A Pension Plan That Is Required to Pay Out Only

question 36

Multiple Choice

A pension plan that is required to pay out only the amount that has been accumulated for each employee is a ________?

• A) Defined Benefit Plan.
• B) Private-Purpose Plan.
• C) Defined Withdrawal Plan.
• D) Defined Contribution Plan.

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Definitions:

Catastrophe

An event causing great and often sudden damage or suffering; a disaster.

Independent of One Another

A condition where the occurrence or outcome of one event does not affect the occurrence or outcome of another.

Annual Profit

The total earned income of a business over one year after all expenses have been subtracted.

Normal Model

Another term for the normal distribution, highlighting its role as a foundational model in statistics for randomized data.