Question

When the defined benefit pension obligations of several employers are combined and the accounts of the employees of each employer are separately maintained, the plan is classified as

A. A single-employer pension plan.

B. A multiple-employer benefit-sharing pension plan.

C. An agent multiple-employer pension plan.

D. A cost-sharing multiple-employer pension plan.

Accounting for Governmental and Nonprofit Entities e 18

Answer 1

Solution:

Agent employers are those whose employees are given characterized advantage pensions through agent different employer pension plans.

As a result, each participating employer's share of the pooled assets is legally available to pay the defined benefit pensions of only its retirees. Governments participating in agent multiple-employer defined benefit pension plans are referred to as agent employers.

So, the final correct answer for the statement is Option (C).  An agent multiple-employer pension plan.