Which of the Following Is True About Defined Contribution Plans

question 48

Multiple Choice

Which of the following is true about defined contribution plans?

• A)They shift the investment risk to the employer.
• B)They present greater administrative challenges to employers.
• C)They require annual premium payments to the PBGC.
• D)They are more prevalent in smaller than larger companies.
• E)They are becoming less common.

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Definitions:

Savings Account

A bank account that earns interest, offering a secure place for an individual to store their money.

Adult Learning Cycle

A concept in education theory describing the continuous process of learning that adults engage in, involving experiencing, reflecting, thinking, and acting.

Financial Resources

Monetary assets or capital available to an individual or organization for spending or investment.

Professional Group

An organization or association of individuals in the same profession, aimed at advancing their collective interests and enhancing their field.