Which of the Following Characteristics Does Not Describe a Defined

question 69

Multiple Choice

Which of the following characteristics does not describe a defined benefit pension plan?

• A)Actuarial calculations are required to determine the employer's annual contribution.
• B)Upon retirement, the employee's pension amount depends on the value of her or his account.
• C)Forfeitures must reduce subsequent funding costs and cannot increase the benefits any participant can receive under the plan.
• D)A separate account is not required to be maintained for each participant.
• E)None of these.

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Definitions:

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by the party to be charged.

Promissory Estoppel

The legal enforcement of an otherwise unenforceable contract due to a party’s detrimental reliance on the contract.

English Rule

A legal principle where the losing party in a lawsuit is required to pay the winning party's legal costs.

American Rule

A legal principle stating that each party in a lawsuit typically pays their own attorney's fees, regardless of who wins.