In the case of defined benefit plans, the employer must cover any underfunding that may result from the plan's poor performance.

Question

Quizplus · Accepted Answer

This is true. With defined benefit plans, the employer is responsible for ensuring that the plan is fully funded and must make up any shortfall if the plan performs poorly or if the assumptions used to calculate funding requirements turn out to be inaccurate.

In the Case of Defined Benefit Plans, the Employer Must