Which of the Following Statements Is True About the Pension

question 4

Multiple Choice

Which of the following statements is true about the Pension Benefit Guaranty Corporation (PBGC) ?

• A)It was created by the Consolidated Omnibus Budget Reconciliation Act (COBRA)of 1985.
• B)It guarantees a complete pension benefit replacement.
• C)It does not guarantee health care benefits.
• D)It is not funded by an annual contribution per plan participant.
• E)It allows payouts to be adjusted for cost-of-living changes.

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Definitions:

Rate of Return

The profit or loss garnered on an investment for a certain period, narrated as a percentage of the starting financial input.

University

An institution of higher education and research, which grants academic degrees in various subjects.

Rate of Return

The gain or loss of an investment over a specified time period, expressed as a percentage of the investment's initial cost.

Monthly Withdrawals

Regular amounts of money taken out of an account, investment, or fund each month, often for retirement income or savings spending.