Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the most correct term.
-Overfunded pension plan

Question

Quizplus · Accepted Answer

An overfunded pension plan is one where the pension plan assets exceed the PBO (Projected Benefit Obligation), meaning that the plan has more assets than liabilities to cover future pension payments.

The other phrases describe different scenarios that may impact a pension plan, but they do not necessarily result in an overfunded plan. Plan amendments (A) or changes in assumptions (D) may increase or decrease the PBO, but do not necessarily affect whether the plan is overfunded or underfunded. A loss in other comprehensive income (B) could result from an underfunded plan, while a gain in other comprehensive income (C) may result from an overfunded plan, but this phrase alone is not conclusive.

Listed Below Are Five Terms Followed by a List of Phrases