Refer to the financial statements and related disclosure notes of Dell Inc. located in the company's financial statements and related disclosure notes in Appendix B located at the back of the text. The financial statements also can be found at the company's website: www.dell.com or via EDGAR at www.sec.gov.

Required: What type of pension plan does Dell sponsor for its employees? Explain.

Who bears the "risk" of factors that might reduce retirement benefits in this type of plan? Explain.

Suppose a Dell employee contributes $10,000 to the pension plan during her first year of employment and directs investments to a municipal bond mutual fund. If she leaves Dell early in her second year, after the mutual fund's value has increased by 2%, how much will she be entitled to roll over into an Individual Retirement Account (IRA)?