Which of the Following Is Not a Characteristic of a Defined-Contribution

question 103

Multiple Choice

Which of the following is not a characteristic of a defined-contribution pension plan?

• A) The employer's contribution each period is based on a formula.
• B) The benefits to be received by employees are determined by an employee's highest compensation level defined by the terms of the plan.
• C) The accounting for a defined-contribution plan is straightforward and uncomplicated.
• D) The benefit of gain or the risk of loss from the assets contributed to the pension fund is borne by the employee.

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Definitions:

Inherited Traits

Characteristics or attributes genetically passed from parents to offspring through their genes.

Natural Selection

The process by which organisms that are better adapted to their environment survive and reproduce more successfully than less well-adapted organisms.

Reproduction

The biological process through which new individual organisms are produced from their parents.

Survival

The state or fact of continuing to live or exist, typically in spite of an accident, ordeal, or difficult circumstances.