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
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