Which of the following is false regarding defined benefit pension plans provided to employees by a state or local government?
A) Defined benefit pension plans are fully funded by the employees of a state or local government.
B) Pension requirements create a huge financial obligation for many governments across the United States.
C) Many state and local governments establish pension trust funds to accumulate and invest monetary resources and to pay out pension benefits.
D) Pension trusts are classified as fiduciary funds.
E) Pension trusts are not included in reporting government-wide financial statements.

Question

Quizplus · Accepted Answer

Defined benefit pension plans are typically funded by both the employer (state or local government) and the employees, not solely by the employees.

Which of the Following Is False Regarding Defined Benefit Pension