Question 9 - chapter 4

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A.

The employers contribution is usually a percentage of the employees compensation.

B.

Investment earnings may be used to reduce future employer contributions.

C.

Forfeitures of the account balances of non-vested participants cannot be used to reduce future employer contributions.

D.

Money-purchase plans are really only another name for defined-benefit plans.

Question 10

Which of the following is a characteristic of pension plans that does not apply to profit sharing plans?

	A.	Separate accounts.
	B.	In-service withdrawals for select employees, plan permitting
	C.	Limited investment in life insurance.
	D.	Mandatory funding.