Which of the Following Is NOT a Criterion That an Employer's

question 63

Multiple Choice

Which of the following is NOT a criterion that an employer's annual required contribution must satisfy to be considered acceptable?

• A) It must consist of the employer's normal cost plus a provision for amortizing the plan's unfunded actuarially accrued liability.
• B) Actual assumptions must be in accordance with standards of the Actuarial Standards Board.
• C) Actuarial value of pension plan assets must be based on market values on the financial statement date.
• D) Assumptions as to investment earnings should be based on long-term projections.

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Definitions:

Free Action

An action performed out of one's own volition, free from external constraints or coercion.

Conditions

Specific circumstances or factors affecting the way in which people live or work, especially with regard to their well-being.

Soft Determinists

Philosophers who believe that while human behavior is influenced by external factors, individuals still possess the ability to make choices, blending determinism with free will.

Determinism

The belief in philosophy that every event, including decisions on moral issues, is fully predetermined by preceding causes.