Multiple Choice
A defined benefit pension plan has expected payouts of $15 million per year for eight years and then $20 million per year over the following 15 years. Actuaries have estimated that the fund can be expected to earn an average of 5.25 percent on its assets. The fund currently has reserves of $185,475,000. The plan is ________ by about ________ million.
A) underfunded; $100
B) underfunded; $59
C) overfunded; $30
D) overfunded; $24
E) underfunded; $46
Correct Answer:
Verified
Correct Answer:
Verified
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