Question: Discuss the risks to both the plan sponsor and plan beneficiaries under the four types of pension plans. MINI CASE Southeast Tile Distributors Inc. is

Discuss the risks to both the plan sponsor and plan beneficiaries under the four types of pension plans.

MINI CASE

Southeast Tile Distributors Inc. is a building tile wholesaler that originated in Atlanta but is now considering expansion throughout the region to take advantage of continued strong population growth. The company has been a "mom and pop" operation supplemented by part-time workers, so it currently has no corporate retirement plan. However, the firm's owner, Andy Johnson, believes that it will be necessary to start a corporate pension plan to attract the quality employees needed to make the expansion succeed. Andy has asked you, a recent business school graduate who has just joined the firm, to learn all that you can about pension funds, and then prepare a briefing paper on the subject. To help you get started, he sketched out the following questions:

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