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An employer has a choice of how benefits will be distributed if it terminates its qualified plan. The plan can be designed to accommodate all of the following distribution possibilities except:

A. The plan can purchase paid-up annuities from an insurance company.
B. The plan can distribute benefits in cash or in kind if stock or insurance policies are involved.
C. The plan can purchase deferred annuities from the PBGC if it is currently fully funded.
D. The plan can give participants the option to receive a lump-sum or a deferred-annuity contract.

 

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  • Category:- Basic Finance
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