Question

34. Pension gains related to plan assets occur when: A. The return on plan assets is higher than expected. B. The vested benefit obligation is less than expected. C. Retiree benefits paid out are less than expected. D. The accumulated benefit obligation is more than expected.

Answer 1

Answer: A. The return on plan assets is higher than expected

Step-by-step explanation:

Pension gains related to plan assets is said to occur when the return on plan assets is higher than expected. In a situation whereby an individual or a firm expect a certain return on an asset and when the asset's return was eventually more than the expected return on it, this means that there is a pension gains related to plan assets.