Which of the following statements about the protection provided by the Pension Benefit Guaranty Corporation is (are)true?
I.Only defined benefit plans are insured.
II.Only benefits that are not yet vested are guaranteed.

Question

Quizplus · Accepted Answer

The first statement is true. The Pension Benefit Guaranty Corporation only insures defined benefit plans, not defined contribution plans. However, the second statement is false. Both vested and non-vested benefits are guaranteed, up to certain limits.

Which of the Following Statements About the Protection Provided by the Pension