Which of the following is a problem associated with many defined-benefits programs?

Question

Quizplus · Accepted Answer

Many defined-benefit programs suffer from all three problems - lack of portability, failure to adjust for inflation once payments begin, and being unfunded. Lack of portability means that employees cannot take their pension benefits with them if they change jobs. Failure to adjust for inflation once payments begin means that the purchasing power of the pension benefit may decline over time.  Unfunded means that there is no money set aside to pay for the pension benefits, so the employer may have to rely on future contributions and investment returns to fulfill its obligations.

Which of the Following Is a Problem Associated with Many