Question: Question L&S set up a pension plan in its 2nd year of operation. It pays 12% of an employee's income, so long as the employee

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L&S set up a pension plan in its 2nd year of operation. It pays 12% of an employee's income, so long as the employee is contributing at least 5%. Unfortunately, L&S stopped funding its portion of the plan in its third year, so it is now severely underfunded. Fourteen employees have reached retirement age and want to draw benefits. L&S is experiencing cash flow issues and can't cover the pension payments as they have previously. What type of violation is this? What will Susan recommend this time?

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