Which of the following statements about trust fund plans is (are)true?
I.The trustee typically purchases annuities for retiring employees.
II.The trustee guarantees the adequacy of the fund to pay the promised benefits.

Question

Quizplus · Accepted Answer

Trust fund plans involve a trustee managing the funds to ensure they are sufficient to meet future obligations, but the trustee does not typically purchase annuities for retiring employees nor guarantee the adequacy of the fund to pay the promised benefits. These responsibilities usually fall to the employer or plan sponsor.

Which of the Following Statements About Trust Fund Plans Is