2- the employer must provide additional funds to pay benefits
The employer guarantees a specific sum of benefits to the employees irrespective of the performance of the underlying investment pool. If the performance of the investment fund is too poor to pay the benefits, the employer/ company must compensate for the gap and pay the employees.
The Entire plan cannot be discontinued as it is the security of the employees for their retirement. Employer cannot also reduce the benefits since the benefits are guaranteed to the employees.
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