11. Which one of the following statement is FALSE?

a. If the pension benefits obligation (PBO) is greater than the fair value (FV) of plan assets, the plan is underfunded, resulting in a net obligation.

b. In a typical defined benefit pension plan, the payment formula considers the number of years of employee service, a credit for each year of service, and final salary at retirement.

c. The discount (interest) rate used to determine the projected benefit obligation is called the settlement rate, which represents the current market rate at which an outside party would effectively settle the PBO.

. For defined benefit pension plans, pension expense is the actuarially determined present value of estimated retirement payments to be paid employees for work employees will do in the future