Which statement describes a state retirement plan approach as discussed?

Which statement describes a state retirement plan approach as discussed?

• A. It is a private, voluntary market with individual contracts
• B. It involves outsourcing all responsibilities to external vendors
• C. It is a state insurance market in which participants make payments into the state's insured funds
• D. It eliminates all government oversight

Answer: (C)

State retirement plans are government-run arrangements that pool employee (and often employer) contributions into a fund backed or insured by the state. The state administers the plan, sets benefit rules, and provides ongoing oversight to protect participants. Payments go into the state’s insured fund, and benefits are paid out from that fund based on the plan’s design. This distinguishes it from a private, voluntary market with individual contracts, from a setup that outsources all responsibilities to external vendors, and from any arrangement that eliminates government oversight. That combination of state backing, pooled contributions, and insured funds is why the description fits a state retirement plan.

State retirement plans are government-run arrangements that pool employee (and often employer) contributions into a fund backed or insured by the state. The state administers the plan, sets benefit rules, and provides ongoing oversight to protect participants. Payments go into the state’s insured fund, and benefits are paid out from that fund based on the plan’s design. This distinguishes it from a private, voluntary market with individual contracts, from a setup that outsources all responsibilities to external vendors, and from any arrangement that eliminates government oversight. That combination of state backing, pooled contributions, and insured funds is why the description fits a state retirement plan.