Which of the Following Statements Concerning Pensions Is Correct

question 57

Multiple Choice

Which of the following statements concerning pensions is correct?

• A)Defined benefit plans offer a retiree more security than defined contribution plans.
• B)The accounting for a defined contribution plan is more complex than for a defined benefit plan.
• C)Pension funding must always equal the pension expense.
• D)The employee will forfeit vested pension contributions if he\she is terminated.

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Definitions:

Efficiency

The optimal use of resources to achieve the desired output with minimum waste or expense.

Economic Role

The function or position a person, company, or thing occupies within an economic system, contributing to the system's overall operation.

Federal Level

Pertaining to the national government, as opposed to state, local, or municipal levels of governance.

Government Actions

The measures and policies implemented by governmental bodies to influence economic, social, or political outcomes.