Private pension funds are funds administered by The Federal government State and local governments Insurance companies Banks and mutual funds Both C and D A defined benefit pension plan has expected payouts of $15 million per year over the next 25 years. The fund can be expected to earn an average of 6% on its assets. It currently has reserves of $160 million. The fund is by about million. Underfunded; $31.75 Underfunded; $215 Overfunded; $31.75 Overfunded; $215 In general terms, which one of the following plan types is the riskiest for an employee? Defined contribution plan invested in bonds Defined contribution plan invested in equities Final pay defined benefit plan Career average defined benefit plan Overfunded defined benefit plan Which of the following statements about 401 (k) plans are true? They are defined benefit plans They allow employer and employee contributions Earnings accrue tax free during the employee's working years They allow employee discretion in asset allocation They always have minimum guaranteed rates of return I, IV and V II, III and V only II and III only II, III and IV only All are true An employee contributes $12,000 to a 401 (k) plan each year, and the company matches 30% of this annually. Equity funds are earning 12%, bond funds 6% and money market funds 3%. The employee will retire in 10 years. How much money will he have at retirement if he puts 50% of his money in equities, 30% in bond funds and the rest in money market funds? $456, 960 $538, 526 $234, 333 $378, 565 $105, 131