Which Statement Explains the Risk Involved in "Defined Benefit Plans

Which statement explains the risk involved in "defined benefit plans"?

A) The plan places investment risk on employees since the future benefits are pre-specified.
B) The plan sponsor never needs to increase its contributions to the pension trust.
C) The plan may require the employee to pay $200 per month for each year of service.
D) The plan specifies the eventual outflows from the pension trust to future retirees.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free