Which of the following events would cause the estimate of a company's obligation under its defined benefit plan to decrease?
A) Interest rates fall
B) The company hires more employees
C) The company expects to pay workers more money in the future
D) The company expects more workers to leave the company after a very short period of time, before earning pension benefits

Question

Quizplus · Accepted Answer

If more workers leave the company before earning pension benefits, the company's obligation under its defined benefit plan would decrease as there would be fewer employees to pay benefits to in the future.

Which of the Following Events Would Cause the Estimate of a Company's