« previous next »

Author Question: The Pension Benefits Guarantee Corporation guarantees both defined benefit plans and defined ... (Read 99 times)

CharlieWard

  • Hero Member
  • *****
  • Posts: 578
on: Jul 7, 2018
The Pension Benefits Guarantee Corporation guarantees both defined benefit plans and defined contribution plans.
 
  Indicate whether this statement is true or false.

Question 2

What are vested funds? What is the difference between cliff vesting and graded vesting?
 
  What will be an ideal response?


brbarasa

  • Sr. Member
  • ****
  • Posts: 308
Reply #1 on: Jul 7, 2018
Answer to Question 1

Answer: FALSE

Answer to Question 2

Answer: Vested funds are the money employer and employee have placed in the latter's pension fund that cannot be forfeited for any reason. The employees' contributions are always theirs, of course. Employers can choose one of two minimum vesting schedules (employers can allow funds to vest faster if they wish). With cliff vesting, the period for acquiring a nonforfeitable right to employer matching contributions (if any) is three years. So, the employee must have nonforfeitable rights to these funds by the end of three years. With the second (graded vesting) option, pension plan participants must receive nonforfeitable rights to the matching contributions as follows: 20 after 2 years, and then 20 for each succeeding year, with a 100 nonforfeitable right by the end of 6 years.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Did you know?

After 5 years of being diagnosed with rheumatoid arthritis, one every three patients will no longer be able to work.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

The cure for trichomoniasis is easy as long as the patient does not drink alcoholic beverages for 24 hours. Just a single dose of medication is needed to rid the body of the disease. However, without proper precautions, an individual may contract the disease repeatedly. In fact, most people develop trichomoniasis again within three months of their last treatment.

The three basic body plans of bilaterally symmetrical animals. The three basic body plans of bilaterally symmetrical animals.
China's proposed supercollider plans to be twice the size of the Large Hadron Co China's proposed supercollider plans to be twice the size of the Large Hadron Co
Summary of Coordination of Benefit Rules Summary of Coordination of Benefit Rules
Writing can lead to psychological benefits Writing can lead to psychological benefits
A farmer has 100 acres of land on which she plans to grow wheat and corn. Each acre of wheat ... A farmer has 100 acres of land on which she plans to grow wheat and corn. Each acre of wheat ...
The following information relates to the Cutting Department of Kittina Corporation for the ... The following information relates to the Cutting Department of Kittina Corporation for the ...
Video: Oxygen transport: association and dissociation & Factors that affect hemoglobin's saturation with O2

For a complete list of videos, visit our video library