A Defined Contribution Plan Is One in Which

question 18

Multiple Choice

A defined contribution plan is one in which:

• A) The amounts to be paid to members at normal retirement age are determined by reference to the accumulated contributions made by and/or on behalf of members, together with investment earnings thereon.
• B) The amounts to be paid to members at normal retirement age are determined by reference to the percentage level of salary contributed over the period of membership of the plan.
• C) The amounts to be contributed by employees are determined by the plan trustees based on members' years of membership and/or salary levels.
• D) The amounts to be paid to members at normal retirement age are specified or determined, at least in part, by reference to members' years of membership and/or salary levels.
• E) None of the given answers.

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