What signifies a terminated pension plan?

• A. It continues to operate under a different employer
• B. It is still operational but with limited benefits
• C. It is no longer operated by the employer
• D. It is restructured to a different benefit type

Answer: (C)

A terminated pension plan is characterized by the fact that it is no longer operated by the employer. This typically occurs when a company decides to stop its pension plan due to various reasons, which may include financial constraints, restructuring, or shifting to a different type of retirement benefit. Once a pension plan is terminated, the remaining funds are usually distributed to participants or managed in a way that fulfills the plan's obligations.

In this scenario, the details that define a terminated pension plan highlight the end of the employer's involvement and responsibilities regarding the plan. By contrast, the other options describe situations where the pension plan might still be in operation in some capacity or under different conditions, which does not align with the definition of a termined pension plan.