Which of the Following Is True of the Pension Benefit

question 57

Multiple Choice

Which of the following is true of the Pension Benefit Guarantee Corporation?

• A) It was created by the Employee Retirement Income Security Act (ERISA) of 1974.
• B) It provides a supplemental income if the employee is temporarily unemployed.
• C) It provides employee protection for only defined-benefit pension plans.
• D) It is funded by a payroll tax imposed on each plan participant.
• E) It guarantees retirees a basic benefit only if the employer is in a sound financial position.

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Definitions:

Present Value

The value now of a future monetary sum or cash flows, considering a specified rate of return.

Desired Rate

A target interest rate that an individual or entity seeks to achieve on an investment.

Income Tax

Taxes imposed by governments on the income generated by businesses and individuals within their jurisdiction.

Qualitative Factors

Non-quantifiable elements that influence decision-making or performance assessment in business, including company reputation, employee satisfaction, or customer loyalty.