AAFM Exam GLO_CWM_LVL_1 Topic 9 Question 98 Discussion

Actual exam question for AAFM's GLO_CWM_LVL_1 exam

Question #: 98
Topic #: 9

[All GLO_CWM_LVL_1 Questions]

Which of the following is not a characteristic of defined benefit plan?

ABenefit levels are guaranteed

BThese plans are easy to design and explain to employees

Cactuarial assumptions are necessary to determine actual contribution amounts

DEmployer is subject to a recurring annual funding obligation

Show Suggested Answer

Suggested Answer: B

by Kris at Jan 25, 2025, 03:26 PM

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Johna

2 months ago

Defined benefit plan? More like 'defined headache' plan, am I right?

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Chanel

1 months ago

D) Employer is subject to a recurring annual funding obligation

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Tyisha

2 months ago

C) actuarial assumptions are necessary to determine actual contribution amounts

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Lovetta

2 months ago

A) Benefit levels are guaranteed

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Pearly

2 months ago

Option D is the one that doesn't fit. Employer funding obligation? That's the whole point of these plans!

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Muriel

2 months ago

Option C, really? Actuarial assumptions are like voodoo magic in these plans. How else would they determine the funding?

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Jillian

2 months ago

User 2

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Wilburn

2 months ago

User 1

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Derick

2 months ago

I'd say Option A is the correct answer. Guaranteed benefit levels are the hallmark of defined benefit plans.

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Teri

2 months ago

Option B? Easy to design and explain? Hah, have they ever tried to decipher the actuarial jargon in these plans?

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Diane

2 months ago

Hmm, you might be right. Defined benefit plans do require actuarial assumptions for funding calculations.

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Nicolette

3 months ago

I disagree, I believe the correct answer is C) actuarial assumptions are necessary to determine actual contribution amounts.

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Diane

3 months ago

I think the answer is B) These plans are easy to design and explain to employees.

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