From an Employee's Point of View,what Advantage Do Defined Contribution

question 23

Multiple Choice

From an employee's point of view,what advantage do defined contribution plans have over defined benefit plans?

• A) the employer assumes the risk of investments
• B) tend to be more portable
• C) provides a higher pension for those who join the company later in life
• D) risk is averaged over a large group of employees

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Definitions:

College Degree

A certification awarded by colleges or universities upon successful completion of a course of study.

Full Time

Employment status characterized by working the number of hours defined as standard by an employer, typically around 40 hours per week.

High-Income Families

Households with earnings significantly above the average income level for a given region or country.

Tax Inheritance

A tax imposed by some governments on those who inherit assets from a deceased individual.