Which of the Following Must Be True for a Pension

question 24

Multiple Choice

Which of the following must be true for a pension plan to be deemed as a qualified plan?

• A) It must not discriminate in favor of an organization's highly compensated employees.
• B) It must not be a cafeteria-style plan.
• C) It should include elder care and child care.
• D) It has to be a defined-contribution plan.
• E) It has to be a defined-benefit plan that requires most of the funding to come from the employer.

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Definitions:

Statutory Law

Law established by the enactment of legislation by a governing body, as opposed to case law or regulations promulgated by governmental agencies.

Common Law

A legal system based on judicial decisions and precedents, rather than codified laws.

Subjective Fault

A legal concept where an individual's personal judgment or intention affects the determination of liability or guilt.

Vicarious Liability

A legal doctrine that holds a person or entity legally responsible for the actions of another person, even if they were not directly involved in the incident, commonly applied in employer-employee relationships.