CFA Practice Question

There are 334 practice questions for this study session.

CFA Practice Question

Participant contributions ______ PBO and ______ plan assets.
A. don't change, increase.
B. decrease, increase.
C. decrease, decrease.
Explanation: Participant contributions don't change PBO and increase plan assets.

User Contributed Comments 1

User Comment
keit Participant contributions have no impact on PBO. The promised liability is unchanged only the cost of providing it is reduced by participant contributions. NPPC is lower and plan assets are higher but PBO is the same.
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