Asked by Yessenia Castro on Apr 29, 2024
Verified
ERISA (Pension Reform Act of 1974) provides guidance for
A) accumulated benefit obligation
B) actual return on plan assets
C) minimum funding during the year
D) projected benefit obligations
ERISA
The Employee Retirement Income Security Act of 1974, a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry.
Pension Reform Act
Legislation aimed at improving the management and sustainability of pension funds.
- Understand thoroughly the regulatory and filing requirements for pension plans as dictated by the contemporary Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
Verified Answer
HB
Halefom BerheMay 01, 2024
Final Answer :
C
Explanation :
ERISA provides guidance on minimum funding requirements for defined benefit pension plans during the year to ensure that plan assets are sufficient to cover benefit payments. ERISA does not provide guidance on the accumulated benefit obligation, actual return on plan assets or projected benefit obligations.
Learning Objectives
- Understand thoroughly the regulatory and filing requirements for pension plans as dictated by the contemporary Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).
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