A Major Difference Between Defined Benefit Pension Plans and Defined

question 56

Multiple Choice

A major difference between defined benefit pension plans and defined contribution pension plans is that

• A) In defined benefit plans, the risk of loss is borne primarily by the employer.
• B) Accounting for defined benefit plans is much simpler than accounting for defined contribution plans.
• C) Employees generally are required to contribute to defined contribution plans but not to defined benefit plans.
• D) There is no major difference between the two kinds of pension plans.