The Degree to Which State Defined Benefit Pensions Are Underfunded

question 6

Multiple Choice

The degree to which state defined benefit pensions are underfunded (in present value terms) is

• A)$0.
• B)$12 billion.
• C)$3 trillion.
• D)$12 trillion.

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Definitions:

Mortality Rates

A measure of the number of deaths in a particular population, scaled to the size of that population, per unit of time.

Income Growth

An increase in an individual's or economy's income or earnings over time.

Perpetual Payment

A series of payments that continue indefinitely, often used in the context of perpetuities in finance.

Effective Yield

The actual return on an investment, accounting for compounding interest or reinvestments.