Which of the Following Statements Regarding Defined Contribution Plans Is

question 16

Multiple Choice

Which of the following statements regarding defined contribution plans is incorrect?

• A) They include fixed contributions paid by the employer to an employee's superannuation fund.
• B) The amount of the contribution is normally based on a percentage of the employee's wages.
• C) The amount received by employees upon their retirement is dependent on the level of contributions made and the return earned by the fund on its investment.
• D) The employer has a legal obligation to pay further contributions if the fund does not hold sufficient assets to pay it members.

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Definitions:

Early Colony

A territory under the immediate complete political control of a state, distinct from the home territory of the sovereign, established during the early stages of expansion or colonization.

South Carolina

A state located in the southeastern region of the United States, known for its coastal cities, historical significance, and cultural heritage.