What Effect Does Inflation Have on the Value of Private

Multiple Choice

What effect does inflation have on the value of private employer-sponsored pension plans have on the value of plans over time?

A) Most employer-sponsored plans are automatically adjusted for inflation, so there is no effect on pension value.
B) Pension value slowly erodes over time, leading to a long-term decrease in value by very old age.
C) The federal government will make up the difference in pension value, so there is no effect.
D) Inflation will cause private pension values to increase over time.