Which of the following statements concerning defined-benefit pension plans is (are)true?
I.The contribution rate by the employer varies depending on the amount needed to fund the desired benefit.
II.The retirement benefit is not known in advance.

Question

Quizplus · Accepted Answer

I is true because in a defined-benefit plan, the employer adjusts contributions to ensure the promised benefit can be paid. II is false because the retirement benefit is predetermined in a defined-benefit plan.

Which of the Following Statements Concerning Defined-Benefit Pension Plans Is