Final answer:
Yes, pension trust funds exist where a government acts as a trustee for employee retirement plans. Pension plans, once common as defined benefits plans, are now often replaced by portable, tax-deferred defined contribution plans like 401(k)s.
Step-by-step explanation:
The statement that pension trust funds exist when a government acts as a trustee for a retirement plan is true. Pension funds are essential for planning the retirement or disability of employees. In pension trust funds, the government holds these funds in trust, ensuring the management and payment to eligible retirees.
Pension plans, historically defined benefits retirement plans, have been largely replaced by defined contribution plans, such as 401(k)s and 403(b)s. These contributions are tax deferred and portable, giving today's workers flexibility to move funds when changing employers and the potential to avoid the inflation costs that traditional pension plans might incur.