In a Defined Benefit Plan, a Formula Is Used That

question 71

Multiple Choice

In a defined benefit plan, a formula is used that

• A) requires that the benefit of gain or the risk of loss from the assets contributed to the pension plan be borne by the employee.
• B) defines the benefits that the employee will receive at retirement.
• C) requires that pension expense and the cash funding amount to be the same.
• D) defines the contribution the employer is to make; no promise is made concerning the ultimate benefits to be paid out to the employees.

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