to a QPFC through educational sessions or one-on-one consultations. Many larger plans offer this as a complimentary benefit.

Before committing, verify credentials through NAPA and review the advisor’s background using FINRA’s BrokerCheck. Schedule initial consultations with multiple candidates to assess their communication style, experience with situations like yours and fee structure. The right QPFC should demonstrate deep technical knowledge while explaining complex concepts in terms you can understand and act upon.

Bottom Line

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When planning for your future, it’s wise to consider partnering with a financial professional. You’ll have a lot of questions and concerns as you head for retirement. That’s why it’s important to have an expert by your side who can guide you on your journey toward your golden years. Working with a financial professional like a QPFC can boost your financial confidence and ensure you make more thoughtful financial decisions.

Financial Planning Tips

If you need help building a financial plan or pursuing financial goals, consider working with a fiduciary advisor. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Before you retire, you’ll be faced with a few questions. How much will you need to retire? What will your 401(k) be worth when you stop working? How bad will your tax hit be when you withdraw retirement savings? SmartAsset’s retirement guide can help answer all of those questions as you prepare for the future.