Which of the Following Is False Regarding Defined Benefit Pension

question 26

Multiple Choice

Which of the following is false regarding defined benefit pension plans provided to employees by a state or local government?

• A) Defined benefit pension plans are fully funded by the employees of a state or local government.
• B) Pension requirements create a huge financial obligation for many governments across the United States.
• C) Many state and local governments establish pension trust funds to accumulate and invest monetary resources and to pay out pension benefits.
• D) Pension trusts are classified as fiduciary funds.
• E) Pension trusts are not included in reporting government-wide financial statements.

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Definitions:

Collinearity

A statistical phenomenon where two or more predictor variables in a multiple regression model are highly correlated, making it difficult to isolate the individual effects of each predictor.

Odds Ratio

The odds that y = 1 given that one of the independent variables increased by one unit (odds1) divided by the odds that y = 1 given no change in the values for the independent variables (odds0); that is, Odds ratio = odds1 / odds0.

Estimated Income

An estimate of the revenue anticipated to be generated during a certain timeframe.

Yearly Income

The total pre-tax earnings received by an individual or household over the course of one year from all sources combined.