If a Pension Fund Has Insufficient Contributions and Earnings to Pay

question 64

Multiple Choice

If a pension fund has insufficient contributions and earnings to pay benefits,it is said it be

• A)underfunded.
• B)at par.
• C)fully funded.
• D)under par.

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Definitions:

Expert

An individual with a high level of knowledge or skill in a particular area, typically acquired through education, training, or extensive experience.

Constructive Fraud

A type of fraud established by an abuse of a trust relationship where there was no intent to deceive, but the actions or negligence led to a breach of duty which resulted in harm.

Material Fact

A material fact is a fact that, if known, would influence an individual's decision in a transaction or in a legal case, thereby having a significant impact on the outcome.

Recklessly

Acting with disregard for the safety or consequences of one's actions, often leading to potential harm or risk.