The funded status of a defined benefit pension plan is
A) The result of comparing the actuarial value of plan assets with the plan's actuarial accrued liability for benefits.
B) The amount by which plan assets exceed benefits due to current retirees.
C) Current-year contributions less amounts currently due but not paid to current retirees,
D) The policy as to whether the plan is being financed on a pay-as-you-go (cash) basis or through actuarially determined employer contributions.

Question

Quizplus · Accepted Answer

The funded status of a defined benefit pension plan is determined by comparing the actuarial value of plan assets with the plan's actuarial accrued liability for benefits. This comparison shows whether the plan has enough assets to cover its obligations.

The Funded Status of a Defined Benefit Pension Plan Is