The First Part of the Pension Protection Act of 2006

question 12

Multiple Choice

The first part of the Pension Protection Act of 2006 (PPA) modified ERISA. Which of the below was NOT a major modification?

• A) It required underfunded plans to pay additional premiums to the Pension Benefit Guaranty Corporation (PBGC).
• B) It tightened the requirement for companies terminating their pension plans to provide extra funding to the pension system.
• C) It closed loopholes that allowed underfunded plans to skip pension payments.
• D) It required that companies measure their pension plan obligations more accurately.

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Definitions:

Statement

A formal record or document detailing financial activities or conditions, such as an income statement or balance sheet.

Adjusting Entries

Journal entries made at the end of an accounting period to update accounts for accuracies in preparation for financial statement generation.

Preparation

The act or process of making something ready for use or consideration.

Professional

An individual with specialized skills and knowledge in a particular field, typically requiring qualifications and adhering to specific ethical standards.