Which of the Following Statements Regarding Defined Benefit Plans Is

question 62

Multiple Choice

Which of the following statements regarding defined benefit plans is false?

• A) Employees bear the investment risks of the plan.
• B) Employers are generally required to make annual contributions to meet expected future liabilities.
• C) The benefits are based on a fixed formula.
• D) The vesting period can be based on a graded or cliff schedule.

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Definitions:

Advance Notice

A prior notification about an event, requirement, or action that allows for preparation or adjustments.

Union Official

A union official is a person who represents and acts on behalf of members of a labor union, often involved in negotiations, organizational activities, and advocacy.

Equal Pay Act

A U.S. labor law enacted in 1963 aimed at abolishing wage disparity based on sex.

Pay Discrimination

Inequitable compensation among employees that is often based on gender, race, age, disability, or other protected characteristics rather than job performance or qualifications.