A fully insured pension plan is one in which the plan's assets are invested in __________....

A fully insured pension plan is one in which the plan's assets are invested in __________. Common stock. Fixed income securities. An insurance company that guarantees to provide fixed benefits at retirement. Guaranteed interest contracts.

Expert Solution

The answer is An insurance company that guarantees to provide fixed benefits at retirement

A fully insured defined benefit plan is a pension plan that provides a company's owners and employees with guaranteed retirement benefits. The employer makes annual contributions to the plan to achieve a funding goal, as with all defined benefit plans. To create a guaranteed retirement income benefit, these policies are financed solely by annuities or a combination of annuities and lifelong insurance.

Rahul Sunny answered 2 years ago

4. Unlike defined-benefit pension plan assets, defined-contribution pension plan assets: A. are held by the individual...

4. Unlike defined-benefit pension plan assets, defined-contribution pension plan assets: A. are held by the individual participants in income-producing investment accounts. B. are reported in the sponsoring company’s financial statements. C. must be invested entirely in the sponsoring company’s securities. D. All of the above are true. E. None of the above is true.

How is the pension expense influenced by changes in the pension liability and plan assets?

15. The city of Utica has a defined benefit pension plan. The assets of the plan...

15. The city of Utica has a defined benefit pension plan. The assets of the plan have a value of $10 million. An actuary reports that in future, years, the city will have to pay a total of $26 million to its workforce. Of the $26 million, $15 million relates to the work they have already done, and another $10 million will relate to work they will do between now and retirement. The present value of the total $25 million...

A Japanese pension plan has invested a portion of the entrusted money into a well diversified...

A Japanese pension plan has invested a portion of the entrusted money into a well diversified U.S. mutual fund that focuses on large capitalization stocks. The managers' of the pension plan want to protect their investment into the fund. They are concerned about two risks that could diminish the value of the plan's investment: 1) falling stock prices in the U.S. and 2) depreciation of the USD against the Japanese Yen. Based on the following information and the example given in class,...

A company with a DB pension plan had a beginning PBO of $280,000, beginning Plan Assets...

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The proportion of Medicare services, such as drugs, that is not fully insured is called the...

The proportion of Medicare services, such as drugs, that is not fully insured is called the A. user fee. B. risk premium. C. coinsurance rate. D. loading fee.

Determine the funded status of the plan assets. Determine the pension cost/expense.

PROBLEM 3: Projected benefit obligation (PBO), January 1 $180,000 Fair Value of Plan Assets (equals market-related value), January 1 200,000 Service cost 22,000 Unamortized prior service cost, January 1 20,000 Unrecognized net loss, January 1 26,000 Loss due to change in actuarial assumptions 15,000 Contributions to pension plan 7,500 Benefits paid 13,000 Discount rate 9% Actual rate of return on plan assets 10% Expected rate of return on plan assets 8% Average remaining service years 20 REQUIRED: Determine the funded...

Why would Category 1 assets be used to fund a pension plan?

Consider a hypothetical scenario where BC expanded its capacity for MRIs which are fully insured by...

Consider a hypothetical scenario where BC expanded its capacity for MRIs which are fully insured by the public insurance system. However, a study reported that expanding MRI capacity in BC was associated with an increased income-gradient in the use of MRIs. Using Grossman's model, explain why the expansion of MRI capacity would increase the income-gradient?

this Q11) Defined benefit pension plan is a plan in which the income to received in...

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