A Company That Has Been Providing Generous Defined Benefit Pension

question 62

Multiple Choice

A company that has been providing generous defined benefit pension plans to all its retirees for the past 50 years is now facing bankruptcy and is unable to pay the pension amount. Which of the following statements is true of the given scenario?

• A) The PBGC will pay the retiree benefits from the solvency fund.
• B) The company must decrease the amount of pension payments based on the available amount of money in the pension fund.
• C) The employees will have to forfeit their pension benefits.
• D) The company can suspend pension payments until the pension fund has been fully recovered.

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Definitions:

Aortic Semilunar Valve

A valve in the heart between the left ventricle and the aorta that prevents blood from flowing back into the ventricle.

Pulmonary Trunk

A major blood vessel that exits the right ventricle of the heart, dividing into the left and right pulmonary arteries to carry deoxygenated blood to the lungs.

Abdominal Aorta

The main artery that runs down the abdomen, supplying oxygenated blood to the abdominal and pelvic organs and the legs.

Ascending Aorta

The ascending aorta is the initial section of the aorta, arising from the left ventricle of the heart and carrying oxygenated blood to the body.