Paralegal Exam Prep

Category - Legal Envrmt

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How is the Pension Benefit Guaranty Corporation funded?

Income tax revenue
Premiums paid by plan sponsors
Investment income
A, B, and C
B and C

Explanation

Answer: E. The Pension Benefit Guaranty Corporation is funded by premiums paid by plan sponsors and investment income. It also receives income from assets from pension plans trusted by the PBGC and recoveries from unfunded pension liabilities. Congress sets the premium rates that plan sponsors must pay.
Category: Legal Environment

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