Response to the following questions:
1. Describe the "pay as you go" funding method that is used by many federal and state or local government pension funds. What is the problem with this method that may damage the long-term viability of such funds?
2. Describe the different pension funds sponsored by the federal government.
3. What are the major assets held by private pension funds in 1975 versus 2010? Explain the differences.
4. How do the financial asset holdings of defined benefit pension funds differ from those of defined contribution pension funds? Explain the differences.