Which of the following statements regarding asset ceilings for overfunded and underfunded pension plans is true?   A. For underfunded pension plans, the issue is whether the sponsoring entity can realize the benefits of the underfunding either through reducing or stopping its contributions in the future or through withdrawing surplus funds.   B. An overfunded pension results in a net defined benefit liability on the SFP.   C. An underfunded pension has a fair value of plan assets that is less than the DBO.   D. An asset ceiling is the minimum benefit that the employer can realize by reducing or stopping future contributions to a defined benefit pension plan.

Q: Qualified plan assets are placed into and held by a trust.  What can the trust distribute to the…

A: The definition of a qualified trust for purposes of this section is a trust established or organized…

Q: Which of the following would not be reported on a plan's statement of fiduciary net position? A.)…

A: Lets understand the basics. Statement of fiducary net position is similar like a statement of…

Q: A major difference between defined benefit pension plans and defined contribution pension plans is…

A: Pension plan is a plan under which either the employer or the employee contributes small amount of…

Q: In a Defined Contribution Plan, the investor (you) will know EXACTLY what the balance of your plan…

A: Employees are provided number of plans for the retirement that provide the savings from tax…

Q: The Withdrawal and use of lump sums from superannuation prior to reaching age pension entitlement…

A: Superannuation pension plans are created by companies for the benefit of their employees. These…

Q: Which of the following is not a regulatory responsibility of the Pension Benefit Guaranty…

A: In order to ensure the payment of pension benefits accrued by employees and retirees in the private…

Q: Were you correct that the pension liability is not reported in the balance sheet? What is the…

A: Pension refers to the accumulated amount of money that is added during the employment period of an…

Q: Depending on when an unfunded pension liability is to be paid, it will be classified on the balance…

A: Yes, unfunded pension liability will be classified as a liability on the BS Balance Sheet It is…

Q: The coinsurance penalty promotes which of the following? Application of the deductible All of the…

A: Coinsurance penalty Coinsurance is a fine that the insurance company imposes on the policyholder if…

Q: A Defined Benefit Plan defines the following: O A. Your (employee) contributions to the plan O B.…

A: The employees work for an employer in exchange for a fixed salary per month, but the government has…

Q: Under IFRS, any difference between the pension expense and the payments into the pension fund plan…

A: Pension expense and the contribution to pension fund are recorded through pension liability/asset…

Q: Under a deferred annuity owned by a nongrantor trust, how does the annuity's death benefit operate?…

A: The death benefit of an annuity is a feature that provides a benefit to the designated beneficiary…

Q: Which type of retirement plans are subject to contribution limits? Select one: a. Only defined…

A: Defined contribution plans refers to the plan under which both the employee and employer contribute…

Q: In a defined benefit plan, the retirement benefit will vary according to rates of return on pension…

A: A Defined Benefit plan is insurance that is made against the income that is due to any kind of…

Q: Which of the following is true of defined benefit plans? Select

A: Under the defined benefit plans the employer contribute an amount and deduct an amount from the…

Q: What does the insurer agree to pay for in addition to covering losses in an insurance policy?…

A: Insurance is a contract between the insurer and insured. In this contract, the insurer agrees to…

Q: S1: Under a defined contribution plan, the amount of a participant’s future benefits is determined…

A: As per IAS 26 Accounting and Reporting by Retirement Benefit Plan the two given statements are of…

Q: The two main types of pension plans are defined benefit plans and defined contribution plans.…

A: Pension plan is a plan under which either the employer or the employee contributes small amount of…

Q: In determining the present value of the prospective benefits (often referred to as the defined…

A: Defined benefit obligation means a defined plan of contribution from employer to employees'…

Q: Which of the following items on the statement of net assets available for benefits would indicate a…

A: nondiscrimination testing is one of the tests of IRS testing  in order to ensure that company not…

Employee Benefits

In an organization employees are the most important resource and most important asset. They can lead an organization to the sky or can be the reason for unsuccessful of business. Therefore, it is very much important that employees of an organization should be satisfied by the environment of the organization and most importantly with the salary, wages incentives, etc.