The risks to both the plan sponsor and plan beneciaries

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Southeast Tile Distributors Inc. is a building tile wholesaler that originated in Atlanta but is now considering expansion throughout the region to take advantage of continued strong population growth. The company has been a “mom and pop” operation supplemented by part-time workers, so it currently has no corporate retirement plan. How- ever, the rm’s owner, Andy Johnson, believes it will be necessary to start a corporate pension plan to attract the quality employees needed to make the expansion succeed. Andy has asked you, a recent business school graduate who has just joined the rm, to prepare a brie ng paper on pension funds. To help you get started, he wrote down the following questions: Discuss the risks to both the plan sponsor and plan beneciaries under the four types of pension plans.

Reference no: EM131547660

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