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A Company That Has Been Providing Generous Defined Benefit Pension

Question 36

Multiple Choice

A company that has been providing generous defined benefit pension plans to all its retirees for the past 50 years is now facing bankruptcy and is unable to pay the pension amount. Which of the following statements is true in the given scenario?


A) The Pension Benefit Guaranty Corporation will pay the company's retiree benefits from its solvency fund.
B) The Pension Benefit Guaranty Corporation will reduce the pension amount based on the available amount of money in the pension fund.
C) The retirees will have to forfeit their pension benefits.
D) The company can suspend pension payments until the pension fund is fully recovered.

Correct Answer:

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