Melissa's Retirement Plan Is Described in Her Employee Handbook as Follows

Melissa's retirement plan is described in her employee handbook as follows: Noncontributory
Cliff vesting (100 percent) after 3 years of full-time employment
Monthly retirement benefits based on average salary over the last 3 years of employment and the total number of years worked for the company
Which of the following statements about this retirement plan is true?

A) Melissa will have to contribute to the plan.
B) If Melissa leaves this company before working full-time for three years,she will not receive any benefits.
C) Melissa will have to make investment decisions regarding her retirement plan.
D) Melissa's retirement plan is a defined contribution plan.
E) For Melissa,vesting takes place gradually over the first six years of employment.

Correct Answer:

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