A company's pension plan promises employees a specific amount of income when they retire.However,the plan does not have the assets to meet these future obligations to employees.This plan represents a defined-________ plan that is ________.

Question

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The scenario describes a defined-benefit plan, as it promises a specific amount of income to employees upon retirement. However, the plan does not have enough assets to meet these future obligations, making it underfunded.

A Company's Pension Plan Promises Employees a Specific Amount of Income