Final answer:
Determining whether a pension plan is sufficiently funded cannot be determined from the fiduciary fund statements alone. The funding status of a pension plan is typically analyzed through actuarial reports and financial statements that specifically address the plan's funding ratios, assets, liabilities, and contributions.
Step-by-step explanation:
False. Determining whether a pension plan is sufficiently funded cannot be determined from the fiduciary fund statements alone. The fiduciary fund statements provide information about the fiduciary activities and financial position of the plan, but do not directly indicate whether the plan is adequately funded.
The funding status of a pension plan is typically determined by analyzing actuarial reports and financial statements that specifically address the plan's funding ratios, assets, liabilities, and contributions. These reports consider factors such as the long-term obligations and investment returns to assess the financial health of the plan.
For example, actuaries may calculate the funding ratio by comparing the value of plan assets to the present value of projected future pension obligations. If the ratio is above a certain threshold, it indicates that the plan is sufficiently funded.