Gail meets with her insurance agent, Heli, to discuss her retirement and estate plan. Gail, who has
Question:
Gail meets with her insurance agent, Heli, to discuss her retirement and estate plan. Gail, who has been married to Pringle for many years, works for a large cable manufacturing firm called Ramphenol. Gail is a member of Ramphenol's defined benefit pension plan. When does Gail ask Heli what would happen to her pension benefit if she were to pass away, which of the following is the CORRECT response that Heli should provide to her?
a)If Gail dies after Pringle and she has a named beneficiary, an ongoing pension amount will be paid to her named beneficiary.
b)If Gail dies after Pringle and she has no named beneficiary, the benefit will be distributed according to the rules of the plan.
c)If Gail dies after she has retired, Pringle may be entitled to a reduced amount of the pension benefit that was paid to Gail.
d)If Gail dies before she has retired, the benefit will be paid to the named beneficiary and Pringle will not be entitled to a benefit.
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin