Changes in defined benefit pension plans that eliminate or reduce,for a significant number of employees,the accrual of defined benefits for some or all of their future services are:
A) settlements.
B) eliminations.
C) curtailments.
D) terminations.

Question

Quizplus · Accepted Answer

Curtailments refer to changes in defined benefit pension plans that eliminate or reduce, for a significant number of employees, the accrual of defined benefits for some or all of their future services. Settlements refer to a lump-sum payment made to vested plan participants who would otherwise be entitled to receive their benefits in the future. Eliminations and terminations refer to the complete discontinuation of a defined benefit pension plan.

Changes in Defined Benefit Pension Plans That Eliminate or Reduce,for