Which of the Following Best Describes a Defined Benefit Pension

question 15

Multiple Choice

Which of the following best describes a defined benefit pension plan?

• A) A plan in which each employee has his or her own account and the benefits are based only on the principal and income contributed
• B) A plan that is established to provide health, vacation, or unemployment benefits through contributions solely made by employees
• C) A plan where the amount payable to a participant is determined by a formula, the funding of which is determined actuarially
• D) A plan in which the security comes from knowing the amount of principal that will be invested

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