Allocated funding in a pension plan requires an employer to purchase an annuity or life insurance policy for each employee.

Name: Allocated funding in a pension plan requires an employer to purchase an annuity or life insurance policy for each employee.
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Allocated funding requires an employer to set aside funds to cover future pension obligations, but it does not require the purchase of an annuity or life insurance policy for each employee.

Allocated Funding in a Pension Plan Requires an Employer to Purchase