The Key Difference Between Defined Benefit and Defined Contributions Post-Employment

question 21

Multiple Choice

The key difference between defined benefit and defined contributions post-employment plans is that:

• A) the employee bears the risk in a defined benefit plan, whereas the employer bears the risk in a defined contribution plan
• B) the fund bears the risk in a defined benefit plan, whereas the employee bears the risk in a defined contribution plan
• C) the employer bears the risk in a defined benefit plan, whereas the employee bears the risk in a defined contribution plan
• D) the employer bears the risk in a defined benefit plan, whereas the fund bears the risk in a defined contribution plan

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Definitions:

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The scientific name for modern human beings, characterized by a capacity for language, social structure, and tool use.