Which Type of Pension Plan Most Commonly Results in an Unfunded

question 77

Multiple Choice

Which type of pension plan most commonly results in an unfunded actuarial liability?

• A) Defined benefit plan.
• B) Defined contribution.
• C) Both A and B.
• D) Neither A or B.

---

Definitions:

Historical Cost

The original financial value of an economic item, typically based on its acquisition cost at the time of purchase or construction.

Relevant

Pertinent to the matter at hand; information or factors that are applicable to the current situation or decision-making process.

Qualitative

Pertaining to descriptions or distinctions based on some quality or characteristic rather than on some quantity or measured value.

Numerical Terms

Mathematical expressions or figures used to describe quantity, order, or relationships between amounts in data or calculations.