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A Large Publishing House Decided to Voluntarily Terminate Its Pension

Question 51

Multiple Choice

A large publishing house decided to voluntarily terminate its pension program.What protection do its employees and retirees have?


A) If the firm is located in California, such action is illegal.
B) The SPD will supply 90% of accrued pension benefits until all recipients are eligible for Social Security retirement benefits.
C) The PBGC will lay claim of up to 30% of the corporation's assets to pay benefits that have been promised to employees.
D) There is no protection for employees.
E) COBRA will cover 30% of the benefits that have been promised to employees.

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