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The board of directors of a manufacturing firm is deeply concerned about the financial risks tied to the company's defined benefit plan for its pension fund. Considering the various aspects of funding risk associated with this plan, which of the following statements accurately describes the potential funding risk the pension fund might face?
A
Decreases in interest rates will reduce funding risk.
B
Funding risk represents the true long-term risk to the plan sponsor.
C
Funding risk is effectively transferred to the employees of the manufacturing company.
D
The longer the horizon for expected payouts, the lower the funding risk.