JKL Company Just Converted Its Traditional Defined-Benefit Plan to Another

question 23

Multiple Choice

JKL Company just converted its traditional defined-benefit plan to another type of plan.Under the plan,benefits are defined in terms of a hypothetical account balance,with retirement benefits dependent upon the value of the participant's account at retirement.Each year,employees receive an interest rate credit and a pay credit which is a specified percentage of compensation.This type of plan is called a(n)

• A)section 401(k)plan.
• B)deposit-administration plan.
• C)cash-balance plan.
• D)trust fund plan.

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Definitions:

Job Rotation

Job rotation is a human resources strategy where employees are moved between different jobs to promote versatility, broaden skill set, and prevent job boredom.

CNC Machine

Computer Numerical Control machine, a piece of manufacturing equipment controlled by a computer, executing pre-programmed sequences of machine operations.

Flexible Schedule

A work arrangement allowing employees variability in their working hours and patterns, promoting work-life balance.

Job Enrichment

Increasing the depth of a job through more challenging and complex tasks to enhance employee satisfaction and performance.