Which of the Following Pension-Related Definitions Is Not Correct

question 36

Multiple Choice

Which of the following pension-related definitions is not correct?

• A)Vested benefits are payments that are not contingent on the employee's continuing in the service of the employer.
• B)Present value is the current worth of an amount or amounts payable or receivable in the future.
• C)Actuarial assumptions are those made by actuaries concerning future events affecting pension costs.
• D)Service cost is the amount paid annually to a funding agency under an unfunded pension plan.

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Definitions:

Coat

An outer garment worn on the upper body for warmth or fashion, typically having sleeves and opening down the front.

Aunt

The sister of one's parent or the spouse of a parent's sibling.

Flywheels

A mechanical device specifically designed to efficiently store rotational energy.

Fixating

The act of focusing one's attention or thoughts obsessively on a particular object or subject.