Final answer:
The true statement is that funding for postretirement health care benefits is not required by law, but contributions are tax deductible. Retirement plans have shifted towards 401(k)s and 403(b)s, which allow for tax-deferred savings and portability between employers.
Step-by-step explanation:
The question asks which statement is true regarding funding for postretirement health care benefits and whether such contributions are tax deductible. The correct answer is statement 4), which declares that funding for postretirement health care benefits is not legally required, but contributions are tax deductible. Unlike traditional pension plans, modern retirement savings plans, like 401(k)s and 403(b)s, are defined contribution plans where both employer and employee may contribute, and these are generally tax deferred. They offer the flexibility to be carried over to a new employer if the individual changes jobs.
Traditional pension plans and defined benefits retirement plans have become less common, and the landscape of retirement funds has shifted towards these contributory plans, where the tax implications and funding requirements differ from traditional pension systems. Moreover, the nature of Social Security and Medicare operates as a form of social insurance, where current workers fund the benefits for current retirees.