Why Have Employers Switched to Defined-Contribution Plans Instead of Defined-Benefits

question 98

Multiple Choice

Why have employers switched to defined-contribution plans instead of defined-benefits plans for most companies?

• A)They remove the financial risk for future pension costs away from the company and pass it on to the employee.
• B)The employer doesn't want to do any bookkeeping for the retirement plan.
• C)Employers care deeply about what employees eventually receive from their plan.
• D)All of the above are correct.
• E)Only A and B are correct.

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Definitions:

Numerator

The top number in a fraction that represents the part of the whole that is being considered.

Denominator

The bottom number in a fraction that shows how many equal parts the item or group is divided into.

Categorical Variable

A variable with categorical data.

Dummy Variables

Variables used in regression analysis to represent categorical data by converting it into a series of binary values.