Pension funds whose contributions are not large enough to actually cover the benefits to be paid out when all employees retire are termed
A) divested.
B) vested.
C) unfunded,or underfunded.
D) funded.
E) None of the above.

Question

Quizplus · Accepted Answer

Pension funds that do not have enough contributions to cover the benefits to be paid out are referred to as unfunded or underfunded. This means that the pension fund does not have enough money to cover the future pension obligations of the employees.

Pension Funds Whose Contributions Are Not Large Enough to Actually