TynsCorp offers a defined benefit pension plan. But since it has no guarantees of payments, TynsCorp also strongly encourages its employees to participate in a 401(k) plan, which guarantees payments based on years of service.

Question

Quizplus · Accepted Answer

A defined benefit pension plan guarantees payments based on a formula, while a 401(k) plan is a defined contribution plan where payments are based on employee contributions and investment performance. Therefore, it is likely that TynsCorp offers a defined contribution plan, such as a 401(k), as a supplement to its defined benefit pension plan, but it would not guarantee payments based on years of service.

TynsCorp Offers a Defined Benefit Pension Plan