alleryStart learning →In a funded pension plan, what happens to the contributions?
AThey are paid to current retirees only
BThey are held as cash by the employer
CThey are invested in a fund to meet benefits
DThey are returned to employees yearly
Answer & Solution
Correct answer: C. They are invested in a fund to meet benefits
A funded plan builds a pool of assets from contributions and invests it so that future benefits can be paid from it.
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