Why Have Many Companies Switched from Traditional Defined-Benefits Plans to Cash-Balance

question 68

Multiple Choice

Why have many companies switched from traditional defined-benefits plans to cash-balance plans?

• A)They want to shower their employees with money.
• B)Regulatory reform made it necessary.
• C)They save money with them as a result of reduced future benefits for older workers.
• D)All of the above are correct.
• E)Only B and C are correct.

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Definitions:

Sociologists

Scientists who study social behavior, social institutions, and patterns of social relationships within human societies.

Daily Life

The routine existence or everyday activities and experiences of individuals.

Ethnomethodologists

Researchers in the field of sociology who study the methods people use in everyday life to perceive, analyze, and make sense of their social world.

Conversations

The informal exchange of ideas by spoken words between people.