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Old Thyme Manufacturing Offered Employees a Defined-Benefit Retirement Plan,in Which

Question 48

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Old Thyme Manufacturing offered employees a defined-benefit retirement plan,in which retirees received benefits calculated on the basis of their age,earnings,and years of service.But the company didn't keep up with technology,and its earnings fell.When the stock market dipped,the company found that it couldn't afford to keep up with paying for its retirement benefits.What protection will the retirees have in this situation?


A) Old Thyme must give the employees the option to sell their stock in the company.
B) The employees will receive payouts from their 401(k) plans.
C) The employees will receive a share of profits as part of the company's ESOP.
D) Because the plan was underfunded,the retirees will no longer receive benefits.
E) The Pension Benefit Guarantee Corporation will provide them with a basic benefit.

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