Practice Quiz

Financial Planner

Category - Retirement Savings and Income Planning

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The Pension Benefit Guaranty Corporation may terminate a plan for what reason (s)?
  1. Plan has too many members.
  2. Plan has too many managers.
  3. Plan has become top-heavy.
  4. None of the above.
Explanation
Answer: D - The Pension Benefit Guaranty Corporation may terminate a plan for the following reasons: the plan does not comply with minimum funding stands, the plan cannot pay benefits when due, the plan has unfunded liabilities following a distribution of more than $10,000 to an owner, and if the plan is not terminated and loss to the PBGC is expected to be unacceptably high. However, all plans are mandated to have insurance for defined benefit plans.
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