Which of the following statements concerning defined benefit and defined contribution pension plans is (are)true?
I.The employer bears the investment risk with a defined contribution plan.
II.Defined benefit plans favor workers who enter the plan at older ages.

Question

Quizplus · Accepted Answer

In a defined contribution plan, the employee bears the investment risk, not the employer. Defined benefit plans do favor workers who enter the plan at older ages because the benefits are typically based on salary and years of service, allowing older workers to accrue benefits more quickly.

Which of the Following Statements Concerning Defined Benefit and Defined