Economics of Money, Banking and Financial Markets, The, Business School Edition (5th Edition) (What's New in Economics)
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Chapter 13, Problem 7Q
To determine

If the following statement is true, false or uncertain: “In contrast to private pension plans, government pension plans are rarely underfunded”

Context Introduction:

Most pension funds rely on bonds and employee-contribution for their pay-out. With increasing life-spans, the pressure on pension plans has increased, and the liability for pensions usually increases without a commensurate increase in the asset-base, thereby leading to underfunding.

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