Which of the following is false regarding defined benefit pension plans provided to employees by a state or local government?

Multiple Choice

• Defined benefit pension plans are fully funded by the employees of a state or local government.

• Pension requirements create a huge financial obligation for many governments across the United States.

• Many state and local governments establish pension trust funds to accumulate and invest monetary resources and to pay out pension benefits.

• Pension trusts are classified as fiduciary funds.

• Pension trusts are not included in reporting government-wide financial statements.