Author Question: Beta Corporation has 1,000 employees eligible to participate in the firm's pension plan, and 100 of ... (Read 68 times)

j.rubin · **on:** Jul 11, 2018

Beta Corporation has 1,000 employees eligible to participate in the firm's pension plan, and 100 of these employees are considered highly compensated.

All of the highly compensated employees are covered by the plan. What is the minimum number of the 900 non-highly compensated employees who must be covered by the plan in order for the plan to satisfy the ratio percentage test?
A) 500
B) 630
C) 667
D) 900

Question 2

Which of the following statements concerning defined-benefit pension plans is (are) true? I. The contribution rate by the employer varies from year to year. II. The retirement benefit is not known in advance.

A) I only
B) II only
C) both I and II
D) neither I nor II