Q784
Public Pensions are funded in the following manner:
A.
Earn as you Go
B.
Take as you go
C.
Spend as you go
D.
Pay as you go
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Public Pensions are funded in Pay as you go. A pay-as-you-go pension plan is a specific type of pension scheme where the benefits are directly tied to the contributions or taxes paid by individual participants. This is in contrast to fully funded pension plans where the pension trust fund is not actively paid into by its future beneficiaries.