Which of the Following Is NOT True About a Defined

question 49

Multiple Choice

Which of the following is NOT true about a defined contribution plan?

• A) No balance sheet liability is reported in connection with the defined contribution plan.
• B) Upon retirement, the employee will receive all the money contributed to the pension fund along with the earnings of those contributions
• C) The amount distributed in the defined contribution plan is dependent upon various factors such as salary increases, employee turnover, and employee life span.
• D) Each year a company reports a pension expense of the amount contributed to the employees' pensions.