Which of the Following Statements Is True Regarding Pension Plans

question 25

Multiple Choice

Which of the following statements is true regarding pension plans?

• A) Under salary reduction plan,the employer's fiduciary decides where to invest funds.
• B) Under defined benefit plan,the employee elects to contribute some amount of pretax income to his/her retirement account.
• C) Under defined contribution plan,the risk of investment is borne by the employer.
• D) Under ERISA,employer is not required to offer a pension plan.

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Definitions:

Variable

An element, feature, or factor that is liable to vary or change.

Molality

A measure of the concentration of a solute in a solution, defined as the moles of solute per kilogram of solvent.

Solute Mass

The quantity of solute, often measured in grams or moles, present in a given volume of solution.

Solvent Volume

The volume of a liquid substance (solvent) used to dissolve a solute, forming a solution.