NO.PZ202206210200000103
问题如下：
The stakeholders of the Tucker pension plan would least likely have concerns about the:选项：
A.vesting status of current employees. B.plan’s ability to meet liquidity needs. C.imbalance between the maturity of plan assets and plan liabilities.解释：
SolutionA is correct. Given the age and average tenure of current employees, the vast majority are vested; therefore, there is no uncertainty regarding the benefit due. Further, should non-vested employees leave, their accumulated benefit would remain in the portfolio, increasing its funded status, to the benefit of beneficiaries and the plan sponsor. However, the plan’s portfolio is invested in assets that produce little cash flows on their own. A large portion of these assets are illiquid (private equity and undeveloped real estate). Therefore, having sufficient liquidity to meet cash outflow needs is a concern, particularly because much of the current workforce is close to, if not at, the age of retirement eligibility and can choose a lump sum cash payment. In addition, given the way changes in interest rates can affect the value of plan liabilities, many defined benefit pension plans have adopted a liability-driven approach in which the duration of plan assets is chosen to match the duration of plan liabilities. The Tucker plan portfolio contains only equities and alternative assets with an unclear duration, leading to concerns about the imbalance between liabilities and assets and the resulting interest rate risk.
B is incorrect. The plan’s portfolio is invested in assets that produce little cash flows on their own. A large portion of these assets are illiquid (private equity and undeveloped real estate). Therefore, having sufficient liquidity to meet cash outflow needs is a concern, particularly because much of the current workforce is close to, if not at, the age of retirement eligibility and can choose a lump sum cash payment. Therefore, stakeholders would have legitimate concerns about the plan’s ability to meet potential liquidity needs.
C is incorrect. Given the way changes in interest rates can affect the value of plan liabilities, many defined benefit pension plans have adopted a liability-driven approach in which the duration of plan assets is chosen to match the duration of plan liabilities. The Tucker plan portfolio contains only equities and alternative assets with an unclear duration. Although this asset allocation may provide strong expected returns, it does lead to legitimate concerns about the imbalance between liabilities and assets and the resulting interest rate risk.
如题
