All of the Following Are Potential Disadvantages to Employees Covered

question 46

Multiple Choice

All of the following are potential disadvantages to employees covered by a money-purchase pension plan EXCEPT

• A) The contribution rate by the employer is uncertain.
• B) The retirement benefit can only be estimated in advance of retirement.
• C) The benefit formula may produce an inadequate benefit if an employee enters the plan at an older age.
• D) The investment losses are borne by the employees.

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Definitions:

Positive Outlooks

The habit of seeing the good in situations, which can influence overall happiness and well-being.

Positive Emotions

Feelings or emotions that are pleasurable or satisfying, including happiness, joy, excitement, and gratitude.

Positive Institutions

Organizations that contribute to individual and societal well-being by fostering strengths and virtues.

Grant Relationships

A dynamic involving the exchange of financial resources between funders, such as foundations or government entities, and recipient organizations, often for specific projects or programs.