Calculate the actuarial liability on a statewide basis


A statewide pension plan exists for all local governments in a certain state. The provisions of the plan indicate that each qualifying retiree receive 2% multiplied by the number of years active employment multiplied by the average salary for the past four years of service. The government calculates the actuarial liability on a statewide basis, not by individual government. The plan would be known as a:

A. multiple-employer, defined benefit, agency plan

B. single employer plan

C. multiple-employer, defined contribution plan

D. multiple-employer, defined benefit, cost-sharing plan

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Accounting Basics: Calculate the actuarial liability on a statewide basis
Reference No:- TGS065011

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