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CTP · Question #622

(Topic 7) Each of the following statements is true of both defined benefit plans and defined contribution plans EXCEPT:

The correct answer is B. both can be classified as overfunded or underfunded depending on the value of plan. See the full explanation below for the reasoning.

Question

  • (Topic 7)

Each of the following statements is true of both defined benefit plans and defined contribution plans EXCEPT:

Options

  • Aboth of the plans are typically structured as single-employer plans and maintained for
  • Bboth can be classified as overfunded or underfunded depending on the value of plan
  • Cthe treasurer is normally responsible for overseeing the performance of the plan fund
  • Dthe Pension Protection Act of 2006 includes significant changes to the rules governing

How the community answered

(21 responses)
  • A
    10% (2)
  • B
    81% (17)
  • C
    5% (1)
  • D
    5% (1)

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