A Pension Plan in Which Retirement Benefits Are Based on an Accumulation

question 38

Multiple Choice

A pension plan in which retirement benefits are based on an accumulation of annual company contributions (as a percentage of the employee's pay) plus interest credited each year is called a ____ plan.

• A) contributory retirement
• B) self-funding
• C) cash balance
• D) defined-contribution

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Definitions:

SMART Goal

Stands for goals that are Specific, Measurable, Achievable, Relevant, and Time-bound, used in project management and personal development to achieve success.

Time-Bound

Relating to objectives or initiatives that have a specific duration or deadline by which they must be achieved or completed.

Motivation

is the psychological drive or force that prompts an individual to act in a certain way to achieve specific goals or satisfy needs.

SMART Goal

A framework for setting objectives that are Specific, Measurable, Achievable, Relevant, and Time-bound, facilitating clear and attainable goal-setting.