Which of the following statements is true?
A. In the year that Electron Products, Inc. has a loss for income tax purposes,
they do not have to make a contribution to the 10% money purchase pension
plan established in the prior year.
B. Because of the risk of mismanagement of plan assets, plan sponsors of
defined benefit plans are prohibited from investing more than 5% of the plan's
assets in the stock of the plan sponsor.
C. In calculating the minimum funding amount for a cash balance plan, the
actuary considers plan forfeitures.
D. The Pension Benefit Guaranty Corporation (PBGC) guarantees that the
participants of a defined benefit plan will receive their accrued benefit as
calculated under the private plan funding formula.