Question

any corporate defined _________________ pension plans are _________________________, placing risk on the _____________________ should the corporations...

any corporate defined _________________ pension plans are _________________________, placing risk on the _____________________ should the corporations behind the plans fail.

a.

contribution, fully funded, FDIC
b.

contribution, underfunded, PBGC
c.

benefit, fully funded, FDIC
d.

benefit, underfunded, PBGC
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Answer #1

Option (d) : benefit, underfunded, PBGC

Explanation:

~ the defined benefits pension plans are those plans where the employers have to pay for the retirement pensions of the employees. A pension plan is said to be underfunded when the money available with a company is not sufficient enough to pay its pension obligations.

~ Now, in case a company's defined benefits pension plans are underfunded, the the risk of entire pension obligations will shift to the Pension Benefit Guaranty Corporation (PBGC) who acts as a supervisor and controller of the defined benefits pension plans schemes and making sure that there is no default in the obligations by the employers.

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