Traditional Defined Benefit Pension Plan Flashcards
1
Q
why would a sponsor choose a traditional defined-benefit pension plan?
A
if the sponsor has numerous older management/owner participants, and the company has good financial standing and cash flow
2
Q
what is a red flag that can eliminate pensions as a retirement plan choice?
A
fluctuating revenues or profits
3
Q
What does a “fully insured” traditional DB plan mean?
A
that it is funded exclusively by cash value life insurance or annuity contracts
