Which one of the following is a funded plan? (Secular Trusts)

Question

Quizplus · Accepted Answer

Secular trusts are funded plans in which an employer funds a trust for the benefit of employees. The assets of the trust are held separately from the employer's general assets, providing greater protection for the employees' benefits. The other options listed are not necessarily funded plans. The general asset approach doesn't involve a separate trust, but rather the employer agrees to pay the benefits out of its general assets. Corporate life insurance is a funding mechanism that can be used in conjunction with a trust or other plan, but it is not a plan in itself. Rabbi trusts are non-funded plans, in which the assets remain the property of the employer and are subject to the employer's creditors.

Which One of the Following Is a Funded Plan? (Secular