A Defined Contribution Pension Plan Is One in Which the Employer

question 70

Multiple Choice

A defined contribution pension plan is one in which the employer agrees to do which of the following?

• A) To make payments to a specified pension plan with no guarantee of a specific pension amount to be paid to the employees.
• B) To make actuarially determined payments to a pension plan AND to guarantee that the employees will receive a specified pension benefit (usually determined by length of service and salary).
• C) To make actuarially determined payments to a pension plan that guarantees employees will receive a specified pension (usually determined by length of service and salary).
• D) To pay specified amounts (usually determined by length of service and salary) to the employees upon retirement.

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Definitions:

Education Level

The highest degree or stage of education that an individual has completed.

Correlations

A measure showing the extent to which two or more variables fluctuate together.

Illusory Correlation

The mistaken perception of a relationship between two events or variables that are actually unrelated.

Positively Correlated

A relationship between two variables where they move in the same direction, meaning as one variable increases, so does the other, and vice versa.