Question 6 The Social Security System is an example of a public pension plan tha

Question

Question 6

The Social Security System is an example of a public pension plan that is a pay-as-you-go system. What is a pay-as-you-go pension plan?

If you want the benefits this year, you must pay into the system this year.

Current worker's tax payments go to pay the benefits of current retirees.

Reinsurance is paid annually by the retiree.

none of the above

All of the Above

If you want the benefits this year, you must pay into the system this year.

Current worker's tax payments go to pay the benefits of current retirees.

Reinsurance is paid annually by the retiree.

none of the above

All of the Above

Explanation / Answer

none of the above

A retirement scheme where the plan beneficiaries decide how much they want to contribute either by having the specified amount regularly deducted from their paycheck or by contributing the desired amount in a lump sum.

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