Which of the Following Statements Is Not True Relating to a Defined

question 2

Multiple Choice

Which of the following statements is not true relating to a defined contribution pension plan?

• A)A defined contribution plan defines the contributions of the company to the pension plan.
• B)Once the defined contribution is paid,the company has no further obligation to the pension plan.
• C)This type of plan shifts the risk to the employee as to whether the pension plan will grow to provide for a reasonable pension payment upon retirement.
• D)There is no problem estimating the company's pension expense.
• E)This type of plan presents substantial problems in estimating the pension liability.

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