A Defined Benefit Plan Is One in Which

question 42

Multiple Choice

A defined benefit plan is one in which:

• A) The contributions by employees are defined in advance and the employers agree to increase their contribution to the fund to compensate for changes in the consumer price index.
• B) The benefits to be paid to members on retirement are determined by the performance of the fund over the period of employee membership. This ensures that the member enjoys the benefits of the investments made by the plan.
• C) The amounts to be paid to members at normal retirement age are specified or determined, at least in part, by reference to members' years of membership and/or salary levels.
• D) The amounts to be contributed by employees are determined by the plan trustees based on members' years of membership and/or salary levels.
• E) None of the given answers.

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Definitions:

Diffusion

The process by which an innovation is communicated through certain channels over time among members of a social system.

Control

In experimental research, the standard by which test results are compared, often a group that does not receive the experimental treatment.

Within-subject Design

A research design where the same participants are subjected to each condition of an experiment, allowing comparison of their performance across conditions.

Experimental Condition

In research, this is the set of conditions applied to subjects that is manipulated by the researcher to observe its effects compared to a control condition.